Agricultural land valuation methods used by financiers: The case of South Africa

Middelberg, Susanna Levina

doi:10.1080/03031853.2014.922033

Cited by 6 publications

(5 citation statements)

References 19 publications

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“…According to Caballer (2002), hedonic studies for estimating land value take into account the following explanatory variables: land rent, land productivity -dry or irrigated, forest or herbaceous, average farm size, and soil productivity; non-agricultural factors -average local industry wages, average precipitation, average temperature, population density, erosion, environmental contamination; location -population density, soil quality, risk of waterlogging, wind speed, hours of sunshine, and relative humidity. According to Middelberg (2014), two fundamental elements are necessary for the evaluation of agricultural land: the land's production capacity and its ownership. Kilić et al (2019) suggest that the land evaluation process should be carried out without any errors to ensure that the results can be compared with values assigned in other contexts regarding agricultural land.…”

Section: Preponderant Factors In Agricultural Fields Appraisalmentioning

confidence: 99%

Determinant Factors for Agricultural Fields Appraisal

Lote¹,

Tavares²

2023

Preprint

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The possession and appraisal of agricultural fields have significant economic and social impacts. The objective of this study is to examine the perception of the factors that contribute to the value of agricultural fields and those that diminish their value in the appraisal process. The utilized quantitative methodology is based on a questionnaire administered to farmers in Huambo Province, Angola. The sample size consists of 644 respondents. The results allow concluding that the income generated from farming activities and the presence of infrastructure greatly facilitate the appraisal of agricultural fields. Conversely, the absence of legal ownership documentation and conflicts related to land ownership reduce the value of the fields. The exploratory factor analysis has identified seven determinant factors in the appraisal of agricultural fields: inherent location characteristics of the property, market dynamics related to agricultural fields, the availability of water on the property, proximity to tourist destinations, physical conditions of the fields, the positive externalities generated, and the advantages offered by the fields. We believe that this study will assist appraisers, farmers, and public administration in understanding the factors that positively and negatively impact the appraisal of agricultural fields.

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Section: Preponderant Factors In Agricultural Fields Appraisalmentioning

confidence: 99%

Determinant Factors for Agricultural Fields Appraisal

Lote¹,

Tavares²

2023

Preprint

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“…They argue that the price of land is due to a complex set of factors that are not always related to agricultural activity. Choumert and Phélinas (2015) and Middelberg (2014) refer to the necessity to take into consideration the features of the socioeconomic status of different countries at the valuation of agricultural land in the study "Determinants of agricultural land…”

Section: Literary Reviewmentioning

confidence: 99%

Improvement of IFRS application policy in relation to land assets of agricultural enterprises

Жук

Bezdushna

Tyvonchuk

2019

Ind. Jour. Manag. & Prod.

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The climate change and food security are closely related to the effective use and conservation of agricultural land. This research is devoted to improving the methodological and methodical procedures for the IFRS’s application to the accounting of the land assets of agricultural enterprises, primarily for the needs of developing countries.Research of the accounting state of agrarian enterprises in Ukraine was carried out using statistical methods, methods of analysis and synthesis. Interviews of 3000 different accountants as to the land tenure of enterprises revealed methodological and methodical difficulties in applying IFRS to the land assets of agricultural enterprises. A special need consists in improvement of the valuation procedures for such assets. On the example of the United States and Ukraine, it has been established that, for the purpose of determining the fair value of agricultural assets, it is difficult for accountants to use generalized approaches to IFRS that do not take into account branch specifics and differences in socioeconomic environments in different countries. For developing countries with a strong agricultural potential, the most effective is the f the land potential of agricultural enterprises based on the rental income. Accordingly, the calculation methodology should be incorporated into their current accounting policy.Based on the simulation and forecasting technique it was determined, that valuation of the land assets of agricultural enterprises by the rental income method increases their cost by almost three times compared with the calculation based on the rental.The carried out studies form also the methodological framework for the further improvement of IFRS, including development of a separate industry-specific IAS (IFRS) “Agricultural Land”.

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Section: Introductionmentioning

confidence: 99%

“…Although agriculture plays a big role in economic development and sustainability, agricultural producers are less keen to remain in the sector because of its increasingly challenging environment [13]. The continuity of the sector depends on the funding of their projects, preferably by using agricultural land as collateral [13]. Thus, farmland valuation becomes essential for all the people involved in the process: not only the farmers, but also financiers, investors, and ultimately consumers.…”

Section: Introductionmentioning

confidence: 99%

The Value of Farmland and Its Determinants—The Current State of the Art

Tavares

Santos

2022

Land

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This article aims to perform a literature review on the topic of farmland valuation, covering the determinants of farmland value and the models that are used to price land. To do so, recent literature on the topic was combined with classical and well-known papers. All the factors considered in these papers to explain farmland prices and/or to model them were retrieved, presented, and compared. Then, the main models proposed in the literature are presented and their suitability and goals are explained. This study can help academics as it gives an overview of the current state of the art, summarizes the main factors proposed by researchers to explain farmland prices, and sheds light on new lines of research. Besides that, it is also relevant for policymakers because farmland valuation and its use have implications on society and on urban planning, which is a hot topic under discussion.

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Agricultural land valuation methods used by financiers: The case of South Africa

Cited by 6 publications

References 19 publications

Determinant Factors for Agricultural Fields Appraisal

Determinant Factors for Agricultural Fields Appraisal

Improvement of IFRS application policy in relation to land assets of agricultural enterprises

The Value of Farmland and Its Determinants—The Current State of the Art

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