USING CSR’S IN FARM APPRAISALS JIM JENSEN EXTENSION FARM MANAGEMENT SPECIALIST, ACCREDITED RURAL APPRAISER ACCREDITED FARM MANAGER

WHAT IS A CSR RATING? Definition An index that rates soil types based on their productivity for row crop production Index What are the ranges? What are the Assumptions? Why not use yields?

Yields are not good measures of productivity, they change from year to year because of weather and they change over time because of technology.

CSR is inherent productivity of the Soil!

CSR Assumptions Adequate Management Natural Weather Conditions Artificial Drainage where required Soils lower on landscape not affected by frequent floods No land leveling or terracing

Using Soil Maps to Compute CSR Figure 2. Example Soil Map Map Scale: 1 inch = 1,320 feet

Slopes Blank = 0-2 percent or 1-3% B = 2-5% C = 5-9% D = 9-14% E = 14-18%

Erosion Class None or Slight – More than 7 inches of A or A plus E Horizon Moderately Eroded – 3-7 inches Severely Eroded – Less than 3 inches Overwash – 8-18 inches of recently deposited material above A Horizon

CSR Summary Map Unit Corn SuitabilityAcresPercentTotal Rating SymbolNameRatingin AOIof AOIby Soil Type 55Nicollet Loam %531 62DStorden Loam %288 62EStorden Loam %67 95Harpes Clay Loam % Webster Clay Loam %1, Coland Clay Loam802.03% BClarion Loam %2, C2Clarion Loam % BColand-Terrill402.03% %6,016 Weighted Average Corn Suitability Rating (6,016 divided by 80)75.2

Locate Parcel in Question Soil Type: Acres: Percent: CSR T370B % % 60 T % % 91 T % % % Totals % Iowa Corn Suitability Rating based yield estimation: 179 bushels per acre

How do we figure CSR’s? Talk to Assessor Talk to NRCS Talk to ISU Extension Count Dots Do it electronically – CD – On Web Purchase the information

Using NRCS CD’s Purchase from NRCS offices Order from ISU – OrderForm.pdf – We will look at Story County

Using NRCS Web Soil Survey

How is CSR used in Appraisal? Unit of Comparison Other factors of importance – Time – Location – Size – Percent Tillable – Terms – Buildings

How often do you figure CSR’s? Subject Comparable Sales Break property into tillable & non tillable

How are CSR’s Often Misused?

ISU Land Value Survey

Sale Value TractSale ValueAvg. CSRper Index Point 1$5,16075$ , , Avg.$5, $71.74

When cropland is sold there is usually a difference between the number of acres used for crop production and the total number of acres in the farm. There is even a difference in the number of acres in the farm!

What figures do you use?

How else are CSR’s Used?

How about setting cash rents?

Average CSR for Cropland in County

Rental Rate TractRentalAvg. CSRper Index PointRate 1$22579$2.85 2$18066$2.73 3$19071$2.68 Avg.$19872$2.75

CSR’s Used in Tax Assessment This is material for another day Do not try to relate tax assessments of land to value. Put them into the report as information