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Results of the North Dakota Land Valuation Model for the 2010 Agricultural Real Estate Assessment
Aakre, Dwight G ; Haugen, Ronald H
2010
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Título:
Results of the North Dakota Land Valuation Model for the 2010 Agricultural Real Estate Assessment
Autor:
Aakre, Dwight G
;
Haugen, Ronald H
Assuntos:
Agribusiness
;
Agricultural Finance
;
agricultural land
;
Land Economics/Use
;
Land valuation
;
real estate assessment
Descrição:
This report summarizes the 2010 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 2010 valuation of agricultural land for real estate tax assessment. The average all agricultural 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 10.6 percent from 2009 to 2010 based on the value of production. The value cropland increased by 11.5 percent and non-cropland value increased by 1.7 percent. The formula capitalization rate was below the minimum set by the State Legislature, therefore the minimum rate of 7.7 percent was used. The majority of the increase in values for cropland and all agricultural land was due to the increased value of crop production. This increase in value of production was due primarily to market price increases that occurred in 2007 and 2008. The change in crop revenue impacted land values from a negative 1.6 percent to an increase of 21.8 percent by county. The capitalization rate change increased land valuations by 3.8 percent in all counties; while the cost of production index decreased land values in all counties by 5.3 percent.
Data de criação/publicação:
2010
Idioma:
Inglês
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View record in University of Minnesota$$FView record in $$GUniversity of Minnesota
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