Agricultural appraisals

agricultural appraisals


agricultural appraisal

What is an agricultural appraisal?

Let's start by determining what is an appraisal? An appraisal is an estimate of the value of a previously identified asset and there are many types of appraisals as well as application methods, one of them is the Agricultural Appraisal, which is responsible for determining the value. of a rural property, agricultural land, farm, ranch, agricultural property or some similar property, such as irrigation, temporary and rangelands, based on the productive potential and agricultural qualities, this also includes the valuation of livestock and machinery agricultural, among others. 

In some situations, the valuation of agricultural land for easements or rights of way for electric transmission lines, oil lines, gas lines, aqueducts and highways is also included.

Importance of an agricultural appraisal

Surely you are wondering why you need this type of appraisal? There are many situations and advantages where estimating the value of your asset is the solution, whether for sale, credit guarantee or some tax purpose. 


Some of the situations for which you could request an appraisal are the following:

  • Define a price for future buyers
  • Set a clear value in case of multiple property decay
  • Determine the value for a guarantee in the case of a loan or mortgage
  • Determine the investment amount of the partners 
  • Expansions in infrastructure works 
  • Know your value in the market
  • Define compensation in expropriations 


It is always necessary to know the exact value of a tangible or intangible asset for any official procedure or for any transaction, its importance lies in the validity and certainty with which it has and thus it is possible to carry out any type of official procedure that requires knowing the real value of a good or service. 

What elements are taken into account for an agricultural appraisal?

As with all types of appraisals, it is necessary to take into account factors on which the real value concluded at the end of the study will be based.

Some of the factors are:


  • Data on the area in which the property is located. 
  • A detailed description of the productive areas of the place must be prepared.
  • General data of the property in question
  • The details of the construction will be taken into account. 

The process consists of:

  1. Make an estimate of the value of the property through the physical and capitalization approaches. 
  2. The market approach will be applied by comparing places with similarities. 
  3. A summary of what was observed will be made when the survey is carried out, that is, a visit to the property. 
  4. Previous considerations will be taken into account. 
  5. Conclusions must be generated. 
  6. Finally, statements are made and the certification is delivered. 

How is an agricultural appraisal carried out?

  1. Appraisal request or order
  2. Survey and appraisal plan
  3. Information program

a)General information to analyze:

  • Region 
  • City
  • Neighborhood
  • Half

b) Specific information where the following are evaluated:

  • Land
  • Improvements
  • buildings
  • Machinery/Equipment

  4. Classification and evaluation of the information obtained

  • Cost approach
  • Value focus
  • Income Focus

  5. Correlation of Indicated Values

  6. Final value estimate

What does an agricultural appraisal include?

Among the elements that will be reflected in the study at the end are:  

  • The final and certain value of the land based on its internal and external characteristics. 
  • The value of the buildings that are on the property and the equipment it has.
  • The value of projects that possibly improve land productivity is also estimated.
  • The value of future income 

There are different types of properties to carry out this appraisal, among them are:

  • Orchards 
  • Vineyards
  • Land for cultivation of any type
  • Coffee plantations
  • Greenhouses 
  • Livestock, livestock and poultry farms
  • Dairy farms

timber forests      

Who can carry out an agricultural appraisal?

Appraisers must be experts in only one category, in this case real estate, since specific experience is necessary for each type of appraisal, in order to obtain a safe study and an accurate final value. 

An agricultural land appraiser usually does not value residential properties as normally required and vice versa for the residential expert, the appraiser needs to know with certainty and have experience in the industry associated with real estate such as agricultural land. 

At ANEPSA we value all types of real estate and tangible or intangible assets. We have expert appraisers in the industry who can advise you on the requirements or procedures you need to carry out. Contact one of our advisors for more information or leave us your information to get in touch with you.

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