The Assessor is required to maintain
two values for each parcel that is
classified. The first is the value that
would be placed on the land if it was
not classified. This is commonly
referred to as the “fair market value.”
The second is the current use land
value based on its current use, not
highest and best use.
In determining the current use value of farm and agricultural land, the Assessor considers the earning or productive capacity of comparable lands from crops grown most typically in the area averaged over not less than five years. This earning or productive capacity is the “net cash rental” and is capitalized by a “rate of interest” charged on long term loans secured by a mortgage on farm or agricultural land plus a component for property taxes.