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CSR vs PI ?
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thor
Posted 3/31/2015 06:05 (#4487765 - in reply to #4486502)
Subject: RE: CSR vs PI ?


northern MN

I have been giving this some consideration for some time now. Ultimately I don't know what I am talking about, I don't, I am looking for someone who does.

PI indexes here are used for establishing value. PI indexes are not accurate, on my own farm I have PIs that do not vary more than 6 points but I have huge variance in productivity. Along with that, there is some land that will grow some crops (navy bean) and some that does not. Some is incredibly difficult to work with and some is fairly easy. PI ratings do not find the differences.

I know what the reasoning is and it is usually soil type, heavy soils vs medium to light. But to look at a surety pi map there is little difference. I visited with an appraiser for a lengthy morning discussion a couple years ago, we came to no understanding or agreement. He was just as curious as I am but neither of us knew a way to find the true measure. To think it is fairly small or only affects "work" is not accurate. The reason myself and the appraiser were discussing it is on two of my pieces with like soils, like history produce soybean about 35% differently. The example I use is one had a 50 bu crop and aph is similar yet 4 miles away ground with PI that varies by only 1 had a 34 bu yield with the same variety planted the same day and aph is 37 over the course of years. Obviously there is great difference in value, how can one measure it without experience?

I bring this up because today we have new neighbors (they travel great distance) to come compete with us for land yet they have no clue as to the productivity differences. These new neighbors are distorting the market to the point no one is profitable on rented land. The time value that is being lost is/could be driving young farmers out of business, I take that seriously. I was hoping that a CSR rating may find the productivity difference that PI does not!/? If I were not a father I would still be interested, I think its a valid question as someone who has seen unmeasurable variances over 37 years. I would like to know why it is immeasurable?

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