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Ag property taxes up 125% since 2008 in NE: "One of the largest expenses" for farms and ranches

For a farmer in Washington County, and depending on the piece of land, property taxes range from $80 to $120 per acre
Posted at 4:30 PM, Feb 20, 2024
and last updated 2024-02-20 20:49:08-05

HERMAN, Neb. (KMTV) — If you own a home - in a neighborhood - you likely feel the pain of Nebraska's property taxes. For better or worse, you aren't alone. Taxes on agricultural land have increased 125% since 2008. 3 News Now's Mary Nelson went to Hoegermeyer Farms in Herman to get a sense of the impact.

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The Hoegermeyers have farmed forever.

"I would be, in the United States, the 5th generation of farmers," Greg Hoegermeyer shared.

The family immigrated from Germany, and farmed there, too. Greg's great-grandparents bought the land in Washington County which his grandfather and parents farmed, and which he and his wife - and now, their son, Gage - work.

They take great pride in their hogs and cattle, but they're diversified.

"We also raise corn and soybeans, wheat, alfalfa, and then we have pasture that we graze," he explained.

All happening on more than a thousand acres. Land which is taxed.

"For our operation, the property tax total each year is near six figures," he said.

"They have become one of the largest expenses that a family will incur on a farm or ranch today."

We wanted to talk to Hoegermeyer about the issue after hearing of increases on land like his.

"My wife and I have been married for 33 years. Back then, property taxes ran $20 per acre for bare land. Today, depending on the track and the location, it could be $80 to $120 per acre," he added.

According to annual reports from the Nebraska Department of Revenue, from 2008 to 2022, taxes levied on residential land increased 74%. Commercial land followed closely at 75%. However, taxes on agricultural land increased 125%.

Naturally, it forces decisions for farmers like Hoegermeyer.

"It affects A) Do you add another person to work on the operation? Because what we're paying in property taxes could pay one person plus benefits and there still be money left over."

Or, B)... he says, upgrade or buy equipment, of which farms need a lot. And, it's expensive.

Beyond farming, Hoegermeyer's perspective is informed by having served on his local school board for several years.

"It's important that students get a good education and it's important that our roads are good, that law enforcement can have the budget they need to do the job. But, how do we want to fund those?," he asked.

Talk to him for any length of time, and you'll sense he's reasonable and loves his work, he's just concerned about what happens in the next few years if Nebraska lawmakers don't act now.

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