Return to TFB Main Page
Return to Current Edition
Texas Agriculture Archive

September 20, 2002

Between 1980 and 1997, residential land use in rural areas increased more rapidly than in urban areas, not only in percentage terms but also in absolute numbers: 1 million acres per year compared with 420,000 acres.

While land in residential use in rural areas is a small proportion of total U.S. land use, this phenomenon has implications for farmland prices and the availability of land for agriculture and forestry, and can affect rural amenities and the rural environment in positive and/or negative ways.

All land is categorized as either urban or rural. Within the urban and rural categories are residential and nonresidential land.

The rural nonresidential category is by far the largest, accounting for over 2.1 billion acres of land in 1997, and includes cropland, forestland, pasture and range, and other miscellaneous uses.

Residential area is broadly defined as the land or lots upon which housing units are situated. Of the estimated 109 million acres of residential land in 1997, the most recent estimate comparable to other published sources, 36 million acres were located in urban areas and 73 million in rural areas.

The combined increase in urban area and rural residential use resulted in a 2.1 million-acre annual decrease in other rural uses from 1980 to 1997.
Source: ERS/USDA; Agricultural Outlook, Resource & Environment, August 2002

Drought: Tax options here for forced livestock sales
Livestock producers forced to sell animals due to drought have two options available for deferring income taxes if certain conditions are met.

The first option applies to breeding stock, milk cows, or draft animals. If a greater than normal portion of the herd must be culled, you can defer income taxes on capital gains from those animals. You have up to two years to buy replacement animals, and no income taxes are due. If no replacements are purchased, the taxes must be paid with interest.

The other option involves a one-year tax deferral for forced sales in excess of normal production. This option is also available for calves, but only if the farm or ranch is in an area declared a drought disaster. For example, if you normally background calves for sale in late winter but must sell this fall due to a lack of feed, this option could be invoked to avoid paying taxes on two calf crops in one year.
Source: Doane's Agricultural Report; Doane's Management Planner, Aug. 30, 2002

New Brazilian agreement to increase dairy exports
In April, after a three-year hiatus, Brazil resumed registration of additional U.S. dairy processing plants for export to Brazil.

The first of these newly-registered plants will export whey mixes and food preparations.

Under the new procedures, all U.S. dairy plants approved by the Food and Drug Administration (FDA) and USDA's Agricultural Marketing Service (AMS) are eligible for registration to export to Brazil.

For the last three years, only plants previously approved by the Brazilian Meat and Dairy Inspection Service have been allowed to export. New plants were not approved due to Brazilian concerns about U.S. dairy inspection, certification and product labeling procedures.

The new procedures are the result of prolonged work by FAS, AMS, FDA and the U.S. Dairy Export Council. The U.S trade impact of this agreement is estimated at an additional $3-5 million annually in U.S. sales.
Source: AgExporter; USDA, August 2002

Farmers markets more popular
Farmers markets—markets where local farmers sell their own produce— are rising in popularity, according to the U.S. Department of Agriculture.

The number of farmers markets in the U.S. increased 63 percent from 1994 to 2000, with more than 2,800 farmers markets nationwide in 2000.

Texas has 98 certified farmers markets. Most Texas cities have only one, but San Antonio leads the way with 19.
Source: Carole Keeton Rylander, Texas Comptroller of Public Accounts; Fiscal Notes, August 2002

Meat substitute recall demanded
The Center for Science in the Public Interest (CPSI) recently said the meat substitute, Quorn, is making people sick and demanded that the product be recalled.

CSPI said it has received reports from 33 people who have become ill after eating Quorn, the trade name for mycoprotein, which is a fungus used as a substitute for ground beef and chicken.

"Quorn mycoprotein has been proven to cause severe digestive reactions," said CSPI's Michael Jacobson in a letter to the Food and Drug Administration.

Quorn was introduced in Britain in 1995 and became available to U.S. consumers in January.
Source: AFBF, Executive Newswatch; Aug. 13, 2002

More feeder imports expected into U.S.
U.S. live cattle imports are expected to increase and exports to decrease in both 2002 and 2003.

Dryness and tighter feed grain supplies in Canada are expected to continue inducing movement of feeder cattle south to the U.S. At the same time, tight feed supplies in Canada have reduced demand for feeder cattle from the U.S. In 2003, sharply reduced U.S. supplies of beef and feeder cattle are expected to reduce cattle exports to Canada and to encourage imports of Canadian cattle.

Dry weather and financial stress among Mexican cattle producers will likely continue to encourage export of feeder cattle to the U.S. through 2003. U.S. imports of feeder cattle from Mexico have recently weakened because of improved pasture conditions in some parts of Mexico and lower feeder cattle prices in the U.S. However, imports should pick up again as feeder cattle prices turn higher in late 2002, and higher still in 2003, as the rebuilding phase of the U.S. cattle cycle begins. A possible limiting factor may be the impositions of more stringent U.S. standards on live cattle imports from regions of Mexico with a high incidence of tuberculosis as announced April 1, 2002.
Source: ERS/USDA; Agricultural Outlook, Briefs, August 2002

Dollars strength may temper export gains
Recently the U.S. dollar has depreciated against the euro and other developed economy currencies.

However, appreciation against the yen and the continued relative strength of the U.S. dollar may temper expected gains in U.S. agricultural exports and continue to encourage U.S. import growth.
Source: Outlook for U.S. Agricultural Trade, August 2002

Tax Code allows schools to attract taxable property
In 2001, the 77^th Texas Legislation enacted House Bill 1200, creating Tax Code Chapter 313, Texas Economic Development Act.

This Act allows school districts to attract new taxable property by offering a tax credit and an eight-year limitation on the appraised value of a property for the maintenance and operations portion of the school district property tax.

School district may be receiving the first applications this summer.
Source: Texas Comptroller of Public Accounts; Statement, June 2002

Wildlife/open space tax issues addressed
The Comptroller has adopted Rule 9.4003, relating to open-space land valuation for property owners who use their land for wildlife management. The new rule was effective July 15 for the 2002 tax year.

This rule is in response to the Texas Legislature's mandate in House Bill (H.B.) 3123 to develop state standards. H.B. 3123 adds Property Tax Code Section 23.521 that requires the Texas Parks and Wildlife Department (TPWD) to develop standards for the qualification of open space land used for wildlife management. The Comptroller is required to adopt these standards by rule.

The Comptroller adopted the TPWD standards in Rule 9.4003, and these standards are binding on the chief appraiser and the appraisal review board (ARB) in each county.

The property owner shall complete the required wildlife management plan on a form supplied by the TPWD.

Direct questions about the new rule and manual to Dan Wilson, Property Tax Division, at dan.wilson@cpa.state.tx.us or call 1-800-252-9121 extension 5-9806. In Austin, call 305-9806. Or, write the Property Tax Division at P.O. Box 13528, Austin, Tex. 78711-3528.
Source: Carole Keeton Rylander, Texas Comptroller of Public Accounts; Statement, July/August 2002