Agricultural District Law:

The constitution of the State of New York directs the state legislature to provide for the protection of agricultural lands.  It is the purpose of the Agricultural Districts Law to provide a locally-initiated mechanism for the protection and enhancement of New York State’s agricultural land as a viable segment of the local and state economies and as an economic and environmental resource of major importance.

Enacted in 1971, New York’s Agricultural Districts Law (Article 25AA of New York State Agriculture and Markets Law)(AML) is a very effective tool for maintaining lands in agriculture and ensuring New York’s position as an outstanding agricultural state.  The Agricultural Districts Law recognizes that agricultural lands are important and irreplaceable resources, which are in jeopardy of being lost as a result of increasing cost of agricultural businesses, development pressures and regulatory constraints.  The Law seeks to create economic and regulatory incentives which encourage farmers to continue farming.  Relying primarily on the initiative of landowners and local governments, with state oversight, the law provides agricultural landowners with a number of benefits and protections.

Agricultural Districts Law and Local Regulations:

New York State Agricultural District Law protects farm operations within an agricultural district from the enactment and administration of unreasonably restrictive local regulations unless it can be shown that public health and safety is threatened.  It is important to note that Agricultural Districts does not give a farm owner any as-of-right exemption or waiver from local regulations.  Rather, the Agricultural District Law provides farm owners within an agricultural district assistance from the NYS Department of Agriculture and Markets in instances in which the farmer believes that local regulatory requirements are unreasonably restricting the farm operation.  The NYS Department of Agriculture and Markets evaluates the reasonableness of a specific requirement or process imposed on a farm operation on a case-by-case basis and works with both the farm owner and the municipality to achieve the best solution possible.  The Commissioner of Agriculture and Markets does, however, have the authority to institute an action or compel a municipality to comply with this provision of the Agricultural Districts Law.  In such instances, the municipality must demonstrate that the regulation or requirement is necessary for the protection of public health and safety.  The NYS Department of Agriculture and Markets has developed guidelines on the effect of Agricultural Districts Law AML 25AA, §305-a on enactment and administration of local laws and regulations.  In particular, the Guidelines for Review of Local Zoning and Planning Laws guidance document provides valuable information on a variety of local regulatory issues.  These documents are updated periodically and may be obtained from the NYS Department of Agriculture and Markets at https://agriculture.ny.gov/ and Ag District page at https://agriculture.ny.gov/land-and-water/agricultural-districtsand restrictive laws page at https://agriculture.ny.gov/land-and-water/section-305-review-restrictive-laws

Agricultural Districts Law and Local Planning:

State certified agricultural districts and county agricultural and farmland protection plans are community shaping influences in much the same way as existing and proposed infrastructure; wetlands, floodplains; topographical features; cultural, historic, and social amenities; economic needs; etc. are viewed.  The Agricultural Districts law is a valuable planning tool to conserve, protect, and encourage the development and improvement of the agricultural economy; protect agricultural lands as valued natural and ecological resources; and preserve open space.  In addition to AML Article 25AA, §305-a, limitations on local authority in Town Law §283-a and Village Law §7-739 were enacted to ensure that agricultural interests are taken into consideration during the review of specific land use proposals.  Town Law §283-a (1) and Village Law §7-739 (1), as amended by chapter 331 of the Laws of 2002, require local governments to “…exercise their powers to enact local laws, ordinances, rules or regulations that apply to farm operations in contravention of the purposes of article twenty-five-AA of the agriculture and markets law, unless it can be shown that the public health or safety is threatened.” These amendments make the Town and Village Law provisions consistent with AML section 305-a regarding showing a threat to the public health or safety.  AML §305-a, subdivision 1 is not a stand-alone requirement for coordination of local planning and land use decision making with the agricultural districts program.  Rather, it is one that is fully integrated with the comprehensive planning, zoning and land use review process.

https://agriculture.ny.gov/

Agricultural Districts Law and Property Ownership Disclosure:

• 310 of the Agricultural Districts Law requires that 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, 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 local municipal water and/or sewer services for such property under certain circumstances.”

https://agriculture.ny.gov/land-and-water/sound-agricultural-practices

How long will the process take?

New York State has AML, Article 25-AA outlined a process that will take 180 days from the beginning of the 30-day submission period (April). With the enrollment window beginning April 1st, the completion of the entire process is anticipated to be October 1st, but will be dependent on Board meeting and public hearing dates.

How will landowners be informed throughout the process?

• If anything is missing from your enrollment packet or if the PCAFPB requires additional information, it will contact the landowner by email.
• The landowner will be contacted by email to set up a farm visit during the month of May.
• Landowners will be contacted by email of the PCAFPB’s recommendation and date for the County Legislature’s Physical Services Committee Meeting date to allow landowners to attend. (Landowners can also check on the County website at http://new.putnamcountyny.gov/legi/legislative-calendar/ to see the date of meetings as well)
• Landowners will be notified by email of the County Legislature’s decision for inclusion or rejection.
• Landowners will be notified by letter after the County has received certification form NYS Department of Agriculture and Markets.

Can Putnam County’s Agricultural District change?

Putnam County’s Agricultural District was created in 2003 as a county-wide district. The agricultural district was re-certified in 2011 and again in 2019. The next scheduled state required programmatic review will be in 2027. At that time parcels wishing to remain in the agricultural district must re-apply. A reminder will be sent out to Putnam County Agricultural District members. During the NYS eight – year review is the only time that parcels can be removed from the agricultural district.

Timeline as outlined in NYS Agricultural District Law Article 25-AA:

We often get phone calls from landowners with questions about Ag Assessment and Ag Districts. These two programs are designed to help keep farmland in viable, commercial agricultural production, but they work very differently. One program provides financial incentives for agricultural use, through tax relief. The other provides protections from regulations and nuisance law-suits for landowners who are engaged in activities that are associated with agricultural production.

The Agricultural Assessment Program, established under the Agriculture & Markets Law (AML) Article 25-AA § 305, allows active farmland to receive a reduced assessment for property tax purposes – resulting in a partial exemption from real property taxes. Farmland qualifying for this reduction in assessed value does not have to be enrolled in an Agricultural District. Any owner of at least seven acres of land which produces a minimum of $10,000 annually, or any owner of less than seven acres of land which produces a minimum of $50,000 annually, on average in the preceding two years, from the sale of crops, agri-tourism events, beekeeping, livestock, or livestock products, riding academy or from a commercial equine operation, is eligible to receive an agricultural assessment. The program only applies to the land, not buildings or homesteads.

The Agricultural Assessment Program establishes a ceiling value for taxable assessments on eligible farmland. The local assessor is provided with State Certified ceiling values every year. Any assessed value which exceeds the agricultural assessment is exempt from Real Property taxation. Landowners must file an application annually, usually by March 1, with the local assessor to be considered for the Agricultural Assessment Program. Failure to file the application on time will result in denial of the exemption.

An agricultural district is a geographic area which consists of predominantly viable agricultural land. Districts may include land that is actively farmed, idle, forested, as well as land for residential and commercial uses. The Agricultural District Program, was established under AML § 303. It provides agricultural landowners a number of benefits and protections not associated with property tax relief, which encourage farmers to continue farming.

The Agricultural District Law protects farm operations within an agricultural district from the enactment and administration of unreasonably restrictive local regulations unless it can be shown that public health or safety is threatened. Under AML § 308, known as the ‘Right to Farm’ law, if a question or dispute arises regarding farm practices that may threaten public health or safety, an opinion can be requested of the Commissioner of NYS Department of Agriculture and Markets as to whether or not sound agricultural practices are being followed. Enrollment in an Agricultural District does not automatically qualify the property for the Agricultural Assessment Program.

For more information on NYS Ag Assessment, see the New York State Department of Revenue site: http://www.tax.ny.gov/research/property/assess/valuation/agindex.htm

For more information on NYS Ag District Program, see the New York State Department of Ag and Markets site: https://agriculture.ny.gov/land-and-water/agricultural-districts

Differences at a Glance

Agricultural Assessment Program

• Provides property tax reduction on farmland
• Property does not have to be in an agricultural district to qualify
• Owner must file application annually with local assessor; usually no later than March 1
• Minimum 7 acres in active farm production and proof of minimum $10,000 gross annual income from farming
• If less than 7 acres, $50,000 gross income minimum
• Property annually committed to agricultural use for minimum of 8 years if not in an agricultural district; 5 years if in an agricultural district
• Property subject to payback of saved property tax dollars if land is converted to non-agricultural use within committed period and possible penalty if there is a failure to notify the assessor of the conversion within 90 days.
• Land in agricultural production and rented to farmer may qualify
• Eligibility determined by local assessor based upon State law specifications
• Assessed agricultural value based upon State certified land classifications

https://www.tax.ny.gov/research/property/assess/valuation/ag_overview.htm

Agricultural District Program

• Provides certain protections for agricultural land (does not include a tax reduction)
• Land may or may not qualify for Agricultural Assessment Program
• Districts are reviewed every eight years
• Owner must apply for Ag District designation during established review period
• Annual window for inclusion available for certain types of agricultural land
• All applications for annual inclusion must be filed between during the annual window in the County. Contact the County Soil and Water Conservation office or Cornell Cooperative Extension for information on application process.
• Applications reviewed by the County Agriculture and Farmland Protection Board and subject to approval of County Legislature and State Commissioner of Agriculture and Markets

https://agriculture.ny.gov/land-and-water/agricultural-districts

Local contacts:

Neal Tomann, District Manager

Putnam County Soil and Water Conservation District

(845) 878-6331 x 40170 or soilandwater@putnamcountyny.gov

 Patricia McLoughlin, Director

Putnam County Real Property Tax Services Agency

(845) 808-1030 or realproperty@putnamcountyny.gov