A farmer owns a parcel of land that generates $1,000 annual land rent to produce strawberries. The local government wants to purchase the land to construct affordable housing in the city, but the farmer refuses to sell. The city has decided to move forward with eminent domain to "take" the land with "fair-market" compensation to the farmer. Annual land rent is estimated at $3,000 with the development. What should be the compensation paid the farmer? Explain