Agricultural Land Valuation: More Than Meets the Eye
In today’s dynamic environment—shaped by climate change, sustainability goals, and shifting land policies—accurate agricultural land valuation is essential for informed decision-making by landowners, investors, lenders, and policymakers.
Agricultural land valuation is the process of determining the economic worth of farmland based on factors such as location, soil quality, water access, productivity, and legal rights. Unlike urban property, agricultural land presents unique challenges due to its dependence on environmental conditions, market fluctuations, and long-term land use.
Professional valuers rely on globally recognized standards such as the International Valuation Standards (IVS) and RICS Red Book to ensure transparency, consistency, and accuracy. Common valuation methods include the market, income, and cost approaches, each applied based on the land’s use and available data.
But what exactly defines its value? And how should we approach agricultural land valuation in today’s multifaceted environment?
