Land Mix Analysis Video
Hello, and welcome to the AgWare DataLog Land Mix analysis tutorial video. In this video, I will explain land lists, the calculate land values button, and the calculations that occur on an unimproved and improved sale.
DataLog uses an improvement residual method for allocating the sale price. That means that the land components should be allocated first and that will calculate the residual amount for the improvement contribution. As a second step, the improvement’s contributions will be adjusted to match this residual value.
The land mix analysis section is the third section in a sale. When you open a sale, scroll down until you see the Land Mix Analysis title bar. If this section is not expanded, you can expand it by clicking the down arrow button on the far right side of the title bar; or you can click anywhere on the title bar. You’ll notice there are two buttons in this section – select land list and calculate land values. The first button – select land list – can be very useful if you have the same land types for multiple sales because you can save multiple land lists. To save land lists, you enter in your land use types and their respective ratios. The ratio is a price ratio between the land types. For example, if your best crop ground typically sells for $1,000 per acre and your second best crop ground sells for $800 an acre, they will have a 100% to 80% ratio. The ratio for the first row should always be 100. However, that does not need to be your highest priced land. It should be your most prevalent land. The other ratios may be less than 100, greater than 100, or exactly 100 depending on how they compare to the price of the first land row.
I’ll go ahead and enter a few land types and ratios to demonstrate this feature. Then you go to the select land list dropdown and click save current list as. This will bring up a dialog box asking you to give the land list a name. I’ll name mine Demo, and click OK. Now, if you click on select land list again, you should see your land list at the bottom of the menu. These land lists that you create in DataLog are also available in ClickFORMS.
To show you how the land values are calculated, I’ll start with the Demo land list. For an unimproved sale, you simply enter the land types, ratios, and acreages. You can also select a land list like I’m doing and enter the respective acreage for each land type. Now, to calculate the land values, all I have to do is click the calculate land values button and you will notice that my land values fill in for all land rows. The total of my land value is equal to the total CEV price. Remember this sale is unimproved, so it has allocated all of the sale dollars to the land mix. You will notice that the calculated price per acre between the different land types is based on the entered ratios. So in this example dryland is 80% of pasture.
Because of rounding, you may see a small difference between the allocated dollars and the dollar per acre. This is normal and does not affect the use of the sale. We have chosen to round the total dollars to whole numbers and show the actual total for the land contribution.
Let’s look at how the land values are calculated for an improved sale. I’ll choose my demo land list again and enter in the respective acreages for each land type. For an improved sale, you have to enter the $/acre for the first land row before you can click the calculate land values button. For my sale, I’ll enter $500 per acre for the first land row. Then, I’ll click calculate land values. It now calculates the remaining land values based on the ratios and the first $/acre amount.
To recap, your first land row should always have a ratio of 100, and you should enter your land before you enter your improvements. You can save a land list by entering land types and ratios, then clicking select land list, and selecting save current list as. Remember to always check whether the sale is improved or unimproved before hitting the calculate land values button.
I hope this tutorial was helpful for you today. If you have any questions or comments, please don’t hesitate to give us a call at 605-787-7871 or send an email to [email protected]. Thank you for taking the time to view this online video, and thank you for choosing the AgWare software.