Post Content

(Editor's note. Massachusetts has a rich history of farming as well as an active agricultural economy. Accurate valuation of  farmland is thus an important concern for communities that have developed and want to sustain agricultural economies.)

 

Written by Daniel Lass, Department of Resource Economics, University of Massachusetts Amherst

An Economists View – Determining Agricultural Land Values

Land is just one of many factors of production in agriculture. Despite its critical importance and in the absence of efficient rental markets, the value of land, as with managerial labor, is often determined as a residual; subtract all other production costs from total revenue and what is left is the “rental value” for land. This annual value can then be projected into the future, discounted and summed to determine the value of agricultural land. This is essentially the capitalization of net income approach to determining agricultural land values. If rental markets are efficient in an economics sense, then an equivalent value for land can be determined by capitalizing “ground rent.” In Massachusetts, sufficient rental data do not exist to offer a reliable means of determining agricultural land values.

 

For the full story click here.

Written By:

Recent Posts

Your Mass State Taxes Made Easier posted on Mar 9

Your Mass State Taxes Made Easier

With the tax season now in full swing, there are several resources at your fingertips to make filing your taxes hassle-free. Enhanced Website Earlier this year, we launched a new DOR homepage, making it faster now to find exactly what you need to file and   …Continue Reading Your Mass State Taxes Made Easier

3 Steps to Catch Up on Back MA Taxes While Avoiding Penalties posted on Mar 4

3 Steps to Catch Up on Back MA Taxes While Avoiding Penalties

Watching a game-winning goal in overtime is as exciting as hockey gets. With DOR’s MA TAX AMNESTY 2016, you can stay out of the penalty box by paying only what you owe. Read on to find out more. What is MA TAX AMNESTY 2016? It’s   …Continue Reading 3 Steps to Catch Up on Back MA Taxes While Avoiding Penalties

EITC – Helping Low and Moderate Income Families in MA posted on Jan 29

EITC, also known as the Earned Income Tax Credit, has been helping low to moderate income families in Massachusetts and across the country for over 40 years. In recent months, Governor Charlie Baker and members of the Legislature have worked hard to ensure that working   …Continue Reading EITC – Helping Low and Moderate Income Families in MA