Indiana farmers are seeing significantly higher property tax assessments on barns, grain bins and other agricultural buildings this year, as updated state cost tables reflect post-pandemic construction inflation.

Ryan Hoff, senior director of government affairs for Indiana Farm Bureau, said the increases stem from updated assessment manuals used by county assessors.

“The basis for those values is reproduction cost minus depreciation of the building,” Hoff said. “This year's update to the cost tables the assessors use are the first to fully reflect the cost inflation since COVID.”

The updated schedules apply statewide, though local assessors can adjust, based on local construction costs and depreciation.

Read more: Braun eyes property tax breaks for seniors, assessment changes

The assessment increases come at a challenging time for agriculture. Farmers are already dealing with low crop prices, uncertain trade conditions and higher input costs, including fuel and fertilizer.

Hoff said operations with large investments in buildings could be affected the most.

“It can be pretty significant, especially for livestock operations that have a lot of buildings,” he said. “The more buildings you have, the harder this hits you.”

The Farm Bureau plans to seek a legislative solution during the next session. The organization wants agricultural buildings moved from the state's current three percent property tax cap classification to the two percent classification.

Read more: Farm bankruptcies climbed 46 percent last year

Hoff said the change would reduce tax burdens on existing structures and help soften the impact of future assessment increases.

State officials plan to update the cost schedules at least every other year, which the Bureau says should help prevent similar dramatic increases in the future.

Those affected by sharp assessment increases have until June 16 to file a challenge.