Indiana Farm Bureau Proposed 2% Tax Cap on Farm Buildings

Farmers and business owners in Indiana should monitor proposed tax reforms that could reduce property and personal tax liabilities.

Updated on Oct. 12, 2026 in Agriculture

Indiana Farm Bureau Proposed 2% Tax Cap on Farm Buildings

Live Poll

Should your local government prioritize tax cap reductions for agricultural buildings to support local farmers?

The Indiana Farm Bureau has announced its 2027 legislative priorities, which include a push to lower the tax cap on agricultural-use buildings from 3% to 2%. The plan also calls for a $2 million exemption on business personal property taxes to assist with rising industry costs.

Why it matters

These legislative goals aim to alleviate economic pressures for operators facing high input costs and land prices in Indiana. By targeting property tax reforms, the organization seeks to bolster the long-term competitiveness of local agricultural and business operations.

The policy proposal was derived from suggestions by 92 county organizations and vetted by 236 member representatives. The agenda includes a one-third deduction for agricultural-use buildings, aiming to lower the current 3% tax cap to 2%.

The players

Indiana Farm Bureau

A state-level agricultural trade association that coordinates lobbying efforts and policy development for 92 county chapters.

Indiana General Assembly

The state legislative body responsible for passing tax reforms and setting the state budget.

The details

The policy framework emerged from a grassroots process where county-level organizations submitted suggestions for review by a resolutions committee. The INFB delegate session then finalized these requests to serve as the roadmap for lobbying efforts during the upcoming session. If enacted, the property tax changes would provide immediate relief to operators managing agricultural infrastructure, while the $2 million personal property tax exemption would broadly impact business tax obligations.

Aug. 22, 2026: The INFB delegate session held with 236 member representatives.
Nov. 17, 2026: Organization Day Breakfast scheduled at the Statehouse.
January 2027: The Indiana General Assembly legislative session begins.

Market Landscape

This proposal follows a long-standing pattern of legislative efforts to modify the Indiana property tax cap system to address rising rural operational costs. It reflects a trend of sector-specific tax advocacy that has historically shaped agricultural investment across the state.

Operators should track the progress of the proposed tax cap reductions as they head into the 2027 legislative cycle. Consult with your tax accountant or counsel to determine how a $2 million personal property tax exemption might shift your business's total tax liability for the coming year.

The takeaway

The Farm Bureau's 2027 agenda prioritizes lowering fixed tax costs for owners managing agricultural assets. Monitor the Indiana General Assembly’s session calendar for committee hearings in early 2027 to see which tax reform provisions move to the floor.