2020 Current Use Farm-Ag Land Value for 2021 Tax

Overview

Current Use Farm & Ag land values are established by the Department of Revenue (DOR) according to RCW 84.34.065

The statute states "the true and fair value of farm and agricultural land shall be determined by consideration of the earning or productive capacity of comparable lands from crops grown most typically in the area averaged over not less than five years, capitalized at indicative rates. The earning or productive capacity of farm and agricultural lands is the ‘net cash rental,’ capitalized at a ‘rate of interest’ charged on long term loans secured by a mortgage on farm or agricultural land plus a component for property taxes" as provided each year by the DOR in WAC 458-30-260 and WAC 458-30-262

Net cash rental income can be determined by:

Lease values WAC 458-30-260(5)(a)WAC 458-30-260(5)(a)
Earning or productive capacityWAC 458-30-260(5)(b)
Assessor discretionWAC 458-30-260(5)(c)

San Juan County determined net cash rental by productive capacity *

Cash value per ton averaged over five years$193
Production cost per ton (based on custom hire)$125

* USDA Hay Market Price Reports/Washington for "good" grass hay

Per acre amounts from typical production of two tons per acre

Cash value per acre$386
Less: Production cost per acre($250)
Productive capacity per acre$136

Interest rate and property tax component

Interest rate per WAC 458-30-262(1)5.47
Property tax component per WAC 458-30-262(2)0.73
Capitalization rate6.20

Capitalized productive capacity based on soil type

The highest rated soils are considered to produce "good" grass hay in San Juan County.

Soil TypeType DescriptionProductivity FactorValue per Acre
2Good1.00$2,190
3Average0.79$1,730
4Below Average0.67$1,470
6Fair0.50$1,100
7Poor0.40$880
8Poor0.40$880

The productivity factor is based on historical production information and USDA Soil Survey capability ratings for San Juan County.

San Juan County does not have any soil type 1 or 5.