(a) Method of conducting agricultural land classification.

1. (1)

   1. (A) In conducting this component of the ratio study, the Assessment Coordination Division shall use generally accepted valuation procedures, statistical compilation, and analysis techniques found in the International Association of Assessing Officers standards on ratio studies.
   2. (B) See Standard on Ratio Studies, approved July 1990, International Association of Assessing Officers, or the current edition of same, hereafter referred to as SORS, which incorporates selected chapters and appendices of the Property Appraisal and Assessment Administration, published by the International Association of Assessing Officers, 1990 edition or current edition, hereafter referred to as PAAA.
2. (2) Definition of terms. Terms used in connection with the ratio study on market value real property shall be as defined in SORS and PAAA.
3. (3) The ratio study on agriculture land shall be based on a physical examination of the records of each assessor's office to determine the degree of compliance with the criteria established in the division’s agricultural land values publication.

(b) Method of determining agricultural land samples.

1. (1) The Field Auditor will select one hundred (100) random samples.
2. (2) Sales are not used.
3. (3) The appropriate number of random samples shall be divided in accordance with the proportion of agricultural parcels per school district.
4. (4) Any prospective sample to be excluded shall be recorded and validity of the exclusion must be documented.

(c) Selection of samples.

1. (1) Agricultural samples will normally be worked between January 1 and April 19 of the valuation year, but they may be worked earlier or later depending on when the county or contractor has completed soil coding.
2. (2) By rule, fifty percent (50%) of soil coding must be complete by April 19 of the valuation year.
3. (3) Selected samples are used for both the ratio study and for a performance audit.
4. (4) The Field Auditor will determine during the valuation audit if the proper schedule of agricultural values established by the division has been adopted.

(d) Procedure.

1. (1) In July of each year the division will perform a ratio study to determine whether the county has followed guidelines for the valuation of agricultural land in compliance with Arkansas Code § 26-26-407.

2. (2) The following is the procedure used by the division in determining each county’s agricultural land ratio:

   1. (A)

(i) Publications by the division containing the agricultural land value tables for the Southwest, Delta, Ozark, and Ouachita regions of Arkansas shall be used to determine land values for agricultural land.

1. (ii) The tables represent the Land Capability Classification System, as designated by the United States Natural Resources Conservation Service.

   1. (iii) There are three (3) categories of agricultural land consisting of crop, pasture, and timber, each with a value representing the productivity of the eighteen (18) soil classes, if applicable (represented by a division number).

      1. (iv) This is in compliance with Arkansas Code § 26-26-407;
   2. (B) For each sample, a ratio is computed using the county’s assessed value and the total parcel value calculated by the division’s Field Auditor;

   3. (C)

      1. (i) To determine the county assessment ratio on agricultural land of the samples being used, totals are calculated of the county’s assessments and of the total land values as determined by the division’s field auditors.
      2. (ii) The total assessment is then divided by the division’s total land values, and that total is multiplied times one hundred (100) to establish the percent ratio for the county; and
   4. (D) Field auditors will discuss their findings regarding irregularities in agricultural land with the assessor prior to August 1.