42-13101. Valuation of agricultural
land
A. Land that is used for agricultural purposes shall be valued using only the
income approach to value without any allowance for urban or market influences.
B. The income of agricultural property shall be determined using the capitalized
average annual net cash rental of the property. For purposes of this subsection the
average annual net cash rental of the property:
1. Is the average of the annual net cash rental, excluding real estate and sales
taxes, determined through an analysis of typical arm's length rental agreements collected
for a five year period before the year for which the valuation is being determined for
comparable agricultural land used for agricultural purposes and located in the vicinity,
if practicable, of the property being valued.
2. Shall be capitalized at a rate 1.5 percentage points higher than the average
long-term annual effective interest rate for all new farm credit services loans for the
five year period before the year for which the valuation is being determined.
|