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one of 19 accredited rural appraisers (ARA's) in the State of
Montana. The ARA designation is the highest professional
designation offered by the American Society of Farm Managers and
Rural Appraisers. Wheeler's area of expertise is the appraisal
of conservation easements throughout the western United States.
b. Wheeler's Methodology and Conclusion
Wheeler used the "before and after" method to determine the
fair market value of the MLR easement in 1993. Wheeler produced
two reports containing purported comparable sales related to the
fair market value of the MLR easement. The first report,
produced in 1993 (the 1993 report), was Wheeler's original
analysis of the easement's fair market value. The second report,
produced in 1998 (the 1998 report), was referred to as a
"consulting report prepared to serve as a supplement to my
original appraisal."
The 1993 report provides Wheeler's conclusions as to the
fair market value of the MLR easement. In the report, before the
MLR easement, Wheeler opined petitioner's property had a fair
market value of $7,500 per acre or $2.4 million (i.e., 320 acres
x $7,500).9 After the MLR easement, Wheeler concluded that
9This per-acre "before" value is different from the value
stipulated by the parties. In his 1993 report, Wheeler used
petitioner's 1992 cost basis as the "before" value of
petitioner's property. Later, Wheeler agreed with respondent
that the proper fair market value of petitioner's property in
1993 before the grant of the MLR easement was $8,200 per acre or
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