RESULTS OF THE NORTH DAKOTA LAND VALUATION MODEL FOR THE 2005 AGRICULTURAL REAL ESTATE ASSESSMENT

This report summarizes the 2005 results of the North Dakota Land Valuation Model. The model is used annually to estimate average land values by county, based on the value of production from cropland and non-cropland. The county land values developed from this procedure form the basis for the 2005 valuation of agricultural land for real estate tax assessment. The average "all land value" from this analysis is multiplied by the total acres of agricultural land on the county abstract to determine each county's total agricultural land value for taxation purposes. The State Board of Equalization compares this value with the total value assessed to agricultural property in each county. Each county is required by state statute to assess a total value of agricultural property within 5 percent of this value. The average value per acre of all agricultural land in North Dakota increased by 7.8 percent based on the value of production. Cropland value increased by 8.24 percent and non-cropland value increased by 5.1 percent. The formula capitalization rate was below the minimum set by the State Legislature, therefore the minimum rate of 8.9 percent was used. Changes in market value are included for comparison. Market value data are from the annual County Rents and Values survey conducted by North Dakota Agricultural Statistics Service.Land valuation, real estate assessment, agricultural land, Land Economics/Use,

RESULTS OF THE NORTH DAKOTA LAND VALUATION MODEL FOR THE 2003 AGRICULTURAL REAL ESTATE ASSESSMENT WITH THE REVISED CAPITALIZATION RATE

This report summarizes the results of the North Dakota Land Valuation Model using a capitalization rate of 9.5 percent. The 2003 North Dakota Legislature amended the statute that defines the capitalization rate to be used in this analysis. This legislative change places a minimum of 9.5 percent for the capitalization rate if the calculated value falls below this level. For 2003, the capitalization rate formula yielded a rate of 8.53 percent, thus the minimum of 9.5 percent was used. This model is used annually to estimate average land values by county, based on the value of production from the land. The county land values developed from this procedure form the basis for the 2003 valuation of agricultural land for real estate tax assessment. The average all land value from this analysis is multiplied by the total acres of agricultural land on the county abstract to determine each county's total agricultural land value for taxation purposes. The State Board of Equalization compares this value with the total value assessed to agricultural property in each county. Each county is required by state statute to assess a total value of agricultural property within 5 percent of this value. The average value per acre of all agricultural land in North Dakota decreased by 5.3 percent in this analysis. The increase in the capitalization rate alone accounted for an average decrease in land values of 6.2 percent.Land valuation, real estate assessment, agricultural land, Land Economics/Use,

RESULTS OF THE NORTH DAKOTA LAND VALUATION MODEL FOR THE 2006 AGRICULTURAL REAL ESTATE ASSESSMENT

This report summarizes the 2006 results of the North Dakota Land Valuation Model. The model is used annually to estimate average land values by county, based on the value of production from cropland and non-cropland. The county land values developed from this procedure form the basis for the 2006 valuation of agricultural land for real estate tax assessment. The average "all land value" from this analysis is multiplied by the total acres of agricultural land on the county abstract to determine each county's total agricultural land value for taxation purposes. The State Board of Equalization compares this value with the total value assessed to agricultural property in each county. Each county is required by state statute to assess a total value of agricultural property within 5 percent of this value. The average value per acre of all agricultural land in North Dakota increased by 6.68 percent based on the value of production. Cropland value increased by 6.4 percent and non-cropland value increased by 7.76 percent. The formula capitalization rate was below the minimum set by the State Legislature, therefore the minimum rate of 8.3 percent was used. Changes in market value are included for comparison. Market value data are from the annual County Rents and Values survey conducted by North Dakota Agricultural Statistics Service.Land valuation, real estate assessment, agricultural land, Land Economics/Use,

RESULTS OF THE NORTH DAKOTA LAND VALUATION MODEL FOR THE 2004 AGRICULTURAL REAL ESTATE ASSESSMENT

This report summarizes the 2004 results of the North Dakota Land Valuation Model. This model is used annually to estimate average land values by county, based on the value of production from cropland and non-cropland. The county land values developed from this procedure form the basis for the 2004 valuation of agricultural land for real estate tax assessment. The average all land value from this analysis is multiplied by the total acres of agricultural land on the county abstract to determine each county's total agricultural land value for taxation purposes. The State Board of Equalization compares this value with the total value assessed to agricultural property in each county. Each county is required by state statute to assess a total value of agricultural property within 5 percent of this value. The average value per acre of all agricultural land in North Dakota decreased by 0.66 percent based on the value of production analysis. Cropland value declined by 0.32 percent and non-cropland value dropped by 2.58 percent. The formula capitalization rate was below the minimum set by the State Legislature; therefore, the minimum rate of 9.5 percent was used. Changes in market value are included for comparison. Market value data is from the annual County Rents and Values survey conducted by North Dakota Agricultural Statistics Service.Land valuation, real estate assessment, agricultural land, Land Economics/Use,

RESULTS OF THE NORTH DAKOTA LAND VALUATION MODEL FOR THE 2001 AGRICULTURAL REAL ESTATE ASSESSMENT

This report summarizes the results of the North Dakota Land Valuation Model. This model is used annually to estimate average land values by county, based on the value of production produced on that land. The county land values developed from this procedure form the basis for the 2001 valuation of agricultural land for assessment of real estate taxes. The average all land value from this analysis is multiplied by the total acres of agricultural land on the county abstract to determine each county's total agricultural land value. The State Board of Equalization compares this value with the total value assessed to agricultural property in each county. Each county is required by state statute to assess a total value of agricultural property within 5 percent of this value.assessment, capitalization rate, land, taxes, valuation, Land Economics/Use,

Results of the North Dakota Land Valuation Model for the 2011 Agricultural Real Estate Assessment

This report summarizes the 2011 results of the North Dakota Land Valuation Model. The model is used annually to estimate average land values by county, based on the value of production from cropland and non-cropland. The county land values developed from this procedure form the basis for the 2011 valuation of agricultural land for real estate tax assessment. The average value for all agricultural land in a county from this analysis is multiplied by the total acres of agricultural land on the county abstract to determine each county’s total agricultural land value for taxation purposes. The State Board of Equalization compares this value with the total value assessed to agricultural property in each county. Each county is required by state statute to assess a total value of agricultural property within 5 percent of this value. The average value per acre of all agricultural land in North Dakota increased by 5.4 percent from 2010 to 2011 based on the value of production. The value of cropland increased by 6.0 percent, and non-cropland value decreased by 0.40 percent. The formula capitalization rate was below the minimum set by the State Legislature, therefore the minimum rate of 7.4 percent was used. The increase in the values for cropland and all agricultural land was due to the increased value of crop production. The value of production for most counties has been considerably higher since 2007 than prior years. This increase in value of production is a combination of increased yields, higher prices and a change in cropping mix. The change in crop revenue impacted land values from a negative 0.52 percent in Pembina County to an increase of 13.12 percent in Hettinger County. The capitalization rate change increased land valuations by 4.05 percent in all counties; while the cost of production index decreased land values in all counties by 5.72 percent. Changes in market value are included for comparison. Market value data are from the annual County Rents and Values survey conducted by North Dakota Agricultural Statistics Service.Land valuation, real estate assessment, agricultural land, Farm Management, Land Economics/Use,

COUNTY LEVEL TAXABLE AGRICULTURAL LAND VALUES IN NORTH DAKOTA: COMPARING THE GROSS REVENUE APPROACH WITH VALUES BASED ON RENTAL VALUES

Land values calculated with the current North Dakota agricultural land valuation model were compared with values calculated by capitalizing the average cash rent for each county. Results showed there was a significant difference in cropland values, but there was no significant difference in non-cropland values. Land values for the 2000, 2001, and 2002 assessments were compared.land valuation model, property taxes, North Dakota, Land Economics/Use,