1 / 26

Financial Opportunities for Acreage Owners

Financial Opportunities for Acreage Owners. Mindy Hubert mindy.hubert@sdstate.edu. Income Opportunities. Ag Status (tax savings) Grants Other programs. Benefit of “Ag Status”. Can help lower property taxes, sometimes very significantly Depends on your county tax levy Example :

akina
Download Presentation

Financial Opportunities for Acreage Owners

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Financial Opportunities for Acreage Owners Mindy Hubertmindy.hubert@sdstate.edu

  2. Income Opportunities • Ag Status (tax savings) • Grants • Other programs

  3. Benefit of “Ag Status” • Can help lower property taxes, sometimes very significantly • Depends on your county tax levy • Example: $14 tax/$1000 assessed for ag land vs. $16 tax /1000 assessed value for non-ag

  4. Benefit of “Ag Status” • More significantly, depends on how your property is assessed: • Non-ag (owner-occupied) vs. ag property

  5. Benefit of “Ag Status” • Non-ag property is assessed at market value • Ag property is assessed based on a productivity formula • Almost always significantly less than Market Value • most notable on properties valued high (Black Hills)

  6. Example

  7. Qualifying for Ag Status • SDCL 10-6-31.3 • Two of three following criteria must be met: • (State Requirement) Minimum of 20 acres owned • Counties can require up to 160 total acres

  8. Minimum Acreage Size

  9. Criteria-continued • 33.3% of total family gross income is ag • Acreage is devoted to: • Raising crops, timber or fruit trees • Rearing, feeding, and management of farm livestock, poultry, fish, or nursery stock • Production of bees and apiary products, or horticulture • Horses generally not considered Ag (thought of as a tool to conduct ranch work)…like a ranch truck or border collie

  10. Criteria • Hobby Ag vs. Production Ag: • Principal use of the property is ag production with “Intent to produce income” • A 40 acre property with a home, garage, and 20 sheep does not meet this criteria. • A 40 acre property with a home, garage, and 200 head feedlot does.

  11. Directors of Equalization: http://www.sdcounties.org/ Shannon Rittberger, Penningtonshannonr@co.pennington.sd.us505 Kansas City StreetRapid City, SD 57701(605) 394-2175 Kirk Chaffee, Meadedoe@meadecounty.org1300 Sherman St., Suite 222 Sturgis, SD  57785 (605) 347-3818 Allison Jensen, Custerajensen@custercountysd.com 420 Mt Rushmore RdCuster, SD 57730 (605) 673-8170 Polly Odle, Butte polly@buttesd.org 839 5th Ave.Belle Fourche, SD 57717 (605) 892-3950

  12. Directors of Equalization: http://www.sdcounties.org/ Directors of Equalization Terri Halls, Fall Riverfrdoe@gwtc.net 906 N. River St.Hot Springs, SD  57747(605) 745-5136 Tim Hodson, Lawrence thodson@lawrence.sd.us 90 Sherman Street Deadwood, SD 57732 (605)-578-3680 Kyle Helseth, Minnehaha equalization@minnehahacounty.org 415 N. Dakota Ave. Sioux Falls, SD 57104 (605) 367-4228

  13. May Help Qualify for Ag Status (Pennington, Fall River, Custer) • Tree Farm System http://www.treefarmsystem.org • 105 certified American Tree Farms in SD • Must have an approved Management Plan for property Inspections every 5 years • Can help prove Principal Use of acreage is Timber • John Hinners, John.Hinners@state.sd.usSouth Dakota Department of AgricultureP.O. Box 940Huron, SD 57350-0940

  14. Grant Opportunities for Acreage Owners • Ag-related grants generally fund: • Sustainability projects (water, land, etc.) • Income-based operations • Demonstrations/feasibility studies • Outreach/Education projects • Marketing Strategies

  15. Federal Grants • Primary source of most grants • Very competitive • Specific goals or priorities you need to address

  16. Federal Grants: USDA SARE • SARE “Sustainable Agriculture Research & Education” • http://www.northcentralsare.org/GRANTS • Four Programs: • Research & Education • Professional Development • Youth/Educator • Farmer/Rancher Grants

  17. Federal Grants: USDA Rural Develop. • Value-Added Producer Grants (VAPG) • http://www.rurdev.usda.gov/rbs/coops/vadg.htm • Eligible: independent producers, farmer/rancher cooperatives & producer groups & businesses • Funds: • Planning grant ($100,000) • Working capital ($300,000) • Belle Fourche: Jackson Winery and Vineyards, LLC $300,000 • Rapid City: Wild Idea Buffalo Company $17,500

  18. Federal Grants: USDA Rural Develop. • Rural Energy for America Program (REAP) • http://www.rurdev.usda.gov/BCP_Reap.html • Financial assistance to agriculture producers & rural small businesses for purchasing, installing and constructing renewable energy systems (windmills, etc.) • An agricultural producer is directly engaged in the production of agricultural products whereby 50 percent or greater of their gross income is derived from the operations.

  19. Federal Grants: USDA Rural Development • Rural Energy for America Program (REAP) • Grants available up to 25% of total project cost up to $500,000 • Loan Guarantees up to 75% total project cost of $2500-$25M

  20. Natural Resource Conservation Service (NRCS) • Various conservation programs offered • Signup is continuous for many programs • Limited resource farmers/ranchers, beginning farmers/ranchers, socially disadvantaged producers, and Tribes may be eligible for a higher payment rates • No acreage limits for most programs; preference given to largest impact producers

  21. Natural Resource Conservation Service (NRCS) • 2011: 3,700 conservation plans implemented in SD; positively affecting1.6 million acres (430 acres on average)

  22. State Grants • Dept. of Ag: http://www.sdda.sd.gov/AgPolicy/Grants • Specialty Crop Block Grant (SCBG) • Purpose: solely enhance the competitiveness of specialty crops (fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops [including floriculture]).“ • Due April 2nd 2012 • Range of awards $2100-$35,000

  23. Private Industry Grant Links • https://attra.ncat.org/calendar/funding.php • http://www.beginningfarmers.org/ • http://aggrantguru.blogspot.com/ • http://ofrf.org/

  24. Producer Participation Opportunities: • Spring Creek Watershed Partnership • For landowners in the Upper Spring Creek Watershed (above Sheridan Lake) • Cost share opportunity to improve water resources • http://www.springcreekblackhills.com • Belle Fourche River Watershed Partnership • funding available to convert flood irrigation to center pivots and to convert open ditches to pipelines in flood irrigation systems. • http://www.bellefourchewatershed.org/ • Contact local NRCS office for more info

  25. Links from this Training • www.sdstate.edu/wrac/sdsa • Real estate tab • ACRE exam • Upcoming Continuing Education events • Presentations posted from training • www.iGrow.org • ACRE designees listed • Extension Field Staff • Livestock & Small acreage tabs

  26. Links from this Training • SDSU Regional Extension Center • 605-394-1722 • Denise Miller, GIS SpecialistNRCS - Rapid City FSO605.343.1643 ext. 134 • denise.miller@sd.usda.gov

More Related