The Santa Clara County Board of Supervisors on Nov. 18 unanimously approved a change of course for proposed rural zoning amendments after hundreds of farmers, ranchers and equestrian business owners raised concerns the changes would devastate their operations.
Supervisor Sylvia Arenas, who represents much of the affected South County area, directed staff to produce new draft ordinances by spring 2026 with revisions following extensive community input.
“We wanted to make sure that we got it right for everyone,” Arenas said. “Whether you are a winery, or selling flowers, or you have a farm stand, or are selling eggs.”
Arenas said public outreach meetings on the draft amendments had revealed the proposals lacked “sufficient understanding of the operations of our small farms, wineries, ranches and agricultural businesses,” and emphasized the board’s commitment to incorporating feedback into the revised process.
“I heard a lot in the messaging about you being heard. And so I am glad that we are getting it right this time,” Arenas said. “We are being responsive, we are trying to get it right. But because we want to make sure that you know that you’re heard, we wanted to put it in writing, because if it’s not in writing, it isn’t so.”
The referral directs staff to create an Agricultural Task Force or Advisory Committee and establish a “robust public process” including workshops and community feedback meetings. Arenas said the county would consider hiring outside outreach consultants to support community participation.
The referral includes a sweeping list of policy changes intended to address the needs of the farmers, ranchers, vintners, horse owners and rural faith organizations.
Key changes include preserving farm stands as by-right uses, revising agriculture definitions to include small or non-contiguous farms and a farming qualification based on annual agricultural revenue. The referral also calls for reduced acreage thresholds, streamlined permitting and preserving existing permits until 2030 while new regulations are phased in.
Supervisor Otto Lee also proposed amendments reserving a seat for environmental conservation stakeholders on the proposed task force.
“Small business is America’s business, but small farmers are American farmers,” Lee said. “Before Santa Clara County became Silicon Valley, this was the Valley of Heart’s Delight. We want to keep it that way.”
Local community and administrative leaders, flanked by dozens of agricultural business owners and other rural stakeholders from South County, attended the Nov. 18 meeting in force to support Arenas’s referral, which passed unanimously.
Matthew Mahood, economic development director for the City of Morgan Hill, emphasized the economic impact of agricultural tourism. The county’s rural zoning ordinance applies only to unincorporated properties, but Mahood and others have noted that economic development depends on regional factors.
“Tourism is an economic driver for the city of Morgan Hill and an important contributor to county revenues,” Mahood said. “Our wineries, farms and equestrian assets and recreational areas are regional destinations. To keep these businesses sustainable, they need flexibility to host events, entertainment, lodging and appropriately placed signage.”
Joe Raineri, Morgan Hill farmer and founder of the Fattoria Public Market & Food Hub, urged supervisors to restart the process with farmer input.
“Small farms are not the problem, they are the foundation of a resilient food system. We are the people who care for the land, conserve open space and provide real local food for our community,” Raineri said. “To keep farming viable, we need zoning that helps us adapt and innovate, not rules that make it harder to diversify.”
Frank Johnson, Executive Director of Visit Gilroy, highlighted the region’s unique character.
“Santa Clara Valley is one of the few places where high-tech innovation, family wineries, farms and stables thrive side-by-side. This blend is fundamental to our regional identity and economy,” Johnson said, noting Visit Gilroy’s calendar features up to 100 South County winery events during summer months.
Krista Rupp, Executive Director of Visit Morgan Hill, said the draft provisions would limit activities essential to family-run businesses.
“Morgan Hill’s economy is closely linked to the small farms and wineries that surround and overlap our city,” Rupp said. “What consistently draws visitors to our area is our agricultural character: small, local and community-centric.”
Arenas noted that support for the reforms extends beyond South County’s agricultural core, with residents from Los Gatos Hills, Milpitas, Hillsides and Evergreen attending public meetings.
“The folks who support our farms are everywhere in our county, and you’re doing good work here, for all of us,” she said.
The ordinance aims to safeguard the county’s remaining farmland and open space while ensuring that agricultural operations can adapt to modern economic realities currently making business difficult for many.
“The ordinance here has a lot of implications for our local businesses and their livelihoods, so I want to ensure it isn’t just good for one particular industry, that it is for all of our industries included in the agricultural community,” Arenas said.
