Valuation of Agricultural Properties: Empirical Evidence from OxFarms Minna, Nigeria

Abstract

This study aims to examine the anecdote that the Valuation Standards template for valuing specialized property, suffices for valuing a Non-Performing Agricultural Entity, NPAE. Data from a purposive case study of OxFarms and interviews with 7 practising Estate Surveying and Valuation firms and a questionnaire survey of 29 commercial Farms in Minna environs were applied using qualitative theme analysis. The main objectives are to analyse existing valuation standards template for specialized properties, and benchmarking of NPAEs, with reference to OxFarms case study. A collective grade point index, CGPI, was developed to assess and classify Farms’ operational performances. The study found out and concluded that the general standards for valuing specialized property do not fully recognize the operational performance state of agricultural entities. It was recommended that the application of an appropriate classification model to assess the operational performance status of an identified specialized property and combined techniques of a mix of multiple bases and methods matching the purpose of valuation would provide a pathway to best practices in valuing NPAEs. By implication, this approach would potentially move valuation practice closer to the reasonable level of accuracy expected by users of valuation services.