42.20.676    NON-IRRIGATED AGRICULTURAL LAND VALUATION

(1) The department calculates productivity per acre values for non-irrigated agricultural land subclasses described in (3) and (4) using the statutory formula provided in 15-7-201, MCA. However, the department applies the formula per industry standard as I/R = V.

(2) The department calculates net income per acre (I) for the land subclasses in (3) by:

(a) multiplying the land's soil productivity by the average commodity price provided in ARM 42.20.681 to determine the gross income per acre; and

(b) multiplying the gross income per acre by the land owner's typical crop share percentage.

(3) The land owner's typical crop share percentage for non-irrigated summer fallow farm land is 12.5% and for non-irrigated continuously cropped farm land and non-irrigated continuously cropped hay land is 25%.

(4) For grazing land, the department determines net income per acre by deducting the land owner's expenses of 25% from the gross income per acre value.

 

History: 15-1-201, MCA; IMP, 15-7-103, 15-7-201, MCA; NEW, 2020 MAR p. 188, Eff. 2/1/20.