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Abstract
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.