The valuation of agricultural lands is done in accordance with North Dakota Century Code 57-02-27.2 which requires the valuation be based soil type and soil classification data from detailed and general soil surveys.

North Dakota Century Code 57-02-27.2 "Valuation and assessment of agricultural lands"

Link: NDCC 57-02-27.2

 "True and full value" of agricultural lands must be their agricultural value for the purposes of sections 57-02-27, 57-02-27.1, 57-02-27.2, and 57-55-04. Agricultural value is defined as the "capitalized average annual gross return", except for inundated agricultural land. The "annual gross return" must be determined from crop share rent, cash rent, or a combination thereof reduced by estimated property taxes and crop marketing expenses incurred by farmland owners renting their lands on a cash or crop share basis.

In determining the relative value of each assessment parcel, the local assessor shall apply the following considerations, which are listed in descending order of significance to the assessment determination:

a. Soil type and soil classification data from detailed or general soil surveys.

b. The schedule of modifiers that must be used to adjust agricultural property assessments within the county as approved by the state supervisor of assessments under subsection 9.

c. Actual use of the property for cropland or noncropland purposes by the owner of the parcel.

Office of Tax Commissioner

Valuation Concepts - Agricultural Property

Further guidelines and publications from the Office of Tax Commissioner can be found at Property Tax Guidelines & Publications.