By J. Stokes and J.Jansen
The income capitalization approach is likely the most challenging and least understood of the three methods that farm appraisers use to inform their opinion of value. In theory, the approach is relatively simple: the income value of a parcel of farmland is simply the present value of the farmland’s perpetual stream of net operating income. However, as with many economic approaches and concepts, the devil is in the details. The word perpetual is intentional as the income approach uses the formula for a perpetuity, namely, V = N/c, where V = income value, N = net operating income, and c = capitalization rate, or cap rate for short. While there are several important assumptions and some requisite mathematical gymnastics to arrive at the perpetuity equation for the income value of farmland, in this article, we’ll concentrate on the numerator of the equation, N, and, more importantly, the denominator, c.
From Australia to Nebraska: Researching Social Value by Marilyn Schlake, Cheryl Burkhart-Kriesel, Jean Ann Fischer, Michelle Krehbiel and Randy Saner
Violent Conflict Drives World Hunger and Food Insecurity by Wes Peterson
Part III: The North Central Extension Risk Management Education Center – Outcomes and Impacts by Bradley D. Lubben, Christine Lockert, Sheila Aikanathan Johnson and Milan Chauhan
Part II - The North Central Extension Risk Management Education Center – Activities and Success Stories By Sheila Aikanathan Johnson, Christine Lockert and Bradley D. Lubben
Part 1 - North Central Extension Risk Management Education Center Helps Producers Manage Risks by Christine Lockert, Sheila Aikanathan Johnson and Bradley D. Lubben
Sunsetting Tax Provisions. Is Your Estate Plan Affected? By Anastasia Meyer and Glennis McClure
by Matt Stockton and Shannon Sand
by Daniela M. Mattos
Learning About Optimal Corn Seed Rate Management Via On-Farm Experimentation: Are Farmers Over-Planting? by Taro Mieno, Jaeseok Hwang, and David S. Bullock
Nebraska Women In Agriculture Conference Marks 39 Years by Ryan Evans, Sarah Treffer, and Jessica Groskopf Nebraska Extension
Will SAF Turbocharge the Corn Ethanol Market by Richard Perrin, Lilyan Fulginiti and Felipe Almeida
2024 Nebraska Farmland Values and Cash Rental Rates by Jim Jansen and Jeffrey Stokes
Value of Gain in the Lamb Feeding Industry by Jay Parsons
2022 Census of Agriculture: Nebraska Highlights by Kathleen Brooks and Brad Lubben
Predicting sedentarism and its impact on caloric requirements by Jacob Michaels and John C. Beghin
Increasing Workforce Skills: The Possible Disconnect between Employers and Potential Job Seekers by Cheryl Burkhart-Kriesel
Embracing Diversity in Agricultural Economics by Timothy Meyer
Are Too Many or Too Few Babies Being Born? By Wes Peterson
Program Requirements for Beef Cattle Certified as USDA Organic By Carsten Loseke and Elliott Dennis