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east central ND | As we all know, ND is going to have about a 2 BILLION dollar surplus in the state coffers for the 2 year budget. Mostly thanks to the oil. Was reading the local small county paper that the state decided last sesion to increase the land taxes to try and keep up with the exploding land values. I do not know all the details, but it looks like the land taxes are going up 25% in one jump. What???? They are swimming in money and need more???? And the state would really like the simplicity of all lands paying the same rate. Local officials are trying to figure out how to balance taxing low value, low production salt/alkali farm ground against top producing very high value ground that some inverstors and well to do farmer are bidding up for the main reasons of finding a place to put profits, investment moneyes, or they can just afford to expand at about any price. Like I said, I do not know all the details, but with high grain prices, looking like we will get at least an average crop because we caught some scatered rain, and the new farm bill comming, I am already scrathcing my head about "fair" rent prices for next year. If direct payments go away, who knows about crop insurance subsidies, and much higher land taxes, I think I will end up having to not only give a rent increase to keep up with prices, but add more to keep the landowner returns after land tax stable or increasing, and do it with less gov payments (which I agree with, as long as it is a level playing feild for all farmers). Now if we get a crop and a high price, then I can live with that. What about the next couple of years IF prices go back to a "normal" range? Not too many land owners will be happy with less. I can only image the farmers in the bad drought area are thinking the same things. How are they going to keep paying higher land prices/rents with this major drought and no time to catch back up before the land owner/manager needs even more rents because the grain prices and taxes are up? I know some will say buy ground, but the last couple of sales of good ground in the area have gone way past the point of be profitable to the person farming it.
Edited by D6Joe 7/8/2012 18:31
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land taxes and the state of North Dakota
