In 2006, all counties in Illinois were mandated to use Bulletin 810 soil types and productivity indices for farmland assessments.
How is farmland assessed?
Farmland will be assessed according to the farmland assessment law. The farmland assessment law directs assessing officials to value land based upon the soil types, their Productivity Indices (PI) and land use. Market value of farmland does not enter into the assessment formula.
Beginning 2015 payable 2016 the farm provision in PA 98-0109 amends section 35 ILCS 200/10-115 part (e) of the Property Tax Code. (e – the equalized assessed value per acre of farmland for each soil productivity index, which shall be 33- 1/3 of agriculture economic value, or the percentage as provided under Section 17-5; but any increase or decrease in the equalized assessed value per acre by soil productivity index shall not exceed
10% from the immediate proceeding year’s soil productivity index certified assessed value of the median cropped soil;, in tax year 2015 only, that 10% limitation shall be reduced by $5.00 per acre; “Soil productivity index” (PI) is a soil rating usually given on a per acre basis as determined by an ID soil survey. The lower the PI, the lower the expected crop yields. As PI increases so does crop yields. For per acre value determination, the
Department of Revenue employs a PI scale from a low of 82 to a high 132. “Agriculture economic value” is a form of use-value of the property for agricultural purposes, is defined in the Property Tax Code (35 ILCS 200/10-115) by dividing the net return to land by the moving average of the Federal Land Bank farmland mortgage interest rate as calculated by Farmland Technical Advisory Board (FATB). The proposed “agricultural economic value” is calculated by dividing the net return to land by the five-year average of the Federal Land Bank farmland mortgage interest rate as calculated by Farmland Technical Advisory Board (FTAB). The equalized assessed value is calculated by taking the agricultural economic value and multiplying it by 33.33%.
How is this accomplished?
The individual soil method is used instead of the weighted tract method to assess farmland. Using the individual tract method, the acreage of each soil type in each land use on each parcel will be measured. Each soil’s acreage will be multiplied by the EAV for each soil’s PI. Soil EAV’s will then be totaled for that land use’s assessment. As in the past, PI’s will continue to be debased for slope and erosion as well as flooding. Cropland,
which suffers actual crop loss due to flooding, may be eligible for a flood debasement.
To file for debasement, the owner/operator will be required to complete a Flood Crop Loss Form, highlight area of actual crop loss on an aerial photograph of their farm, and produce proof to substantiate their claim, i.e.: Yields for the past ten (10) years reported to the FSA, type of crop planted, number of acres planted for total farm operation by year, month(s) flooding occurred, by year, and the source of the floodwaters; creek,
lake, river, etc.
Flood Crop Loss Instructions
How to Complete a Flood Crop Loss Form
On an aerial map, highlight each separate area that has lost crops due to flooding within the last 10 years. Because there can be more than one flood area on a parcel, also on the map, assign a “letter” (A, B, C, etc.) to each flood area, along with an estimate of the acreage of each flood area.
Write the “letter” for each flood area in the box on the chart that reflects the percent of crop loss, and year in which loss occurred. Repeat this process for each flood area. A Flood Chart can accommodate up to 3 flood areas. Use additional charts if needed.
Farmland PI values are certified by the Department of Revenue.
Certified Values for Farmland Assessment