2017 ISAC Supervisors Agricultural Assessments and 2017 Values

Classification of Agricultural Real Estate “Agricultural real estate shall include all tracts of land and the improvements and structures located on them which are in good faith used primarily for agricultural purposes except buildings which are primarily used or intended for human habitation, as defined in subrule 71.1(4). Land and the nonresidential improvements and structures located on it shall be considered to be used primarily for agricultural purposes if its principal use is devoted to the raising and harvesting of crops or forest or fruit trees, the rearing, feeding and management of livestock, or horticulture, all for an intended profit.” Administrative Code, 701, 71.1(3), Para A & B

Assessment Of Agricultural Land “The actual value of agricultural property shall be determined on the basis of the productivity and net earning capacity of the property determined on the basis of its use for the agricultural purposes capitalized at the rate of seven percent and applied uniformly among all counties.” Code of Iowa, 441.21(e)

2017 Clay County Production Worksheet   Corn Silage Soybeans Sorghum Year Yield Acres Bushels 2011 185.4 152,500 28,720,000 2,246 416,408 51.9 125,200 6,498,000 2012 170.1 158,900 27,023,000 4,064 691,296 49.5 125,100 6,192,000 2013 167.2 150,400 25,145,000 14,500 2,424,400 44.4 118,600 5,261,000 2014 166.3 155,700 25,890,000 5,098 847,797 47.8 126,500 6,043,000 2015 202.8 147,400 29,893,000 7,600 1,541,280 60.7 130,000 7,895,000 Total 764,900 136,221,000 33,508 5,921,172 625,400 31,889,000 Average 178 152,980 27,244,200 6,702 1,184,234 51 125,080 6,377,800 Oats Wheat Hay Production 80 112 7,957 3.1 4,839 15,030 330,000 74 84 7,341 2.8 4,000 11,000 75 57 5,195 6,191 17,358 320,000 64 62 3,985 3 6,200 18,900 98.5 6,192 5,597 17,327 377 30,670 26,827 79,615 1,620,000 81.8 6,134 2.97 5,365 15,923 324,000

2017 BUDGET WORKSHEET Landlord Per Acre Total Land Use Acres Yield   Landlord Per Acre Total Land Use Acres Yield Production Price Total Income Income Expense Corn 159,682 178 28,428,434 5.02 142,710,739 71,355,369 201.43 32,164,745 Soybeans 125,080 51 6,377,800 11.63 74,173,814 37,086,907 111.26 13,916,401 Oats 75 82 6,134 3.53 21,653 10,827 43.06 3,230 Hay 5,365 3 15,923 156.80 2,496,726 624,181 55.06 295,397 Tillable Pasture 546 116.42 63,565 35.86 19,580 Non-Till Pasture 12,932 58.21 752,772 17.93 231,871 Govt Programs 14,300 4,931,903 62,404 Totals 114,825,525 46,693,628

DETERMINATION OF VALUE PER ACRE LANDLORD INCOME 114,825,525 TOTAL EXPENSES 48,169,852 NET INCOME LANDLORD 66,655,673 INCOME OTHER ACRE 215,443 TOTAL NET INCOME 66,870,226 NET INCOME PER ACRE 206.39 LESS DWELLING - 10.6% 184.51 LESS TAXES 24.09 INCOME PER ACRE 160.42 CAP RATE 7% 2,291.71

2017 Assessed Valuation Iowa Department of Revenue says: “The net earning capacity of the property used for agricultural purposes for 2017 within Clay County, capitalized at the rate of seven percent is 2,291.71 per acre, of which Clay County has 333,119.84” Clay County Ag Value 763,414,069 Valid Range 725,243,365 to 801,584,772

State Law on Agricultural Assessments “In counties or townships in which field work on a modern soil survey has been completed since January 1, 1949, the Assessor shall place emphasis upon the results of the survey in spreading the valuation among individual parcels of such agricultural property.” Code of Iowa, Section 441.21, Sub 1, Para F., 1988

State Law on Agricultural Assessments “In distributing such valuation to each parcel under paragraph 71.3(1)“a,” the assessor shall adjust non-cropland. The adjustment shall be applied to non-cropland with a corn suitability rating (CSR) that is greater than 50 percent of the average CSR for cropland for the county. The adjustment shall be determined for each county based upon the five-year average difference in cash rent between non-irrigated cropland and pasture land as published by NASS. The assessor may utilize the USDA FSA-published Common Land Unit digital data or other reliable sources in determining non-cropland. Counties shall implement the adjustments under this paragraph on or before the 2017 assessment year.” Iowa Administrative Rules, Section 701.71.3(1)b

THE DETERMINATION – CROP OR NON-CROP CROPLAND Land that at some time has been in production and is capable of crop production Land currently enrolled in an active conservation reserve program Land that consists of manmade grass waterways or crossable waterways and is capable of crop production Land that consists of manmade terraces, buffer strips, or similar manmade objects that are capable of crop production Tillable pasture Vineyards If in Doubt and the Owner has no supporting documentation, default is Crop

THE DETERMINATION – CROP OR NON-CROP NON-CROPLAND Forested land Dedicated ponds and dam area (not occasional ponding in a field area) Land that is under permanent easement that precludes any type of crop production Permanent pasture Non-crossable waterways Building sites including driveways or maintained access roads Other land which cannot be cropped due to access limitations, or land cover which would limit the ability to be cropped

CROP / NON-CROP LAYER

2017 CSR2 SOILS POLYGONS

LAND VALUATION

Administrative Code, 701, 71.3(421,428,441), Para D Ag Building Values In order to determine the productivity value for agricultural buildings and structures, assessors shall make an agricultural adjustment to the market value of these buildings and structures by developing an “agricultural factor” for their jurisdiction. The agricultural factor for each jurisdiction shall be the product of the ratio of the productivity and net earning capacity value per acre as determined under subrule 71.12(1) over the market value of agricultural land within the assessing jurisdiction. The resulting ratio is then applied to the actual value of the agricultural buildings and structures as determined under the Iowa Real Property Appraisal Manual prepared by the Department. The agricultural factor shall be applied uniformly to all agricultural buildings and structures in the assessing jurisdiction. Administrative Code, 701, 71.3(421,428,441), Para D

Productivity Ratio The Iowa Department of Revenue says Clay County Average Assessed Value of Agricultural Land divided by the Average Sales Price for assessments based on 1-1-2017. 24.25% 2291 9449 Clay County Used 25%

Ag Building Valuation $100,000 $25,000 Cost of Building (includes dirt work, concrete floor, heating and insulation, electrical, office area with A/C, window and doors, and labor) Assessed Valuation of the Building $100,000 $25,000

Ag Building Valuation $1,000,000 $250,000 $ 85,000 $165,000 Assume 4 Finishing Buildings 50’ x 200’ with 8’ concrete pit Cost of Buildings (includes dirt work, concrete, framing and roof, heating and insulation, electrical, window and doors, and labor) Productivity Ratio 25% Exempt for Pollution Control Assessed Valuation of the Building $1,000,000 $250,000 $ 85,000 $165,000

Assessed Valuation Clay County has over Thirty Million dollars in agricultural buildings located within the county. Clay County Ag Value 763,414,069 Remove Ag Buildings -27,439,580 Remove Exempt Value -3,250,440 2017 Land Value 732,724,049

Assessed Valuation Land Value 732,724,049 Divide by Total CSR’s 26,376,315 Value per CSR $27.78

Equalization of Values Commencing in 1977 and every two years thereafter, the Director of Revenue shall order the equalization of the levels of assessments of each class of property as provided in rule 71.12(441) by adding to or deducting from the valuation of each class of property, as reported to the Department on the abstract of assessment and reconciliation report, which is part of the abstract, the percentage in each case as may be necessary to bring the level of assessment to its actual value as defined in Iowa Code 441.21 Administrative Code, 701, 71.11(441), Para A

Assessed Valuation New Agricultural buildings does not mean additional tax valuation or tax revenue. Clay County Ag Value 763,414,069 Remove Ag Buildings -27,439,580 10 Additional Confinement -1,650,000 Remove Exempt Value -3,250,440 10 Addn Exempt Pits -850,000 2017 Land Value 732,724,049 730,224,049

Equity in Taxable Values 2016 As Agricultural (100,000 * .25 * .4749) $11,875 As Residential (100,000 * .56939) $56,939 As Commercial (100,000 * .90) $90,000

2017 Agricultural Factor Per DOR Jurisdiction Productivity Market Ag Factor Jurisdiction Productivity Market Ag Factor ADAIR 1,502.14 6,090.20 24.66% JEFFERSON 1,582.71 5,473.00 28.92% ADAMS 1,435.86 4,983.20 28.81% JOHNSON 1,798.29 8,989.80 20.00% ALLAMAKEE 1,525.86 5,420.40 28.15% JONES 2,059.43 7,585.60 27.15% APPANOOSE 667.71 3,507.80 19.04% KEOKUK 1,809.86 6,541.80 27.67% AUDUBON 1,816.86 8,484.20 21.41% KOSSUTH 2,256.14 9,285.60 24.30% BENTON 2,221.00 8,841.20 25.12% LEE 1,358.57 6,554.40 20.73% BLACK HAWK 2,131.43 9,860.40 21.62% LINN 2,077.43 9,157.40 22.69% BOONE 1,984.29 9,240.60 21.47% LOUISA 2,234.57 7,795.80 28.66% BREMER 2,094.43 9,104.20 23.01% LUCAS 797.71 3,671.00 21.73% BUCHANAN 2,103.71 8,887.40 23.67% LYON 2,475.00 10,023.20 24.69% BUENA VISTA 2,092.43 10,106.00 20.70% MADISON 1,111.43 6,636.40 16.75% BUTLER 1,927.86 8,716.80 22.12% MAHASKA 2,033.14 6,793.20 29.93% CALHOUN 1,956.29 9,803.00 19.96% MARION 1,521.00 6,506.40 23.38% CARROLL 2,032.71 9,306.60 21.84% MARSHALL 2,215.86 8,200.20 27.02% CASS 1,938.71 7,509.60 25.82% MILLS 2,217.71 7,919.40 28.00% CEDAR 2,408.29 8,681.00 27.74% MITCHELL 1,985.71 8,539.60 23.25% CERRO GORDO 1,900.71 8,745.00 21.73% MONONA 1,950.43 7,403.00 26.35% CHEROKEE 2,412.71 9,576.00 25.20% MONROE 694.14 4,783.00 14.51% CHICKASAW 2,110.43 7,760.40 27.19% MONTGOMERY 1,759.29 6,434.20 27.34% CLARKE 839.71 3,889.00 21.59% MUSCATINE 2,032.86 8,196.00 24.80% CLAY 2,291.71 9,449.00 24.25% OBRIEN 2,606.29 11,267.80 23.13% CLAYTON 1,758.29 7,054.20 24.93% OSCEOLA 2,456.71 9,956.60 24.67% CLINTON 2,334.00 7,457.40 31.30% PAGE 1,713.29 5,898.20 29.05% CRAWFORD 2,047.71 8,663.60 23.64% PALO ALTO 2,126.57 9,083.80 23.41% DALLAS 1,739.57 8,664.00 20.08% PLYMOUTH 2,112.43 10,225.00 20.66% DAVIS 867.00 4,688.00 18.49% POCAHONTAS 2,279.29 9,549.00 23.87% DECATUR 660.71 3,338.40 19.79% POLK 1,535.29 8,296.60 18.51% DELAWARE 2,160.29 8,877.00 24.34% POTTAWATTAMIE 2,131.71 8,628.40 24.71% DES MOINES 1,958.14 7,378.60 26.54% POWESHIEK 2,019.43 7,549.80 26.75%

2017 Agricultural Factor Per DOR Jurisdiction Productivity Market Ag Factor Jurisdiction Productivity Market Ag Factor DICKINSON 2,075.29 8,926.60 23.25% RINGGOLD 925.43 4,127.20 22.42% DUBUQUE 2,101.14 8,090.00 25.97% SAC 2,074.57 9,895.20 20.97% EMMET 2,087.71 9,229.60 22.62% SCOTT 2,234.57 11,042.20 20.24% FAYETTE 2,172.57 8,210.60 26.46% SHELBY 2,190.86 8,654.60 25.31% FLOYD 1,936.86 8,505.20 22.77% SIOUX 2,492.43 11,169.40 22.31% FRANKLIN 2,171.86 8,694.40 24.98% STORY 1,908.86 9,517.80 20.06% FREMONT 1,939.29 7,050.00 27.51% TAMA 1,945.71 8,281.00 23.50% GREENE 1,890.29 8,639.00 21.88% TAYLOR 1,281.29 4,560.20 28.10% GRUNDY 2,390.14 9,740.80 24.54% UNION 1,039.29 4,942.20 21.03% GUTHRIE 1,374.43 7,682.40 17.89% VAN BUREN 1,072.86 4,992.00 21.49% HAMILTON 2,022.71 9,827.20 20.58% WAPELLO 1,444.29 5,485.40 26.33% HANCOCK 2,040.43 8,774.80 23.25% WARREN 1,243.57 6,705.60 18.55% HARDIN 2,072.00 8,929.20 23.20% WASHINGTON 1,853.14 8,493.00 21.82% HARRISON 1,896.29 8,063.40 23.52% WAYNE 848.71 3,543.80 23.95% HENRY 1,550.14 6,824.20 22.72% WEBSTER 1,987.14 9,505.20 20.91% HOWARD 1,895.86 7,000.40 27.08% WINNEBAGO 2,070.29 8,188.20 25.28% HUMBOLDT 2,158.00 9,499.20 22.72% WINNESHIEK 1,924.00 6,999.20 27.49% IDA 2,392.71 9,238.60 25.90% WOODBURY 2,159.57 7,577.00 28.50% IOWA 1,862.00 7,536.60 24.71% WORTH 2,058.71 8,198.60 25.11% JACKSON 1,897.00 6,855.20 27.67% WRIGHT 2,149.14 9,699.00 22.16% JASPER 1,952.71 7,776.20 25.11% STATE 1,925.86 7,859.20 24.50%