Forest Land

  • Montana has approximately 14.6 million acres of privately owned forest land that make up Class 10 property.
  • We value Class 10 property every two years.

Classifying Forest Land

We classify forest land based on ownership, timber acreage size, and timber productivity. (15-44-102, MCA)

Requirements for Forest Land Classification

To be classified as forest land, a parcel must:

  • Be 15 or more adjoining acres of timber
  • Be in one ownership
  • Be capable of producing at least 100 board feet per-acre annual increment

Determining Property Values

We value forest land by dividing the net income per acre by the capitalization rate. (15-44-103, MCA)

Formula:

Net Income per Acre = (Productivity × Stumpage Value) + Income − Costs

Determining Net Income Per Acre

We determine net income per acre using:

  • Annual productivity of the forest land;
  • Stumpage value, the 10-year average of state timber sales;
  • The agricultural income; and
  • The forest and agricultural production costs.

See 15-44-103, MCA.

Formula:

Net Income per Acre = (Productivity × Stumpage Value) + Income − Costs

How Values Are Determined

Stumpage value, agricultural income, and forest and agricultural production costs are based on forest zones.

The Forest Land Taxation Advisory Committee provides the forest zones and the department's Tax Policy and Research Division determines the stumpage value for each zone.

We gather forest cost data from the Montana Department of Natural Resources and Conservation (DNRC).

Additional Resources

For more information on Forest Land Classification and Valuation, please refer to the 2025-2026 Forest Land Classification and Valuation Manual (PDF, 607 KB).