(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.)
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.
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Job Fair Ahead — Mark Your Calendar! posted on Sep 24
FYI– We’re holding a DOR Career Fair Oct. 7th from 6-8:30pm. 100 Cambridge St, Boston. More info to come!
Mission Accomplished posted on Sep 15
They are two dogs with a very unique trick. Meet Fillmore and Max, a canine pair trained specifically to sniff out tobacco. The Massachusetts Department of Revenue recently teamed up with Altria representatives and their tobacco sniffing dogs for a two-day tobacco drive in an …Continue Reading Mission Accomplished
It’s All About Plain Talk posted on Aug 13
Commissioner Amy Pitter wants to be sure that the information going out of DOR to taxpayers is clear and concise. If you received a bill, form or notice from the Department of Revenue and are having trouble understanding what actions you need to take, tell …Continue Reading It’s All About Plain Talk