(1) Grazing 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 an adjusted average private grazing lease rate; 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 grazing land value is calculated by:
(i) multiplying the average private grazing lease per Animal Unit Month (AUM) by 25 percent to determine the landlord's share of expenses;
(ii) subtracting the landlord's share of expenses from the average private grazing lease per AUM to determine the adjusted gross income per AUM;
(iii) multiplying the adjusted gross income per AUM by the productivity of the grazing land expressed as AUMs per acre to determine net income; and
(iv) dividing the net income by the cap rate identified in 15-7-211, MCA.