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Rule Title: AGRICULTURAL COMMODITY PRICES AND VALUES
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Department: REVENUE
Chapter: REAL PROPERTY
Subchapter: Agricultural Land
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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42.20.681    AGRICULTURAL COMMODITY PRICES AND VALUES

(1) Commodity prices for the 2019-2020 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 2008-2017. 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 2019-2020 appraisal cycle are as follows:

(a) Spring wheat price used in the valuation of nonirrigated summer fallow and nonirrigated continuous cropped farm lands is $6.50 per bushel.

(b) Alfalfa hay price, reduced by 20 percent as required by 15-7-201, MCA, used in the valuation of irrigated and nonirrigated hay lands is $98.20 per ton.

(c) Private grazing fees used in the valuation of grazing lands is $20.93 per Animal Unit Month (AUM).

(2) The minimum value of irrigated land as determined by the methodology detailed in ARM 42.20.675 is $583.98 per acre.

(3) The statewide grazing productivity average is .21 AUMs per acre, and is used in calculating the values of:

(a) nonqualified agricultural lands; and

(b) nonproductive patented mining claims.

(4) For the 2019-2020 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 2019-2020 appraisal cycle the highest productivity of nonirrigated continuously cropped farmland is 60 bushels per acre, and is used in calculating the values of specialty crop land.

(6) For the 2019-2020 appraisal cycle, the value of the one acre beneath a residence on agricultural land is $2,144.

(7) For the 2019-2020 appraisal cycle, the minimum carrying capacity for grazing land to be eligible for agricultural classification is 31 AUMs as determined by the Montana State University - Bozeman, College of Agriculture, Department of Agricultural Economics and Economics, 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.


 

 
MAR Notices Effective From Effective To History Notes
42-2-998 1/1/2019 Current 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.
42-2-966 1/1/2017 1/1/2019 History: 15-1-201, MCA; IMP, 15-6-133, 15-7-201, 15-7-202, 15-7-203, 15-7-206, 15-7-207, 15-7-208, 15-7-209, 15-7-210, 15-7-212, MCA; NEW, 2014 MAR p. 2994, Eff. 12/12/14; AMD, 2016 MAR p. 2341, Eff. 1/1/17.
42-2-924 12/12/2014 1/1/2017 History: 15-1-201, MCA; IMP, 15-6-133, 15-7-201, 15-7-202, 15-7-203, 15-7-206, 15-7-207, 15-7-208, 15-7-209, 15-7-210, 15-7-212, MCA; NEW, 2014 MAR p. 2994, Eff. 12/12/14.
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