VIDEO: Young proposal shields farmers from higher property taxes

State Senator Richard Young has taken steps to slow an upsurge in property taxes on agricultural land this legislative session. Senate Bill (SB) 319 now requires land surveyors to use the same factors to determine soil productivity that were used in March 2011, when surveying methods changed for the first time since the 1970s. The measure halts a sudden spike in taxes while researchers at Purdue University take time to study the issue and make recommendations to the legislature on appropriate land surveying techniques. SB 319 was the first measure to be signed into law by the governor this session.

Soybeans sizzle at the Indiana State Fair

A single soybean only reaches about a quarter of an inch in length, but the crop has hit the big time this year at the Indiana State Fair.  2011 is the “Year of the Soybean” at the state fair, and activities and information about the crop abound.

The soybean industry had a value of $3.1 billion in Indiana last year. Aside from traditional uses like animal feed, the crop is now being used to create biofuel and candles. Check out soybean recipes and fun facts here.

The face of soybeans at the Indiana State Fair will be mascot Bennie the Bean.  You can follow him on twitter (@benniethebean) for live soybean activity updates at the fair.

This year the fair will run from August 5 – 21.  Ticket, concert and livestock information can be found at http://www.in.gov/statefair/fair/.  Follow @IndyStateFair on twitter for the latest updates from the fair and chances to win free general admission and concert tickets.

Fact Source: Informa Economics Photo credit: Indiana State Fair

Indiana to update farmland assessment process

On March 13 the Indiana Senate gave final approval to legislation that would protect Indiana farmers and agriculture companies by more accurately reflecting farmland values.

Beginning with taxes payable in 2011, Senate Bill 396 would change the calculation by which farmland assessments are determined. Under the proposal, the base rate formula for farmland assessments would be done on an adjusted six year average with the highest value eliminated.

The Indiana Department of Local Government and Finance currently determines farmland assessed value based on a six-year rolling average. The formula takes into account information on land rents, crop yields and prices, and interest rates. Farmland values are recalculated each year as part of the trending process.

For example, the base value per acre of farmland is $1,250 for taxes payable in 2010. The value is currently estimated to increase to $1,400 for 2011, $1,700 for 2012, and $1,810 for 2013. Under this proposal, the base rate would be $1,290 for 2011, $1,500 for 2012, and $1,620 for 2013.

A few interesting statistics on farmland in Indiana

16% — Percentage of Indiana’s workforce connected to agriculture. (1)

$25 billion – Annual contribution to the state’s economy from Indiana’s farm, food and forestry products. (1)

64% — Percentage of total land in Indiana that is farmland. (2)

14.7 million acres – Amount of farmland in Indiana. (2)

242 acres – Average size of an Indiana farm, but a majority of farms are less than 100 acres in size. (2)

52,553 – Number of family or individually-owned farms in Indiana, representing 86.2% of the total numbers of Indiana farms. (2)

Top 5 agriculture commodities in 2008 (2)

1. Corn

2. Soybeans

3. Hogs

4. Dairy products

5. Chicken eggs

SB 396 was approved earlier this month by the House, so it will now be sent to the governor for his consideration.

Sources:

1. Indiana Economic Development Corporation

2. USDA Economic Research : Indiana Fact Sheet

Video & Audio: Errington legislation seeks to expand local and organic food industry

State Sen. Sue Errington has proposed a measure that would encourage expansion of Indiana’s local and organic food production. Senate Bill 194 was heard in the Senate Committee on Agriculture and Small Business Committee today, but the committee’s chair did not permit a vote on the bill.

Listen to Senator Errington discuss Senate Bill 194:

Errington originally proposed the creation of a new state task force to work with local farmers and grocers to expand local and organic food production and distribution. Today she suggested that she would instead draw from a similar program already being implemented by the Office of Community and Rural Affairs (OCRA), eliminated the cost of an additional state body. Under the new plan, a comprehensive report of the existing program’s impact and findings would be sent to the legislature to inform policy makers technology and logistics necessary to expand and modernize Indiana’s local and organic food network. Errington said this is important right now so Indiana can move forward in this industry during better economic times.

The report would focus on ten program goals:

1. Establish training and development
2. Make local and organic foods more accessible
3. Build connections
4. Build local food infrastructure
5. Develop new food and agriculture businesses
6. Develop farmers markets and create year-round markets
7. Research development
8. Educate public and producers
9. Identify legal impediments
10. Identify stakeholders
    

Video: Indiana’s Rural Caucus