LAC 61:V.2711 — TablesAgricultural and Horticultural Lands

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