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