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Agricultural Advisory Committee - TY 2013 Current Agricultural Use Values

Agricultural Advisory Committee - TY 2013 Current Agricultural Use Values. Public Hearing March 1, 2013 Tax Equalization Division Ohio Department of Taxation. Introduction.

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Agricultural Advisory Committee - TY 2013 Current Agricultural Use Values

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  1. Agricultural Advisory Committee - TY 2013Current Agricultural Use Values Public Hearing March 1, 2013 Tax Equalization Division Ohio Department of Taxation

  2. Introduction This is a public hearing before the Ohio Department of Taxation, March 1, 2013. We will be presenting data on the proposed tax year 2013 Current Agricultural Use Values.

  3. Agenda • Basic formula • Factors used in the calculation • Crop yields • Crop pattern • Crop prices & production costs • Capitalization rate • Calculation of Soil Values • Sample calculations • Minimum Values • Comparative Charts – USDA Cropland Value • 2012 Data from Counties

  4. Basic Formula

  5. Crop Yields • Crop yields reported by the Ohio Agricultural Statistics Service for the past 10 years are averaged (2002-2011). • That average is divided by the original yields published in 1984. • The resulting factor is applied to the yields of record for each soil type. • Soil yields from 1984 were increased by the following percentages: • Corn 25.85% • Soybeans 19.73% • Wheat 48.41%

  6. Crop Yields • The yield update increases the corn yield for Miami Silt Loam, a soil with average productivity, from 108 to 136 bushels per acre. • By contrast, the average corn yield for all soil types in 2011 was 158 bushels per acre.

  7. Cropping Pattern • Single crop pattern for most soils. • Based on the most recent five-year average of acres harvested, 2007-2011: • Corn 38.7% • Soybeans 51.2% • Wheat 10.1% • Maintain 50% corn and 50% soybeans for organic and frequently flooded soils.

  8. CROP PRICES & INPUT COSTS ____________________

  9. Adjusted Crop Pricesin the Model, 2010-2013

  10. Production CostsBase & Added Unit, 2010-2013

  11. CAPITALIZATION RATE _____________________________

  12. Capitalization RateTY 2010-2013 20102013 Mortgage/Equity Ratio 60/40 60/40 Interest Rate, 15-Year Fixed Rate Mortgage* 7.09 6.19 Equity Rate** 7.45 6.05 Tax Additur 1.4 1.5 Capitalization Rate 7.8% 6.7% *Rate for a MultiFlex mortage loan from Farm Credit Services. **Equity rate is the prime lending rate plus 2%.

  13. Calculation of Soil ValuesComparison of Values

  14. 2013 Sample Calculation - Millgrove

  15. 2013 Sample Calculation - Miami

  16. Minimum Use Values

  17. Average CAUV per Acre 2006-2013

  18. Cropland, Average CAUVDollars per Acre1998-2013

  19. Average CAUV andOhio Cropland Value - USDADollars per Acre, 1998-2012

  20. Contact Information www.tax.ohio.gov Government, Real Property Tax Ohio Dept. of TaxationTax Equalization Division 614.466.5744

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