270 likes | 280 Vues
Advisory Committee for the TY 2010 Current Agricultural Use Values. Public Hearing Agricultural Advisory Committee May 7, 2010 Tax Equalization Division Ohio Department of Taxation. Introduction.
E N D
Advisory Committee for the TY 2010 Current Agricultural Use Values Public Hearing Agricultural Advisory Committee May 7, 2010 Tax Equalization Division Ohio Department of Taxation
Introduction This is a meeting before the Ohio Department of Taxation, May 7, 2010. We will be presenting data on the proposed tax year 2010 Current Agricultural Use Values.
Agenda • Updates to the model for 2010 • Yield updates • Crop prices • Cost of inputs • Capitalization rate • Calculation of soil values
Model Updates for 2010 • Single crop pattern • Based on most recent five year average of acres harvested • Corn 39% • Soybeans 51% • Wheat 10% • Eliminate hay • Maintain 50% corn and 50% soybeans for organic and frequently flooded soils
Model Updates for 2010 • Elimination of hay • Previously used two hay crops, mixed hay and grass hay • Most produced for private use • Lack of a consistent and reliable source for hay prices • Produces more uniform values according to slope and productivity index
Crop Yield Updates for 2010 • Continue to update crop yields annually; began in TY 2006 • Crop yields reported by the Ohio Agricultural Statistics Service for the past 10 years are averaged • 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
Yield Updates for TY 2010 • For 2010, the factor is based upon yield data from 1999-2008 • Soil yields from 1984 were increased by the following percentages • Corn: 18.73% • Soybeans: 12.88% • Wheat: 52.50%
Yield Updates for 2010 • The yield update increases the corn yield for Miami Silt Loam, a soil with average productivity, from 108 to 128 bushels per acre. • By contrast, the average corn yield for all soil types in 2007 was 150 bushels per acre.
CROP PRICES ____________________
COST of INPUTS ____________________
CAPITALIZATION RATE _____________________________
Capitalization RateTY 2007-2010 20072010 Mortgage/Equity Ratio 60/40 60/40 Years 15 15 Interest Rate 7.49 7.09 Equity Rate 8.35 7.45 Tax Additur 1.4 1.4 Capitalization Rate 8.4% 7.8%
Capitalization RateTY 2009-2010 20092010 Mortgage/Equity Ratio 60/40 60/40 Years 15 15 Interest Rate 7.06 7.09 Equity Rate 7.65 7.45 Tax Additur 1.4 1.4 Capitalization Rate 7.9% 7.8%
Conclusion • Comments or questions.