A generalized method for valuing agricultural farms under uncertainty

Autores: Catalina Beatriz García García , José García Pérez , María del Mar López Martín , Román Salmerón Gómez
Localización: Land use policy: The International Journal Covering All Aspects of Land Use, ISSN 0264-8377, ISSN-e 1873-5754, Nº. 65, 2017, págs. 121-127
Idioma: inglés
DOI: 10.1016/j.landusepol.2017.04.008
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Resumen
- The opacity of the farm market means that valuations are based primarily on expert estimates rather than on actual transaction prices. The valuation method based on the two cumulative distribution functions (VMTCDF), created by Ballestero (1971), improves the synthetic method based on estimating the market value of an asset by establishing a proportional relation between the asset and one external variable. However, in most cases the expert must consider multiple external variables. This paper proposes a definitive extension to k indexes with a methodology particularly applicable to the field of valuation of non-market goods or markets where little information is available as may be the case with the valuation of agricultural land. The contribution is illustrated with an empirical example