1. A. The following table is hereby established as the gross returns, production cost and net income per acre per year of agricultural and horticultural lands.

   Table 2711.A Weighted Average Income per Acre 2015-2018
   Commodity	Acres ¹	Percent	Net Income	Weighted Fractional ⁷
   Beef ²	2,180,969	35.33	28.15	$9.94
   Soybeans	1,257,500	20.37	32.19	6.56
   Cotton	164,500	2.66	(53.67)	-0-
   Crawfish ⁴	225,117	3.65	302.00	11.01
   Rice	418,500	6.78	5.05	0.34
   Sugarcane ⁶	593,751	9.62	319.23	30.71
   Corn	470,000	7.61	37.26	2.84
   Idle Cropland ⁵	453,380	7.34	-----	-0-
   Grain Sorghum	34,750	0.56	(27.68)	-0-
   Conservation Reserve ³	288,546	4.67	84.59	3.95
   Dairy ²	41,473	0.67	(132.76)	-0-
   Sweet Potatoes	8,155	0.13	2,234.76	2.95
   Watermelon	1,123	0.02	8,082.73	1.47
   Southern Peas	822	0.01	1,384.08	0.18
   Tomatoes	266	0.00	39,362.59	1.70
   Strawberries	325	0.01	19,110.00	1.00
   Wheat	33,750	0.55	(60.03)	-0-
   Totals	6,172,925	100.000	-----	72.66

   Weighted Average Net Income: Sum (Percent x Net Income) = 72.66

   ¹ Acres used to weight net income projections are harvested acres for agricultural and horticultural crops, as well as, crawfish. Acres for beef and dairy production are acres in beef cattle and dairy operations, respectively.

   ² Acreage for beef and dairy were obtained from the 2017 Census of Agriculture, Volume 1, Louisiana State and Parish Data, Table 48.

   ³ Conservation Reserve Program acreage and payments for 2015 - 2018 were taken from the USDA – FSA Conservation Reserve Program Statistics.

   ⁴ Assumes farm-raised crawfish are produced in a mono-crop system (35%) or in a rice-crawfish double-crop field rotation system with rice. Net income is weighted by the percent of crawfish acres produced in each system. Revenues and production costs are included for the crawfish portion only.

   ⁵ Acreage for idle cropland was obtained from the 2017 Census of Agriculture, Volume 1, Louisiana State and Parish Data, Table 8. Includes acreage for cropland idle or used for cover crops or soil-improvement, but not harvested and not pastured or grazed.

   ⁶ Acreage for sugarcane includes fallow/planted acreage. Net income estimated over total farm acres.

   ⁷ By state statute, negative net income for a given commodity is set equal to zero.

2. B. Suggested Capitalization Rate for Agricultural and Horticultural Lands

   Table 2711.B Suggested Capitalization Rate for Agricultural and Horticultural Lands
   Risk Rate	2.72%
   Illiquidity Rate	0.18%
   Safe Rate*	4.91%
   Capitalization Rate**	7.81%

   *Safe Rate is four-year average of 30-year U. S. Treasury securities.

   **Statutory minimum capitalization rate of 12 percent used in calculations instead of actual rate as developed above.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:2301 through R.S. 47:2308.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:2301 through R.S. 47:2308.

Historical Note

HISTORICAL NOTE: Promulgated by the Department of Revenue and Taxation, Tax Commission, LR 8:102 (February 1982), amended LR 9:69 (February 1983), LR 12:36 (January 1986), LR 13:764 (December 1987), LR 17:1213 (December 1991), LR 22:117 (February 1996), amended by the Department of Revenue, Tax Commission, LR 26:511 (March 2000), LR 30:491 (March 2004), LR 34:688 (April 2008), LR 46:565 (April 2020).