| honest abe - 2/6/2016 13:14
Nebraska has gotten this bad on taxes from decades of poor business management at local, county and state levels and is nearly impossible that anybody is smart enough and could get it through the political muck to fix. people want it all but send the bill to someone else.......and there isn't enough rural voice to change it.
I think it has just been a perfect storm of circumstances that have put us here: First the RFS was signed into law and created the ethanol boom, then year and years of historically low interest rates, with subsidized RP crop insurance, and generous direct payment from FSA....these were all happening at the same time.
All of these have DIRECTLY influenced the principle value of farm land. It accelerated to rapidly that equation that has been historically used to calculate our taxes didn't take into account all of these things happening within a 10 year period.
It was a formula that worked moderately well when land prices are stable and interest rates are high/normal. As we see the formula doesn't work so good when you have 15 years of low interest rates.
I'll add: notice that ALL the factors stated above are GOVERNMENT POLICY.....none of this agricultural boom of the last 10 years has been the result of the free market demand overwhelming supply. The nearest thing to that would be the demand of our soybeans from China. And even that is a command and control economy, so it was their policy that led to the demand.
Anything that is done with the stroke of a pen can get undone with the stroke of a pen. I tried to warn people about this for years on this forum....nobody would listen, or they didn't want to.
Edited by 00rooster 2/6/2016 15:14
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school land sale
