HomeMy WebLinkAboutRogue Ck - Appeal attch 4, AML guideline 3Guidelines for Review of Local Laws That Define "Farm Operations".
"Farm". "Agriculture". "Farmland" or Any Similar Term
Pursuant to Article 25 -AA, the term "farm operation" is used to identify and define
commercial enterprises, through the use of land, buildings, equipment and practices, to carry-
out an agricultural enterprise. Over the years, the State Legislature has amended the
Agriculture and Markets Law (AML) to enhance the breadth of what constitutes a farm
operation, including the type of crops, livestock and livestock products considered to be part of
an agricultural enterprise.
In the administration of the AML regarding a municipality's definition of "farm,"
"agriculture," "farmland" or any similar term used to describe an agricultural/farm operation in its
zoning code, the Department compares the municipal definition to the State's definition of "farm
operation" as defined below. If a municipal definition does not encompass the breadth of crops,
livestock, livestock products and farm enterprises identified in the AML, the local law may be
deemed to be unreasonably restrictive and in violation of AML §305-a (1).
When a municipality examines its local laws for consistency with the AML, it is important
to take into consideration certain aspects of the State's definition of "farm operation." Under the
AML, a farm operation includes the production, preparation and marketing of crops, livestock
and livestock products that are produced on land that is owned or rented, contiguous or non-
contiguous to one another. Land can be owned or rented in another town or county and still be
considered part of the farm operation. Furthermore, start-up farms may also be protected under
the AML as long as the land is located within an agricultural district. Start-up farms will be
described in another section of this document.
Definition of Farm Operation in the AML
301(11). "Farm operation" means the land and on-farm buildings, equipment, manure
processing and handling facilities, and practices which contribute to the production,
preparation and marketing of crops, livestock and livestock products as a
commercial enterprise, including a "commercial horse boarding operation" as
defined in subdivision thirteen of this section, a "timber operation" as defined in
subdivision fourteen of this section, "compost, mulch or other biomass crops" as
defined in subdivision sixteen of this section and "commercial equine operation" as
defined in subdivision seventeen of this section. Such farm operation may consist
of one or more parcels of owned or rented land, which parcels may be contiguous
or noncontiguous to each other.
301(2). "Crops, livestock and livestock products" shall include but not be limited to
the following:
a. Field crops, including corn, wheat, oats, rye, barley, hay, potatoes and dry
beans.
b. Fruits, including apples, peaches, grapes, cherries and berries.
c. Vegetables, including tomatoes, snap beans, cabbage, carrots, beets and
onions.
d. Horticultural specialties, including nursery stock, ornamental shrubs, ornamental
trees and flowers.
e. Livestock and livestock products, including cattle, sheep, hogs, goats, horses,
poultry, ratites, such as ostriches, emus, rheas and kiwis, farmed deer, farmed
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buffalo, fur bearing animals, wool bearing animals, such as alpacas and llamas,
milk, eggs and furs.
f. Maple sap.
g. Christmas trees derived from a managed Christmas tree operation whether dug
for transplanting or cut from the stump.
h. Aquaculture products, including fish, fish products, water plants and shellfish.
i. Woody biomass, which means short rotation woody crops raised for bioenergy,
and shall not include farm woodland.
j. Apiary products, including honey, beeswax, royal jelly, bee pollen, propolis,
package bees, nucs and queens. For the purposes of this paragraph, "nucs" shall
mean small honey bee colonies created from larger colonies including the nuc box,
which is a smaller version of a beehive, designed to hold up to five frames from an
existing colony.
301(13). "Commercial horse boarding operation" means an agricultural enterprise, consisting
of at least seven acres and boarding at least ten horses, regardless of ownership,
that receives ten thousand dollars or more in gross receipts annually from fees
generated either through the boarding of horses or through the production for sale
of crops, livestock, and livestock products, or through both such boarding and such
production. Under no circumstances shall this subdivision be construed to include
operations whose primary on site function is horse racing. Notwithstanding any
other provision of this subdivision, a commercial horse boarding operation that is
proposed or in its first or second year of operation may qualify as a farm operation
if it is an agricultural enterprise, consisting of at least seven acres, and boarding at
least ten horses, regardless of ownership, by the end of the first year of operation.
301(14). "Timber operation" means the on-farm production, management, harvesting,
processing and marketing of timber grown on the farm operation into woodland
products, including but not limited to logs, lumber, posts and firewood, provided
that such farm operation consists of at least seven acres and produces for sale
crops, livestock or livestock products of an annual gross sales value of ten
thousand dollars or more and that the annual gross sales value of such processed
woodland products does not exceed the annual gross sales value of such crops,
livestock or livestock products.
301(16). "Compost, mulch or other organic biomass crops" means the on-farm processing,
mixing, handling or marketing of organic matter that is grown or produced by such
farm operation to rid such farm operation of its excess agricultural waste; and the
on-farm processing, mixing or handling of off -farm generated organic matter that is
transported to such farm operation and is necessary to facilitate the composting of
such farm operation's agricultural waste. This shall also include the on-farm
processing, mixing or handling of off -farm generated organic matter for use only on
that farm operation. Such organic matter shall include, but not be limited to,
manure, hay, leaves, yard waste, silage, organic farm waste, vegetation, wood
biomass or by-products of agricultural products that have been processed on such
farm operation. The resulting products shall be converted into compost, mulch or
other organic biomass crops that can be used as fertilizers, soil enhancers or
supplements, or bedding materials. For purposes of this section, "compost" shall
be processed by the aerobic, thermophilic decomposition of solid organic
constituents of solid waste to produce a stable, humus -like material.
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301(17). "Commercial equine operation" means an agricultural enterprise, consisting of at
least seven acres and stabling at least ten horses, regardless of ownership, that
receives ten thousand dollars of more in gross receipts annually from fees
generated through the provision of commercial equine activities including, but not
limited to riding lessons, trail riding activities or training of horses or through the
production for sale of crops, livestock, and livestock products, or through both the
provision of such commercial equine activities and such production. Under no
circumstances shall this subdivision be construed to include operations whose
primary on site function is horse racing, notwithstanding any other provision of this
subdivision, an agricultural enterprise that is proposed or in its first or second year
of operation may qualify as a commercial equine operation if it consists of at least
seven acres and stables at least ten horses, regardless of ownership, by the end of
the first year of operation.
Start -Up Farm Periods
In the administration of the AML, the Department has considered the needs of "start-up"
farm operations when the land used for agricultural purposes is located within a county adopted,
State certified agricultural district. The Department examines the activity to be conducted, level
of investment and involvement in the farm; soil and topographic characteristics of the property;
agricultural knowledge of the landowner; and other factors that may specifically apply to a
proposed agricultural activity. Concerning protections afforded under AML §305-a to farm
operations, including "start-up farms," municipalities should allow a reasonable period of time to
establish the farm operation and its production of crops/livestock/livestock products. The
Department considers the following start-up periods to be reasonable for a farm to achieve the
level of production of its own goods that may be required by a local government for certain
processing and marketing activities conducted by the farm':
Crops: 2 years
Hops: 3 years
Livestock: 2 years
Nurseries and Greenhouses: 2 years
Aquaculture: 2 years
Apiaries: 2 years
Christmas Trees: 8-10 years
Maple: 2 years
Orchards and Berries: 3-5 years
' Local governments may, of course, provide longer start-up periods in their discretion; and should
consider weather, disease and other factors that may impact production.
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Vineyards: 5 years
Woody Biomass: 3 years
Acreage and Gross Sales Requirements
Under the AML, a "farm operation" must be a "commercial enterprise." A "farm
operation" is not required to be eligible for receipt of an agricultural assessment or meet the
acreage and gross sales requirements to receive an agricultural assessment [AML §301(4) —
Land Used in Agricultural Production].
In the absence of minimum acreage and gross sales requirements,
the Department evaluates such factors as the acreage in production; capital investment and
business assets; gross sales of crops, livestock and livestock products; the type of enterprise
and number of years in operation. If needed, the Department also evaluates a number of other
factors, including, but not limited to:
1) the landowner's intent (especially for "start-up" farms);
2) whether the farm is operated in a businesslike manner;
3) time and effort spent on farming;
4) whether the landowner, or their advisors, have the knowledge needed to carry on the
farming activity as a successful business;
5) whether the landowner was successful, or has experience with, similar activities in
the past;
6) whether the landowner can expect future appreciation of the assets used in the
business; and
7) whether the landowner's investment is at risk.
Leased and Owned Land
If a farm leases land for inclusion into its operation, crops or livestock grown/raised on
leased land are treated the same as crops/livestock grown/raised on owned land. In both
instances, the farmer must be producing the crop or raising the livestock as part of their
operation; i.e., the farmer must be at financial risk if the crop/livestock fails or succeeds.
Farmers either plant themselves or hire custom operators to plant and harvest crops on owned
and/or leased land. Farmers may also hire custom operators to raise their livestock. In both
instances, however, it is the farmer that provides the seed/livestock, fertilizer,
pesticide/herbicide, feed, etc. and pays for the labor and custom applicator to produce/harvest
the crop or raise the livestock. In this manner, the harvested crop or livestock raised are the
farmer's, whether the crop yields or finished weight of livestock are successful or diminished.
Conclusion
If an agricultural operation is determined to be a farm operation as defined in AML
§301(11), whether it is an existing or start-up agricultural enterprise, it may be afforded
protections under the AML if the land is also located within a county adopted, State certified
agricultural district.
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