S.D. Admin. R. 4:01:02:02

Current through Register Vol. 51, page 67, December 16, 2024

Section 4:01:02:02 - Criteria for establishing rental rate

To establish the current rental prevailing, or fair market value on school and endowment lands, the following criteria shall be used by the commissioner in establishing the grazing lease rates to be charged:

(1) A determination of the cost per animal unit month (AUM) presently charged for leasing of public and private grazing lands for pasturing of livestock in counties of the state where school and endowment lands exist;

(2) An adjustment of two dollars per AUM will be allowed for the placing of improvements such as fences, dams, dugouts and wells from the AUM rate determined on private grazing lands for pasturing livestock as provided in subdivision (1) of this section;

(3) An adjustment upward from prevailing public land grazing lease rates will be made to compensate for the dollar value of a federal grazing permit or right such as those on forest service or bureau of land management lands, multiple use concept, or other factors that would differentiate from fair market value;

(4) The animal unit carrying capacity of each tract will be determined under the authority of SDCL 5-5-10.2 by use of the factors set forth in SDCL 5-5-10.3;

(5) To determine the rental rate of a tract of land the rental rate established by the commissioner in accordance with subdivisions (1), (2), and (3) of this section, shall be multiplied by the total AUM's of said tract;

(6) To determine the rental rate per acre for each tract, the product of the multiplication in subdivision (5) of this section shall be divided by the number of acres in said tract.

S.D. Admin. R. 4:01:02:02

3 SDR 31, effective 10/28/1976.

General Authority: SDCL 5-5-3.

Law Implemented: Enabling Act, Section 11; South Dakota Constitution, Article VIII, Section 9; SDCL 5-5-25, 5-5-3, 5-5-10.2, 5-5-10.3.