Chapter 901-2 Matching Grants

As used in this chapter:

(A) “Agriculture” means commercial animal or poultry husbandry, aquaculture, apiculture, the production for a commercial purpose of timber, field crops, tobacco, fruits, vegetables, nursery stock, ornamental trees, sod, flowers, or the growth of timber for a noncommercial purpose, if the land on which the timber is grown is contiguous to or part of a parcel of land under common ownership that is otherwise devoted exclusively to agricultural use, or were devoted to and qualified for payments or other compensation under a land retirement or conservation program under an agreement with an agency of the federal government pursuant to section 5713.30 of the Revised Code.

(B) “Agricultural Area” means land that a political subdivision has identified in an adopted local comprehensive land use plan as significant for agriculture.

(C) “Agricultural District” means a tract, lot, or parcel of land that is enrolled with the county auditor as land devoted to agricultural use pursuant to Chapter 929. of the Revised Code.

(D) “Agricultural Easement” means an incorporeal right or interest in land that is held for the public purpose of retaining the use of land predominantly in agriculture; that imposes any limitations on the use or development of the land that are appropriate at the time of creation of the easement to achieve that purpose in perpetuity; that is in the form of articles of dedication, easement, covenant, restriction, or condition; and that includes appropriate provisions for the holder to enter the property subject to the easement at reasonable times to ensure compliance with its provisions pursuant to section 5301.67 of the Revised Code.

(E) “Agricultural Easement Value” means the difference between the market value and the farmland value using the comparable sales method of appraisal.

(F) “Agricultural Security Area” means an area of at least 500 acres of contiguous land that is enrolled with the county commissioners and township trustees for a period of ten years and devoted to agricultural use pursuant to sections 931.01 to 931.09, 931.99, and 5709.28 of the Revised Code.

(G) “Applicant” or “Local Sponsor” means a municipal corporation, county, township, or charitable organization that applies for a state-local matching grant on behalf of the landowner.

(H) “Application Property” means the land or lands that make up the holdings, on a single application, for which a state matching grant is being sought in exchange for the sale of a perpetual agricultural easement.

(I) ””Best Management Practices” means those farming methods generally accepted in the agricultural community as beneficial in conserving the productivity of farmland.

(J) “Century Farm” is an Ohio department of agriculture program designed to recognize families who have maintained a farm or homestead in their family for at least 100 years with an emphasis on preserved working farms.

(K) “Charitable Organization” means an organization that is exempt from federal taxation in accordance with subsection 501(a) and 501(c) of the internal revenue code of 1954, as amended and that is organized for the purpose of the preservation of agricultural land, in accordance with division (B) of section 5301.69 of the Revised Code.

(L) “Department of Agriculture” or “ODA” means the department of agriculture, state of Ohio.

(M) “Director” means the director of the Ohio department of agriculture or their designees.

(N) “Farmland Preservation Advisory Board” means the board as defined in section 901.23 of the Revised Code.

(O) “Farmland Value” means the price as of the valuation date for land, exclusive of buildings and related site improvements, used for agriculture which a willing and informed seller who is not obligated to sell would accept for the land, and which a willing and informed buyer who is not obligated to buy would pay for the land. A general real estate appraiser who is certified under Chapter 4763 of the Revised Code shall determine this value. This value applies only to the comparable sales method of appraisal, not the points based appraisal method.

(P) “Fund” means the “Clean Ohio Agricultural Easement Fund” as defined by division (F) of section 901.21 of the Revised Code, and the agricultural easement purchase fund as defined by division (E) of section 901.21 of the Revised Code.

(Q) “Grantor” means the landowner, partnership, corporation, or trust who sells or donates an agricultural easement to the director of the Ohio department of agriculture, a political subdivision, or a charitable organization.

(R) “Farmstead” means the portion of an application property on which is located a dwelling house, yard, or outbuildings such as a barn or garage is located.

(S) “Legal Entity” means a person, firm, corporation, association, or partnership, or other entity authorized under Ohio law.

(T) “Local Comprehensive Land Use Plan” means a municipal, county, or township, soil and water conversation district, comprehensive long range land use plan that identifies areas for agricultural protection and has been adopted by the local political subdivision.

(U) “Local Holder” means the municipal corporation, county, township, soil and water conversation district, or charitable organization as designated in the agricultural easement, which shares legal responsibility with the director of the Ohio department of agriculture to hold, monitor, supervise and enforce the provisions of the agricultural easement.

(V) “Local Sponsor” or “Applicant” means a municipal corporation, county, township, or charitable organization that applies for a state-local matching grant on behalf of the landowner.

(W) “Market Value” means the price as of the valuation date for land exclusive of buildings and related site improvements, in accordance with its highest and best use which a willing and informed seller who is not obligated to sell would accept for the land and which a willing and informed buyer who is not obligated to buy would pay for the land. A general real estate appraiser who is certified under Chapter 4763. of the Revised Code shall determine this value. This value applies only to the comparable sales method of appraisal, not the points based appraisal method.

(X) “NRCS” – natural resource conservation service. A division of the United States department of agriculture whose mission is to help people conserve, maintain and improve our natural resources and environment.

(Y) Ohio DNR – The department of natural resources division of soil and water conservation provides leadership and services that enable Ohioans to conserve, protect and enhance soil, water, and land resources.

(Z) “Option to Purchase an Agricultural Easement” means an agreement between the landowner and the department of agriculture in which ODA agrees to pay for the landowner’s transfer to the Ohio department of agriculture an agricultural easement on property at a fixed price within a certain time.

(AA) “Political Subdivision” means a municipal corporation, county, or township.

(BB) “Regional Balance” is based upon, but not limited to: 1) the number of applications received from a region in proportion to the total number of applications submitted; and 2) The total amount of funds a region has previously received in proportion to the total amount of funds distributed.

(CC) “Soil and Water Conservation District” (SWCDs) -SWCDs provide assistance to urban and agricultural land users. Their specialties are soil erosion prevention and water management. The SWCDs are promulgated in the “soil conservation and domestic allotment Act of 1935”, 16 U.S.C. §§590a -0590q-3.

Effective: 03/21/2006

R.C. 119.032 review dates: 11/22/2005 and 03/21/2010

Promulgated Under: 119.03

Statutory Authority: 901.22(A)

Rule Amplifies: 901.21, 901.22, 901.23

Prior Effective Dates: 02/01/02, 02/21/05

(A) To be eligible for consideration for a matching grant, the agricultural easement proposed to be purchased shall be on agricultural land that meets all the following criteria:

(1) The application property shall be valued, at the time the application is made, at its current agricultural use valuation for real estate tax purposes under section 5713.31 of the Revised Code, except for the homestead.

(2) Application Landowner must have fee simple title to the land.

(3) The landowner certifies that, to the best of the landowner’s knowledge, the application property contains no hazardous substances or toxic wastes.

(4) Title to the application property shall not be subordinate to any other legal or equitable interest, the exercise of which would result in a conversion of the land from predominately agricultural use. A subordination agreement must be obtained within 30 days from the date the landowner is notified they have been selected to proceed to phase II. An extension of time to obtain a subordination may be granted by ODA.

(5) All parcels submitted under one application shall be contiguous and no land that is included as part of the submitted parcels shall be excluded. Waiver of this requirement may be considered by ODA based upon farm size or value.

(6) The application property shall be enrolled, at the time the application is made, in the agricultural district program.

(B) All applications for matching grants which meet all of the foregoing eligibility requirements shall be ranked in accordance with the criteria established in rule 901-2-05 of the Administrative Code.

(C) If the application does not meet all of the above requirements, the director may disqualify such application.

Effective: 03/21/2006

R.C. 119.032 review dates: 11/22/2005 and 03/21/2010

Promulgated Under: 119.03

Statutory Authority: 901.22(A)

Rule Amplifies: 901.21, 901.22

Prior Effective Dates: 02/01/02, 02/21/05

(A) To be eligible for matching grants, political subdivisions, soil and water conservation districts, and charitable organizations:

(1) Must agree to be named as the local holder of the deed of agricultural easement and share legal responsibility to monitor, supervise and enforce the provisions of the easement.

(2) Must provide at least a twenty-five per cent local matching contribution in cash, or the landowner may agree to accept a minimum of a twenty-five per cent reduction of the appraised agricultural easement value.

(3) If the grant recipient is a charitable organization, it must be tax exempt and be organized for the purpose of the preservation of agricultural land and the submitted land must be valued for purposes of real property taxation at its current value for agricultural use under section 5713.31 of the Revised Code, except the homestead.

Effective: 03/21/2006

R.C. 119.032 review dates: 11/22/2005 and 03/21/2010

Promulgated Under: 119.03

Statutory Authority: 901.22(A)

Rule Amplifies: 901.22, 901.22, 5301.691(D)(2), 5301.67

Prior Effective Dates: 02/01/02

(A) The open enrollment application period shall not exceed ninety days per year.

(B) Application shall be made on a form provided by the director. The application shall contain information regarding:

(1) A resolution or ordinance from the political subdivision or a recorded action from a soil and water conservation district, charitable organization supporting the landowner’s application, certifying the availability and committing to pay the required local match is available, and agreeing to monitor, supervise and enforce the deed of agricultural easement on behalf of the director.

(2) The printed name, address, telephone number and signature of all owners of the application property, including land contract holders.

(3) The municipality, county, township, and street address where the application property is located.

(4) The most current deed reference book, volume and page or other reference to the place of record of the deed. In the case of multiple deeds, numbers for all the deeds shall be provided.

(5) The name, address and telephone number of the person to be contacted to view the application property if other than the landowner.

(6) Total number of acres as shown on the deed or instrument of record and the total number of acres currently available for agriculture, including forested land.

(7) The type of agriculture practiced.

(8) Identification of any existing restrictive covenants or third party interests.

(9) The current agricultural use value of the application property, and the market value of the application property as determined by the county auditor’s most recent assessment.

(10) The most recent copy of the real property record from the county auditor establishing that the application property is valued for purposes of real property taxation at its current value for agricultural use under section 5713.31 of the Revised Code, except the homestead.

(11) The most recent copy of the real property record from the county auditor establishing that the application property is currently enrolled in an agricultural district as provided for in section 929.02 of the Revised Code.

(12) A copy of the current owner’s deed of record.

(13) An aerial photograph of the application property showing a one mile radius of the application property, if available.

(14) A sketch, roughly to scale, or a map of the application property, including boundaries, existing roads and buildings, distance from sewer and water, interchanges, pipelines, and power easements, and noting any land excluded from the easement.

(15) A letter certifying that the application is part of a group of applications from a number of adjacent landowners if the application is within such a group.

(16) A statement of:

(a) Proximity to other protected lands;

(b) Management practices;

(c) Development pressure;

(d) Local comprehensive planning and farmland preservation efforts;

(e) Other factors as determined by the director prior to each application funding round.

(17) Narrative response to the tier two ranking criteria in paragraph (D) of rule 901-2-05 of the Administrative Code.

(C) A section of the application approved by the county soil and water conservation district indicating, but not limited to;

(1) Total number of acres available for agricultural use;

(2) Total number of such available acres considered prime, unique, or locally important;

(3) Total per cent of such available acres considered prime, unique or locally important.

(4) The date and status of the conservation plan, if any, which has been approved by the county soil and water conservation district.

(5) The date and status of any nutrient management plan.

(6) A United States geological service topographical map with ten foot contour intervals and a county tax map that includes tax parcel numbers.

(7) A soils report and a color-coded soils map containing a list of soil mapping unit names, symbols and land capability classes on the application property. The soils map shall color code soil types as follows:

(a) Class 1 = green

(b) Class 2 = yellow

(c) Class 3 = red

(d) Class 4 = blue

(e) Class 5-7 = uncolored

(f) Wetlands = cross-hatch, or shown on a separate map.

(D) The application must be signed by the municipal corporation, county commissioners, trustees, soil and water conservation district, charitable organization, or their authorized representative completing the application. The county or municipal planner, engineer or other qualified official as approved by the director must also sign the application to verify that all reported distances are accurate and complete.

(E) Certification by the county or municipal engineer that the existing property description is accurate. If not, a property survey will be required.

(F) If the grant recipient is a charitable organization, it must be tax exempt and be organized for the purpose of the preservation of agricultural land and the submitted land must be valued for purposes of real property taxation at its current value for agricultural use under section 5713.31 of the Revised Code.

(G) If the applicant requesting the matching grant is a charitable organization as defined in division (B) of section 5301.69 of the Revised Code, also required to be submitted is:

(1) A copy of the organization’s exemption under 26 U.S.C. 1, subsection 501(a) and 501(c);

(2) A statement of the organization’s stewardship endowment policy.

(3) An ordinance or resolution supporting the agricultural easement from the political subdivision(s) where the application property is located.

(4) In order for the charitable organization or soil and water conservation district to demonstrate to the director that it has the capability to hold, monitor and enforce an agricultural easement, the organization must provide, at the request of the director, information on the following:

(a) A copy of the organization’s by-laws stating that farmland preservation is one of its purposes.

(b) A list of the organization’s officers, board of directors, and members.

(c) The organization’s financial condition, including a balance sheet, revenue and expense statement, and the financing available for monitoring and enforcing an agricultural easement.

(d) The organization’s ability to provide the necessary managerial, legal and financial expertise to hold, monitor, and enforce an agricultural easement.

(H) No application shall be accepted which is:

(1) Completed and postmarked after the closing date for submission;

(2) Incomplete, or not accompanied by all of the information required under paragraphs (B) to (G) of this rule.

(I) Amendments\Clarifications to Easement Application:

(1) Amendments of application will be allowed only if the amendment is received prior to the application deadline. No amendment will be permitted after the application deadline.

(J) Clarification and Corrections

(1) During the application review process the Ohio department of agriculture may request clarification from an applicant\landowner and may give an applicant an opportunity to correct typographical errors\defects in their application.

(K) Applications must contain all material set forth in 901-2-04. Any application failing to meet the set forth requirements of the rule shall automatically be disqualified, unless the director believes that it is in the department’s best interest to waive any defect in the application.

Effective: 03/21/2006

R.C. 119.032 review dates: 11/22/2005 and 03/21/2010

Promulgated Under: 119.03

Statutory Authority: 901.22(A)

Rule Amplifies: 901.21, 901.22, 5301.67

Prior Effective Dates: 02/01/02, 02/21/05

(A) Prior to accepting applications for matching grants, the director shall notify and make available, through various farm organizations, charitable organizations, and political subdivisions: 1) the procedure for applying for matching grants; 2) the application; and 3) the farmland preservation ranking system.

(B) The farmland preservation ranking system shall be comprised of a two tier process. For each criterion in the one hundred point first tier, a weighted score range is indicated. Prior to each application funding round the director, with the advice of the farmland preservation advisory board, shall determine the specific value within this range for each ranking criterion as indicated in paragraph (C) of this rule. The highest ranking application properties in the tier one evaluation, as determined by the director, will then be submitted for tier two evaluation” as defined in paragraph (D) of this rule.

(C) Tier one evaluation (100 points total)

(1) Soil types and agricultural productivity; range: fifteen to thirty points. Emphasis for matching grants is placed on soils which are classified as prime or agricultural land officially designated unique or locally important.

(2) Protected areas. Range: fifteen to thirty points. Emphasis for matching grants is placed on land that is adjacent to or in close proximity, as mathematically determined by the department term is defined by the director, to agricultural land or other land that is conducive to agriculture, whether such land is in the process of being protected or is already permanently protected such that a buffer from development exists between land proposed for agricultural easement and areas that have been developed or likely will be developed for purposes other than agriculture. These protected areas include, but are not limited to, the following:

(a) Agricultural, natural resource, open space, or forested land that has already been permanently protected from development through agricultural or conservation easements:

(b) Flood pools, and other normally undevelopable waterbodies.

(c) Parks, open spaces, forests, nature preserves and other natural areas that are not protected from development through conservation easements but have permanent deed restrictions or other restrictions which the director determines could protect agricultural land.

(d) Publicly owned agricultural research lands that the director determines could protect agricultural land.

(e) Airports, military bases, or other developed areas that the director determines could be appropriately buffered by agricultural land.

(3) Use of best management practices including federally or state approved conservation plans; range: five to ten points. Emphasis for matching grants is given to the landowner who has a letter of support from the natural resource conservation service, soil and water conservation district, or other generally accepted qualified organization, as determined by the director, stating that the operation of the application property includes best management practices, utilizes appropriate conservation standards, has a forestry management plan approved by the Ohio department of natural resources, if applicable, and has a history of substantial compliance with federal and state agricultural laws.

(4) Development pressure. Range fifteen to thirty points. Emphasis for matching grants is placed on farmland faced with potential development pressure that is likely to affect the ability of the farm operator to conduct agricultural activities or cause conversion of the agricultural land to nonagricultural uses. Development factors include, but are not limited to, the following:

(a) Roadway distance from any border of the property to sanitary sewer and water;

(b) Roadway distance to the nearest freeway interchanges;

(c) Application property public roadway frontage;

(d) Development pressure as measured by activity such as an increase in lot splits, well or septic permits, traffic counts, or other indicators determined by the director to accurately measure such pressure.

(5) A local comprehensive land use plan which identifies areas for agricultural protection. Range fifteen to thirty points. Emphasis for matching grants is placed on application properties which are located within a designated agricultural area of a political subdivision’s long range plan and where the political subdivision has adopted specific action to protect the area, such as zoning where agriculture is the predominant land use, a commitment not to extend utilities, or initiate any non-agricultural development activity.

(6) Other criteria determined necessary by the director. Range fifteen to thirty points. These criteria include but, are not limited to, the following:

(a) Application property location relative to a metropolitan statistical area:

(b) Application property enrollment in the agricultural security area program:

(c) Historic or archaeological designationby the:

(i) Ohio historical preservation office, or

(ii) The national register of historic places established under the national historic preservation act (NHPA), or formally determined eligible for the listing in the national register of historic places by the State historic preservation officer (SHPO) or tribal historic preservation officer (THPO) and the keeper of the national register in accordance with section 106 of the NHPA, or

(iii) Formally listed in the State register of historic places of the SHPO.

(d) Century farm designation by the director.

(e) Application property with local match higher than the required twenty-five per cent minimum, through cash or donation, will receive additional points.

(D) Tier two evaluation (50 points total)

(1) The farmland preservation advisory board shall recommend to the director which of the highest ranking farms from the tier one evaluation should be awarded state matching grants. The farmland preservation advisory board shall base their recommendations on the applicants response to questions which may address but not be limited to, the following categories: farm succession plan, showcase farm, farm estate plan and provisions to promote local farmland in the community or other criteria deemed necessary by the director. Applicants shall address such categories through a narrative on space provided on the application form.

(2) Applicants may provide photos, maps, or other visual aids not to exceed three eight in half by eleven inch pages.

(E) For each funding round, the director may adopt some or all of the following guidelines:

(1) A limit on the number of application properties, acres, or dollar amount funded per county;

(2) A limit on the number of application properties per legal entity;

(3) A maximum dollar amount per acre of state matching grant from the fund;

(4) A maximum dollar amount of state matching grant per landowner shall not exceed one million dollars dollars, as required by section 901.22 of the Revised Code.

(5) A consideration of regional balance, as defined by paragraph (BB) in section 901-2-01 of the Administrative Code.

Effective: 03/21/2006

R.C. 119.032 review dates: 11/22/2005 and 03/21/2010

Promulgated Under: 119.03

Statutory Authority: 901.22(A)

Rule Amplifies: 901.22, 901.23

Prior Effective Dates: 02/01/02, 02/21/05

(A) Phase 1 “Application” – Within ninety days of the close of the application period, and after the farmland ranking system evaluation is completed, top scoring applications from the combined tier one” and tier two evaluations, in descending order, will be notified by the director that their application has been selected to proceed to phase 2 of the process.

(B) Phase 2 “Contingency” – ODA shall obtain, at landowner’s sole expense, the following documentation:

(1) A current title search performed by an authorized title insurance agency for the entire application property;

(2) A title insurance commitment naming the Ohio department of agriculture as an insured party;

(3) A survey, if required in the sole discretion of the director

(4) Landowner shall provide subordination agreement(s) from any party that has a legal or equitable interest in the land identified in the application, or in the title search, that the director determines is not conducive to keeping the land in agriculture.

(C) At the director’s discretion, a comparable land appraisal may be required. The party responsible for incurring the cost of the comparable land appraisal will be determined by the director prior to phase two “Contingency” of the application period.

(D) Costs incurred by ODA for the above items may be paid directly to ODA, or may be reimbursed to ODA through the title insurance company, as escrow agent, at closing. ODA will review the documentation for compliance with the program requirements, and if ODA determines that the documentation is satisfactory, landowner will receive written notice that they have been selected to proceed to phase 3.

(1) If the holder of a lien/mortgage on the property will not sign the subordination agreement prior to the signing of the deed of agricultural easement, the landowner must provide the office of farmland preservation a commitment letter from the lien/mortgage holder which states their obligations to subordinate their interests to ODA once at or prior to landowner receiving any funds from ODA.

(E) Phase 3 “Option to Purchase” – Landowners who have an option to purchase which confirms that the application property has been approved for grant funding, pending completion of title search, legal boundary, review, appraisal and signing of an option to purchase. Once ODA has received a signed option to purchase from the applicant, the application shall proceed to phase 4.

(1) The option to purchase shall include but not be limited to:

(a) The total amount of the offer per acre, and for the entire application property;

(b) A statement that the grantor has no actual knowledge of hazardous substances or wastes, and that the grantee is held harmless from any and all liability or expense arising from violation of environmental laws and regulations;

(c) Any other provisions the director deems necessary for the landowner to be aware of prior to signing a deed of agricultural easement, and permitted pursuant to section 901.21, 901.22 or 5301.641(D)(2) of the Revised Code.

(i) Within thirty days of receipt of the option to purchase from the director, the applicant and the landowner shall sign and return the document to the director, or advise the director, in writing, of their rejection of the offer. Failure of the applicant or landowner to act within thirty days of the date the offer is postmarked shall constitute a rejection of the director’s offer to purchase.

(ii) If the option to purchase is signed by all parties, then the application shall proceed to phase 4.

(F) Phase 4 “Review” – ODA shall review a title search and conduct a boundary line review, and if necessary obtain an appraisal in order to determine if application property meets the criteria to receive grant money under the program. A final determination as to the award of the grant shall be made in the sole discretion of the director. The review phase will consist of, but not be limited to:

(1) A title search or letter of clear title; however, if the title search reveals other third party interests, not previously known, that may not be conducive to keeping the land in agriculture if exercised, a statement of subordination to the terms of the agricultural easement shall be obtained from the third party by the landowner, before proceeding to section 901-2-08 of the Ohio Administrative Code. Otherwise, a statement of no unsubordinated third party interests shall be included in the results of the title search.

(2) A property survey, if required, in accordance with paragraph (E) of rule 901-2-04 of the Administrative Code, to be conducted at the expense of the landowner.

(3) A property appraisal on the application property, if required.

(4) The applicant completing a present condition report on a form provided by the director as specified in rule 901-2-09 of the Administrative Code.

(5) Such other information as is necessary and useful to determine that the property is appropriate for inclusion, as requested by the director.

(G) Phase 5 “Execution of Deed of Easement” upon the review of documents required by this rule, the applicant landowner shall convey a deed of agricultural easement to the state of Ohio where:

(1) ODA shall:

(a) Tender a lump sum payment to title insurance company, as escrow agent for distribution to:

(i) The landowner and/or landowner’s assignee(s) in the proportions directed by the landowner, or

(ii) Through an installment purchase agreement. Such agreement must be pre-approved by the director and shall include:

(a) Any installment payment terms;

(b) Dates and amounts of payments and to whom payable, including without limitation any assignee(s) of landowner;

(c) Interest rate on the outstanding balance.

Effective: 03/21/2006

R.C. 119.032 review dates: 11/22/2005 and 03/21/2010

Promulgated Under: 119.03

Statutory Authority: 901.22(A)

Rule Amplifies: 901.22

Prior Effective Dates: 02/01/02, 02/21/05

Rescinded eff 2-21-05

(A) The purpose of the present condition report is to document and record the use, nature and condition of an application property and its improvements at the approximate time an agricultural easement is purchased. The report is used as a baseline document to assist in monitoring and enforcing the terms of the deed of agricultural easement. The report shall be completed by the applicant using the form provided by the director. The applicant and the landowner shall sign the acknowledgment page. The present condition report may be an exhibit to the deed of agricultural easement.

(B) The narrative descriptions in the present condition report shall be in sufficient detail and clarity to accomplish the purposes of the report.

(C) All photographs shall be in color, clear, and in focus, except historical photographs. No photo static copies of photographs shall be used in the present condition report, except historical photographs.

(D) All maps and accompanying supporting documentation shall be clearly legible and capable of being photocopied.

(E) If the county recorder in the county where the deed of agricultural easement is recorded refuses or is unable to record the maps and photographs, contained in the present condition report, the maps and photographs shall be filed with the office of farmland preservation at the Ohio department of agriculture. A separate agreement will be signed by ODA, the local sponsor and the grantor acknowledging that such maps and photographs shall be filed with the office of farmland preservation at the Ohio department of agriculture.

Effective: 03/21/2006

R.C. 119.032 review dates: 11/22/2005 and 03/21/2010

Promulgated Under: 119.03

Statutory Authority: 901.22(A)

Rule Amplifies: 901.22, 5301.691(D)(2)

Prior Effective Dates: 02/01/02, 02/21/05

(A) Appraisals required under this section shall be conducted using either a points- based appraisal system or the comparable sales methodology.

(B) The points based appraisal system shall comply with the requirements set forth in 901.22 (D) of the Revised Code.

(C) The comparable sales methodology shall comply with the requirements set forth below:

(1) The market value, farmland value, and agricultural easement value shall be based on an analysis of comparable sales, and shall be conducted in accordance with standards approved by the director. If the landowner intends on seeking federal tax benefits for a partial donation of the agricultural easement value, then the appraisal shall also be conducted by a qualified appraiser as defined under section 1.170a-13(c)(5) of internal revenue service code. If an appraiser cannot practicably conduct an appraisal based on an analysis of comparable sales, the appraiser may conduct an appraisal using another methodology, only if that methodology is a acceptable to the director, and the appraisal report clearly describes the information considered, the appraisal procedures followed and the reasoning that supports the analyses, opinions and conclusions.

(2) The value of buildings and related site improvements on the application property tract will not be considered in determining the agricultural easement value.

(3) The appraiser selected by the director shall be a general real estate appraiser who is certified under Chapter 4763 of the Revised Code.

(4) The appraiser shall supply a minimum of three original copies of a self contained appraisal report which contains, at a minimum, the following information in the following format:

(a) Introduction.

(b) Letter of transmittal.

(c) The appraiser’s certificate of value as to market value, farmland value and agricultural easement value.

(d) A table of contents.

(e) A summary of salient facts and conclusions.

(f) The purpose of the appraisal.

(g) The definitions, including definitions of market value, farmland value and easement value.

(5) Description of property.

(a) A brief description of the area neighborhood.

(b) A description of the appraised property.

(i) A legal description.

(ii) Property data and zoning.

(iii) A brief description of improvements.

(iv) Color photos of subject property’s fields and improvements.

(v) Tax map or official map used for tax assessment purposes showing the subject property and its relationship to neighboring properties.

(vi) An aerial photograph of subject property showing boundaries, roads, driveways, building locations, rights of way and land use.

(vii) A map showing the location of the application property in a county or municipality.

(viii) Soils map showing property boundaries.

(6) Analyses and conclusions.

(a) An analysis of the highest and best use.

(b) The valuation methodology: market value.

(i) Comparable sales data, at least three comparable sales that are not more than two years old.

(ii) An adjustment grid, with the respective percentage of adjustment assigned to each comparable or each variable included, as well as a thorough and clear narrative description of adjustment variables and percentages.

(iii) A locational map of comparable sales showing the location of the application property. With respect to the comparables, a single locational map shall be submitted with respect to each county from which comparable sales are drawn.

(c) The market value estimate.

(d) The valuation methodology: land value.

(i) Comparable sales data, at least three comparable sales that are not more than two years old.

(ii) An adjustment grid, with the respective percentage of adjustment assigned to each comparable for each variable included as well as a thorough and clear narrative description of adjustment variables and percentages.

(iii) A locational map of comparable sales showing the location of the application property with respect to the comparables. A single locational map shall be submitted with respect to each county from which comparable sales are drawn.

(e) The farmland value estimate.

(f) The agricultural easement value.

(g) An appendix containing a brief statement of the appraiser’s professional qualifications including experience with conservation easement appraisal, and a copy of the appraiser’s current certification under Chapter 4763 of the Revised Code.

(7) The appraiser shall supply information concerning comparable sales as follows:

(a) At least three comparable sales shall be used for estimating market value, farmland value, and agricultural easement value. If the appraiser cannot obtain sufficient comparable sales data within the same county as the application property, the appraiser may use comparable sales within twenty five miles of the property to be appraised. The use of comparable sales which require adjustment of fifty per cent or more is permitted only with the approval of the director.

(b) Pertinent data for each comparable sale used in the preparation of the appraisal shall be stated in the appraisal report, including the date of sale, the purchase price, zoning, estimated road frontage in feet (for determining market value) and soil mapping units (for determining farmland value). The appraisal shall include an analysis comparing the pertinent data for each comparable sale to the application property. This analysis shall be in the form of a narrative statement of the information considered and the reasoning that supports the analyses, opinions and conclusions, and an adjustment grid assigning, when practicable, and within the standards approved by the director, approximate dollar values to adjustment shown on the adjustment grid.

(c) The location of each market value comparable sale used in the appraisal report shall be shown accurately on a comparable sales map depicting the entire county in which the comparable sale is located, and shall be sufficiently identified and described so it may be located easily. If the comparable sales map depicts the county in which the property that is the subject of the appraisal is located, that property shall also be sufficiently identified and described so it may be located easily.

(d) The location of each farmland value comparable sale used in the appraisal report shall be shown accurately on a comparable sales map depicting the entire county in which the comparable sale is located, and shall be sufficiently identified and described so it may be located easily. If the comparable sales map depicts the county in which the property that is the subject of the appraisal is located, that property shall also be sufficiently identified and described so it may be located easily. If a farmland value comparable sales map and a market value comparable sales map would depict the same county, they may be combined in a single map.

(e) For comparable sales used to estimate the farmland value, the appraiser may use sales of land that are confined to agricultural use because of agricultural easements or other legal restrictions or physical impairments that make the land valuable only for agricultural use. Comparable sales shall be in primarily agricultural use. Data may also be gathered from farm real estate markets when farms have no apparent development value.

(f) The appraiser shall set forth the reasons the farmland comparable sales are confined primarily to agricultural use. Examples of these reasons include:

(i) The application property has public or private land use restrictions.

(ii) The application property is within a flood plain or a wetland (in whole or in part).

(iii) The application property is landlocked, subject to additional easements, subject to restrictive zoning or has other physical attributes which limit its development capacity.

(g) The appraiser shall provide at least three originals of each report to the director which shall be bound with rigid covers.

(h) The appraisal shall include the entire acreage offered for easement sale. If, following completion of the appraisal, acreage is added to or deleted from the proposed easement sale for any reason, the appraisal shall be revised accordingly or the appraiser shall agree in writing to the use of a per acre value to account for the change in easement value resulting from such a change in acreage.

(i) If the easement acquisition includes building envelopes or retained rights, the report shall include a map of those areas, assign a specific acreage to the area to be placed under easement and include a discussion of the impact of these provisions on the valuation conclusion.

(j) The appraisal shall not be based on speculative development potential or hypothetical development scenarios. The appraised value shall be based on the subject property’s existing development rights and status (unimproved or improved with roads and utilities, approved for subdivision, or not approved for subdivision, etc.).

HISTORY: Eff 2-1-02; 2-21-2005

Promulgated Under: 119.03

Statutory Authority: 901.22(A)

Rule Amplifies: 901.22

R.C. 119.032 review dates: and 02/01/2007

(A) Deed provisions

(1) The deed of agricultural easement shall identify the owner of the application property as grantor and the director of the department of agriculture and the local holder as the grantees.

(2) The deed of agricultural easement shall comply with but not be limited to, section 901.22(A)(2) of the Revised Code.

HISTORY: Eff 2-1-02; 2-21-2005

Promulgated Under: 119.03

Statutory Authority: 901.22(A)

Rule Amplifies: 901.22, 5301.67

R.C. 119.032 review dates: and 02/01/2007

(A) The local holder who sponsors the applicant shall be obligated to monitor and enforce compliance with the terms and conditions of the deed of agricultural easement. Within one year of the purchase of the easement and not less than annually thereafter, the local holder shall visit the application property preserved with state matching dollars to determine if the provisions of the deed of agricultural easement are being complied with. Prior to conducting the monitoring visit, the local holder shall review the provisions of the deed of agricultural easement.

(B) Written notice of the annual on-site inspection shall be sent by the local holder by certified mail to the landowner at least ten days prior to the date of inspection. The annual inspections shall be conducted between eight a.m. and five p.m. on a weekday other than a legal holiday, unless the landowner agrees otherwise. The director and the local holder shall have the right with reasonable notice, to inspect the property as long as the agricultural easement is in effect.

(C) Within a reasonable time after conducting an inspection the local holder shall prepare a written inspection report including but not limited to the following information:

(1) The identification of the land inspected.

(2) The name of the owner of the property at the time the easement was originally acquired and the name of the current owner of the land inspected.

(3) Description of modifications in the number, type, location or use of any buildings or structures on the land since the date of the filing of the deed of agricultural easement.

(4) A description of deviations from best management practices observed on the restricted land.

(5) A description of any subsequent legal interests claimed on the protected property.

(D) A copy of the inspection report shall be sent by certified mail to the landowner and the director.

(E) If the local holder’s inspection reveals any violations of the easement, the local holder shall include, with its report sent to the landowner and the director, a notice of violation. The notice shall contain the following:

(1) A description of the action or condition which the local holder alleges is a violation of the terms of the easement.

(2) A statement of the measures necessary to correct the alleged violation.

(3) A time frame of thirty days for correcting any violation(s).

(4) A statement that failure to correct the violation(s) will lead to civil action.

(F) If the violation(s) are not corrected as outlined to the landowner in the report of paragraph (E) of this rule, the director or the local holder shall initiate an action in the court of common pleas of the county in which the restricted land is located seeking and order requiring correction of the violation(s), enjoining further violation of the terms of the easement, and may request additional relief of the court. The director shall be named a party in the initiation of any court proceedings. The above actions may occur unless the local holder does one of the following:

(1) Determines that the landowner has commenced the necessary corrective measures, or determines that the necessary corrective measures cannot reasonably be completed within the thirty day period described in this subsection, and

(2) Establishes a period not to exceed one hundred eighty days within which corrective measures shall be completed.

(3) When the violation is corrected, the local holder or the director shall issue a letter of no further action required.

(a) If the violation is not corrected within the one hundred eighty day time period, the local holder shall commence and prosecute the enforcement action in the court of common pleas.

(G) The director shall be a party to all enforcement actions filed by the local holder. The director, at the request of the local holder, may assist in any court actions. No enforcement action shall be dismissed without the consent of the director.

(H) If at any time the director or the local holder believes that a violation of the easement could irreversibly diminish or impair the property for agricultural use they may take immediate, appropriate legal action, including obtaining an injunction without notice, to stop the violation or to require the grantor to correct the violation.

(I) Notwithstanding any other rule in this section, the director or the director’s designee reserves the right to conduct an inspection of the application property and enforce any violations of the deed of agricultural easement.

Effective: 03/21/2006

R.C. 119.032 review dates: 11/22/2005 and 03/21/2010

Promulgated Under: 119.03

Statutory Authority: 901.22(A)

Rule Amplifies: 901.22, 5301.691

Prior Effective Dates: 02/01/02, 02/21/05

(A) An agricultural easement which is purchased in whole or in part from the fund must be held in perpetuity. If due to an unexpected change in the conditions of or surrounding the land that is subject to the easement makes impossible or impractical the continued use of the land for the purposes described in the easement, then the grantor may request the local holder to extinguish the easement, either in whole or in part pursuant to division (A) of section 901.22 of the Revised Code.

(B) Upon request, the local holder shall investigate the claim by the grantor that there has been an unexpected change in the conditions of or surrounding the land that makes it impossible or impractical to continue use of the land for the agricultural purposes described in the easement. These changes can be:

(1) Natural physical changes to the land that have occurred which are generally irreversible in nature and permanently affect the agricultural use of the land; or

(2) Development pressure adjacent to or surrounding the land that renders the agricultural use of the land impossible or impractical.

(C) The director and the local holder may seek expert advice from individuals, agencies and organizations to assist in developing objective criteria on which an extinguishment can be evaluated.

(D) The investigation by the local holder must include an on-site inspection of the land and a conference with the grantor. Any costs incurred by the local holder to conduct the investigation may be charged to the grantor. The results of the investigation will be used by the director and the local holder to determine whether to approve the request for extinguishment.

(E) The director and the local holder must both approve or reject a request from the grantor for an extinguishment of an agricultural easement within ninety days of receiving said request, or the request is considered to be rejected.

(F) If the request for extinguishment is approved by the director and the local holder, a resolution or ordinance from the legislative authority or local holder stating support for the extinguishment of the agricultural easement, along with any related supporting materials documenting the reasons for extinguishment, shall be forwarded to the director for purposes of record keeping in the department.

(G) Upon receipt of approval of the extinguishment from the director, the local holder shall notify the grantor of the director’s decision to approve the request for extinguishment, and, on a form provided by the director, shall notify the county auditor and county recorder of the extinguishment who shall place a lien upon the property.

(H) If the grantor’s request for extinguishment of the agricultural easement is not approved by the director and local holder, then the grantor may appeal the decision to the court of common pleas.

(I) If the grantor donated any portion of the agricultural easement to the director, and received federal tax benefits for doing so, then the easement can be extinguished only by a court proceeding using the criteria specified in paragraphs (A) to (G) of this rule.

(J) An agricultural easement may be extinguished by eminent domain proceedings under applicable state or federal law.

HISTORY: Eff 2-1-02

Rule promulgated under: RC 119.03

Rule authorized by: RC 901.22(A)

Rule amplifies: RC 901.21, 901.22

R.C. 119.032 review dates: and 02/01/2007

(A) Upon the sale, exchange or involuntary conversion of the protected property a recoupment of funds, equal to the proportionate value of the easement compared to the total market value of the land when the easement was purchased shall upon receipt by the local holder, be remitted to the director for deposit in the agricultural easement purchase fund created in division (E) of section 901.21 of the Revised Code.

(B) The recoupment amount will be calculated by using the percentage of the fair market value of the land that was granted from the fund at the time the agricultural easement was acquired, and applying that percentage to the fair market value at the time the agricultural easement is extinguished. The fair market value shall be determined by a general real estate appraiser who is certified under Chapter 4763. of the Revised Code.

(C) The local holder’s proportionate value contribution to the purchase shall be returned to the political subdivision or charitable organization that made the contribution.

(D) If the minimum twenty-five per cent local match for the agricultural easement value was by donation from the landowner, the proportionate value which was donated shall be retained by the landowner.

HISTORY: Eff 2-1-02

Rule promulgated under: RC 119.03

Rule authorized by: RC 901.22(A)

Rule amplifies: RC 901.21, 901.22

R.C.119.032 review dates: and 02/01/2007

(A) Board meetings

The director or the director’s designee shall call meetings of the advisory board when it is necessary for the board to provide advice to the director and the non-voting chairperson shall provide notice of any meetings pursuant to paragraph (B) of this rule.

(B) Notice of meetings

(1) Regular meetings: Notice of all of the advisory board’s regularly scheduled meetings, including date, starting time and location will be posted on the Ohio department of aAgriculture’s web site and in Gongwer at least ten days in advance of all scheduled meeting.

(2) Special meetings: Notice of date, time, place, and purpose of any special meetings shall be placed in Gongwer, on the Ohio department of agriculture’s website and sent to media outlets that requested such information, at least twenty-four hours prior to said meeting.

(3) Emergency meetings: Notice of date, time, location and purpose of all emergency meetings shall be given to all news media who requested prior notification, and the meeting notice shall be published in Gongwer and on the department’s website.

(C) Any person may obtain prior notice of the date, time, and location of any regularly scheduled, special, or emergency, meetings when a particular type of business is to be discussed by requesting prior notification in writing from the “Ohio Department of Agriculture, Office of Farmland Preservation, 8995 East Main Street, Reynoldsburg, Ohio 43068.”

HISTORY: Eff 8-25-03; 2-21-2005

Promulgated Under: 119.03

Statutory Authority: 901.22(F)

Rule Amplifies: 901.23

R.C. 119.032 review dates: 08/25/2008