By Andi Anderson
In the midst of summer, farmers are busy monitoring the weather, caring for livestock, and managing pest and disease issues in their crops. This season, however, they are also grappling with a sharp rise in property taxes.
This year, farmland taxes have surged by 27%, following a 16% increase in 2023. Some farmers face hikes as high as 60% to 70% due to local school district debt obligations, a trend that is becoming increasingly untenable.
The Indiana State and Local Tax Review Taskforce convened on June 18, where Katrina Hall, Indiana Farm Bureau’s senior director of policy strategy and advocacy, testified about the farmland property tax increases.
She highlighted the components of the farmland formula that affect the base value and advocated for reforms that offer stability, predictability, fairness, and affordability for farmers.
State Representative Jeff Thompson, chairman of the House Ways and Means Committee, has committed to simplifying the property tax system, addressing issues like farmland values, and finding ways to control tax levy growth.
He acknowledges that achieving comprehensive tax reform will require multiple legislative sessions.
Meanwhile, the Indiana Farm Bureau has established its own tax task force to delve into the factors contributing to the farmers’ tax burden.
The task force is exploring various elements and collaborating with state leadership and other stakeholders to seek viable solutions.
Efforts are underway to address the root causes of the tax burden by examining both the assessment and levy sides. Throughout the summer, Farm Bureau members across the state have reviewed policy priorities, identifying property taxes as a top concern.
The Farm Bureau will finalize its 2025 policy on taxes and other issues at the annual delegate session in August, with plans to present these policies to legislators in pursuit of meaningful relief.
Farmers and community members are encouraged to share their personal stories and rising tax bills with state legislators. These discussions are crucial as lawmakers prepare for the 2025 legislative session.
Raising awareness about these issues now can help ensure that tax reforms are prioritized.
Reducing the tax burden is vital for farmers and rural communities, especially as they face predictions of lower farm income and volatile commodity markets. Many farmers are struggling to break even this year, and excessive tax bills threaten their financial stability.
A thriving agricultural sector is essential for food security and a stable economy in Indiana, where farming is a key industry. Addressing the tax challenges faced by farmers is critical to sustaining this vital sector.
Randy Kron of Evansville, president of Indiana Farm Bureau, represents the Midwest region on the American Farm Bureau Federation board of directors.
Photo Credit: indiana-farm-bureau
Categories: Indiana, Government & Policy