- Joined
- May 2, 2002
- Professional Status
- Certified General Appraiser
- State
- Arkansas
Ranch property - several farms operated separately by same Corp.
MLR suggests the woodlot portion to be worth about 50% of the pasture and that a size adjustment is necessary. Problem is that the largest comparable in a 2 county region is about 600 acres. Two of the farms are over 1000 acres. Four are larger than the largest comparable.
Attempting to plot size vs adjusted dollars gives me an adjustment for land but it is a hyperbolic decline as site gets larger. Maybe $7 an acre for tracts in the 100-200 ac. range to $1-2 an acre if you extrapolate beyond the 600 acre size.
Anyone have any good suggestions on supporting size adjustments beyond 600 acres. I mean really, when you get near twice the size of the largest comp, what is to anchor you beyond that point?
Further, as the size gets larger the contribution of improvements logically is lower and lower. And the nature of those improvements are a factor. In one case there are (21)-14,000 SF abandoned poultry barns on the site
While on small tracts a couple such barns might contribute $0.25 - $0.75/SF because they typically are modified to store round bales or use for shop building, etc. - On a large farm with so many barns, imho, they contribute little or nothing. They are going to need to be removed eventually and at $5000 a pop (easily) that is a chunk of change. They are not in terrible shape but they will be in another 10-20 years.
Anyone handle such a surplus of improvements before?
MLR suggests the woodlot portion to be worth about 50% of the pasture and that a size adjustment is necessary. Problem is that the largest comparable in a 2 county region is about 600 acres. Two of the farms are over 1000 acres. Four are larger than the largest comparable.
Attempting to plot size vs adjusted dollars gives me an adjustment for land but it is a hyperbolic decline as site gets larger. Maybe $7 an acre for tracts in the 100-200 ac. range to $1-2 an acre if you extrapolate beyond the 600 acre size.
Anyone have any good suggestions on supporting size adjustments beyond 600 acres. I mean really, when you get near twice the size of the largest comp, what is to anchor you beyond that point?
Further, as the size gets larger the contribution of improvements logically is lower and lower. And the nature of those improvements are a factor. In one case there are (21)-14,000 SF abandoned poultry barns on the site
While on small tracts a couple such barns might contribute $0.25 - $0.75/SF because they typically are modified to store round bales or use for shop building, etc. - On a large farm with so many barns, imho, they contribute little or nothing. They are going to need to be removed eventually and at $5000 a pop (easily) that is a chunk of change. They are not in terrible shape but they will be in another 10-20 years.
Anyone handle such a surplus of improvements before?