Farmers in Indiana are asking for property tax relief in the 2025 legislative session. (Getty Images)
It’s the heat of the summer, which means farmers are constantly monitoring the weather, tending to livestock, and focusing on pest and disease management for their crops. Unfortunately, this summer also finds landowners reeling from property tax statements that hit mailboxes during planting season.
Farmers are experiencing a 27% increase in their farmland taxes this year after a 16% increase in 2023. Some farmers’ bills are increasing as much as 60 to 70% due to their local school district’s debt obligations. No one should see an increase like that in one year, let alone multiple years in a row.
The Indiana State and Local Tax Review Taskforce met on June 18 and heard testimony from Katrina Hall, INFB’s resident tax expert and senior director of policy strategy and advocacy, on behalf of agriculture. She shared information about farmland property tax increases and the elements of the farmland formula that impact the base value. She also requested on behalf of our members that any future reform will address stability and predictability, lasting relief, fairness between classes and ability to pay.
State Rep. Jeff Thompson, chairman of the House Ways and Means Committee, intends to focus this upcoming budget session on reducing the complexity of the property system, addressing some tax base problems – like farmland values – and closely examining how to effectively and fairly control the growth of tax levies. He has predicted that it will take multiple legislative sessions to accomplish the breadth of tax reforms being discussed.
In the meantime, Indiana Farm Bureau formed its own tax task force and is taking a deep dive into what’s impacting a farmer’s tax burden. Many different elements have been discussed by our internal task force, and we’ll continue to work with leadership in the House and Senate, as well as other stakeholders to find solutions.
Where do we go from here?
Right now, we’re trying to get to the root of the problem to lower the tax burden on the assessment and levy side. We’ve had members from all over the state reviewing policy priorities from county Farm Bureaus throughout the summer, and property taxes were among the highest on that list. We will finalize our 2025 policy on taxes and other issues at our annual delegate session in August and look forward to sharing those with legislators to hopefully find some relief.
How can you help? Talk to your state legislators about your personal stories and how your tax bills have increased. They’ve been having conversations about legislation for the 2025 session throughout the summer, so we encourage you to have those conversations with your elected officials now so tax issues can be at the forefront.
We all have a vested interest in easing our tax burden. This is especially true for our farmers and rural communities who are grappling with predictions of lower farm income and struggling commodity markets. Farmers will be lucky to break even this year and won’t see profit margins large enough to weather these exorbitant tax bills.
Success in agriculture means greater food security and a stable economy in Indiana, of which the ag industry is a primary driver.
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