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Abstract
This report summarizes the 2018 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 2018 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 average value per acre of all agricultural land in North Dakota increased by 3.26 percent from 2017 to 2018 based on the value of production. The formula cost of production index value used in the 2018 analysis was 204.41. The formula capitalization rate was 4.67 percent. Cropland value increased, on average, 2.89 percent. Across individual counties, the cropland valuation ranged from a decrease of 0.82 percent to an increase of 6.92 percent. County values had small increases and decreases depending on crop mix and cropland to non-cropland percentages. Non-cropland values increased 0.29 percent. This was due to the price received for calves and cull cows. Generally, counties with more livestock increased, while counties with more cropland decreased. 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.