In this article I will focus on the valuation of permanently established pastures. Permanent pastures can be established on dry land or under irrigation, and can consist of grass only, broadleaf plants only, a mixture of grasses or a mixture of grass and broadleaf plants. When deciding which permanent pasture to establish, a farmer
In this article, I will focus on the valuation of grazing and natural veld. Let me start off with a statement that usually catches most people’s attention: “There is no direct correlation between grazing capacity and grazing land values.” Yes, this is actually true. Although it seems to go against all logic, the value
In this article I will be focusing on valuing permanent crops, and the different factors that valuers take into consideration when compiling such a valuation report. The factors that influence the value of permanent crops can be categorized under area of location, crop type, plant population, orchard establishment, irrigation, location on the farm, yield
WATER (Continued) IRRIGATION FARM TERMINOLOGY To be clear on what is referred to when valuing the irrigation component of a farm, it is important to explain or define the terminology to be used. The following definitions distinguish between different types of so-called “irrigable land”: WATER-USE ENTITLEMENT It refers to the lawful use of water
WATER Water is one of the three primary natural resources that determine the potential of a farm, together with soil and climate. Water (rain) plays a primary role in dryland production and livestock farming, and water is the heart of irrigation. It not only adds value directly to the farm, but its availability increases
In the previous article I discussed the importance of climate when determining the value of a farm. Rainfall, temperature, wind, frost and hail were of specific importance. In this article we are going to take a closer look at one of the biggest factors influencing the value of a farm, namely the level of
In the previous article, I discussed the importance of locality when determining the value of a farm. Location in relation to relevant markets and unsafe areas were of specific importance. In this article, we are going to take a closer look at another major role player in the valuation of farmland, namely climate. Climate
Buying a farm can be a daunting experience – especially for first time buyers! There are so many factors that need to be taken into consideration. What ultimately determines the monetary value of a farm? What will financiers regard as important when considering a loan application? The concept of the VALUE of a property
