State legislation could spare hundreds of Cayuga County farmers from a dramatic property tax increase this fall.

The state Assembly passed a Senate-approved agricultural assessment cap on to the governor last week.

The state assessment program exempts a portion of agricultural property value based on the strength or weakness of the market.

The higher the dollar figure based on an eight-year rolling average of crop land values, the smaller the exemption to farmers.

This year the average dropped a poor year, 1997, and added a solid 2005.

“We had kind of an anomaly occur in the ag assessments that are determined by the state,” said Mark James, executive director of the Farm Bureau Finger Lakes office, Seneca Falls. “In 2005, farmers had an exceptional year in terms of prices for their product, particularly dairy.

“In 2006, farmers had a horrible year,” he said.

The result was an ill-timed loss of about $172 on each acre, meaning a potential tax bill increase of several hundred dollars for larger farms. The legislation would limit single-year increases to 10 percent, a considerable relief to farmers who anticipated a 34 percent increase on school tax bills this year.

Oakwood Dairy co-owner Ted O'Hara said the cap would make the assessment increase easier to absorb for his 2,000-acre Aurelius farm.

“It's something that's reasonable,” O'Hara said.

The Farm Bureau is optimistic Gov. Eliot Spitzer will sign it into law before the fall.

“We hope he will be supportive, he has been supportive of agriculture in the past,” James said. “We appreciate the quick action by the Legislature.”

A majority of the bureau's 460 members in the county participate in the agricultural assessment program, James said.

Staff writer Shane Liebler can be reached at 253-5311 ext. 248 or shane.liebler@lee.net