Order of Adjustments

  1. Home
  2. Knowledge Base
  3. Miscellaneous
  4. Order of Adjustments

The order of adjustments considered in agricultural valuations is:

  1. Property Rights Sold (Other Contributions) — usually the “remainder estate” after evaluating the easements and reservations of record (those typically found on Schedule B of a Title Policy)
  2. Terms and Conditions of Sale (Financing)
  3. Land
  4. Improvements
  5. Time (Market Conditions)
  6. Additional Factors

AgWare software follows this order of adjustments with the Comparable Sale Analysis in DataLog and for the subject in ClickForms.

If percentage adjustments are applied for #6, a defined same order should be observed, e.g., location, size, and other physical and economic characteristics.  However, the emergence of the ER procedure (equivalency ratio) discussed in ASFMRA’s 2019 textbook “Valuing Rural America”, adjusts for “land-mix” (blended properties with several components cropland, pasture, irrigated, multiple permanent plantings, etc.) which addresses each sale and the subject’s proportionality — at that point eliminates the strict adherence for the “order” of measuring or applying “other factors” described in #6.

Was this article helpful?

Related Articles