701—71.3 (421,428,441) Valuation of agricultural real estate. Agricultural real estate shall be assessed at its actual value as defined in Iowa Code section 441.21 by giving exclusive consideration to its productivity and net earning capacity. In determining the actual value of agricultural real estate, city and county assessors shall use the “Iowa Real Property Appraisal Manual” and any other guidelines issued by the department of revenue pursuant to Iowa Code section 421.17(18).
In determining the productivity and net earning capacity of agricultural real estate, the assessor shall also use available data from Iowa State University, the Iowa crop and livestock reporting service, the department of revenue, or other reliable sources. The assessor shall also consider the results of a modern soil survey, if completed.
The assessor shall determine the actual valuation of agricultural real estate within the assessing jurisdiction and spread such valuation throughout the jurisdiction so that each parcel of real estate is assessed at its actual value as defined in Iowa Code section 441.21.
In order to determine a productivity value for agricultural buildings and structures, assessors shall make an agricultural adjustment to the market value of these buildings and structures by developing an “agricultural factor” for their jurisdiction. The agricultural factor for each jurisdiction shall be the product of the ratio of the productivity and net earning capacity value per acre as determined under subrule 71.12(1) over the market value of agricultural land within the assessing jurisdiction. The resulting ratio is then applied to the actual value of the agricultural buildings and structures as determined under the Iowa Real Property Appraisal Manual prepared by the department. The agricultural factor shall be applied uniformly to all agricultural buildings and structures in the assessing jurisdiction. As an example, if a building’s actual value is $500,000 and the agricultural factor is 50 percent, the productivity value of that building is $250,000. See H & R Partnership v.	Davis County Board of Review, 654 N.W.2d 521 (Iowa 2002).
Land classified as agricultural real estate includes the land beneath any dwelling and appurtenant structures located on that land and shall be valued by the assessor pursuant to rule 701—71.3(421,428,441). An assessor shall not value a part of the land as agricultural real estate and a part of the land as if it is residential real estate.
This rule is intended to implement Iowa Code sections 421.17, 428.4 and 441.21.