IFB: Let’s Keep Farmland Assessment Fair

It's no secret that farmland values have gone through some pretty big changes in the last couple of decades. The current Farmland Assessment Law hasn't kept up, though. That's why Illinois Farm Bureau (IFB) supports an amendment to the law proposed by the Illinois Department of Revenue (IDOR). According to IFB, this change will maintain the fair and equitable assessment of farmland.

Current Law
In 1986, a +/- 10% cap was put on farmland value. Limiting the cap to 10% created a problem over time. Today, the certified value of lower-producing soils doesn't reflect the actual productive value of the soil.

The current assessment suggests that "a higher (productive) soil produces 40 times better than lower (productive) soils, but the actual data in Illinois doesn't support that," said Brenda Matherly, Illinois Farm Bureau Assistant Director of Local Government.

Proposed Change
Under HB 2651, sponsored by Rep. Frank Mautino (D-Spring Valley), the farmland assessment process would phase in changes to equalized assessed value by soil productivity index (PI). Those changes would not exceed 10% of the certified assessed value of the state's median soil PI, which is 111.

This change would allow 2014 certified values of farmland to increase up to 10% of the PI 111's 2013 certified value - $184.83. Therefore, an increase of 10% of this certified value would be $18.48. This would mean a maximum increase in all PI values of $18.48.

Under this proposed amendment, the certified value changes would happen gradually. Matherly estimated it would take 15 to 17 years before the median values are integrated through the system. Matherly warned if the farmland assessment law isn't changed, the system's integrity could come into question, possibly threatening the entire law.

IFB Position
IFB supports HB 2651 to help maintain the fair and equitable assessment of farmland. In fact, Illinois farm Bureau made it one of it's legislative priorities for 2013:

Support legislation maintaining the integrity of the farmland assessment law and its ability to value farmland in an appropriate way for agriculture.

How does IFB know how to handle tough issues? Easy. Your grassroots policy leads the way! Farmers like you set IFB #125 Property Tax Administration which says in part:

We will seek uniform and equitable implementation of the Farmland Assessment Law, in cooperation with county Farm Bureaus.