42.20.675 IRRIGATED AGRICULTURAL FARM LAND VALUATION
(1) The department calculates productivity per acre values for irrigated farm land using the formula provided in 15-7-201, MCA. However, the department applies the formula per industry standard as I/R=V.
(2) The department calculates net income per acre (I) by:
(a) multiplying the land's soil productivity by the average commodity price provided in ARM 42.20.681 to determine the gross income per acre;
(b) multiplying the gross income per acre by the land owner's typical crop share percentage for irrigated farm land which is 25%; and
(c) subtracting the $50.00 allowable water cost per acre of irrigated farm land from the value determined in (2)(b).
(3) The department calculates the minimum value of irrigated farm land by determining net income per acre (I) by:
(a) multiplying a productivity of 23 bushels of spring wheat per acre by the commodity price provided in ARM 42.20.681 to determine gross income per acre; and
(b) multiplying the gross income per acre by the land owner's typical crop share percentage for non-irrigated continuously cropped farm land which is 25%.
(4) Pursuant to 15-7-201, MCA, the department assigns the irrigated farm land the higher per acre value as calculated in (2) and (3).
History: 15-1-201, MCA; IMP, 15-7-103, 15-7-201, MCA; Eff. 12/31/72; AMD, Eff. 2/3/77; AMD, 1985 MAR p. 2023, Eff. 12/27/85; AMD, 1993 MAR p. 3048, Eff. 12/24/93; AMD, 1996 MAR p. 1172, Eff. 4/26/96; TRANS from ARM 42.20.146 and AMD, 2003 MAR p. 1888, Eff. 8/29/03; AMD, 2006 MAR p. 3103, Eff. 12/22/06; AMD, 2010 MAR p. 549, Eff. 2/26/10; AMD, 2014 MAR p. 2994, Eff. 12/12/14; AMD, 2016 MAR p. 2341, Eff. 1/1/17; AMD, 2020 MAR p. 188, Eff. 2/1/20; AMD, 2020 MAR p. 1881, Eff. 10/24/20.