The Texas Comptroller of Public Accounts recently declared that the 2014 capitalization rates. For appraising agricultural or open-space land, the cap rate is 10%, and for timberland it is 8%. Capitalization rates are required to be used by county appraisal districts in Texas to calculate the productivity values of agricultural and timberland. For additional information, visit http://www.window.state.tx.us/taxinfo/proptax/caprates.html#a1. To read about the methods used for determining and calculating cap rate for agricultural and timberland values, see Tax Code Sections 23.53 and 23.74: http://www.window.state.tx.us/taxinfo/proptax/96-297-11.pdf.