Agricultural Appraisal Review

These flashcards cover essential vocabulary related to agricultural appraisal methods and concepts based on lecture notes.

Income Approach

An appraisal approach that values property based on the income it generates.

Cost Approach

An appraisal method that estimates the value of a property by calculating the cost to replace or reproduce it, minus any depreciation.

Market (Sales Comparison) Approach

An appraisal technique that estimates the value of a property by comparing it to similar properties that have recently sold.

CPI (Crop Productivity Index)

An index that measures the relative productivity of different soils for agricultural use.

External Depreciation

A reduction in property value due to outside factors, such as proximity to an undesirable use like a landfill.

Functional Depreciation

A decrease in property value due to outdated design or functionality that does not meet current standards.

Physical Depreciation

A decline in property value due to wear and tear or physical deterioration.

Effective Cropland Acres

The total acreage of cropland adjusted for its productivity levels based on quality classifications.

Replacement Cost New (RCN)

The estimated cost to build a similar structure today using modern materials and methods.

Time-Adjusted Price

The sale price of a property adjusted for changes in market conditions over time.

Highest and Best Use

The most profitable legal use of a property that is physically possible, financially feasible, and maximally productive.