Agricultural Land Valuation and Capitalization Ratio

Abstract

The valuation of agricultural land shall be based on the streams of income derived from the land according to Turkish law. Thus, valuation commissions and experts determine the values by using the income method. However, various difficulties are experienced in the implementation of the income method and it is not always possible to determine a realistic value. In this article, firstly basic valuation methods are mentioned and explained briefly. Then the principles for the implementation of the income method are examined, the difficulties and disputes are focused, and some suggestions are presented. When the land valuation problems are analyzed, the following titles can be listed: lack of practical experience of experts, the deficiencies and inconsistencies of institutional/organizational data, gaps and shortcomings in legal procedures. Also there is not any system which consists of all agricultural information or valuation information in Turkey. Such a system should be established, and this system should be configured in an institutional/organizational framework.