Newly constructed farm buildings should be valued utilizing the cost approach. The CAMA cost manual, Marshal cost manual, or actual cost supplied by the property owner can be used.

Care should be taken to exclude all personal property from new construction values. Modern milking parlors have automatic milking equipment installed. Milking equipment is an example of personal property.

Large special purpose farm buildings while expensive to build add significantly less value to the real property. A typical farm building’s life expectancy is lower than residential or commercial buildings. Physical deterioration is normally higher for farm buildings. As a guide, depreciation on all new farm building should have a minimum of twenty-five percent (25%).

As a general rule, farm buildings valued utilizing cost should have a minimum seventy-five (75%) depreciation when vacant /not used. If this minimum rule is not observed in a jurisdiction for a unique special purpose farm building, the actual observed depreciation should be documented and used. If a building is used for a purpose other than the intended use, local observed depreciation should be followed. (Example- chicken house used to store boats).

Farm buildings flat rated with values below $2,000 per building should be zero valued. These buildings should be noted on the record as outbuildings with no contributing value. Flat rated buildings can be costed per the manual and values increased to $2,000.

A silo may not be assessed to the owner of real property on which it is located if it is used for the processing or storage of animal feed as an incidental operation of the farm per Tax-Property Article Section 8-239.

Manure banks or other facilities located above or below the ground and used for the storage of animal waste from poultry or agricultural livestock production may not be valued per Tax-Property Article Section 8-232.

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