Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part V - Ad Valorem Taxation › Chapter 27 - Guidelines for Application, Classification and Assessment of Land Eligible to be Assessed at Use Value › Section V-2711 - Tables-Agricultural and Horticultural Lands

Current through Register Vol. 50, No. 6, June 20, 2024
A. The following table is hereby established
				as the gross returns, production cost and net income per acre per year of
				agricultural and horticultural lands.
Table 2711.A
Weighted Average Income per Acre
2015-2018
Commodity
Acres
1
Percent
Net Income
Weighted
7
Fractional
Beef2
2,180,969
35.33
28.15
$9.94
Soybeans
1,257,500
20.37
32.19
6.56
Cotton
164,500
2.66
(53.67)
-0-
Crawfish 4
225,117
3.65
302.00
11.01
Rice
418,500
6.78
5.05
0.34
Sugarcane 6
593,751
9.62
319.23
30.71
Corn
470,000
7.61
37.26
2.84
Idle Cropland 5
453,380
7.34
-----
-0-
Grain Sorghum
34,750
0.56
(27.68)
-0-
Conservation
							 Reserve3
288,546
4.67
84.59
3.95
Dairy2
41,473
0.67
(132.76)
-0-
Sweet Potatoes
8,155
0.13
2,234.76
2.95
Watermelon
1,123
0.02
8,082.73
1.47
Southern Peas
822
0.01
1,384.08
0.18
Tomatoes
266
0.00
39,362.59
1.70
Strawberries
325
0.01
19,110.00
1.00
Wheat
33,750
0.55
(60.03)
-0-
Totals
6,172,925
100.000
-----
72.66
Weighted Average Net Income: Sum (Percent x Net Income) =
				  72.66
1 Acres used to weight net income
				  projections are harvested acres for agricultural and horticultural crops, as
				  well as, crawfish. Acres for beef and dairy production are acres in beef cattle
				  and dairy operations, respectively.
2 Acreage for beef and dairy were
				  obtained from the 2017 Census of Agriculture, Volume 1, Louisiana State and
				  Parish Data, Table 48.
3 Conservation Reserve Program
				  acreage and payments for 2015 - 2018 were taken from the USDA - FSA
				  Conservation Reserve Program Statistics.
4 Assumes farm-raised crawfish are
				  produced in a mono-crop system (35%) or in a rice-crawfish double-crop field
				  rotation system with rice. Net income is weighted by the percent of crawfish
				  acres produced in each system. Revenues and production costs are included for
				  the crawfish portion only.
5 Acreage for idle cropland was
				  obtained from the 2017 Census of Agriculture, Volume 1, Louisiana State and
				  Parish Data, Table 8. Includes acreage for cropland idle or used for cover
				  crops or soil-improvement, but not harvested and not pastured or grazed.
6 Acreage for sugarcane includes
				  fallow/planted acreage. Net income estimated over total farm acres.
7 By state statute, negative net
				  income for a given commodity is set equal to zero.
B. Suggested Capitalization Rate for
				Agricultural and Horticultural Lands
Table 2711.B
Suggested Capitalization Rate for Agricultural
							 and Horticultural Lands
Risk Rate
2.72%
Illiquidity Rate
0.18%
Safe Rate*
4.91%
Capitalization Rate**
7.81%
*Safe Rate is four year average of 30 year U. S. Treasury
				  securities.
"Statutory minimum capitalization rate of 12 percent used in
				  calculations instead of actual rate as developed above.
AUTHORITY NOTE:
				  Promulgated in accordance with
				  R.S.
				  47:2301 through
				  R.S.
				  47:2308.