Farmland (Continued From Page 26) possible impacts of use-value assessment of agricultural land in Pennsylvania. The technique that was used in the Penn State study was very much like that used in New Jersey to determine the values that are published as a guide to the county assessors. The basic, assessment method is an income capitalization ap proach, For this study, the in come from all farms in the county was capitalized into the value of all farmland in the county rather than looking at individual farms and their in come. The basic procedure is to determine the net farm income for each county, to capitalize this income into a land value among the various soil classes based on the differences in their ability to contribute to farm income. The agricultural use-value of an individual farm is found by nultiplying the number of acres in each soil capability class by the farm value determined for the class of soil in the county where the farm is located. The sum of these values gives the agricultural use-value of the farm. A sample of farms was chosen from eight counties in Penn- - Sweet Lix Blocks $2.65 each - BK Liquid 95c per gallon While Supply lasts - Acid Cleaners $2.65 per gallon Flameless Gas Pig Brooders Tingley Boots and Rubbers AARON S. GROFF RD3, Ephrata, Pa. 17572 (Hinkletown) orOfl f*\ sylvania to test the effect of agricultural use-value assessment on the tax bills of individual farmers. The eight counties in the study included three from the Philadelphia metropolitan area—Bucks, Chester, and Montgomery—and five other counties scattered throughout the remaining areas of the State—Lancaster, Brad ford, Centre, Erie, and West moreland. For each farm chosen in the study we calculated the taxes that would be paid under a use value assessment as described above. We compared this tax bill with the current tax bill of each farm to determine the effect of use-value assessment. If a use-value assessment program were actually adopted in a particular county, it is likely that this program would also include reassessment of non farm properties and a revision in their tax rates. For the purposes of this study, however, we assumed that the tax rates would stay the same and that other assessments would not change. In some counties where assessments have not changed for many years, the current tax bill is based on a very old SPECIALS Farm & Dairy Store Store Hours 7 A.M. to 9 P.M. Closed Tue. & Sat. at 5:30 P.M. fm Phone 354-0744 m » CK. I m* W c y«*nw %C mmmmmmi assessment. This fact should be kept in mind in making 'com parisons between counties. Our study showed that Philadelphia metropolian area would have reductions in the average tax bill paid per farm with use-value assessment. There was, however, a large variation in the effects on in dividual farms. The percentage changes in taxes to a single farmer ranged from an increase of 258 percent for one farm in Chester County to a decrease of 98 percent for a farm in Bucks County. Most of the farms in Bucks and Montgomery Counties could expect decreased tax bills while in Chester County, about half of the farms would get increased taxes and half would have decreased taxes with this form of use-value assessment. The rest of the state shows a different picture. Lancaster, Bradford, and Centre would have substanial increases in the taxes per farm with use-value assessment. Even here the effect on individual farms varies. For example, in Lancaster County the biggest increase was a 505 percent increase for one farm, while another farm would have its tax bill decreased by 37 percent. Erie and Westmoreland Counties show small decreases in the absolute tax bill; however, the average percentage change for Erie County would be an increase of 26 percent. The increased taxes to be paid if use-value assessment were used in Lancaster, Bradford, and Centre Counties indicate that farms in these counties already are assessed below the agricultural value of the land. Over half of the farms in the Erie County sample would also have increased assessments if they were to be based on agricultural use-value. In some cases the low present assessments exist because there has not been a countywide assessment for several years. Regardless of the factors ac counting for the present assessments, many farmers outside the Philadelphia metropolitan area could expect increased assessments if the agricultural use-value assessment method used in this study were to be adopted. Effect on land use The study shows that some farmers, particularly in the Philadelphia metropolitan area, might expect reductions in their real estate taxes if use-value assessment were adopted. This reduction might help to relieve the financial pressure from taxes for these farmers and thereby help to keep some land in active C. 0. NOLI BIRD-IN-HAND Fulton Grange Plans Misgiving Program Fulton Grange 66 held its regular meeting October 23 at the Grange Hall, Oakryn. The Master, Richard Holloway, conducted the business session farming that otherwise might be moved out of agricultural use. This effect may be partially offset by the increase in tax pressures for other farmers, particularly in counties outside the Philadelphia area. Studies in Pennsylvania and in states where use-value assessment of agricultural land has been tried have shown that special taxation policies alone have very little effect on land use. The tax policies can help in the very short-run by relieving some tax pressure for certain farmers. It is quite clear, however, that a long-run solution requires additional policies, perhaps in conjunction with use-value assessment of agricultural land. Some of the other measures that would be needed for effective land-use program to preserve agricultural and open-space usage of land in urbanizing areas include, 1) the public ownership of open-space land with some land being rented to farmers and other appropriate users of this land, 2) the provision for agriculture in the comprehensive land-use plans of urban fringe countiesrand 3) the public ownership of easements or the development rights to open-space land. All of thesepolicies take time to develop and require substanial input from farmers through state legislators, county com missioners, and township supervisors in developing the appropriate land-use plans. In the meantime, some far mers may wish to have legislation passed that would allow their farms to be assessed on the basis of its agricultural use-value even though this means an increase in the taxes they would pay in the next year or two. By establishing a precedence for assessing farmland according to its agricultural value preparation is made for the day when county-wide reassessment occurs and the farm might be reassessed to its potential urban value rather than its present agricultural use-value. Such farmers may find long run benefits in having their future real estate taxes based on farm income, rather than on increases in the urban value of agricultural land. LOCAL DISTRIBUTOR Lancaster Farming, Saturday, November 4,1972 Phone Lane. 397-075] 66W when the Charter was draped in memory of Clyde Grubb. Fulton Grange accepted an invitation to attend the December 7 meeting of Russellville Grange for their Corn and Pie Night and will present part of the program. J. Everett Kreider auctioned baked goods made of pumpkin which the Grange ladies made. The proceeds will be used for program expenses. Mr. and Mrs. Clifford W. Holloway Jr represented Fulton Grange at the 101st annual session of the Pennsylvania Grange at Williamsport October 24, 25, and 26. Others attending were Mr. and Mrs. Thomas Galbreath, Mr. and Mrs. Jesse Wood, Mr. and Mrs. Gyles Brown, Mr. and Mrs. J. Collins McSparran and Mr. and Mrs. Charles McSparran. The program theme for the November 13 meeting will be “Thanksgiving.” The ladies are to make Thanksgiving table centerpieces and the men are to make a turkey out of something The Junior Grange will present part of the program and Miss Donna Findley, Fulton Grange’s contestant for the Miss Solanco contest, will