(1) Nonirrigated continuously cropped hay land productivity values for each year 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) The per acre nonirrigated continuously cropped hay land value is calculated as follows:

(i) Gross income per acre = Number of bushels per acre times the average price per bushel for spring wheat;

(ii) Net income per acre = Gross income per acre times 25 percent, which is the landlord's crop share percentage for nonirrigated continuously cropped farm land; and

(iii) Productivity value per acre = Net income per acre divided by the capitalization rate.