Elk County Forum

General Category => The Coffee Shop => Topic started by: W. Gray on February 05, 2009, 11:31:18 AM

Title: Kansas Farms
Post by: W. Gray on February 05, 2009, 11:31:18 AM
The Kansas City Star is reporting that since 2002 the number of farms in Kansas has increased by 1,117 to 65,531.

This is the first increase in the number of farms in Kansas since WWII.

The total number of Kansas farms averages to 624 per county.
Title: Re: Kansas Farms
Post by: Clubine Ranch on February 05, 2009, 11:38:20 AM
Did they give a reason behind this? Or maybe what it takes to be classified as a farm. This is interesting, would like to hear more. Thanks, Barbara
Title: Re: Kansas Farms
Post by: W. Gray on February 05, 2009, 11:51:06 AM
http://www.kansascity.com/news/breaking_news/story/1018635.html

Here is the webpage.

The increase in Kansas is part of a national trend.
Title: Re: Kansas Farms
Post by: Clubine Ranch on February 05, 2009, 02:26:22 PM
Thanks for the webpage, I read it but will have to do a little digging to see what they are calling a farm. Barbara
Title: Re: Kansas Farms
Post by: Catwoman on February 05, 2009, 07:19:57 PM
Thought you'd all be interested in this...It covers something as small as a hobby farm, all the way up to the great farms. 


Classifying Farm Land
What qualifies for farm class?
Under B.C. Regulation 411/95 (Standards for the Classification of Land as a Farm) of the Assessment Act, a farm is all or part of a parcel of land used for:
a) primary agricultural production;
b) a farmer's dwelling; or
c) the training and boarding of horses when operated in conjunction with horse rearing.
All farm structures, including the farmer's dwelling, will be classified as residential.

How do I apply?
For land to be classified as farm for the next taxation year, the owner must submit an Application for Farm Classification to the local assessment office. Application forms are also available at your local BC Assessment office.

What if only a part of my property is farmed?
Unused land in the Agricultural Land Reserve (ALR) may qualify for farm class if part of the parcel is farmed. To qualify, the owner must certify that the unused area is being held for primary agricultural production. Certification forms are available here or at your area BC Assessment office. If the property is not in the ALR, the non-farmed portion will be classified according to it's use and zoning.

Why does BC Assessment need to know about my farm income?
In order to receive and maintain the farm classification, the land must generate income from primary agricultural production.

Your minimum annual income will be calculated based on the farm gate prices of your agricultural products. This income may be calculated for either of the last two years ending October 31. You must sell primary agricultural products each year. Crops grown for home consumption will not be considered part of your farm income. Minimum income requirements are calculated as follows:

$10,000 on land less than 8,000 m² (2 ac)
$2,500 on land between 8,000 m² (2 ac) and        4 ha (10 ac)
On land larger than 4 ha (10 ac) you must earn $2,500 plus five per cent of the actual value of any farm land in excess of 4 ha.
What is "primary agricultural production"?
For the purposes of farm classification under B.C. Regulation 411/95 of the Assessment Act, primary agricultural production is:

apiculture;
aquaculture;
Christmas tree culture (plantation and cultured native stand);
dairying;
floriculture;
forage production;
forest seedling and seed production;
fruit and vegetable production;
grain and oilseed production;
herb production;
horse rearing;
horticulture;
Populus species and Salix species intensively cultivated in plantations;
insects raised for biological pest control;
livestock raising;
medicinal plant culture;
poultry and egg production;
seed production;
turf production;
wool, hide, feather or fur production; and
the raising of crops or animals for human or animal consumption.
The following are not considered primary agricultural production:
(i)   the production of manufactured derivatives from agricultural raw materials;
(ii)  primary agricultural production for domestic consumption on the farm;
(iii)  the production of agricultural by-products;
(iv) agricultural services; or

breeding and raising of pets, except horses.
What does "farm gate price" mean?
Farm gate price is the dollar value you receive from direct farm sales, or the value of primary products that are used for processing. In the case of livestock, farm gate price means the live weight sale price, less any purchase costs – not the killed or dressed sale price quoted from the butcher.

What happens if I cannot supply sales receipts?
In the absence of receipts, BC Assessment staff may rely on local market prices supplied by the Ministry of Agriculture and Lands or other local sources. You may be required to provide a sales log or other proof of farm sales.

What happens if my farm does not meet the income requirements, or I stop farming?
BC Assessment will remove the property from the farm class.

Can I apply to have the farm class re-instated in the future?
Yes. If you re-apply for farm classification and meet the prescribed qualifications, your property can qualify for farm class.

Do I need to apply for farm classification every year?
Property already classed as farm land must continue to meet the requirements for farm class to receive farm classification for the following year. You are encouraged to provide the application to the assessor by October 31, to ensure that the correct information appears on the following year's assessment notice. BC Assessment may require you to provide additional information in support of continued farm classification.

Failure to provide the required information about your farm operation will result in the removal of farm classification from your property.
Owners are strongly encouraged to apply by mid-year to give BC Assessment staff time to conduct a field inspection or request additional information.

What if I buy a property that is already classified "farm"?
If you plan to continue to farm the property, you should submit a farm application to BC Assessment after you purchase the property.

If you are not planning to continue to farm the property, contact BC Assessment and notify the staff of your plans to cease agricultural activity.

Title: Re: Kansas Farms
Post by: Wilma on February 05, 2009, 09:18:39 PM
Our 9 acres in Sedgwick County was classified as farm/residential for real estate tax purposes.  I never understood how that happened, but thought maybe because we filed a farm return every year on the grain crop we raised on it.  After the tornado destroyed our combine, we didn't plant any more crops and a couple of years later we lost the farm classification causing our taxes to go up.  Evidently an empty field that was only kept mowed and didn't produce anything didn't qualify as a farm.
Title: Re: Kansas Farms
Post by: W. Gray on February 06, 2009, 04:03:34 PM
Here is the USDA definition of a farm

The definition of a farm employed by the USDA for data collection purposes is "any operation that sells at least one thousand dollars of agricultural commodities or that would have sold that amount of produce under normal circumstances." The USDA farm income accounts are the basis for the Bureau of Economic Analysis (BEA) determining the contribution of the agricultural sector to Gross Domestic Product (GDP). Because GDP is one of the most important measures of production in the National economy, it is important to measure all production of agricultural commodities, which in turn are defined under the North American Industry Classification System (NAICS).

That same 1,000 figure (sort of) goes along with the definition of a mountain, which is any hill over 1,000 feet high.
Title: Re: Kansas Farms
Post by: Anmar on February 12, 2009, 01:39:50 PM
Quote from: Catwoman on February 05, 2009, 07:19:57 PM
Thought you'd all be interested in this...It covers something as small as a hobby farm, all the way up to the great farms. 


Classifying Farm Land
What qualifies for farm class?
Under B.C. Regulation 411/95 (Standards for the Classification of Land as a Farm) of the Assessment Act, a farm is all or part of a parcel of land used for:
a) primary agricultural production;
b) a farmer's dwelling; or
c) the training and boarding of horses when operated in conjunction with horse rearing.
All farm structures, including the farmer's dwelling, will be classified as residential.

How do I apply?
For land to be classified as farm for the next taxation year, the owner must submit an Application for Farm Classification to the local assessment office. Application forms are also available at your local BC Assessment office.

What if only a part of my property is farmed?
Unused land in the Agricultural Land Reserve (ALR) may qualify for farm class if part of the parcel is farmed. To qualify, the owner must certify that the unused area is being held for primary agricultural production. Certification forms are available here or at your area BC Assessment office. If the property is not in the ALR, the non-farmed portion will be classified according to it's use and zoning.

Why does BC Assessment need to know about my farm income?
In order to receive and maintain the farm classification, the land must generate income from primary agricultural production.

Your minimum annual income will be calculated based on the farm gate prices of your agricultural products. This income may be calculated for either of the last two years ending October 31. You must sell primary agricultural products each year. Crops grown for home consumption will not be considered part of your farm income. Minimum income requirements are calculated as follows:

$10,000 on land less than 8,000 m² (2 ac)
$2,500 on land between 8,000 m² (2 ac) and        4 ha (10 ac)
On land larger than 4 ha (10 ac) you must earn $2,500 plus five per cent of the actual value of any farm land in excess of 4 ha.
What is "primary agricultural production"?
For the purposes of farm classification under B.C. Regulation 411/95 of the Assessment Act, primary agricultural production is:

apiculture;
aquaculture;
Christmas tree culture (plantation and cultured native stand);
dairying;
floriculture;
forage production;
forest seedling and seed production;
fruit and vegetable production;
grain and oilseed production;
herb production;
horse rearing;
horticulture;
Populus species and Salix species intensively cultivated in plantations;
insects raised for biological pest control;
livestock raising;
medicinal plant culture;
poultry and egg production;
seed production;
turf production;
wool, hide, feather or fur production; and
the raising of crops or animals for human or animal consumption.
The following are not considered primary agricultural production:
(i)   the production of manufactured derivatives from agricultural raw materials;
(ii)  primary agricultural production for domestic consumption on the farm;
(iii)  the production of agricultural by-products;
(iv) agricultural services; or

breeding and raising of pets, except horses.
What does "farm gate price" mean?
Farm gate price is the dollar value you receive from direct farm sales, or the value of primary products that are used for processing. In the case of livestock, farm gate price means the live weight sale price, less any purchase costs – not the killed or dressed sale price quoted from the butcher.

What happens if I cannot supply sales receipts?
In the absence of receipts, BC Assessment staff may rely on local market prices supplied by the Ministry of Agriculture and Lands or other local sources. You may be required to provide a sales log or other proof of farm sales.

What happens if my farm does not meet the income requirements, or I stop farming?
BC Assessment will remove the property from the farm class.

Can I apply to have the farm class re-instated in the future?
Yes. If you re-apply for farm classification and meet the prescribed qualifications, your property can qualify for farm class.

Do I need to apply for farm classification every year?
Property already classed as farm land must continue to meet the requirements for farm class to receive farm classification for the following year. You are encouraged to provide the application to the assessor by October 31, to ensure that the correct information appears on the following year's assessment notice. BC Assessment may require you to provide additional information in support of continued farm classification.

Failure to provide the required information about your farm operation will result in the removal of farm classification from your property.
Owners are strongly encouraged to apply by mid-year to give BC Assessment staff time to conduct a field inspection or request additional information.

What if I buy a property that is already classified "farm"?
If you plan to continue to farm the property, you should submit a farm application to BC Assessment after you purchase the property.

If you are not planning to continue to farm the property, contact BC Assessment and notify the staff of your plans to cease agricultural activity.




not sure if anyone realizes this, but this is a Canadien Law.  the BC stands for british columbia
Title: Re: Kansas Farms
Post by: Rudy Taylor on February 13, 2009, 09:25:34 AM
I remember taking a bus tour of Las Vegas and they drove to the edge of the city to point out Wayne Newton's "ranch," which was composed of five acres. There were expressways all around it.

I'd say somebody in Washington established the definitions on the farm count. But quite interesting ... maybe even encouraging.

Title: Re: Kansas Farms
Post by: Tobina+1 on February 13, 2009, 10:07:16 AM
I think what is happening is that as old farmers die or retire, their heirs (city-folk) are auctioning off the land in smaller parcels, which is appealing to other city-folk who want to use it for tax write-offs or "hunting" ground.  Therefore, increasing the number of "farms" and decreasing the average size of each farm. 

What makes me sad is that you almost have to be a "Doctor or Lawyer" to afford to buy land these days. 
In some regards, that is good because these people might then lease out the land to a local person to farm or ranch it.  Some local person who could have not afforded to buy the land themselves.  And maybe these "doctors or lawyers" will also build a weekend house on the land and eventually come to be a part of the rural community and spend money locally.

But in other regards, auctioning land in small high-priced parcels is not allowing the young farm/ranch families to get a fair chance to buy the land and get started building a business for themselves.  The young farmers/ranchers understand and appreciate the land and improve it, which makes it perform better and thus creating more business for the owners.  They, in turn, become employees of the rural community and create more jobs in the area, as well as raise children who become a part of the schools, and the whole cycle of rural growth is continued.

I understand that these old farmers/ranchers deserve a good deal on the land that they worked on so many years.  And that the land money is probably the only retirement that they have.  But I wonder if there is/could be a sort of rural development program that acts like the "reverse mortgage" program for elderly people who own houses?  Something through the local banks where young farmers have a payment plan that the retired farmers receive?  This benefits the retired farmers (maybe even allowing them to keep their house for longer rather than selling it w/ the land), it benefits the local banks, it benefits the young farmers, and it benefits the entire rural community.  The retired farmers (who all of us know will want to work on the land until their dying day) could even be a "mentor", or at least a part-time employee for the new, young farmer.  No, the old farmer may not be able to afford to drive a Cadillac during his retirement like he would if he sold the land to city-folk, but a nice Buick probably would be just as good, anyway.
Title: Re: Kansas Farms
Post by: redcliffsw on February 13, 2009, 12:07:02 PM

Good points about farms except we should not have any more "programs".
The capital gains tax should be eliminated for the seller to keep all of his money
when selling his land. 

Just look at this current bailout fiasco.  That ought to be reason enough to
return to the foundations of our founding fathers.
Title: Re: Kansas Farms
Post by: Jo McDonald on February 13, 2009, 12:57:29 PM
Tobina, I think you need to be on the advisory committee for Obama----You have made a whale of a lot more sense in the "bringing back" and utilizing what we already have and some turnaround for more jobs-more people than any of his idiotic ideas have.
 
Title: Re: Kansas Farms
Post by: Tobina+1 on February 13, 2009, 01:44:34 PM
I guess "program" was a wrong word.  I wasn't thinking about a gov't subsidised program; just some sort of a loan system within local banks or some advertising program to get people interested.  My point was that aging farmers/ranchers should think about how they want to continue the "legacy" they have created over the years, and how to pass that on.  Maybe their kids have city-jobs and don't intend on coming back and farming.  But there are plenty of us out there who want to. 
I understand there are many difficulties involved.  Children who don't want the farm still want the money (and the most they can get from it).  But maybe a rent-to-own program or something rather than just auctioning to the highest bidder? 
The other point is the rural economy and rural growth.  Like I said before, unless the new land-owners are going to become a part of the local, rural community, then it's not only taking business away from a young farmer/rancher, but also takes business away from the entire community.
Something similar to this has been done through the Nature Conservancy in Nebraska (I've heard; done no research).  The NC buys land from old farmers and then has a rent-to-own program with the young local people; advancing their business, as well as following certain conservation guidelines to improve the land and environment. 
Thanks, Jo, but I prefer to force my meager opinions only on the poor souls of the Forum rather than the entire US!  Ha!  ;)
Title: Re: Kansas Farms
Post by: Wilma on February 13, 2009, 06:38:53 PM
Late in 2004, I had a half section of pasture that I wasn't going to be able to finish paying for.  I knew that I would have to sell it and I knew what the selling price of Elk County pasture was at that time.  I also knew who I wanted to have it.  My children weren't in any position to take over, so I made these young people an offer that I knew they wouldn't be able to turn down.  I didn't get the going price, but I got cash.  They have cleaned up the fence lines and built new fences, something that I had always wanted to do and couldn't.  I am glad that I took less money and put this land into the hands of people that appreciate it.