Farmland Valuation Methods

Income Capitalization

NOI / cap rate. Regional benchmarks: 3-5% Midwest, 2-3% irrigated West, 5-8% dryland Plains.

Comparable Sales

Adjustments for soil quality, irrigation, improvements, location, size.

Cost Approach

Land + improvements. Less common for agricultural valuation.

Worked Example

320-acre Nebraska operation: income approach yields $7,030/acre using NASS yield and price data.