1. 2017 ISAC Supervisors
Agricultural Assessments and 2017 Values

2. 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

3. 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, (e)

4. 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

5. 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

6. 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 %
184.51
LESS TAXES
24.09
INCOME PER ACRE
160.42
CAP RATE 7%
2,291.71

7. 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, 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

8. 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 , Sub 1, Para F., 1988

9. 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 (1)b

10. 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

11. 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

12. CROP / NON-CROP LAYER

13. 2017 CSR2 SOILS POLYGONS

14. LAND VALUATION

15. 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

16. 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
24.25%
2291
9449
Clay County Used 25%

17. 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

18. 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

19. 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

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

21. 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
Administrative Code, 701, 71.11(441), Para A

22. 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 ,000
2017 Land Value 732,724,049
730,224,049

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

24. 2017 Agricultural Factor Per DOR
Jurisdiction Productivity Market Ag Factor Jurisdiction Productivity Market Ag Factor
ADAIR 1, , % JEFFERSON 1, , % ADAMS 1, , % JOHNSON 1, , % ALLAMAKEE 1, , % JONES 2, , % APPANOOSE , % KEOKUK 1, , % AUDUBON 1, , % KOSSUTH 2, , % BENTON 2, , % LEE 1, , % BLACK HAWK 2, , % LINN 2, , % BOONE 1, , % LOUISA 2, , % BREMER 2, , % LUCAS , % BUCHANAN 2, , % LYON 2, , % BUENA VISTA 2, , % MADISON 1, , % BUTLER 1, , % MAHASKA 2, , % CALHOUN 1, , % MARION 1, , % CARROLL 2, , % MARSHALL 2, , % CASS 1, , % MILLS 2, , % CEDAR 2, , % MITCHELL 1, , % CERRO GORDO 1, , % MONONA 1, , % CHEROKEE 2, , % MONROE , % CHICKASAW 2, , % MONTGOMERY 1, , % CLARKE , % MUSCATINE 2, , % CLAY 2, , % OBRIEN 2, , % CLAYTON 1, , % OSCEOLA 2, , % CLINTON 2, , % PAGE 1, , % CRAWFORD 2, , % PALO ALTO 2, , %
DALLAS 1, , % PLYMOUTH 2, , %
DAVIS , % POCAHONTAS 2, , %
DECATUR , % POLK 1, , %
DELAWARE 2, , % POTTAWATTAMIE 2, , %
DES MOINES 1, , % POWESHIEK 2, , %

25. 2017 Agricultural Factor Per DOR
Jurisdiction Productivity Market Ag Factor Jurisdiction Productivity Market Ag Factor
DICKINSON 2, , % RINGGOLD , %
DUBUQUE 2, , % SAC 2, , %
EMMET 2, , % SCOTT 2, , %
FAYETTE 2, , % SHELBY 2, , %
FLOYD 1, , % SIOUX 2, , %
FRANKLIN 2, , % STORY 1, , %
FREMONT 1, , % TAMA 1, , %
GREENE 1, , % TAYLOR 1, , %
GRUNDY 2, , % UNION 1, , %
GUTHRIE 1, , % VAN BUREN 1, , %
HAMILTON 2, , % WAPELLO 1, , %
HANCOCK 2, , % WARREN 1, , %
HARDIN 2, , % WASHINGTON 1, , %
HARRISON 1, , % WAYNE , %
HENRY 1, , % WEBSTER 1, , %
HOWARD 1, , % WINNEBAGO 2, , %
HUMBOLDT 2, , % WINNESHIEK 1, , %
IDA 2, , % WOODBURY 2, , %
IOWA 1, , % WORTH 2, , %
JACKSON 1, , % WRIGHT 2, , %
JASPER 1, , % STATE 1, , %