CHAPTER 136
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CHAPTER 136
( HB 418 )
AN ACT relating to agricultural districts.
Be it enacted by the General Assembly of the Commonwealth of Kentucky:
ď˘Section 1. KRS 262.850 is amended to read as follows:
(1) This section shall be known as "the Agricultural District and Conservation Act."
(2) It is the policy of the state to conserve, protect, and to encourage development and improvement of its
agricultural lands for the production of food and other agricultural products. It is also the policy of this state to
conserve and protect the agricultural land base as a valuable natural resource which is both fragile and finite.
The pressure imposed by urban expansion, transportation systems, water impoundments, surface mining of
mineral resources, utility rights-of-way, and industrial development has continually reduced the land resource
base necessary to sufficiently produce food and fiber for our future needs. It is the purpose of this section to
provide a means by which agricultural land may be protected and enhanced as a viable segment of the state's
economy and as an important resource.
(3) The local governing administrative body for an agricultural district shall be the conservation district board of
supervisors. The Soil and Water Conservation Commission shall be responsible for statewide administration of
the agricultural district program and shall have sole authority to certify or deny agricultural district petitions.
The commission may apply for assistance and funds from the Federal Farmland Protection Act of 1981 (Pub.
L. 97-377) which may be available for the development of the agricultural district program and may accept
easements as provided in KRS 65.410 to 65.480.
(4) Any owner or owners of land may submit a petition to the local conservation district board of supervisors
requesting the creation of an agricultural district within the county. The petition shall include a description of
the proposed area, description of each land parcel, location of the proposed boundaries, petitioners' names and
addresses, adjacent landowners' names and addresses, and other pertinent information as required in the
petition application. The boundary of an agricultural district shall be contiguous. No land shall be included in
an agricultural district without the consent of the owner.
(5) Upon receipt of a petition, the local conservation district board of supervisors shall notify the fiscal court and
any local or regional planning or zoning body, if any, of the proposed agricultural district, and shall notify
each city that is located less than one (1) mile from the boundaries of the proposed agricultural district, by
sending a copy of the petition and accompanying materials to that body.
(6) The following factors shall be considered by the local conservation district board of supervisors and the Soil
and Water Conservation Commission when considering the formation of any agricultural district:
(a) The capability of the land to support agricultural production, as indicated by: soil, climate, topography
or other natural factors;
(b) The viability of active farmlands, as indicated by: markets for farm products, extent and nature of farm
improvements, present status of farming, anticipated trends in agricultural economic conditions and
technology;
(c) That the proposed agricultural district meets the minimum size limit of fifty (50)[two hundred fifty
(250)] contiguous acres, unless the local conservation district board and the Soil and Water
Conservation Commission allow fewer than fifty (50)[two hundred fifty (250)] contiguous acres if the
proposed area meets a minimum annual production performance established by the district board and
approved by the commission;
(d) County development patterns and needs and the location of the district in relation to any urban
development boundaries within the county;
(e) Any matter which may be relevant to evaluate the petition; and
(f) Whether an application is from more than one (1) farm owner, in which case a preference shall be given
to the application. ACTS OF THE GENERAL ASSEMBLY 2
(7) The local soil and water conservation district board of supervisors shall review the petition application and
submit a recommendation to the Soil and Water Conservation Commission within one hundred (100) days of
receipt. The local conservation district recommendation shall be submitted to the commission in the form of
approval, approval with modifications, or denial of the petition accompanied by justification for such a denial.
(8) The Soil and Water Conservation Commission shall review the recommendation of the district board of
supervisors and certify or deny the agricultural district's petition within one hundred (100) days of receipt.
(9) Upon the approval of a petition by the Soil and Water Conservation Commission, the commission shall notify
the area development district in which the agricultural district will lie, the local county clerk, the clerk of each
city that is located less than one (1) mile from the boundaries of the approved agricultural district, and the
secretary of the Governor's Cabinet by sending a description of the boundaries and the names and addresses
of the property owners within the district.
(10) Land within the boundary of an agricultural district shall not be annexed.
(11) The owners of land within the boundary of an agricultural district shall be exempt under KRS 74.177 from any
assessment authorized for the extension of water service lines until the land is removed from the district and
developed for nonagricultural use.
(12) Any member, or any successor heir of the member, of an agricultural district may withdraw his or her
property from the district upon notifying the local conservation district board of supervisors in writing. The
removal of the property from the agricultural district shall be effective immediately upon the district board
of supervisors' receipt of the written notification, at which time the district board of supervisors shall
remove the property from the agricultural district and shall immediately provide written notice of the
changed boundaries to the those entities listed in subsection (9) of this section.
(13)[(12)] It shall be the policy of all state agencies to support the formation of agricultural districts as a means of
preserving Kentucky's farmlands and to mitigate the impact of their present and future plans and programs
upon the continued agricultural use of land within an agricultural district.
(14)[(13)] Agricultural districts shall be comprised only of agricultural land as defined in KRS 132.010.
(15)[(14)] An agricultural district shall be established for five (5) years with a review to be made by the local soil
and water conservation district board of supervisors at the end of the five-year period and every five (5) years
thereafter. Each owner of land shall agree to remain in the district for a five (5) year period, unless a member
elects to withdraw his or her property pursuant to subsection (12) of this section, which is renewable at the
end of the five (5) years. However, the board shall make a review any time upon the written request of a local
government which demonstrates that the review is necessary in order to consider development needs of the
local government. The board shall consider whether the continued existence of the district is justified, any
adjustments which may be necessary due to urban or county development, and other factors the board finds
relevant. The board shall revise the district as necessary based on the review and subject to approval of the
State Soil and Water Conservation Commission. Before the state commission takes final action, all interested
parties shall be given the opportunity to request the state commission to amend or overturn the local board's
decision.
(16)[(15)] The withdrawal of a member from a district reducing the remaining acreage of agricultural district land
to less than fifty (50)[two hundred fifty (250)] acres or resulting in the remaining land being noncontiguous
shall not cause the decertification of the district. The local district board of supervisors may consider a
dissolution of the agricultural district if the withdrawal results in the remaining property within the
agricultural district no longer meeting the definition of agricultural land as defined in KRS 132.010.
(17)[(16)] Any member of an agricultural district who has received a summons of condemnation proceedings
being instituted concerning the member's land located in the district may request the local soil and water
conservation district board of supervisors to hold a public hearing on the proposed taking of land. However a
hearing under this section shall not be held if the petitioner in the condemnation proceeding is a utility as
defined in KRS 278.010(3) and obtained a certificate of convenience and necessity as required by KRS
278.020(1).
(18)[(17)] (a) The board shall notify the local property valuation administrator of the farms which belong to an
agricultural district and whenever a farm is withdrawn from a district. The board shall also inform all
members of a district of the right to have their land assessed by the local property valuation
administrator at the land's agricultural use value and shall offer advice and assistance on obtaining such
an assessment. CHAPTER 136
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(b) The board shall also notify the local property valuation administrator whenever a farm is released or
withdrawn from an agricultural district.
(19)[(18)] The board may allow an amendment to an existing certified agricultural district if approved by the
commission.
Signed by Governor April 9, 2024.