Property Valuation, 3rd Edition

AppendixLand Uses and Valuation Methods

A.1 Agriculture and fisheries

Various agricultural land uses are possible in addition to crops and livestock. Abattoirs and slaughterhouses might be valued using a comparison or replacement cost method depending on the degree of specialisation. Comparison might be based on the value of similar industrial buildings for example. Game farms include facilities such as runs, pens, hatcheries and ancillary buildings, and these might be valued using either a comparison or cost approach. Grain silos are likely to be valued using a cost approach. Livestock markets can generate revenue from several sources so a comparison approach or profits method might be appropriate. The number and size of boxes, size of the yard, ancillary facilities and access would influence the value of a stud farm, and a valuation might be undertaken using a comparison or cost approach or profits method. Stables include boxes, yard, tack rooms, feed stores, barns and other stores. A comparison method is likely to be possible. Finally, there might be farm diversification into leisure activities, and these would most likely be valued using the profits method.

A.2 Forests and woodland

Trees and perennial crops (non‐orchard trees with long growing periods) may be valued by estimating the value of one year's produce and capitalising that figure at a rate of return that will be influenced by the nature and lifecycle of the tree or crop. Larger areas can be divided by crop type, ...