Missouri Code of State Regulations › Title 2 - DEPARTMENT OF AGRICULTURE › Division 60 - Grain Inspection and Warehousing › Chapter 5 - Missouri Grain Dealer's Law › Section 2 CSR 60-5.050 - Acceptance of Appraisal Values on Financial Statements

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule sets forth who is eligible to
				  submit an appraisal of financial statement items, what items may be appraised,
				  who may prepare an appraisal, what an appraisal must contain, the definition of
				  fair market value, how often an appraisal must be submitted and how an
				  appraisal will be discounted.
(1) A grain dealer holding a Missouri grain
				dealer's license or an applicant for a Missouri grain dealer's license may
				submit an appraisal of fixed assets, such as land, buildings and equipment, for
				consideration in computing net worth. However, if at any time the director
				determines that a serious cash flow problem exists or that current liabilities
				far exceed current assets, the director may disallow the use of an appraisal in
				computing net worth.
(2) An
				appraisal must be submitted by an individual or company competent and
				experienced in conducting appraisals and in making assessments of the fair
				market value of fixed assets, such as land, buildings and equipment.
(3) If only land is being appraised, the
				appraisal may be completed by a real estate salesperson or broker licensed with
				the Missouri State Real Estate Commission or with a comparable commission of
				another state. If land is appraised by a real estate salesperson or broker, the
				appraisal must include at least two (2) quotes of recent sales of similar land
				in the same geographic area. In the absence of recent sales in the area, this
				requirement may be waived by the director.
(4) If only transportation or farm equipment
				is being appraised, the appraisal may be completed by an equipment dealer with
				experience in appraising transportation and farm equipment.
(5) If a grain dealer holding a Missouri
				grain dealer's license or an applicant for a Missouri grain dealer's license
				desires to submit an appraisal, the director may require that the appraisal be
				conducted by an individual or professional appraisal company holding the
				designation Member of the Appraisal Institute (MAI) awarded by the American
				Institute of Real Estate Appraisers (AIREA) of the National Association of
				Realtors or that the appraisal be conducted by an individual or professional
				appraisal company who is a member in good standing of the Society of Real
				Estate Appraisers (SREA).
(6) For
				an appraisal to be considered in computing net worth, the appraiser must state
				the estimated fair market value of the items being appraised. For the purpose
				of this rule, fair market value shall be defined to mean the highest price in
				terms of money which a property will bring in a competitive and open market
				under all conditions requisite to a fair sale, buyer and seller each acting
				prudently, knowledgeable and assuming the price is not affected by undue
				stimulus.
(7) If buildings,
				equipment, or both, are being appraised, the appraiser shall use the cost
				approach (replacement cost less depreciation) or the market data approach,
				unless an alternate approach is approved by the director.
(8) If an appraiser determines fair market
				value by computing the replacement cost less depreciation, the appraisal
				process shall include, but not be limited to, the following steps:
(A) If land is appraised, the value of the
				land as if vacant is to be estimated;
(B) If improvements on the land are
				appraised, the cost to reproduce (new) the existing improvements is to be
				estimated;
(C) For the
				improvements, the deduction for depreciation from all causes is to be
				estimated; and
(D) If applicable,
				the value of the land is to be added to the cost to reproduce (new) the
				existing improvements less the deduction for depreciation from all
				causes.