42.20.681    AGRICULTURAL COMMODITY PRICES AND VALUES

(1) Commodity prices for the 2023-2024 appraisal cycle used for the determination of income are calculated using a 10-year Olympic average of prices from Montana Agricultural Statistics for the years 2012-2021. The department's Olympic average removes the highest price and the lowest price and averages the remaining eight prices. The commodity prices used for valuing agricultural land for the 2023-2024 appraisal cycle are as follows:

(a) Spring wheat price used in the valuation of non-irrigated summer fallow and non-irrigated continuous cropped farm lands is $5.96 per bushel.

(b) Alfalfa hay price, reduced by 20 percent as required by 15-7-201, MCA, used in the valuation of irrigated and non-irrigated hay lands is $111.30 per ton.

(c) Private grazing fees used in the valuation of grazing lands is $23.50 per Animal Unit Month (AUM).

(2) The minimum value of irrigated land as determined by the methodology detailed in ARM 42.20.675 is $535.47 per acre.

(3) The statewide grazing productivity average is .20 AUMs per acre, and is used in calculating the values of:

(a) nonqualified agricultural lands; and

(b) nonproductive patented mining claims.

(4) For the 2023-2024 appraisal cycle the capitalization rate for Class 3 agricultural land, which is used to convert an ongoing income stream into an estimate of value is 6.4 percent.

(5) For the 2023-2024 appraisal cycle the highest productivity of non-irrigated continuously cropped farmland is 60 bushels per acre, and is used in calculating the values of specialty crop land.

(6) For the 2023-2024 appraisal cycle, the value of the one acre beneath a residence on agricultural land is $2,003.

(7) For the 2023-2024 appraisal cycle, the minimum carrying capacity for grazing land to be eligible for agricultural classification is 25 AUMs as determined by the Montana State University - Bozeman, College of Agriculture, in accordance with ARM 42.20.620. 

History: 15-1-201, MCA; IMP, 15-6-133, 15-7-201, 15-7-202, 15-7-206, 15-7-210, MCA; NEW, 2014 MAR p. 2994, Eff. 12/12/14; AMD, 2016 MAR p. 2341, Eff. 1/1/17; AMD, 2018 MAR p. 2546, Eff. 1/1/19; AMD, 2020 MAR p. 1881, Eff. 10/24/20; AMD, 2022 MAR p. 2366, Eff. 12/24/22.