Everything You Need to Know About Agricultural Acreage

and More!Including

small suburban plotsJennifer Fimbel

CCE Senior Resource EducatorAgriculture

Cornell Cooperative Extension provides equal program and employment opportunities.The County of Dutchess partially funds Cooperative Extension programming in Dutchess County.

Agricultureag·ri·cul·ture  (ag-ri-kul-chr) n. The science, art, and business of cultivating soil, producing crops, and raising livestock; farming. (http://www.thefreedictionary.com/agriculture)

The Federal Government and New York State define "a farm" as "any agricultural operation that produces or sells over $1,000 worth of product."

Cornell Cooperative Extension provides equal program and employment opportunities.The County of Dutchess partially funds Cooperative Extension programming in Dutchess County.

• Hobby and Small “farms” or “farmettes”– New owners may not be grandfathered in– Suggest a variance for youth projects such 4-H and/or FFA– Rules of thumb (Zoning aside);

• 500 pounds of animal requires 1 acre of grazing land– ½ horse– ½ cow– 2-3 sheep– 4 goats– 2 pigs

– Zoning is an issue– Zoning changes so keep checking with the local Zoning

Board– Check Town and Village zoning

Town of Rhinebeck

The keeping of farm animals on non-farm parcels of at least three acres in area and up to seven acres in area shall be permitted in accordance with the following limitations:• The keeping of not more than one adult

or fully grown horse, cow, hog, beef cattle, sheep, goat or other four-legged domestic-type farm animal or combinations thereof per three acres of land for the first animal one acre for each additional animal shall be permitted.

• In addition, the keeping of not more than a total of any combination of eight adult or fully grown chickens, ducks, geese or other fowl or birds of any type per three acres of land shall be permitted.

In the Village of Rhinebeck, except for farm lots, for every two acres of land there shall not be more than one adult or fully grown horse, cow, hog, beef cattle, sheep, goat or other four-legged domestic-type farm animal or combination thereof. On any nonfarm lot, the keeping of fully grown chickens, ducks, geese or other fowl shall be prohibited.

Village of Rhinebeck

Agriculture: A part of the community

• supports the local economy, protects the environment• preserves the aesthetic landscape and rural quality of life• provides a source of local food• important small businesses that provide jobs and sell product• purchase goods and services from other local businesses• farms pay more in taxes than they require in municipal services• An average house requires $1.40 in municipal services for every

dollar paid in taxes• A farm costs only 28 cents in services for every dollar paidhttp://www.glynwood.org/files/previous/pdfs/ReportsandGuides/HVAGreport.pdf

Cornell Cooperative Extension provides equal program and employment opportunities.The County of Dutchess partially funds Cooperative Extension programming in Dutchess County.

A Snapshot of Dutchess County Agriculture via USDA Agriculture 2012 Agriculture Census Data and 2015 Agriculture District Data

• 30% of our total acreage• 3rd largest employer in the county• Part of the $438M Tourism Industry• Nearly 1700 Farms• Most farms are between 10-180 acres in size• 41,000 Acres of hay• 25,000 Acres grain• 8600 Acres corn• 9500 horses• 8500 sheep and goats• 4500 cows

Cornell Cooperative Extension provides equal program and employment opportunities.The County of Dutchess partially funds Cooperative Extension programming in Dutchess County.

Cornell Cooperative Extension provides equal program and employment opportunities.The County of Dutchess partially funds Cooperative Extension programming in Dutchess County.

• $44.8 Million in Specialty or Value – Added Products

Agricultural Districts– “New York’s Agricultural Districts Law was enacted in 1971 to help

keep farmland in agricultural production. A county legislative body must approve and forward the petition to the Commissioner of Agriculture for formal review and designation. As of December 2008, the state had 251 agricultural districts that represent about 8.5 million acres of land.

– Farms in agricultural districts receive important “right-to-farm” protections, such as protection from nuisance lawsuits.

– The taxation of farmland within agricultural districts for certain municipal improvements is limited.

– NYS Department of Agriculture and Markets (NYS DAM) determinations can help defend farmers in zoning disputes or private nuisance lawsuits.

– The NYS DAM has the authority to intervene when local governments enact laws that unreasonably regulate farm operations in agricultural districts.

– Additional measures—such as agricultural impact statements, notice of intent filings and real estate disclosure notices—are required for new developments and public projects in agricultural districts.”*

Agriculture and Markets  § 310. “Disclosure. 1. When any purchase and sale contract is presented  for  the  sale, purchase, or exchange of real property located partially  or wholly within an agricultural district established  pursuant  to  the  provisions of this article, the prospective grantor shall present to the  prospective grantee a disclosure notice which states the following:    "It  is  the  policy  of  this  state  and this community to conserve, protect and encourage the development and  improvement  of  agricultural land  for  the  production of food, and other products, and also for its  natural and ecological  value.  This  disclosure  notice  is  to  inform  prospective  residents  that the property they are about to acquire lies partially or wholly within an agricultural  district  and  that  farming activities  occur  within  the  district.  Such  farming  activities may  include, but not be limited to, activities that cause  noise,  dust  and  odors.  Prospective  residents  are  also  informed that the location of  property within an agricultural  district  may  impact  the  ability  to  access  water  and/or  sewer  services  for  such property under certain circumstances.  Prospective purchasers are urged to contact the New York State  Department  of  Agriculture  and  Markets  to  obtain  additional  information  or  clarification  regarding  their  rights and obligations  under article 25-AA of the Agriculture and Markets Law."    1-a. Such disclosure notice shall be signed by the prospective grantor and grantee prior to  the  sale,  purchase  or  exchange  of  such  real property.    2.  Receipt  of such disclosure notice shall be recorded on a property transfer report form prescribed by  the  commissioner  of  taxation  and finance  as  provided  for  in section three hundred thirty-three of the  real property law.”**

Benefits for Production Agriculture• Agricultural Value Assessment (AVA)

– Minimum of 7 acres in production, excluding the house– Gross an average of $10,000 in sales of agricultural products for

2 years– Less than 7 acres and gross an average of $50,000 for 2 years– AVA is based on the underlying quality of the soils (Soils of

Statewide importance and Prime Agricultural Soils will garner the most value in reductions).

• Farmers’ School Tax Credit– “Qualified farmers may obtain a state income tax credit for

school taxes through the Farmers’ School Tax Credit. The credit is not a real property tax exemption and does not diminish local school district revenue.”*

• Farm Building Exemptions– “Section 483 of the NYS Ag and Markets Law exempts new or

reconstructed agricultural buildings, such as barns or farm worker housing, from any increase in assessed value that results from the improvement. Application to the local assessor must be made within a year following the completion of construction work. The exemption continues automatically for 10 years, as long as the building continues to be used for farming.

– Sections 483-a, 483-c, and 483-d permanently exempt from taxation certain agricultural structures, such as silos, grain storage facilities, bulk tanks, manure facilities, temporary greenhouses, and farm worker housing or commissaries/food preparation facilities. Structures must be located on parcels of at least 5 acres used for profitable agricultural production. Structures used for processing, retail merchandising, personal use or residences of applicants and their immediate families do not qualify for the exemption.”

• Historic Barns Rehabilitation Tax Credit– “Available to individuals and corporations who have restored a

barn built before 1936. The income tax credit may equal up to 25 percent of the cost of rehabilitating the barn. To be eligible, the barn must be built to house farm equipment, livestock or agricultural products (buildings built for or converted to residential use are not eligible). In addition, the barn must meet the tax definition of income producing (farming, rental, office, commercial). Use tax Form IT-212-ATT.”*

• Replanted or Expanded Orchards and Vineyards Exemption– “For owners of orchards or vineyards, a partial tax exemption

exists that applies to newly replanted or expanded orchard and vineyard land. Land eligible for agricultural assessment and used solely for the replanting or expansion of an orchard or vineyard is exempt from taxation for up to six successive years.”*

• Sales Tax Exemptions– “New York tax law exempts certain items used in farm production from

state and local sales and use taxes. Items must be used “predominantly” (more than 50 percent) for farm production in order to qualify. Exempt items include personal property used for production/operation; building materials used for farm buildings or structures; services to install, maintain or repair farm buildings or structures; motor vehicles used predominantly for production/operation; and fuel, gas, electricity, refrigeration or steam used for production/operation.”

• Forested Land– “"Farm woodland" means land used for the production for sale of

woodland products, including but not limited to logs, lumber, posts and firewood. Farm woodland shall not include land used to produce Christmas trees or land used for the processing or retail merchandising of woodland products.

– Farm woodland which is part of land which is qualified for an agricultural assessment, provided, however, that such farm woodland attributable to any separately described and assessed parcel shall not exceed fifty acres.

– To encourage the long-term ownership of woodlands, Section 480-a of the Real Property Tax Law allows eligible owners of forestland to receive reductions in their tax assessment. Landowners must own a minimum of 50 acres of contiguous forestland and be willing to commit the land to forest crop production. Landowners must follow forest management plans prepared by qualified foresters and approved by the NYS Department of Environmental Conservation (DEC)”*

• You don’t need to know everything about agriculture in order to sell real estate, but now you should be better informed into what agricultural property owners will need to know when making a purchase.

Resources* New York Agricultural Landowner Guidehttp://www.ongov.net/planning/documents/NYAgLandownerGuide.pdf

NYS Department of Agriculture and MarketsAgricultural District Lawhttp://www.agriculture.ny.gov/AP/agservices/25-AA.pdf

QUESTIONS?

Dutchess County Agriculture…

It’s A Growing Thing! SM

Cornell Cooperative Extension provides equal program and employment opportunities.The County of Dutchess partially funds Cooperative Extension programming in Dutchess County.