What value is a fair market price to pay for rural land?

Farm Table says:

Exceptionally thorough article that looks at capital budgeting for investment, using the discounted cash-flow method and net present value. It works through an example of expected value per acre: to buy, and expected value per acre: to lease or for agistment.

How much is a fair market price to pay for rural land?

Michael Vail looks at key issues for investors when making capital budgeting decisions in the agricultural production sector.

The basic premise is as follows, you:

1. Understand a business’ past cash-flows (both in and out)

2. Understand the nature of the income cycle

3. Understand the cost structure of the business

4. Understand what influences (both internal and external) the business model is sensitive towards

5. Understand the accounting and economic break-even points, for sales dollars and sales quantity

Read full article
Last Edited:
24/03/2025
Types
Bradley Dawson
Bradley Dawson

Bradley is a seasoned copywriter at Farm Table, bringing decades of experience in journalism and content creation. Formerly a producer and journalist for the Telstra Sports website, he has honed his skills in crafting engaging and informative content. Now, he applies his expertise to the Australian agriculture sector, delivering high-quality writing that informs and supports the Australian farming community.

Need assistance with your Digital Marketing? Talk to Farm Table today.

Scroll to Top