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FinancingAppraisal_methodsHARD

An appraisal of a Wisconsin dairy farm would most likely use:

Correct Answer

B) A combination of sales comparison, income capitalization, and cost approaches, with special attention to dairy infrastructure and agricultural productivity

Dairy farm appraisals in Wisconsin are complex, requiring multiple approaches. The value of barns, milking facilities, silos, land productivity, milk quotas (historical), and development potential must all be considered.

Answer Options
A
Sales comparison approach only
B
A combination of sales comparison, income capitalization, and cost approaches, with special attention to dairy infrastructure and agricultural productivity
C
Assessed value only
D
Insurance replacement cost

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Related Topics & Key Terms

Related Topics:

income capitalization approachcost approachsales comparison approachagricultural property valuationWisconsin agricultural land

Key Terms:

dairy farm appraisalincome capitalizationcost approachsales comparisonagricultural propertyWisconsin dairy
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