By R.G. Williams
The right replace to a advisor that gives helpful suggestion on agricultural valuations
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Extra info for Agricultural Valuations : a Practical Guide
If there is no agreement or it is silent on the matter it is the area representing the proportion which the total area of leys on the holding would, taking into account the capability of the holding, be expected to bear to the area of the holding, excluding permanent pasture. (b) Excess area of leys This is the average of the total area of leys at the termination date, and one and two years prior to that date less the accepted area required for the fertility of the holdings. The surplus is the excess area which may be considered for compensation.
This infers that the improvement must be suitable for the holding, eg it could be inappropriate to have an expensive dairy set up on a hill farm, or possibly an expensive grain store on a wet farm which is more suitable for grazing than for arable production. The usual method of valuation is to assess the increase in the rental value of the holding arising from the improvement and capitalising this at a suitable rate of interest for its remaining estimated life and thus produce the increased value of the holding.
39 Agricultural Valuations (a) Accepted proportion of leys This is the area specified in the tenancy agreement of leys or new seeds to be left at the tenancy termination. If there is no agreement or it is silent on the matter it is the area representing the proportion which the total area of leys on the holding would, taking into account the capability of the holding, be expected to bear to the area of the holding, excluding permanent pasture. (b) Excess area of leys This is the average of the total area of leys at the termination date, and one and two years prior to that date less the accepted area required for the fertility of the holdings.
Agricultural Valuations : a Practical Guide by R.G. Williams