Deciding on the worth of agricultural land
BJ Madden, LR Malcolm
Review of Marketing and Agricultural Economics | Published : 1996
The price farmers pay for farm land can be a critical determinant of the continued success or eventual failure of a farm business. A decision support model has been developed to make explicit the usually implicit assumptions about expected profitability, financing and debt servicing aspects of land purchase decisions. The model can be used to help the decision maker to identify offer prices for farm land which are probably sound and prices which are likely to be unsound.