ARM 42.20.681. AGRICULTURAL COMMODITY PRICES AND VALUES

(1) Commodity prices for the 2025-2026 appraisal cycle used for the determination of income are calculated using a 10-year Olympic average of prices from Montana Agricultural Statistics for the years 2014-2023. The department's Olympic average removes the highest price and the lowest price and averages the remaining eight prices. The commodity prices used for valuing agricultural land for the 2025-2026 appraisal cycle are as follows: (a) Spring wheat price used in the valuation of non-irrigated summer fallow and non-irrigated continuous cropped farm lands is $6.11 per bushel. (b) Alfalfa hay price, reduced by 20 percent as required by 15-7-201, MCA, used in the valuation of irrigated and non-irrigated hay lands is $124.20 per ton. (c) Private grazing fees used in the valuation of grazing lands is $24.69 per Animal Unit Month (AUM). (2) The minimum value of irrigated land as determined by the methodology detailed in ARM 42.20.675 is $501.21 per acre. (3) The statewide grazing productivity average is .21 AUMs per acre, and is used in calculating the values of: (a) nonqualified agricultural lands; and (b) nonproductive patented mining claims. (4) For the 2025-2026 appraisal cycle the capitalization rate for Class 3 agricultural land, which is used to convert an ongoing income stream into an estimate of value is 6.4 percent. (5) For the 2025-2026 appraisal cycle the highest productivity of non-irrigated continuously cropped farmland is 60 bushels per acre, and is used in calculating the values of specialty crop land. (6) For the 2025-2026 appraisal cycle, the value of the one acre beneath a residence on agricultural land is $2,326. (7) For the 2025-2026 appraisal cycle, the minimum carrying capacity for grazing land to be eligible for agricultural classification is 22 AUMs as determined by the Montana State University - Bozeman, College of Agriculture, in accordance with ARM 42.20.620.