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 2007 AGRICULTURAL REAL ESTATE ASSESSMENT

This report summarizes the 2007 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 2007 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 0.79 percent, from 2006 to 2007, based on the value of production. Cropland value increased by 0.36 percent and non-cropland value increased by 5.17 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 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 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,

NORTH DAKOTA LAND VALUATION MODEL

The North Dakota Land Valuation Model was created by the North Dakota Legislature in the early 1980s. This model is used to estimate the value of agricultural land based on productivity for purposes of real estate tax assessment. Prior to this change, agricultural real estate was assessed based on market values. This model is used to estimate the average value per acre of cropland and non-cropland, by county, based on the value of crops and livestock produced on these lands. An average value per acre for all agricultural land in each county is calculated by weighting the value of cropland and non-cropland. This paper describes how the model is constructed, how values are calculated, and what factors impact changes in land values.Land valuation, real estate assessment, agricultural land, capitalization rate, Land Economics/Use,

NORTH DAKOTA LAND VALUATION MODEL

North Dakota agricultural land is valued for property tax purposes as the capitalized value of the landowner's share of gross revenue. This paper describes the data sources, assumptions, and current issues relative to operating the model. Note: Machine readable file does not include the 4 appendix pages-- contact authors for more information.agricultural land, cropland, tax, assessed value, valuation, capitalization, land value Note, Land Economics/Use,

EFFECTS OF ENERGY DEVELOPMENT ON AGRICULTURAL LAND VALUES

This paper uses multiple regression analysis to examine the effects of energy resource development on sale prices of agricultural land in western North Dakota. The findings suggest that energy resources development has exerted only modest upward pressure on agricultural land values in the northern Great Plains. The land market in this region remains dominated by active farmers who are purchasing farmland as a long-term investment, and energy development has not had a major impact on the structure of that market.Land Economics/Use, Resource /Energy Economics and Policy,

Selected Characteristics of Business Operators in North Dakota Agricultural Trade Centers

Agribusiness,