Maatalousmaan arvioimisesta Yhdysvalloissa

Authors

• P. H. Kaarlehto Helsingin yliopiston maatalouspoliittinen laitos

DOI: https://doi.org/10.23986/afsci.71365

Abstract

The author gives a critical report on the American system of rural appraising. Although the advantages of the system, in which income appraisal and commercial appraisal are effected parallelly, are realized, there seem to be some considerations in need of further study. The author devotes special attention to the possibility of using net rent as a measure of land value. Since the appraisal method is to a great extent based on capitalization of net landlord income or net rent, the question arises whether the average net rent equals the average annual net return from the farms. The author concludes that this cannot be the true situation in the USA. It is inevitable that the tenant invests his labour and capital as entrepreneur and is therefore quite justified in demanding a part of the entrepreunial rent. If, however, net rent equals net return he does not get any of it. This can happen only in cases where land is scarce and landowners maintain monopoly power. A real equilibrium is possible only when the advantages of purchasing and of renting are in balance from the viewpoint of the farmer. Even a rapid survey of recent trends in the composition of farm capital shows how greatly increased is the share of farm investment which to-day must be met by the tenant. Again, it has been statistically shown that the difference between capitalized rent value of land and its market value has been increasing during the last few decades. In all probability a part of this difference may be the result of an increase in the share of the farm capital which the tenant has to invest, and thus perhaps has no relation to the increase or decrease of net return from the farm. Among other minor points raised by the author, the problem of determining the right capitalization rate seems to him to be especially in need of further intensive study.