Use of agronomic data and enterprise budgets in land assessment evaluations

ABSTRACT:

An assessment evaluation procedure is proposed. Crop yield values for corn and hay were established using linear equations with coefficients generated from multiple regression analyses of soil, climate, and yield data. Based on several production assumptions, soil conservation constraints were imposed and annual income streams were calculated. Income and cost budgets were prepared and analyzed. An income capitalization approach to land value was used. Total digestible nutrients (TDN) and index values were calculated from the crop yield and rotation data. A graph was prepared with calculated dollar values plotted against index values. The resultant linear equation was assumed to be continuous, and a land valuation line was established that predicted the relationship between calculated land values and soil index. The yield, TDN, index, and land values of any particular soil map unit of known characteristics can be calculated for high-level management practices and environmental conditions. Because there needs to be a reasonable and fair basis for determining land values in farming, expanded use of this land evaluation method appears warranted.