Whether it’s a single farm or large-scale agribusiness portfolio, familiarising yourself with the process involved in a rural valuation will help protect your investment and minimise future risk.

Ahead, we breakdown the ins and outs of a rural valuation, including what to expect when you engage the services of a registered value.

“Valuing on an average efficient basis gives us a benchmark for its productive capacity while isolating specific management factors. Essentially, we’re calculating its value based on an average efficient manager coming in and operating it at an average efficient production level.” In dairy farming, for example, there are a number of production systems a farmer can operate by. “System 1 is low input with minimal external supplementation needed to feed the herd, whereas system 5 is high input, so feed input could be greater than 50%.”

After the inspection, the information acquired from the on-site visit is used to generate a high-quality, data-rich report.