Because there is a four-year lag in the formula and all of the data from 2009 and 2010 and most from 2011 are available, DeBoer said it is possible to project what will happen to the base rate for the next few years.
The Department of Local Government Finance used data from 2004-2009 for the 2013 calculation of $1,630, DeBoer said. Because commodity prices have remained high and interest rates low, the base rate for taxes in 2014 will be about $1,760. For taxes in 2015, it will be about $2,030.
The six-year average and four-year lag also mean the high commodity prices and low interest rates in 2012 will first enter the tax formula in 2016 and will not drop out until 2022. "The base rate is likely to increase and remain high for a long, long time," DeBoer said.
DeBoer's full column, along with the podcast version, are available on the Web at http://www.ag.purdue.edu/agcomm/pages/Newscolumns.aspx