The man who conducts the annual Iowa State University Extension land value survey says he doesn’t see many things in the proposed federal tax reform that would impact land values. Economist Wendong Zhang says tax policy is one of the things he is keeping an eye on as an impact to land values next year. Zhang says he will be watching to tax polices and if the renegotiation of the NAFTA trade deal impacts trade. He says both could impact land values.

Zhang reported a a two percent increase in land values this year and says it was due mainly to the lack of available land that caused the increase. Zhang says the federal tax bill being discussed now doesn’t look to have any big impact.”Given what I’ve heard from the proposal, it seems that we are not getting rid of any of the tax provisions that affect agriculture,” Zhang says. He says tax issues involving depreciation aren’t changing, and that will give farmers little reason to sell their land right now. Zhang says that will likely give farmers more incentives to buy new equipment and could discourage the sale of land.

The increase in land values in this year’s survey was the first after three years of declines in value.

(Radio Iowa)