Farmland Property taxes

Purdue Ag Economist Deboer Outlines Farmland Tax Issues

January 27, 2015
Gary Truitt

Purdue University agricultural economist Larry DeBoer has outlined the major issues involved in the current legislative discussion of farmland taxes. “It seems likely that something will be done about farmland property taxes,” DeBoer writes in his latest “Capital Comments” column for Purdue Extension. “How it will be done, and who will foot the bill are the big questions.”

Among the possible options the legislature could consider is changing the formula used to calculate farmland assessments to better reflect current market conditions, DeBoer writes. The current formula calculates the taxable value of farmland based on four-to-nine-year-old data, including commodity prices, yields, rents, interest rates and other costs.

But calculating this year’s taxes based on more recent data could increase tax bills in the short term, according to DeBoer, because market conditions have been generally favorable to farmers over the past few years, resulting in higher land values.

Another option could be introducing new deductions for farmland owners, DeBoer writes.

DeBoer’s column appears monthly in the “News Columns” section on the Extension homepage, https://extension.purdue.edu. DeBoer and Tamara Ogle, an Extension educator in Cass County, also have an active Twitter account, @INTaxRockstars, focusing on farmland tax and assessment issues.

Isabella Chism elected as vice chair of AFBF

Chism elected vice chair of NWLC

Posted January 12, 2015 by Meghan Grebner

Indiana Farm Bureau second vice-president Isabella Chism will serve the American Farm Bureau Federation in a new role. Chism was elected as vice chair of the National Women’s Leadership Committee.

Her election to vice chair left an opening on the NWLC board for the Midwest representative. Deb Walsh, of Indiana’s District 1, was elected to fill that role.

farmland taxes

Fighting the increase in farmland taxes

Posted January 9, 2015 by Meghan Grebner

The 2015 Legislative Session is underway.  Katrina Hall, Indiana Farm Bureau’s director of state government relations says the biggest issue facing farmers in 2015 is farmland taxes.  “The increase in farmland taxes is simply escalating at a point where they are going to be consuming the profits that farmers will be making,” she says.

Between 2007 and 2013, farmers paid an additional $100 million in property taxes – or a 33 percent increase.  “Beyond this year – and even taxes that they will pay in 2015 most farmers will see their assessments have gone up 16.5 percent,” she says.  “It may not be a 1 to 1 ration as to how much their bills will go up, but we have to stop the bleeding.”

And with the significant drop in commodity prices and farm incomes, Hall tells Brownfield the issue becomes even more critical.

With issues like farmland taxes, she says it is important for farmers to be in regular communication with their legislators.  “They need to understand the issues of the folks that are affected by the things they are passing and working on,” she says.  “That’s really is the best way for our members to have the chance to get policies implemented that impact them in the best way.”

And not hinder farmers’ ability to business.