USING CSR’S IN FARM APPRAISALS JIM JENSEN EXTENSION FARM MANAGEMENT SPECIALIST, ACCREDITED RURAL APPRAISER ACCREDITED FARM MANAGER.

USING CSR’S IN FARM APPRAISALS

JIM JENSENEXTENSION FARM MANAGEMENT

SPECIALIST, ACCREDITED RURAL APPRAISERACCREDITED 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

Using Soil Maps to Compute CSR

Figure 2. Example Soil MapMap Scale: 1 inch = 1,320 feet

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 UnitCorn

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 QuestionSoil Type: Acres: Percent: CSR---------- -------- -------- -----T370B 61.47 23.2% 85248 17.72 6.7% 60T368 16.70 6.3% 90212 11.71 4.4% 91T369 87.78 33.1% 85133 9.69 3.7% 80220 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

Sale ValueTract Sale Value Avg. CSR per Index Point

1 $5,160 75 $68.802 4,855 66 73.563 5,172 71 72.85Avg. $5,062 70.7 $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

Rental RateTract Rental Avg. CSR per Index PointRate

1 $225 79 $2.852 $180 66 $2.733 $190 71 $2.68Avg. $198 72 $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