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Is any land in the US still sold for ag value?

4,936 Views | 58 Replies | Last: 1 yr ago by AgDad121619
BQ_90
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Howdy Dammit said:

CS78 said:

ldg397 said:

CanyonAg77 said:

Howdy Dammit said:

Unfortunately no. Only way this ever changes is if the government removes ag exemption.

So you raise the taxes to the point that Ag producers will be forced to sell?


I think he means ending an exemption for people that aren't in actual ag production and do the bare minimum for tax purposes only. Or increase the minimum requirement or more thorough verification would be a better way to put it.


My thoughts too. Ag exemption allows people to throw a couple cows on it and let it ride forever. It cost little to nothing to just hold onto it and pass it down. Remove that and people will either be forced to produce or sell. The market would be flooded with properties and prices would fall heavily.

Not saying Id be a fan but it would bring the value of the land down to what it is capable of producing.

This exactly. You'd see land fall to its exact worth. I'm all for it. It's insane that people living on massive ranches pay less in property tax than me on my 0.5 acre parcel in suburbia.
They aren't paying less taxes, if they have structures on the property they aren't ag exempt; they are paying the same as everyone else in that county with house and structures
schmellba99
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HarleySpoon said:

skinny2001 said:

I disagree. I think Property taxes are an effective way and an ancient way for a government to help pay for services helping that land

Income tax is theft and a form of slavery.


You pay taxes on the income earned to buy the property….you pay taxes on the gain when you sell it. You pay taxes on the income earned by the property while you own it. Just seems unjust to tax it for simply owning it. We don't tax stocks or cash for simply owning them. My two bits…..it just turns into government confiscation of wealth for which income taxes have already been paid.
Fix this - you pay taxes on the value of the property as determined by the government that needs the money and has the authority to tax in perpetuity, and those taxes and values never go down because there is zero incentive for the various taxing authorities to be fiscally responsible with the tax dollars they forcefully take from you just to have the priviledge of "owning" property (that you never actually own).

And the feds are absolutely floating the idea of taxing unrealized gains in investments.

This part isn't directed at you, but to many comments on this thread:

Texags OB - it's sad that so many large tracts of land have been chopped up and sold and pretty soon we won't have any large ranches or farms in Texas anymore.

Also Texags OB - people that own large tracts of land don't pay enough in taxes, we should eliminate any and all programs that reduce taxes so they pay more!

Never change OB, never change.
schmellba99
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skinny2001 said:

I disagree. I think Property taxes are an effective way and an ancient way for a government to help pay for services helping that land

Income tax is theft and a form of slavery.
Tell me what services I get from my property taxes that I don't pay for with every other additional tax that is levied upon me with every purchase, dollar I earn, fee assessed, etc.

Property taxes are a mechanism that was designed to keep land concentrated in the hands of the royalty and a mechanism that could be used to confiscate land when it was politically expedient to do so. There is absolutely nothing free about the state being able to come in and confiscate your property - even after you have fully paid the mortgage off - because they decided to arbitrarily tax you out of ownership.

We rent land in Texas from the state, and as long as we are up to date on that rent, the state says we have some property rights. But when that rent isn't paid - you own nothing.

Income tax is 100% theft. Social Security is 100% theft.

At least with a consumption tax I have the relative power of determining what my tax burden is through either being frivilous with my money or conservative with my money spent. And the latter is what terrifies the government - that people may decide to hold onto things longer than they do now because there would be an incentive to do so, and we just can't have that nonsense - the government (all levels) want people in perpetual revolving debt because it is good for business for them.
HarleySpoon
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You absolutely do pay income taxes on the net profit produced by the land while you own it…..be it crops, cattle, O&G, wind royalties etc….to summarize again:

- taxes on the income earned to buy it
- taxes on its productive net profit
- taxes on gain when you sell it

- and then they tax you for just owning it. It's a confiscatory tax on folks regardless of their earned income to pay the tax.
Howdy Dammit
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BQ_90 said:

Howdy Dammit said:

CS78 said:

ldg397 said:

CanyonAg77 said:

Howdy Dammit said:

Unfortunately no. Only way this ever changes is if the government removes ag exemption.

So you raise the taxes to the point that Ag producers will be forced to sell?


I think he means ending an exemption for people that aren't in actual ag production and do the bare minimum for tax purposes only. Or increase the minimum requirement or more thorough verification would be a better way to put it.


My thoughts too. Ag exemption allows people to throw a couple cows on it and let it ride forever. It cost little to nothing to just hold onto it and pass it down. Remove that and people will either be forced to produce or sell. The market would be flooded with properties and prices would fall heavily.

Not saying Id be a fan but it would bring the value of the land down to what it is capable of producing.

This exactly. You'd see land fall to its exact worth. I'm all for it. It's insane that people living on massive ranches pay less in property tax than me on my 0.5 acre parcel in suburbia.
They aren't paying less taxes, if they have structures on the property they aren't ag exempt; they are paying the same as everyone else in that county with house and structures

But can pay absolutely nothing on 3 million dollars worth of land around the structure. If we are going to have property tax, you should be taxed on property. But I am all for getting rid of property tax all together.
Yesterday
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Howdy Dammit said:

BQ_90 said:

Howdy Dammit said:

CS78 said:

ldg397 said:

CanyonAg77 said:

Howdy Dammit said:

Unfortunately no. Only way this ever changes is if the government removes ag exemption.

So you raise the taxes to the point that Ag producers will be forced to sell?


I think he means ending an exemption for people that aren't in actual ag production and do the bare minimum for tax purposes only. Or increase the minimum requirement or more thorough verification would be a better way to put it.


My thoughts too. Ag exemption allows people to throw a couple cows on it and let it ride forever. It cost little to nothing to just hold onto it and pass it down. Remove that and people will either be forced to produce or sell. The market would be flooded with properties and prices would fall heavily.

Not saying Id be a fan but it would bring the value of the land down to what it is capable of producing.

This exactly. You'd see land fall to its exact worth. I'm all for it. It's insane that people living on massive ranches pay less in property tax than me on my 0.5 acre parcel in suburbia.
They aren't paying less taxes, if they have structures on the property they aren't ag exempt; they are paying the same as everyone else in that county with house and structures

But can pay absolutely nothing on 3 million dollars worth of land around the structure. If we are going to have property tax, you should be taxed on property. But I am all for getting rid of property tax all together.


That's an easy way to have everyone starve to death and make Texas a massive 10-20 ranchette state.

Our rancher pays a whopping $4.67/acre this year. If he had to pay the mortgage on it he wouldn't make any money ranching cows and he'd give it up. If we had to pay 2.5+ or - percent in property taxes we'd have to sell and cut up the place for more money.

Getting rid of ag exempt is insane.
CenterHillAg
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If they're paying ag valuation property tax on the land and using it within the guidelines of ag exempt, why is it insane they pay that/why do you care? We live on land in rural East Tx, it's been in the family since 1868. We run cows and cut hay, but because of the size it's never been a big herd. No oil, no generational wealth, no heirlooms other than a pie cabinet and a couple guns. The land is the family heirloom, every generation has made sacrifices to keep it in one piece. I have zero faith any level of government would improve if we were taxed at regular rates, it would be spent in the more populated parts of the county. In 34 years I've never called 911, had the VFD put out a fire, and the county only put gravel on the road when we split the cost with them. The money wasted in taxes every year is money I wouldn't be able to spend on improving the land, it would only serve to finally break me or my kids into selling the place.
SWCBonfire
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HarleySpoon said:

The other side of the equation is for the value of the ag produced to increase.


This. Don't be fooled by recent price "increases"... input costs have drastically outpaced the official CPI inflation rate (by orders of magnitude in some cases, like land prices), while cattle prices are still lagging well below inflation.
Howdy Dammit
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Yesterday said:

Howdy Dammit said:

BQ_90 said:

Howdy Dammit said:

CS78 said:

ldg397 said:

CanyonAg77 said:

Howdy Dammit said:

Unfortunately no. Only way this ever changes is if the government removes ag exemption.

So you raise the taxes to the point that Ag producers will be forced to sell?


I think he means ending an exemption for people that aren't in actual ag production and do the bare minimum for tax purposes only. Or increase the minimum requirement or more thorough verification would be a better way to put it.


My thoughts too. Ag exemption allows people to throw a couple cows on it and let it ride forever. It cost little to nothing to just hold onto it and pass it down. Remove that and people will either be forced to produce or sell. The market would be flooded with properties and prices would fall heavily.

Not saying Id be a fan but it would bring the value of the land down to what it is capable of producing.

This exactly. You'd see land fall to its exact worth. I'm all for it. It's insane that people living on massive ranches pay less in property tax than me on my 0.5 acre parcel in suburbia.
They aren't paying less taxes, if they have structures on the property they aren't ag exempt; they are paying the same as everyone else in that county with house and structures

But can pay absolutely nothing on 3 million dollars worth of land around the structure. If we are going to have property tax, you should be taxed on property. But I am all for getting rid of property tax all together.


That's an easy way to have everyone starve to death and make Texas a massive 10-20 ranchette state.

Our rancher pays a whopping $4.67/acre this year. If he had to pay the mortgage on it he wouldn't make any money ranching cows and he'd give it up. If we had to pay 2.5+ or - percent in property taxes we'd have to sell and cut up the place for more money.

Getting rid of ag exempt is insane.

It's actually not. Keeping it is insane. What happens when these 5MM dollar ranches get inherited? They are chopped up immediately for the payout. Hill country ranches are worth 5k an acres today. It's artificial. No ag exemption means 5k an acres is now 500 an acre. Land should be worth what it is to a buyer. I think we can all agree property tax is unrealized gains theft. But when I see a 50MM dollar tract on 183 in Austin with a bee hive on it, I just shake my head.
Jbob04
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It's easy to spot the city boys that don't know the first thing about ranching. Those steaks y'all cook just magically appear at the grocery store.
Howdy Dammit
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Jbob04 said:

It's easy to spot the city boys that don't know the first thing about ranching. Those steaks y'all cook just magically appear at the grocery store.

Spotted the government subsidy, anti capitalism, boy
flashplayer
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Howdy Dammit said:

Jbob04 said:

It's easy to spot the city boys that don't know the first thing about ranching. Those steaks y'all cook just magically appear at the grocery store.

Spotted the government subsidy, anti capitalism, boy


Know how I know you don't know squat about ranching?
Howdy Dammit
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flashplayer said:

Howdy Dammit said:

Jbob04 said:

It's easy to spot the city boys that don't know the first thing about ranching. Those steaks y'all cook just magically appear at the grocery store.

Spotted the government subsidy, anti capitalism, boy


Know how I know you don't know squat about ranching?

You'd definitely be wrong on that front. Lol
flashplayer
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Ah, so the subsidy jab was all bluster then.
Howdy Dammit
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flashplayer said:

Ah, so the subsidy jab was all bluster then.

Not at all. Subsidy might be the wrong terminology. But depending on the governments "mercy" is a more applicable definition.
Yesterday
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Bradley.Kohr.II said:

I've been thinking about kids, etc and I know TX and MT have gone nuts - I think if I wait a decade or two, prices will collapse/inflation will get the little hobby places back into commercially viable sized tracts.

(Demographic collapse/boomers getting too old to live far from doctors etc)




Back to the OP. I think true rural "farm" land is about as close to agriculture value as you'll find. I'm talking the flat, no fence crop land. Recreational and hunters don't want it. The only people wanting that land are farmers wanting to turn crops.

True ranch land with cover, hills, creeks, trees and wildlife within 3 hours of Austin, San Antonio, Houston or DFW is going to be high dollar. The good news is I don't see it dropping anytime soon with more and more people moving to Texas. It could flatten but in the last 50 years it's really only gone down once and that was for a short period.

Land is more expensive now than 10 years ago and will be more expensive in ten years than it is now.
Howdy Dammit
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Yesterday said:

Bradley.Kohr.II said:

I've been thinking about kids, etc and I know TX and MT have gone nuts - I think if I wait a decade or two, prices will collapse/inflation will get the little hobby places back into commercially viable sized tracts.

(Demographic collapse/boomers getting too old to live far from doctors etc)




Land is more expensive now than 10 years ago and will be more expensive in ten years than it is now.

Unless ag exemption goes away.
Mas89
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If that happened, those of us in production ag businesses would sell a whole bunch of 10 acre tracts. In a short amount of time. All we need is a survey and a buyer. Plenty of buyers.
Howdy Dammit
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Mas89 said:

If that happened, those of us in production ag businesses would sell a whole bunch of 10 acre tracts. In a short amount of time. All we need is a survey and a buyer. Plenty of buyers.

At the new price of 500/acre it wouldn't do ya much good
Mas89
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Lol. You haven't priced Houston area land. Plenty of small tracts are no longer in ag use. Price has only skyrocketed.
AgDad121619
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Alabama and Arkansas still have great places available at $1500-$3000 an acre. Sportsman's paradise in beautiful spots
Jabin
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AgDad121619 said:

Alabama and Arkansas still have great places available at $1500-$3000 an acre. Sportsman's paradise in beautiful spots
Shhhhh!
Thunderstormr
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AgDad121619 said:

Alabama and Arkansas still have great places available at $1500-$3000 an acre. Sportsman's paradise in beautiful spots
And you'd have to live in Arkansas or Alabama? I'll pass thank you. Dodge trucks have a great diesel engine and may cost a little less. But you still have to drive and ride in a Dodge truck. I'll keep my Ford Super Duty thank you.
AgDad121619
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Thunderstormr said:

AgDad121619 said:

Alabama and Arkansas still have great places available at $1500-$3000 an acre. Sportsman's paradise in beautiful spots
And you'd have to live in Arkansas or Alabama? I'll pass thank you. Dodge trucks have a great diesel engine and may cost a little less. But you still have to drive and ride in a Dodge truck. I'll keep my Ford Super Duty thank you.
Thread title - "any land in the US still sold for ag value?" - maybe check your reading comprehension
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