NEED FOR AGRICULTURAL PROPERTIES APPRAISAL.

In clear term, agricultural properties includes but are not limited to, crop farms, perennial plantings, dairy farms, forestry and aquaculture that are key contributors to economic growth, especially for developing economies, where land and an active workforce are generally available.

If combined, these resources of land and people can produce valuable natural commodities, such as palm oil, coffee, timber, livestock and milk.

Other than these more conventional commodities, ‘biological assets’ also include the use of bacteria in the production of dairy (yoghurt, cheese) or the cultivation of viruses to produce vaccines for the pharmaceutical industry, all of which are categorised as agriculture properties in the modern world.

A farmland appraisal is a document that gives an estimate of the fair market value of your agricultural property. The most common reason for ordering an appraisal is to obtain a farm loan on a property for business expansion. However, there are several other reasons why an appraisal might be needed. Below are just a few:

1) Obtaining A Farm Loan:

An appraisal is generally required by all farm lender before a final farm loan approval to ensure that the farm mortgage loan amount is not more than the current value of the property. The appraisals for farm loans are performed by a certified “appraiser” who is typically a licensed individual trained to render expert opinions concerning agricultural property values. In an appraisal, consideration is given to the property, its location, farmability, as well as comparable sales.

2) Farmland Appraisal For Capital Gains:

A farmland appraisal is used to determine the stepped up basis at the time of death of the current landowner/heir. It’s a good idea to have a certified appraiser to appraise the land at the time of death. Having this done will give the new owner or the late owner family an accurate market value of the farmland. The appraised price becomes the basis, if the new owner or beneficiary decides to sell in the future, that price is also used when determining capital gains tax.  

3) For Merger & Aquisition:

If you’re considering merging, you should request an opinion of value from a Valuer that is highly experienced in agricultural properties valuation to determine the worth of your agricultural properties been your equity contribution to the merger that would be a guide in determining the profit sharing formulae .

That also help to set realistic value in the case of acquisition and let the seller know the value of his farmland having taking into consideration comparable sales, soil type, location, and farmability when putting together the farmland appraisal by the valuer.

4) Attract Investors:

Reliable and consistent valuations of agricultural properties are, however, essential. Robust valuations are vital in order to unlock the investment required to support a sustainable economy; to promote the productive use of agriculture property (including land) in sustainable economic growth; to maintain the confidence of capital markets; and to meet the requirements of
financial reporting under Iinternational Aaccounting Standard.

The boards reviewed the valuation of agricultural properties to establish whether the business is doing well or not or well structured and viable to invest in.

Agricultural properties comprise:

i. Land

ii. Structural improvements - i.e. buildings and site improvements (both permanent and/or semi￾permanent)

iii. Plant and machinery attached to the land e.g. processing plant

iv..Plant and machinery not attached to the land e.g. vehicles, heavy equipment.

v. Biological asset attached to the land i.e. living plants

vi. Biological asset not attached to the land i.e. living animals

vii. Agricultural produce

Our firm is a real estate marketing and consulting outfit experienced in land transactions, farmland sales and we mesh those strengths with our sister firm of certified Estate Surveyors & Valuers in rendering services of providing world class reliable Agricultural Properties Valuation.

Should you wish to engage our service,, kindly contact us through +2348032296562, +2349049045703, +2348117949689 (Whatsapp Only). Email: a2realmartoptions@gmail.com

The Property Appraiser has the lawful duty to find the market esteem set by movement in the land commercial center and to assess property as needs be. Our responsibility is to serve general society by giving burdening specialists exact and uniform property valuations for charge purposes property appraisers usa. The burdening specialists decide an assessment rate as per how much cash they need to support their financial plans.