Indiana counties would let eligible landowners seek protected farm areas

County commissioners would adopt rules that let landowners apply to put land in a farm resource area. Applicants must own at least five acres actively used for farming or forestry for the previous three straight years. Joining would require the owner's application; approval would not be automatic. An application fee could not exceed $500 or the actual processing cost, whichever is less. If enacted, the rules would start July 1, 2026. Counties would have through January 1, 2027, to adopt them.

Counties would automatically renew a designated area for another 10 years unless the owner opts out. These rules cover land approved for a farm resource area. Owners could seek removal through a hardship process. Counties could charge no more than $500 or the actual cost, whichever is less, to process changes. Owners must give written notice at least 90 days before expiration to stop renewal. A removal petition takes effect 10 years after filing or at expiration, whichever comes first.

Local governments could not take designated land through a forced sale without the owner's consent. These limits apply to land in a farm resource area. Any government seeking to take the land would also have to show there is no workable alternative. Counties could still regulate where nonfarm buildings and other uses go. The ban on rezoning for nonfarm use would last throughout the area's term.

A county could choose to lower the assessed value used to tax land in approved areas. The reduction would cover land in county-approved farm resource areas and could not exceed 15% of the land's assessed value. The county would have to adopt a local rule after hearing public testimony. The same percentage would apply to every approved area in that county, and the county auditor would apply it automatically. The reduction would apply on each assessment date when a parcel remains in an approved area.

The state agriculture department could hold farm conservation easements, and a farmland board would prepare guidance. The department could hold farm conservation agreements donated by owners or left to it after an owner's death, including some partly funded by federal sources. The department could make agreements with outside groups to monitor easements. The board would advise the department on easement standards and write sample county rules. If enacted, these provisions would start July 1, 2026.