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Agricultural Advisory Committee Current Agricultural Use Values TY 2014

Agricultural Advisory Committee Current Agricultural Use Values TY 2014. Public Hearing February 28, 2014. Introduction. This is a public hearing before the Ohio Department of Taxation to present data on the proposed tax year 2014 Current Agricultural Use Values (CAUV). Agenda.

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Agricultural Advisory Committee Current Agricultural Use Values TY 2014

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  1. Agricultural Advisory Committee Current Agricultural Use ValuesTY 2014 Public Hearing February 28, 2014

  2. Introduction This is a public hearing before the Ohio Department of Taxationto present data on the proposed tax year 2014 Current Agricultural Use Values (CAUV).

  3. Agenda • Basic formula • Factors used in the calculation • Crop yields & crop pattern • Crop prices & non-land production costs • Capitalization rate • Calculation of Soil Values • Sample calculations • Minimum Values • Comparative Charts – USDA Cropland Value • Maps – 2013; data from counties

  4. Basic Formula

  5. Factors used in Formula

  6. Crop Yields/Cropping Pattern • Soil yields from 1984 are adjusted by the 10-year average of actual yields per acre for 2003-2012. • Single crop pattern for most soils based on the most recent five-year average of acres harvested, 2008-2012: • Corn 38.6% • Soybeans 52.0% • Wheat 9.4% • Maintain 50% corn and 50% soybeans for organic and frequently flooded soils. • Data: USDA Agricultural Statistics Service.

  7. Adjusted Crop Pricesin the Model, 2011-2014

  8. Non-Land Production CostsBase & Added Unit, 2011-2014

  9. CAPITALIZATION RATE

  10. Capitalization RateTY 2011-2014 20112014 Mortgage/Equity Ratio 60/40 60/40 Interest Rate, 15-Year Fixed Rate Mortgage* 7.00 5.89 Equity Rate** 7.30 5.25 Tax Additur 1.3 1.6 Capitalization Rate7.6% 6.2% *Rate for a MultiFlex mortage loan from Farm Credit Services. **Equity rate is the prime lending rate plus 2%.

  11. Calculation of Soil ValuesComparison of Values

  12. 2014 Sample Calculation - Millgrove

  13. 2014 Sample Calculation - Miami

  14. Minimum Use Values

  15. Simple Average CAUV per Acre, by Productivity Index2006-2014

  16. Cropland, Average CAUVDollars per Acre1999-2014

  17. Average CAUV andOhio Cropland Value - USDADollars per Acre, 1999-2013

  18. Contact Information www.tax.ohio.gov Government, Real Property Tax Ohio Dept. of TaxationTax Equalization Division 614.466.5744 Gloria.Gardner@tax.state.oh.us

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