What is the value of a farm? One answer is the amount it will bring if sold. But let us assume a farmer wants to buy a farm. What can he afford to pay for it? A similar question faces the seller, anxious about what he should ask for his farm. For situations like these, valuation of the land on a productivity basis is helpful. Rightly used such a method can make farm valuations more precise and reliable. In addition to its use in determining the sale price of land, this method is well adapted for appraisals of land for mortgage loans.



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