Farmland Protection: Ag Districts vs. Assessments

Agricultural Districts

Enacted in 1971, New York’s Agricultural Districts Law (ADL) is a very effective tool for maintaining lands in agriculture and ensuring New York’s position as an outstanding agricultural state. The ADL recognizes that agricultural lands are important and irreplaceable resources, which are in jeopardy of being lost to as a result of increasing costs of agricultural businesses, development pressures, and regulatory constraints. Agricultural Districts Law seeks to create economic and regulatory incentives that encourage farmers to continue farming. The ADL has two basic components, agricultural assessments for taxes and agricultural district creation and review.

For a summary of the NYS Agriculture and Markets Law visit here

For a full reading of the NYS Ag and Markets Article 25 AA law click here

The first agricultural district was in Sullivan County was established in 1973. The County currently has two agricultural districts, which cover approximately 160,000 acres. Agricultural District #1 encompasses the towns of Bethel, Callicoon, Cochecton, Delaware, Forestburgh, Fremont, Liberty, Thompson and Tusten. Agricultural District #4 encompasses the towns of Bethel, Fallsburg, Forestburgh, Highland, Liberty, Mamakating, Neversink, Rockland, Thompson, and the Villages of Bloomingburg and Wurtsboro.

Ag districts consist of viable agricultural lands, or, in other words, lands that are currently used for agriculture or may be used for agriculture in the future. Agricultural districts may include not just farm fields, but also residential, forested and commercial properties that are part of an agricultural enterprise.

Agricultural districts are not permanent but instead change through time. Every year, from April 1st to April 30th, Sullivan County accepts applications from property owners who would like some or all of their land added to an agricultural district. 

Annual Agricultural District 30 Day Review

Sullivan County is accepting applications from property owners seeking to be included in New York State Agricultural Districts 1 and 4, for a 30-day window beginning April 1st and ending April 30th. During this thirty day window, property owners may request the addition of their land into an Agricultural District. Applications are available by calling Melinda Meddaugh, at Cornell Cooperative Extension Sullivan County at 845-292-6180 x116, or by emailing her at mm2592@cornell.edu.

Applications will be reviewed by the Sullivan County Agricultural and Farmland Protection Board in May, who will then make recommendations to the County Legislature regarding property to be added to the districts this year. The County Legislature will hold a public hearing in July and then vote on the approval of each recommended addition in August. Subsequent to County approval, an updated district map with a report showing the new parcels for inclusion in the districts will be submitted to the State Department of Agriculture and Markets for State approval in September. Upon approval by Agriculture and Markets (generally in October), each property owner will be notified by mail and the real property tax records for each parcel will be updated. Applicants will receive notification by the winter.

Agricultural Value Assessments

The agricultural assessment program allows eligible farmland located both within and outside agricultural districts to be taxed at its agricultural assessment, rather than at its fair market value. The agricultural assessment value establishes an “upper limit” for taxable assessments on eligible farmland. Any assessed value which exceeds the equalized agricultural assessment on the land may qualify for a reduced tax assessment. Landowners must apply to their local town assessor annually for an agricultural assessment.

To qualify for an agricultural assessment, you must meet one of the following criteria:

1. Own at least seven acres of land which produces a minimum of $10,000 annually, or own 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, livestock, or livestock products.
2. Have a start-up farm operation in the first year of operation on owned or rented land that meets the minimum acreage and sales thresholds.
3. Own rented land if the land independently satisfies the minimum acreage and sales requirements (see above) or is being used pursuant to a lease agreement of five or more years in conjunction with land which independently qualifies (in other words, if the operation leasing the land meets the acreage and sales requirements).

For more detailed information on Ag Value Assessments, please click here to visit the NYS Department of Taxation & Finance for an overview of the rules or contact your local assessor for more detailed information on qualifying for the agricultural assessments.

NOTE: Owners who convert lands benefiting from an agricultural assessment to non-farm use are liable for conversion payments based on the amount of taxes saved. Owners contemplating a conversion may determine the payment owed by contacting their assessor or the Sullivan County Real Property Tax Services.

Remember: Applications for Agricultural Assessments are due March 1 each year, so please plan accordingly.

If you think you qualify for an agricultural assessment, the first step is to get a Soil Group Worksheet made. Contact the Sullivan County Soil and Water Conservation District at 845-292-6552 or Sullivan County Soil & Water Conservation District Site The cost is $35.00 per parcel for a new worksheet and $15.00 per parcel for a revised worksheet. A soil group worksheet lists how many acres of each type of soil you have on your property. Your assessor will use this worksheet, along with the rest of your application, to help determine your assessment.

You have to apply for the Agricultural Assessment each year. However, you do not need a Soil Group Worksheet made every year. You will need a Soil Group Worksheet made if:

• This is the first time you are applying for the Agricultural Assessment
• The owner of the parcel changes
• The dimensions of the parcel changes
• The amount of land used for agricultural production changes
• The amount of land used for agricultural production changes

Other Requirements

Please contact your local assessor to determine what other documents are necessary to apply for the Agricultural Assessment. For more information on the current Agricultural Assessment Values visit the NYS Agriculture and Markets website.

Additional Resources

To learn more about Agricultural Exemptions visit the NYS Department of Taxation and Finance website.

Download the NYS Ag & Markets Agriculture Assessment Brochure.

To learn more about Agricultural Exemptions read the NYS Department of Taxation and Finance “Farm Building Exemptions” Brochure.

Last updated November 19, 2024