A. In the absence of a competitive bid, the annual rental for grazing land leased under an agricultural lease shall be determined by the following formula:

1. (1) The EVI in any year (t), October 1st through September 30th, is the ratio of the value of a state land office adjustment factor for that year (SLOAFt) to the value of that same adjustment factor calculated for the base year 1987 (SLOAF87), i.e., SLOAFt : SLOAF87, or SLOAFt divided by SLOAF87 (1987 base = 135).
2. (2) To determine the SLOAF for each year (t+1), the commissioner shall use the following formula, in which the three indices (the western states forage value index (FVI), beef cattle price index (BCPI), and the prices paid index (PPI)) correspond to the United States department of agriculture's annually published indices for the immediately preceding year (t): SLOAFt+1 = -14.92 + (1.57 x FVIt) + (0.26 x BCPIt) - (0.67 x PPIt).

Annual rental = $0.0474 (Base Value) x Carrying Capacity (CC) x Acreage x Economic Variable Index (EVI).

E. In computing rental on leases issued after October 1st, the rental for a part of a month shall be the same as the rental for a full month.

[3/11/1981, 4/28/1982, 1/20/1984, 9/30/1985, 12/1/1992, 6/29/1996; 19.2.8.11 NMAC - Rn, 19 NMAC 3 SLO 8.11, 9/30/2002; A, 6/11/2019]