HB 1356 (Indiana, 2026) — Conservation of Agricultural Land
Overview
- Purpose: Create a framework to conserve agricultural land by authorizing counties to designate agricultural resource areas (ARAs), establish processes for inclusion, and provide related protections, funding priorities, and tax incentives. The bill also creates a state-level structure to support and monitor these areas, including an advisory board and the ability for the Indiana State Department of Agriculture (ISDA) to hold agricultural conservation easements.
Key Provisions
1) County-level Agricultural Resource Areas
- Applicability: Counties may adopt an ordinance allowing landowners to apply to have land placed into an agricultural resource area (ARA).
- ARA Duration: Designations are established for a minimum of 10 years.
- Application Requirements: Ordinances must specify what information is needed from landowners (land descriptions, current uses, structures/facilities, etc.), and establish clear standards and timelines for review.
- Application Fee: Fees may be charged to cover admin costs, capped at the lesser of actual costs or $500.
- Designation on Maps: ARAs must be designated on future land-use planning maps; non-ARA parcels are not affected.
- ARA Commission: Each county must establish a three-member ARA Commission by January 1, 2027 (one county commissioner member or designee, one local farmland owner, and one active farmer/landowner recommended by the county farm bureau).
- Review and Recommendation: The Commission reviews applications within 60 days and makes recommendations to the county commissioners.
2) County Action and Public Hearing
- County Commissioners Review: Within 60 days of receiving a Commission recommendation, the county commissioners hold a public hearing and may approve or deny the ARA.
- Finality and Appeal: If no action is taken within 60 days, the Commission’s recommendation becomes final and is subject to judicial review.
- Notice and Recording: Creation of an ARA must be publicly noticed; the county secretary must record key details with the county recorder, including date of creation, parcel descriptions, and Commission findings.
3) Post-Designation Protections and Effects
- Land Use and Zoning: ARAs are designed to protect agricultural uses; changes to existing agricultural land use classifications or zoning require landowner written permission. ARAs may influence land-use map updates, but the county may still regulate non-agricultural siting (e.g., residential, solar, industrial) within ARAs, subject to land-use rules.
- Nuisance and Eminent Domain: Agricultural activities within ARAs are not public nuisances. Government entities cannot condemn ARAs without landowner consent, and eminent domain actions must show no feasible alternative.
- Annexation and Rezoning: Land within ARAs cannot be rezoned to nonagricultural use during the term.
- Disclosure: Buyers of land abutting ARAs must receive written disclosure about the ARA rights.
- Tax Benefits: Counties may enact a county option property tax deduction under IC 6-1.1-46.5 for the 10-year term (up to 15% of assessed value) and may offer other funding or benefits to participants.
4) Statewide Support and Administration
- ISDA Role: ISDA may receive and hold agricultural conservation easements donated, bequeathed, or devised; may enter agreements with non-government entities to monitor these easements.
- Farmland Advisory Board: Establishes a five-voting, one-nonvoting advisory board to guide the ISDA on easement standards, create a model ARA ordinance, collect feedback, and support education/outreach. Members include active farmers, landowners, a land trust representative with an easement, a county government member, Purdue extension, and ISDA liaison.
- Funding and Staffing: The advisory board and related activities may increase ISDA workload; expenses are funded from existing appropriations and may require staff support.
5) Related Provisions and Definitions
- Definitions provided for agricultural resource area, applicant, hardship, and related terms.
- Connection to existing statutes: ARAs tie to IC 14-40-2; the county option property tax deduction is under IC 6-1.1-46.5.
Effective Date
- July 1, 2026 (with initial county ordinance requirements due by January 1, 2027).
Potential Impacts
- Local/County: Increased administrative duties for counties (ordinance adoption, establishing ARAs and commissions, public hearings, record-keeping, annual renewal notices). Potential fee revenue from application processing.
- Landowners/Farmers: Access to legal protections for farming within ARAs, potential eligibility for tax deductions, and eligibility for priority funding. Ability to add/remove land from ARAs with defined procedures and hardship provisions.
- State: ISDA gains authority to hold/easements and to collaborate with non-government entities for monitoring; creation of the Farmland Advisory Board to guide standards and outreach.
- Fiscal: Possible shifts in property tax revenue due to deductions; administrative costs for counties and ISDA to implement new processes.
Note: This summary reflects the introduced text and does not account for potential amendments or changes during the legislative process.
