Neb. Admin. Code § 350-11-005.03 — The assessor shall capitalize net cash rent to determine a valuation based on the earnings of the property from the agricultural or horticultural use only

The valuation indicated by such an income capitalization approach shall be used as the special valuation if the market comparison approach results in a value that reflects a value influenced by purposes and uses other than agricultural or horticultural . Where the differences between the market comparison approach and income capitalization approach is more than a mere difference of opinion the assessor must determine which value most accurately reflects the property’s value for agricultural or horticultural purposes. Nebraska Department of Revenue Title 350, Chapter 11, Rev. 3/15/09 Property Assessment Division Agricultural or Horticultural Land Special Valuation Regulations 9 005.03A The income estimate shall be based upon; 005.03A(1) Typical cash rent for the land capability group observed for the parcel of land; 005.03A(2) Typical crop-share rental income based on a typical crop rotation observed for similar land in the county or land manual area including government program payments received. In accounting for government program payments in developing the income estimate, the assessor shall analyze the nature of the government payment and its relationship to the cash rent or the crop-share rental income for the property; 005.03A(3) Typical cash rent per animal unit month in the case of grassland use. 005.03B The expenses deducted shall reflect those typical to the land capability group observed for the parcel of land and may include a proration of shared input costs of production if a crop -share income is estimated. 005.03C The capitalization rate shall include, but not be limited to: 005.03C(1) An appropriate discount rate for the land use of the parcel of land; 005.03C(2) An adjustment for change in land value; 005.03C(3) The effective tax rate for the parcel of land; and, 005.03C(4) Any other appropriate adjustment to arrive at an overall capitalization rate.