Real Property - Condemnation - Compensation for Farm and Agricultural Property (Protect Maryland Farm Lands Act)
Summary
HB81, the Protect Maryland Farm Lands Act, changes how compensation is calculated when agricultural property is taken through condemnation or eminent domain. For property actively used for farm or agricultural purposes, the bill requires fair market value in a condemnation proceeding to be set at 350% of the property’s highest appraisal value, rather than the ordinary fair market value standard. The bill also makes clear that agricultural land qualifying under the State Department of Assessments and Taxation’s farmland assessment rules is covered, including certain land used for transmission line projects and agrivoltaics-related community solar projects.
The bill also preserves and cross-references existing farmland assessment rules in the Tax-Property Article, including standards for determining whether land is actively used for farming, income thresholds for smaller parcels, family farm unit treatment, waivers for older or disabled owners, and exclusions for certain rezoned or nonqualifying parcels. It applies retroactively to condemnation proceedings initiated on or after January 1, 2024, even though the bill’s effective date is October 1, 2025.
Impact
HB81 would amend Real Property § 12-105 to create a special condemnation valuation rule for land actively used for farm or agricultural purposes, substantially increasing compensation above the highest appraisal value by setting it at 350% of that value. It would also preserve existing rules allowing property owners to present assessed value evidence and would continue to account for prior easement consideration in certain cases. The bill does not materially change Tax-Property § 8-209, but it relies on that section’s farmland-assessment framework to define which properties qualify for the enhanced condemnation treatment. Its retroactive application could affect pending or recently initiated condemnation cases involving farmland.
Sentiment
Based on the bill text and available context, the measure appears to be strongly supportive of agricultural landowners and farmland preservation interests. The title and structure indicate a policy goal of protecting Maryland farm lands from undervaluation in eminent domain proceedings, and the bill is sponsored by a broad group of delegates. No committee transcript or vote record is available here, so there is no recorded debate or formal vote sentiment to assess beyond the bill’s pro-farmland orientation.
Contention
The main point of contention is likely the bill’s unusually high compensation formula—350% of the highest appraisal value—for farmland taken by condemnation, which would increase costs for condemning authorities such as state or local governments and potentially utilities. Another likely issue is the bill’s retroactive application to proceedings initiated on or after January 1, 2024, which could raise fairness and administrative concerns for entities already engaged in acquisition efforts. The bill also specifically includes transmission line acquisitions and agrivoltaics-related land, which may draw attention from utility and energy stakeholders as well as farm advocates.