Neb. Admin. Code § 350-14-006.02 — The income approach to valuation may be used to determine the actual value for each class and subclass of agricultural and horticultural land

006.02A An estimate of potential gross income is made from: 006.02A(1) Typical cash rents for comparable land; or 006.02A(2) Estimated landlord's share of income on a crop/share basis; or 006.02A(3) For grassland, the rent should be based on animal unit months. 006.02B Typical expenses are deducted from the estimate of gross income to arrive at net income to the landowner. 006.02C Indicated net income is capitalized or divided by the appropriate capitalization rate to estimate the value of the parcel. 006.02C(1) Capitalization rate must consider: 006.02C(1)(a) Market derived discount rate; 006.02C(1)(b) Market derived rate of change; 006.02C(1)(c) Market derived sinking fund rate; and 006.02C(1)(d) Appropriate effective tax rate. 006.03 Reconciliation of final value is based on the appropriateness of the approach to value (market is preferred in the valuation of agricultural land) and the availability and reliability of the information used in each approach. Nebraska Department of Revenue Title 350, Chapter 14, Rev. 3/15/09 Property Assessment Division Agricultural Land and Horticultural Land Assessment Regulations 19