USING CSR`S IN FARM APPRAISALS

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USING CSR’S IN FARM
APPRAISALS
JIM JENSEN
EXTENSION FARM MANAGEMENT
SPECIALIST,
ACCREDITED RURAL APPRAISER
ACCREDITED FARM MANAGER
WHAT IS A CSR RATING?
• Definition
• An index that rates soil types based on
their productivity for row crop production
• Index
• What are the ranges?
• What are the Assumptions?
• Why not use yields?
Yields are not good measures of
productivity, they change from
year to year because of weather
and they change over time because
of technology.
CSR is inherent productivity of the
Soil!
CSR Assumptions
•
•
•
•
Adequate Management
Natural Weather Conditions
Artificial Drainage where required
Soils lower on landscape not affected by
frequent floods
• No land leveling or terracing
Figure 2. Example Soil Map
Map Scale: 1 inch = 1,320 feet
Using Soil Maps to Compute CSR
Slopes
•
•
•
•
•
Blank = 0-2 percent or 1-3%
B = 2-5%
C = 5-9%
D = 9-14%
E = 14-18%
Erosion Class
• None or Slight
– More than 7 inches of A or A plus E Horizon
• Moderately Eroded
– 3-7 inches
• Severely Eroded
– Less than 3 inches
• Overwash
– 8-18 inches of recently deposited material above
A Horizon
CSR Summary
Map Unit
Map Unit
Corn
Suitability
Acres
Percent
Total Rating
Symbol
Name
Rating
in AOI
of AOI
by Soil Type
55
Nicollet Loam
90
5.9
7%
531
62D
Storden Loam
45
6.4
8%
288
62E
Storden Loam
35
1.9
2%
67
95
Harpes Clay Loam
63
8.0
10%
504
107
Webster Clay Loam
85
13.8
17%
1,173
135
Coland Clay Loam
80
2.0
3%
160
138B
Clarion Loam
82
36.1
45%
2,960
138C2
Clarion Loam
65
3.9
5%
254
201B
Coland-Terrill
40
2.0
3%
80
80.0
100%
6,016
Weighted Average Corn Suitability Rating (6,016 divided by 80)
75.2
Locate Parcel in Question
Soil Type: Acres: Percent: CSR
---------- -------- -------- ----T370B 61.47 23.2% 85
248
17.72 6.7% 60
T368
16.70 6.3% 90
212
11.71 4.4% 91
T369
87.78 33.1% 85
133
9.69 3.7% 80
220
60.11 22.7% 85
---------- --------------- ----Totals 265.19 100.0% 83.73
Iowa Corn Suitability Rating
based yield estimation:
179 bushels per acre
How do we figure CSR’s?
•
•
•
•
•
Talk to Assessor
Talk to NRCS
Talk to ISU Extension
Count Dots
Do it electronically
– CD
– On Web
• Purchase the information
Using NRCS CD’s
• Purchase from NRCS offices
• Order from ISU
– http://extension.agron.iastate.edu/soils/pdfs/SurvCD
OrderForm.pdf
–We will look at Story County
Using NRCS Web Soil Survey
http://websoilsurvey.nrcs.usda.gov/app/
How is CSR used in Appraisal?
• Unit of Comparison
• Other factors of importance
–
–
–
–
–
–
Time
Location
Size
Percent Tillable
Terms
Buildings
How often do you figure CSR’s?
• Subject
• Comparable Sales
• Break property into tillable & non tillable
•
•
•
How are CSR’s Often Misused?
ISU Land Value Survey
Tract
Point
1
2
3
Avg.
Sale Value
Sale Value Avg. CSR per Index
$5,160
4,855
5,172
$5,062
75
66
71
70.7
$68.80
73.56
72.85
$71.74
When cropland is sold there is
usually a difference between the
number of acres used for crop
production and the total number
of acres in the farm. There is even
a difference in the number of acres
in the farm!
What figures do you use?
How else are CSR’s Used?
How about setting cash rents?
Average CSR for Cropland in County
Tract
Point
1
2
3
Avg.
Rental
Rate
$225
$180
$190
$198
Rental Rate
Avg. CSR per Index
79
66
71
72
$2.85
$2.73
$2.68
$2.75
CSR’s Used in Tax Assessment
• This is material for another day
• Do not try to relate tax assessments of land to
value.
• Put them into the report as information
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