Agricultural Land Is Valued Differently

Use Value vs. Fair Market Value — A Critical Kansas Distinction

The Agricultural Exception

While most Kansas property is valued at fair market value, agricultural land is a major exception. The Kansas Constitution mandates that agricultural land be valued according to its agricultural use value — not what it might sell for on the open market.

This distinction is significant. Kansas cropland might have a market value of $4,000 to $8,000 or more per acre, but its use value (based on agricultural productivity) may be substantially lower — dramatically reducing the tax burden on Kansas farmers and ranchers.

Agricultural land uses use value — based on productivity. Agricultural improvements (buildings) use fair market value. These are two different standards applied to the same property.

Side-by-Side: Land vs. Improvements

Agricultural Land

  • Valued at agricultural use value
  • Based on the land’s economic use
  • Factors include soil type and productivity
  • Assessment rate: 30% of use value
  • Generally much lower than market value — protects farming viability

Agricultural Improvements

  • Valued at fair market value
  • Includes barns, grain storage, farmsteads, and other structures
  • Assessment rate: 25% of fair market value
  • Standard cost-depreciation models are used
  • Farmsteads with a dwelling may include a residential component

How Agricultural Use Value Is Determined

Kansas uses a modified income approach for ag use valuation.

  • Soil capability — Kansas uses USDA Natural Resources Conservation Service (NRCS) soil survey data as a foundation.
  • Landlord net income — Kansas uses landlord share of net income as the basis for the ag use crop valuation and net rental income for pasture and rangeland.
  • Capitalization rate — The income stream is converted to a value estimate using a capitalization rate established in Kansas statute.
  • Statewide tables — The PVD publishes tables of agricultural use values by land use type and soil map units. County appraisers apply these tables when classifying and valuing agricultural land.

Assessment Rates for Agricultural Property

Kansas agricultural property assessment rates
Agricultural Property Component Valuation Standard Assessment Rate
Agricultural Land (cropland, pasture, etc.) Agricultural Use Value 30%
Agricultural Improvements (barns, bins, etc.) Fair Market Value 25%
Farm Residence (if present) Fair Market Value (residential component) 11.5%