Farmland owners in Indiana will pony up more in property taxes next year as a result of a bump in the value of farmland and rising commodity prices.
Driving the rise in farmland assessments is an increase in the base rate for assessed land value, which rose nearly 8 percent from 2013 on taxes payable in 2014. The rate factors into account land rents, crop yields, commodity prices, costs and interest rates.
The base rate has doubled in the past seven years as market conditions for farmers in these areas have improved, Purdue Extension agriculture economist Larry DeBoer said.
The base rate in tax year 2007 was $880 per acre of farmland, according to the Indiana Department of Local Government Finance. This year’s base rate is $1,760 per acre.
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