Entrepreneur and property developer Jimmy Winemiller has developed residential and commercial properties in several states. In addition, Jimmy Winemiller has had significant success in purchasing and enhancing large-scale farming operations.
Farmland is often an important source of collateral for loans and is the de facto source of retirement funds for farmer-owners. One challenge when dealing with farmland is assessing its value correctly.
Farmland can be evaluated in terms of the value it could fetch on the market, or it can be evaluated based on its use value. While market value is fairly straightforward, use value is a bit more complicated and is assessed as a factor of what is produced on the land.
Use value calculation starts with a base rate that is standard across a state. This is multiplied by the soil productivity factor, as determined by agronomists. That rate is then multiplied by an influence factor that takes into account elements such as flooding. The resulting figure is the use value of the land. It is often a way to reduce the tax burden on owners, since all states have a use value-based form of land taxation.
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