Committee weighs changes to current-use rules after grape-grower case highlights penalties

The Agriculture, Food Resiliency & Forestry Committee on Monday examined how Vermont's current-use rules and the land use change tax can trigger immediate penalties after subdivision or a transfer of ownership, especially for parcels smaller than 25 acres.

Committee members opened the discussion after testimony from a landowner who grows grapes described a scenario in which a parcel used for agriculture was subdivided and a buyer faced a separation fee and interest while attempting to re-enroll the land in current use. Kirby (staff member) told the committee that the law treats development and voluntary withdrawal differently and that some subdivisions can be treated as development even when actual farming activity continues.

Why it matters: Committee members said the rules can create a significant financial barrier for smaller farmers or renters who seek to buy land they already farm. Members raised concerns that the combination of the 25-acre threshold, subdivision rules and related statutes such as Act 250 can multiply costs and deter continued agricultural use.

Kirby summarized the statutory mechanics: “When development happens, land use…