Current rural valuation practice: a survey of valuers and agribusiness managers on farm management and sustainable rural land use
Abstract
Over the past 20 years the nature of rural valuation practice has required most rural
valuers to undertake studies in both agriculture (farm management) and valuation,
especially if carrying out valuation work for financial institutions. The additional farm
financial and management information obtained by rural valuers exceeds that level of
information required to value commercial, retail and industrial by the capitalisation of
net rent/profit valuation method and is very similar to the level of information
required for the valuation of commercial and retail property by the Discounted Cash
Flow valuation method. On this basis the valuers specialising in rural valuation
practice have the necessary skills and information to value rural properties by an
income valuation method, which can focus on the long term environmental and
economic sustainability of the property being valued.
This paper will review the results of an extensive survey carried out by rural property
valuers in Australia, in relation to the impact of farm management on rural property
values and sustainable rural land use. A particular focus of the research relates to the increased awareness of the problems
of rural land degradation in Australia and the subsequent impact such problems have
on the productivity of rural land. These problems of sustainable land use have resulted
in the need to develop an approach to rural valuation practice that allows the valuer to
factor the past management practices on the subject rural property into the actual
valuation figure. An analysis of the past farm management and the inclusion of this data into the valuation methodology provides a much more reliable indication of farm
sustainable economic value than the existing direct comparison valuation
methodology.... [Show full abstract]
Keywords
rural land; rural economics; rural land values; farm management; land use; rural land investment; sustainable land useDate
2007Type
Conference Contribution - published (Conference Paper)Collections
Copyright © The Author
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