Current rural valuation practice: a survey of valuers and agribusiness managers on farm management and sustainable rural land use
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]
Keywordsrural land; rural economics; rural land values; farm management; land use; rural land investment; sustainable land use
TypeConference Contribution - Published (Conference Paper)
Showing items related by title, author, creator and subject.
The study of rural change from a social scientific perspective: a literature review and annotated bibliography Mackay, Michael D.; Perkins, Harvey C.; Espiner, Stephen R. (Lincoln University. Department of Social Science, Parks, Recreation, Tourism and SportLincoln, Canterbury, 2009-07)This publication comprises a review of two decades of literature (1989-2009) on the social science of rural change. It was constructed as an aid to research on the changing nature of Central Otago, South Island, New Zealand, ...
Proceedings of the Rural Economy and Society Section of the Sociological Association of Aotearoa (N.Z.) Fairweather, John R. (Lincoln University. Agribusiness and Economics Research Unit., 1991-04)This Discussion Paper records the 14 papers presented in the Rural Economy and Society Section of the Sociological Association of Aotearoa (New Zealand) held at Lincoln University 7-9 December, 1990. The papers cover ...
Eves, Alfred C. (Pacific Rim Real Estate Society., 2007-01)The annual income return for rural property is based on two major factors being commodity prices and production yields. Commodity prices paid to rural producers can vary depending on the agricultural policies of their ...