Each year, the Wyoming Department of Revenue releases the state’s agricultural land valuation study, a key factor in determining property taxes on working lands. While the numbers shift annually, the broader goal of the study remains steady: to fairly value agricultural property using consistent statewide methods, while still allowing county assessors some local flexibility. 

This year’s report brings notable changes, including lower valuations across the board, a trend driven largely by higher interest rates and falling commodity prices. According to David Franck, Principal Appraiser with the Wyoming Department of Revenue, landowners may see some relief in their tax bills as a result. 

Franck explained one of the biggest shifts this year stems from interest rate increases reported by Farm Credit Services. 

“The first notable change this year would be the increase in interest rates,” Franck said. “We use an income approach to value ag land. Thismeans we look at average production based on soil type, multiply that by net income per ton or bushel, and then divide by the capitalization rate. Because net income dropped and the cap rate shifted with interest rates, we’re seeing a big drop this year.” 

While yields themselves haven’t changed, the market forces surrounding those yields have. Declining commodity prices further compounded the impact. 

“This year we kind of got a double whammy,” Franck said. “Commodity prices were down, and then we had the interest rate increase on top of that. Producers are really going to get a benefit on their tax bill this year.” 

Across most soil types, valuations are trending downward. But Franck noted the exact impact may differ from county to county. 

“Yes, there were drops across the board,” he said. “Now, I’ll put a caveat out there: if the assessor in each individual county has made no other changes, that’ll mean a broad drop. But assessors can choose where within a range to set values in their jurisdiction.” 

For example, Franck pointed to the state’s highest-producing land, classified as soil capability classes I, II, and III. 

“In that category, we have a range from $2,622 up to $3,204 per acre,” he explained. “Each county assessor can decide where in the range they want to set values, and most of them tend to land somewhere in the middle.” 

Discretion is an important part of Wyoming’s system. Assessors are encouraged to consult local producers, review local yields, and consider county-specific circumstances before finalizing values. 

“Some counties get pretty in-depth,” Franck said. “Others may not be as in-depth, but the goal is to reflect local realities as best as possible.” 

For producers, the annual valuation study can be complex, but Franck stressed the importance of engaging with the process. 

“The biggest thing I can recommend is to educate themselves as much as possible,” he said. “Read through our study, go through the notices of value from the assessor’s office, and if they have questions, start making phone calls. Talk to their local assessor, and they can call me as well.” 

One common issue arises when land classification doesn’t reflect current use. 

“Sometimes an assessor has a piece of land classified as irrigated, but it’s no longer irrigated,” Franck noted. “That can make a big difference in value for the producer.” 

By carefully reviewing their assessments and reaching out with corrections, landowners can ensure  their property is being valued fairly. 

While the annual values often spark attention, Franck said most phone calls he receives aren’t about the dollar amounts themselves. 

“Really, the biggest question I get calls on is where an assessor denies agricultural classification for somebody who thinks they should get it,” he said. “I don’t get very many phone calls on the values themselves. Most of my phone calls stem from a taxpayer wanting their land classified as agricultural for tax purposes.” 

That distinction—between valuation and classification—can sometimes cause confusion. Franck urged landowners to familiarize themselves with the statutes and rules governing agricultural classification. 

“I would just encourage them to educate themselves on the statute,” he said. “We also have new chaptered rules toaddress ag land. And then be as forthcoming with information with the assessors as they can. The more information they can give, the better decision the assessor can make.” 

While this year’s decreases will likely be welcome news for many producers facing tight margins, Franck cautioned  the future remains uncertain. 

“Last year we saw some decreases as well, but it wasn’t as pronounced,” he said. “Next year—who knows? I don’t have a crystal ball to tell what commodity prices are going to do.” 

This uncertainty underscores the reality that ag land valuations are tied directly to larger market forces. Farmers and ranchers can expect continued fluctuations as those markets shift. 

For Wyoming’s landowners, this year’s valuation study offers both challenges and opportunities. Lower valuations mean potential tax relief, but they also reflect the pressures of declining commodity prices and rising interest rates. Producers are encouraged to carefully check their assessment notices for accuracy, especially in how their land is classified, and to engage with their county assessors to make sure local circumstances are fairly considered. By reading the study, asking questions, and sharing information, landowners can play an active role in ensuring their property is valued correctly. 

As Franck summed it up: “Educate yourself, review your assessments, and don’t hesitate to make phone calls. That’s the best way to make sure your land is valued fairly.”