Farmers may see a substantial increase in property taxes if the Missouri State Tax Commission's proposal is passed by the Missouri General Assembly.
Wednesday, the tax commission approved as much as a 29 percent increase in farmland assessments.
Representatives of the Missouri Farm Bureau are urging the commission not to increase productivity values. They believe an increase such as has been proposed would be economically harmful to many already struggling farmers.
Nodaway County Assessor Rex Wallace said farmland soil in Missouri is categorized in eight classes –– one being the worst and eight being best.
In the commission's proposal, farmland grades one through four, which includes most of the state's cropland, the productivity values would increase by almost 29 percent, or an average of about 90 cents per acre. In grades five through seven, which includes pasture, the productivity values would decrease about 24 percent, or an average of about 20 cents per acre. Statewide, the total value of farmland using the new productivity values would increase 11.5 percent.
Wallace said productivity values for the classes at this time compared to what the increase would mean are as follows:
— Class 1 is $985 per acre now, would be $1,270 an acre with the increase.
— Class 2 is $810 per acre, would be $1,044 with the increase.
— Class 3 is $615 per acre, would be $793 with the increase.
— Class 4 is $385 per acre, would be $496 with the increase.
— Class 5 is $195 per acre, would be $147 with the change.
— Class 6 is $150 per acre, would be $113 with the change.
— Class 7 is $75 per acre, would be $57 with the change.
— Class 8 is $30 per acre and would remain the same.
Charles Kruse, president of Missouri Farm Bureau said many Missouri farm and ranch families are now facing financial strain like they have never seen.
"Extreme market volatility combined with record production expenses, unusually wet weather and weak demand have left many producers struggling to manage debt and cashflow," Kruse said.
"Missouri farmers are carrying some of the highest debt load in the nation, and clearly they cannot be expected to shoulder a tax increase."
Kruse said property tax levies are set locally, but an increase in farmland productivity values would mean a tax increase on farmers and ranchers.
"Fortunately, the Missouri General Assembly, not the State Tax Commission, has the final word on whether the increased farmland assessments will become a reality," he said. "We will vigorously urge the General Assembly to overturn this tax increase. We urge Governor Jay Nixon to weigh in on this issue before the decision and we now urge him to speak out in opposition to the recommended tax increase."
