Property Tax Rebate for Organic Farm Conversions: Woodbury County, IA
Woodbury County, Iowa, passed this “Organics Conversion Policy” designed to provide up to $50,000 each year in real property tax rebate incentives for farms that convert from conventional farming techniques to organic. The resolution references the USDA “National Organic Program Standards and Regulations” as the measurement for organic conversion. This tax relief is designed to offset costs associated with the three-year conversion period.
This tax rebate policy contains the following components:
- Amount of property tax relief
- Tax rebate only on unimproved land zoned as agriculture
- 5-year time-frame for rebate
- Certification required after third year
- Conditions for withdrawal of abatement
- Application process
In 2005, this property tax rebate for organic conversion became the first of its kind in the nation. The Leopold Institute conducted a year-long modeling study to determine the overall impact of this and other policies Woodbury County enacted to support local organic farming. The rebate policy represents an innovative strategy for encouraging the organic conversion of local farms, but must be considered in terms of its economic impact on the county as well. This policy will probably be most helpful to cities and counties with significant agricultural land within their boundaries.
