Hog Confinements Get a Tax Cut

In a decision last month by the Iowa Department of Revenue large hog confinements will benefit from a tax cut starting in 2009. The decision will increase the tax burden on landowners and give an incentive for more hog confinements to be built in the state.

From the Des Moines Register...

...by 2009 the taxable value of farm buildings statewide could be lowered as much as 50 percent, according to one estimate.

Such a drop would force the assessed value of farmland to increase an average of 7 percent statewide to compensate for the loss, said Dale Hyman, who oversees property tax issues in the Iowa Department of Revenue.

Farmland will be taxed at a higher rate and farm buildings will be taxed at a lower rate. This will hurt farmers who own a lot of land, basically farmer's that own livestock. It will benefit farmers with new, large buildings/confinements on small parcels of land, basically large hog confinements. In the future look for more large hog confinements to be popping in the countryside.