Missouri Code of State Regulations › Title 2 - DEPARTMENT OF AGRICULTURE › Division 60 - Grain Inspection and Warehousing › Chapter 4 - Missouri Grain Warehouse Law › Section 2 CSR 60-4.130 - Acceptance of Appraisal Values on Financial Statements

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: There is no change to the text of this rule.
				  This rule is being amended to remove the outdated form titled "Application to
				  Submit Appraisal."
(1) A
				grain warehouseman holding a Missouri public grain warehouse license or an
				applicant for a Missouri public grain warehouse license may submit an appraisal
				of fixed assets, that is, 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
				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 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 warehouseman holding a
				Missouri public grain warehouse license or an applicant for a Missouri public
				grain warehouse 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 MAI (Member of the Appraisal
				Institute) 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, knowledgeably 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.