This report summarizes the 2012 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 2012 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. The State Board of Equalization gave counties the authority to assess a total value of agricultural property no less than 90.0 percent of this value for 2012. The average value per acre of all agricultural land in North Dakota increased by 29.14 percent from 2011 to 2012 based on the value of production. Cropland value increased by 30.45 percent, and non-cropland value increased by 23.0 percent. The formula capitalization rate was 5.864 percent. This was the first year the formula capitalization rate was used since 2002. The capitalization rate used for all years from 2003 through 2011 was the minimum rate set by the Legislature. The legislation setting a minimum capitalization rate expired after the 2011 tax year. The increase in the values for cropland, non-cropland and all agricultural land was due to the decrease in the capitalization rate and 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 an increase of 5.9 percent at the low end to over 17.0 percent at the high end. The capitalization rate change increased land valuations by 26.19 percent in all counties; while the cost of production index decreased land values in all counties by 5.41 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.