By BRIAN PORTER | Rocky Mountain Voice
What is the impact of rising taxation on a cattle ranch or agricultural operation?
That’s what Eastern Colorado rancher Richard Holtorf asked what he termed “city slickers” in the Colorado Legislature to consider Tuesday as he offered a master’s class in the costly prospects of cattle-raising, while perhaps straying from the topic at hand.
“To run cattle, you have to have grassland,” Rep. Holtorf said. “To have grassland, you have to own or lease grassland. There is a property tax element to that.”
In Eastern Colorado where Holtorf ranches, many cattle raisers and agriculture producers work on 640-acre “sections” of land or larger. The land is dry and most cattle raisers restrict grazing to no more than a head per 15 acres, or supplement with hay and feed. The hay, the head-per-acre and availability of land, along with purchase and maintenance of machinery and much more all factors into the input expense for a cattle-raiser.
“You just don’t get it unless you are doing it,” Holtorf said.
Property tax is one input which lessens the ability of ranchers and agricultural producers to have a profitable commodity, he says. That commodity could be a steak in a Denver restaurant or produce on the grocery shelf.
“Property tax affects the cattle industry directly,” Holtorf said. “We don’t want our property taxes to go up.”
The value of a single cow is $2,500 and a calf has a value of about $1,250, he said, and “it could be more based on the bloodline in your herd.”
Then, Holtorf says, some farmers must factor in the cost of wolf depredation. It all adds up to input costs which could very easily outnumber profits, and drive a producer out.