N.M. Admin. Code § 19.2.8.11

Current through Register Vol. 36, No. 1, January 14, 2025

Section 19.2.8.11 - RENTAL

A. In the absence of a competitive bid, the annual rental for grazing land leased under an agricultural lease shall be determined by the following formula:

Annual rental = $0.0474 (Base Value) x Carrying Capacity (CC) x Acreage x Economic Variable Index (EVI).

(1) The EVI in any year (t), October 1st through September 30th, is the ratio of the value of a state land office adjustment factor for that year (SLOAFt) to the value of that same adjustment factor calculated for the base year 1987 (SLOAF87), i.e., SLOAFt: SLOAF87, or SLOAFt divided by SLOAF87 (1987 base = 135).

(2) To determine the SLOAF for each year (t+1), the commissioner shall use the following formula, in which the three indices (the western states forage value index (FVI), beef cattle price index (BCPI), and the prices paid index (PPI)) correspond to the United States department of agriculture's annually published indices for the immediately preceding year (t): SLOAFt+1 = -14.92 + (1.57 x FVIt) + (0.26 x BCPIt) - (0.67 x PPIt).

B. The commissioner shall determine the carrying capacity for grazing land in accordance with Section 19-7-29 NMSA 1978, which may be redetermined. A lessee seeking a reevaluation and redetermination of the carrying capacity shall submit such forms as may be prescribed by the commissioner.

C. Notwithstanding the application of the formula to determine lease rentals for grazing land, the annual rental shall not be less than the minimum rent set forth in the schedule of fees nor shall it be decreased or increased by more than thirty-three and one-third percent of the preceding year's rental for the same land.

D. The rental for cultivated land or land leased under an agricultural lease for other uses shall be determined by the commissioner.

E. In computing rental on leases issued after October 1st, the rental for a part of a month shall be the same as the rental for a full month.

N.M. Admin. Code § 19.2.8.11

3/11/81, 4/28/82, 1/20/84, 9/30/85, 12/1/92, 6/29/96; 19.2.8.11 NMAC - Rn, 19 NMAC 3 SLO 8.11, 09/30/02, Amended by New Mexico Register, Volume XXX, Issue 11, June 11, 2019, eff. 6/11/2019