How should the land owned by the farmer be valued?

The valuation of land owned by a farmer can be most effectively determined by using a method that reflects the land's earning potential over a reasonable period. Valuing the land at two and a half times the average crop revenue over three normal crop years provides a more stable and representative assessment of the land's generating capacity, taking into account both productivity and economic fluctuations. This approach mitigates the risk of evaluating based on a single year's profits, which could be an anomaly due to various factors such as weather conditions, market demand, or pest infestations.

By averaging the revenue over three years, the valuation method smooths out these variances and offers a clearer picture of the land's long-term productivity. This method aligns closely with agricultural economics, where land value is typically assessed based on its income-producing ability rather than fluctuating one-time profits or correlated equipment values. Thus, this is the most comprehensive and practical approach for valuing agricultural land.