Property Valuation
Iowa farmland with a CSR2 of 85 typically commands a premium over land with a CSR2 of 50 primarily because:
AHigher CSR2 land is located closer to cities
BHigher CSR2 land produces higher crop yields per acre✓ Correct
CLower CSR2 land requires more labor
DIowa law mandates price differences by CSR2 band
Explanation
The CSR2 score reflects the soil's capacity to produce corn and other crops. Higher scores indicate greater productivity, which translates directly into higher rental income and land value.
Related Iowa Property Valuation Questions
- In Iowa farmland valuation, which factor is typically most important?
- Iowa agricultural land is often valued using a capitalized income approach. If a 160-acre farm generates $240 cash rent per acre and the cap rate is 4%, what is the indicated value?
- An Iowa appraiser reconciles the three approaches to value and gives the income approach 60% weight, sales comparison 30%, and cost approach 10% for a large apartment complex. This is appropriate because:
- The principle of progression in Iowa appraisal states:
- In Iowa, the cost approach to value estimates property value by:
- The income approach to value is MOST appropriate for which type of property?
- When using the sales comparison approach, an appraiser makes adjustments to comparable sales prices because:
- Iowa's agricultural land values have historically been most correlated with:
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