Farm or Single Family Residence

[Terrel L. Shields]

50 acres of tillable land = SFR?

Well...as the fly that landed on the mirror said, "That's one way to look at it." But A - is there a single family residence on the property? B - If the answer is yes, then what is the dominant utility? Residential? Agricultural? If I can rent the house for $1000 a month, but the land only for $500 a month, then the dominant utility is residential...would I tear down the house to grow just one more acre of corn? Nah. Even if I have a couple of poultry houses and they net me only $5000 or $10,000 a year is that a full time farm occupation?

Such properties, imho, are complex residential property. And really where is the line separating one from the other.... This picture is in Cherry Hills, south side of Denver. The home probably cost $1,000,000 plus. The hay might sell for $6-7 a bale...??? Clearly "residential"... but does the size of the HOME determine the AGRI use???

 

[CANative]

40 Acres enrolled in the Williamson Act (ag conservation). Tax case I just won.
The County agreed that one of the two houses was a gross overimprovement.
Reduced value of the property by $535,000. Essentially the cost to build the house.

It's planted to vineyards and is definitely an Ag property.

 

[Vermonter]

state land use programs typically mean it is a working farm where a good portion of the land is being farmed - aka commercial use.

That's not true everywhere. Properties enrolled in our states use value appraisal program can be ag, timber, wetland, wildlife management, conservation, etc..

The OP needs to know the details of his states program.

 

[Terrel L. Shields]

Properties enrolled in our states use value appraisal program can be ag, timber, wetland, wildlife management, conservation, etc..

Exactly here. All those Duck clubs in E. Arkansas are "agri" even though a prime property could bring $10,000 an acre.

 

[residentialguy]

Really enjoying and learning from this tread. Ag properties have so many variables. Assessors have problems with them. Size of acreage is a factor, but not a standard. Can 5 or 2 acres be Ag? State requirements vary tremendously. Bees are agricultural products, but don't need much space. Bit off topic but interesting: We have a "Green Acre" status which reduces the tax burden when the primary use of the land is Ag. I believe they end up paying 1/10th of taxes would be without the Green Acre Program. For a 38-acre parcel valued at $2.7 million, the Green Acres Program reduced the property taxes from $12,928 to $570.

 

[Michigan CG]

For a 38-acre parcel valued at $2.7 million, the Green Acres Program reduced the property taxes from $12,928 to $570.........

$2.7 M for 38 acres is $77,000/acre. In Minnesota???? you are on the northern edge of the corn belt and are in the top ten producers of corn. You most likely also have winter wheat up there. The highest ag sales in the corn belt is in Iowa and central Illinois at $8,000-$10,000/acre (which is insane). $77,000 cannot be ag land in Minnesota.

Different parts of the country will have significant differences in ag use and ag land values. Good vegetable land is worth more than a good corn field in my area.

In my area many farmers are pulling 160-200 bu of corn per acre and the land is now going above $4,000/acre. 60 miles away they are only pulling 130 bu and the land is selling for $2-3,000/acre.

That real expensive Iowa and Illinois land is pulling out 275 bu corn and is renting for $400-500/acre while here no one pays more than $200/acre rent and most are at $150/acre and below.

I would bet the wackos in California are paying real high dollar rent for vegetable land if they can produce most of the year. The California corn production is almost zero.

 

[residentialguy]

That was not an actual lot or price...I just used that number to show the tax savings. The 38 acres meant nothing...obviously way off in terms of land value. Change it to 680 acre lot

 

[Michigan CG]

...obviously way off in terms of land value.

Yeah....either about $7M or 500-600 acres.

 

[residentialguy]

I hope no MN farmer read that post and took it seriously

 

[Michigan CG]

I hope no MN farmer read that post and took it seriously

Farmers for the most part are very educated about values. A lot more so than typical homeowners. They tend to know who bought what, how much they paid and the quality of the land.

When appraising a farm property the farmer will know in about 10 minutes if you have a clue what you are doing.

In Michigan we don't have front license plates. I have an Iowa Hawkeyes license plate on the front of the car. Instant "credibility" as Iowa and Illinois are the two most productive corn belt states (corn and beans).

I am doing a farm report right now.