(1) Nonirrigated summer fallow farm land productivity values for each year of the reappraisal cycle beginning January 1, 2009, are:

(a) Calculated by using the formula defined in 15-7-201, MCA, where the agricultural land productivity valuation formula is:

(i) V = I/R;

(ii) V is the productivity value of the agricultural land;

(iii) I is the net income attributed to the acre of land using a crop share approach, which means applying the percentage of income from production (the share) that is attributed to the landlord (owner) of the land; and

(iv) R is the capitalization rate or the rate that converts an ongoing income stream into an estimate of value.

(b) For the reappraisal cycle beginning January 1, 2009, the per acre nonirrigated summer fallow farm land value is calculated as follows:

(i) Average price for spring wheat = $4.58 per bushel;

(ii) Gross income per acre = Number of bushels per acre times $4.58 per bushel;

(iii) Net income per acre = Gross income per acre times 12.5%, which is the landlords crop share percentage for nonirrigated summer fallow farm land; and

(iv) Productivity value per acre = Net income per acre divided by 0.064, which is the capitalization rate of 6.4%, in decimal form, as set forth in 15-7-201, MCA.

(c) For lands with an increase in value the department will apply a phase-in percentage as defined in 15-7-111, MCA, and ARM 42.20.503 to the full reappraisal productivity values for nonirrigated summer fallow farm land for the reappraisal cycle beginning January 1, 2009.

(i) For lands with a decrease in value as a result of the 2009 reappraisal, the lower value will be implemented immediately.