(1) An applicant for agricultural land classification must prove that the land indicated in the application actually produced the livestock, poultry, honey and other products from bees, biological control insects, field crops, fruit, or other animal and vegetable matter raised for food or fiber or sod, ornamental, nursery, and horticultural crops that are raised, grown, or produced for commercial purposes.

(2) Contiguous and noncontiguous parcels must be under one ownership and each parcel must be actively devoted to agricultural use and meet all of the production and income qualification tests in these rules to be classified as agricultural land. Noncontiguous parcels in the same ownership that are actively devoted to agricultural use can combine agricultural production and/or current livestock carrying capacity to meet the income or carrying capacity requirements.

(3) A county farm and ranch reporting form that reflects any livestock or personal property used on the land must have been filed at some time by the current landowner with the local department office.

(4) Poultry or game birds that are raised in a building, confined cage or enclosed area, are considered activities that are not supported and produced by the land. Land used for poultry and game birds raised under these conditions is not eligible for consideration as agricultural land.

(5) The sale of honey and other products from bees shall be considered agricultural income if the applicant meets the following requirements:

(a) the landowner is registered with the Montana Department of Agriculture as an apiary; and

(b) the apiary must have at least 25 bee colonies annually sited on the land from May 1 through August 31.

(6) The sale of biological control insects shall be considered agricultural income if the insects are supported solely from noxious weeds grown on the land indicated on the application.

(7) Plants or nursery stock not grown and nourished by the land are not acceptable forms of agricultural income or agricultural production for purposes of this rule. Examples include trees grown in self-contained pots or burlap bags placed in or on the ground and plants grown in flats located in a greenhouse.

(8) If the land is used primarily to raise and market livestock, the land must currently support 30 or more animal unit (AU) months of grazing carrying capacity, with cattle as the base. One AU is assumed to consume 915 pounds of dry herbage production per month from native grazing land. The carrying capacity may be based on information obtained from the United States Natural Resource and Conservation Service (NRCS) soil survey. If a soil survey does not exist, the carrying capacity may be based on an estimate by the NRCS, the local county agricultural extension agent, or the department. Based on the manner in which the NRCS measures dry herbage production and the lost forage consumption due to grazing livestock and other causes, the per-acre per-year dry herbage production consumed is 25% of the NRCS estimate for an unfavorable precipitation year on nonirrigated grazing land. On nonirrigated domestic grazing land, the department shall increase the estimated nonirrigated native grazing land carrying capacity by 50% (1.5) . The department shall use the following formula, based on NRCS soil survey information, to calculate the carrying capacity for nonirrigated native grazing land, which does not exhibit significant overgrazing or weed infestation:

(a) per-acre per-year dry herbage production multiplied by 0.25 equals the per-acre per-year dry herbage production consumed by livestock;

(b) per-acre per-year dry herbage production consumed by livestock divided by 915 pounds of dry herbage production consumed per-month per-animal unit equals the animal unit months per acre (AUMs/acre) ; and

(c) livestock acres grazed multiplied by AUMs/acre equals the total AUMs.

(9) If agricultural products, other than livestock, are marketed from land in the application, the applicant must provide proof that the parcel(s) indicated in the application produced at least $1,500 of gross agricultural income each year. Annual rental payments, government payments, or lease payments are not eligible agricultural income. Acceptable proof of income shall include:

(a) sales receipts;

(b) canceled checks;

(c) copy of income tax statements; or

(d) other written evidence of sales transactions.

(10) If the land is primarily used to grow crops that are not marketed but consumed by humans, livestock, poultry, or other animals in the agricultural operation, the applicant must prove that the land on the application produced the equivalent of $1,500 in gross agricultural income each year from crops that were consumed. The applicant must make a written estimate of the weight or quantity of food or animal fiber produced. The written estimate must include all proof set forth in this rule. The weight or quantity estimate will be multiplied by the current commodity price to determine whether the $1,500 annual gross income test has been met.

(11) If the consumption was from livestock, or the livestock was consumed by humans, the land must support 30 or more animal unit months of grazing carrying capacity, with cattle as the base.

(12) Acceptable proof of production shall include:

(a) a statement from the United States Farm Services Agency (FSA) indicating estimated yield if crops are the basis for income;

(b) if livestock is the basis for income, information the taxpayer or their agent obtains from the NRCS web site, or a statement from the NRCS or the county agricultural extension agent indicating that the parcel(s) is/are capable of producing in its current state a minimum of 30 AU months of grazing capacity; and

(c) a confirmation by the department.

(13) For valuation as agricultural land, the owner of land used as a Christmas tree farm must provide proof that:

(a) all trees are cultivated or under accepted, proven husbandry practices;

(b) all trees are sheared on a regular basis;

(c) the property contains a minimum of 2,000 trees; and

(d) the Christmas tree operation continues to produce at least $1,500 in gross annual income once the initial crop of trees reaches salable maturity.

(14) For valuation as agricultural land, the owner of land used as a fruit tree orchard must provide proof that:

(a) there are a minimum of 100 trees;

(b) they are under accepted fruit tree husbandry practices; and

(c) the fruit tree operation continues to produce at least $1,500 in gross annual income once the initial crop of trees begins to produce fruit.

(15) Land qualifying in (14) and (15) will be graded and assessed as continuously cropped farm land, grade 1A4.

(16) For valuation as agricultural land, the owner of land used solely for summer fallow farmland as defined in the Montana Agricultural Classification and Appraisal Manual must produce a minimum of $1,500 in agricultural crop income every other growing season.

(17) For contiguous and noncontiguous parcels of land under one ownership as defined in ARM 42.20.601 totaling less than 20 acres in size, any acreage in excess of that stated in the forest land classification in ARM 42.20.705 is classified as agricultural provided the acreage is actively devoted to agricultural use.