Valuation of Agricultural Land For Eminent Domain

The value of land for agricultural purposes is based on the concept of productivity. Productivity analysis is used to determine the highest and best use of a property as well as the “as-is” value for a crop. This paper walks through the analysis required to extract the productivity from soil qualities on agricultural lands and translate the productivity to bushels per acre and ultimately the land value. This process is critical to evaluate eminent domain takings in rural farming areas. We then compare dry agricultural lands to property where the pricing of land may change because of additional amenities, such as water rights.