Livestock valuation: an assessment model based on sow age

[EN] Food supply in Europe is based on the consumption of meat ¿ of which pork is the most consumed. The livestock sector represents some 40% of total agricultural production. Livestock farms need tools for business management and valuation in order to make business productivity estimates and determine compensation, as well as calculate average and marginal costs. Pig farmers need to determine the optimal time for culling a sow: meaning that for livestock depreciation it is necessary to determine the value of sows depending on their age. In this study, a model is shown for valuing a sow according to its productive life and net present value generated. In the same way as any asset in a production process, the economic value of a sow should be estimated by its contribution to the process of generating future profits. The distribution of costs depends on the size of the farm, and so three sizes of farms are considered: fewer than 250 hybrid sows; 251 to 500 sows; and more than 500 sows. The economic values of the sows were obtained according to their age and number of farrowing. The models show variations between differently sized farms.Guaita-Pradas, I.; Pérez-Salas Sagreras, JL.; Fenollosa Ribera, ML. (2017). Livestock valuation: an assessment model based on sow age. Ciência e Técnica Vitivinícola. 32(8):299-323. http://hdl.handle.net/10251/109828S29932332

Market value vs. legal value in land use change in Spain

[EN] The Spanish Land Law of May 28, 2007 gave rise to a radical change in the determination of the legal value of the land for agricultural use under compulsory purchase proceedings linked to the transformation of their use. Under this new law the compulsory purchase value is calculated based on the real or potential discounted cash flow at a determined rate set in the rule, with the aim of avoiding the negative effects of speculation. The aim of this work was to compare if there are significant differences between the values obtained when applying the methodology provided under the new law and the values presented in the national land prices survey. We have considered whether differences actually exist between the values obtained when applying the methodology provided under the new law and the values presented in the national survey; and the aim of this work is to compare these values. For this purpose the variables relevant for the application of the capitalization method were estimated based on the data published in the Spanish official statistics. Significant differences were found between the legal rate and the one which estimates the market values, with an average value for the studied period of 3.45% and 1.75%, respectively; additionally, different trends were observed. Also the existence of different discount rates for the market value depending on the land use against the unique rate set in the rule has been verified; therefore, the real distortion which a single capitalization rate could give rise to is very significant.Segura García Del Río, B.; Pérez-Salas Sagreras, JL.; Cervelló Royo, RE.; Vidal, F. (2010). Market value vs. legal value in land use change in Spain. Journal of Food Agriculture & Environment. 8(3&4):1208-1211. http://hdl.handle.net/10251/108620S1208121183&

Agricultural land values using Geographic Information Systems: design location model and tools for information available by geoportal. Application to a Spanish Agricultural Area

[EN] Quantifying the effect of location on land values can be done by designing a location factor which considers the most relevant aspects that may influence this value such as proximity to large cities, the population living around the parcel or land to be valued, the distance from it to markets or logistic centres, or the existence of places of environmental or landscape interest. Considering these variables can be complicated by having to process large amounts of distinct data (distances, no. of inhabitants or population size, protected areas, etc.), which have to be processed and interpreted to be able to define the factor that summarises them, and can affect the land value from income, such as productive assets, to correct its value. The main proposal put forward in this research is to study the various location aspects that affect land values, and the possibilities that Geographic Information Systems (GIS) offer to design with free software tools that allow simple calculations of a location correction factor and, consequently, land values. Calculations were made for all the rural cadastral parcels (2.3 million) in the Valencian Region. Results can be integrated into a new online GIS portal and make these available to users in soil valuation studies.Marqués Pérez, I.; Mora Navarro, JG.; Pérez-Salas Sagreras, JL.; Velilla-Torres, JM.; Femenia-Ribera, C. (2018). Agricultural land values using Geographic Information Systems: design location model and tools for information available by geoportal. Application to a Spanish Agricultural Area. Survey Review (Online). 50(363):545-554. doi:10.1080/00396265.2017.13503425455545036