Farm Economics, Property Rights, and CEQA: Here’s What’s Coming in Santa Clara County

Santa Clara County is moving forward with major updates to its rural zoning rules—changes that aim to protect farmland, strengthen agricultural businesses, and bring clarity to development standards. For property owners, farmers, and investors, these amendments represent one of the most significant shifts in decades.

Streamlined Permitting for Farm-Supportive Uses

One of the most important changes is a simplified permitting system. The county plans to combine several categories—such as wineries, sales, and events—into just two: Agricultural Sales & Events and Agricultural Processing.

Small-scale “Limited” projects (like farm stands or modest ag events) would be approved quickly with ministerial permits.

Larger “General” projects would still require full discretionary review.

This streamlined process could make it easier for local farmers and vineyard owners to diversify their businesses and build stronger revenue streams without being tied up in red tape.

Exclusive Agriculture (EA) Zone Protection

Another key recommendation is aimed at safeguarding the Exclusive Agriculture (EA) zone. The amendments propose removing non-farm uses (such as golf courses and hospitals) while requiring stricter standards for nurseries and event-based uses.

Notably, in the Coyote Valley (-cv district), controlled agricultural facilities—like greenhouses or mushroom farms—could expand up to 60 acres, reinforcing long-term farm viability in this critical area.

Objective Development Standards

The days of vague “local-serving” rules may be ending. In their place, the county proposes clear, measurable standards for Cumulative Building Site Coverage. This means new development will have defined size and scale limits to ensure projects remain compatible with surrounding farmland and rural character.

New Agricultural Impact Threshold under CEQA

Perhaps the most far-reaching update is a new Agricultural Impact Threshold under the California Environmental Quality Act (CEQA).

Any project converting 5 or more acres of mapped farmland would automatically trigger significant review and mitigation.

This threshold captures over 91% of all farmland in the county, ensuring nearly all productive lands receive protection from unmitigated conversion.

Why This Matters

Together, these updates are designed to:

• Prevent farmland loss by restricting incompatible development.

• Support agricultural economics by making it easier for farmers to launch small-scale, supportive ventures.

• Control sprawl by limiting large estate-style projects that displace agriculture.

• Standardize rules so property owners and county staff alike have clear expectations.

The Bottom Line

If approved, these amendments will both strengthen farm economics and preserve Santa Clara County’s agricultural land for future generations. By balancing conservation with flexibility for small ag-supportive businesses, the county is setting a new standard for how rural lands are managed in a rapidly growing region.

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