CAUV and Selling Farmland in Ohio

If your land has been farmed, cut for timber, or rented to a farmer, there’s a good chance it’s enrolled in Ohio’s Current Agricultural Use Value program, usually called CAUV. It can save a lot on property taxes, and it’s something you need to understand before you sell.

What CAUV is

Normally, Ohio land is taxed on its market value. CAUV land is taxed on its value for farming instead, which is usually much lower. To qualify under Ohio law, land generally has to be used exclusively for commercial agriculture (including commercial timber production) and be either:

• 10 acres or more, or
• under 10 acres but producing an average of at least $2,500 a year in gross farm income over the previous three years.

Owners have to file a renewal with the county auditor every year, before the first Monday in March, to stay enrolled.

What recoupment means

If CAUV land stops qualifying, the county recoups the tax savings. The recoupment charge equals the tax savings from the previous three years, and it becomes a lien on the land. The two most common triggers are:

• The land is converted to a non-farm use, such as building a house or leaving the land idle rather than farming it.
• The annual renewal isn’t filed.

When only part of a farm is converted, such as splitting off a building lot, recoupment typically applies to the part that was converted.

Does selling trigger recoupment?

Not by itself. CAUV follows the land and how it’s used, not the owner. But a new owner has to file their own initial CAUV application with the county auditor to keep the land in the program. If the buyer changes the use or doesn’t file, recoupment can be charged.

Who pays recoupment in a sale?

That’s negotiable, and it should be written into the purchase agreement. Common approaches include:

• The buyer agrees to keep farming and file for CAUV, or pay any recoupment themselves.
• The seller gives the buyer a credit at closing to cover expected recoupment.
• The seller pays the recoupment.

What you don’t want is to find out after closing that a recoupment bill is headed your way. Make sure the contract says who’s responsible.

Before you sell CAUV land

• Look up the parcel on your county auditor’s website. It will usually show whether it’s enrolled in CAUV.
• Ask the auditor for an estimate of the recoupment if the land were converted.
• Make sure the current year’s renewal has been filed.

How we handle CAUV

When we make an offer on farmland, we check its CAUV status first and tell you in writing how any recoupment will be handled, so there are no surprises at closing.

This guide is general information, not legal or tax advice. Every property and family situation is different, so talk with an Ohio real estate attorney, title company, or tax professional about yours. Last updated September 2026.