Literature and practice informs us that we can use any one of the following methods of valuation to determine the value of agriculture properties:

• Sales Comparison method
• Income method
• Cost method

You have just joined Agribank in the valuation department and it is your first time to undertake a valuation of a farm. Once you get on site, you realise that there has been little or no agricultural activities on the property. You are escorted around the farm by a security guard who only started the job one month ago, and you do not see any livestock or crops.

a. Does the property have any value? Support your argument.

b. Which method(s) and why would you use to value such a property?

c. What sources of information would you use to assist you assess the value of such a farm?