DeBoer said the trend of increasing property taxes will continue.
“Rents and commodity prices were higher and interest rates lower in 2011 than they were in 2005, so the base rate for taxes paid in 2015 should be about $2,050 - a 16.5 percent rise from those paid in 2014,” he said.
The drought’s reduction of corn yields to a 20-year low will affect property tax bills, but not until those payable in 2016, when the 2012 numbers enter the calculation.
“Rising rents and prices and falling interest rates should raise the pay-2016 rate to about $2,430,” DeBoer said. “The 2012 drought will have a small effect. If yields had been normal, the base rate probably would have been $100 to $200 higher.”
DeBoer’s full report and accompanying podcast can be found in his column Capital Comments at https://ag.purdue.edu/agcomm/pages/Newscolumns.aspx