Knowing the cadastral value of agricultural land is essential when purchasing or disposing of it. A crucial number for sales, tax assessments, and other legal needs is the cadastral value. This value represents the land’s worth considering various factors, such as its location, current use, and soil quality.
Potential purchasers and landowners can make more informed decisions if they are aware of the cadastral value. It helps prevent disputes over land prices and guarantees fairness and transparency in transactions. It also has a big influence on property taxes, which affects how much owning agricultural land will cost in the long run.
This article will define cadastral value, explain its calculation, and discuss its significance for agricultural land plots. You can more easily negotiate the difficulties of land ownership and make wise financial decisions about your property if you are aware of these factors.
| Aspect | Description |
| Definition | The cadastral value of agricultural land plots is the estimated value assigned to a piece of land by the government for taxation purposes. |
| Purpose | This value is used to calculate property taxes and can also influence the sale price and rental rates of the land. |
| Factors | The cadastral value is determined based on various factors including location, soil quality, land use, and market conditions. |
| Update Frequency | Cadastral values are typically reviewed and updated periodically, often every few years, to reflect changes in the market and other conditions. |
| Impact | A higher cadastral value usually means higher property taxes, while a lower value can reduce the tax burden for the landowner. |
- What does it depend on
- Which territories are classified as agricultural lands?
- Land assessment
- Documentation
- Video on the topic
- Cadastral valuation
- State cadastral assessment of agricultural lands and settlements
- Information resource for cadastral value of agricultural land
- Buy a plot for 15% of the cadastral value
- Cadastral valuation of agricultural land
What does it depend on
The cadastral value of each individual land allocation is established by considering the different unique attributes that are present in that specific land. One more element for evaluation is the type of land—in our case, agricultural.
Apart from the category, there are several other assessment indicators, like:
- Specified area of the site;
- Features of the territorial location;
- Permitted use;
- Market trends in a specific period. Prices for other similar plots in the region;
- Specific indicator of cadastral value for the region and the country as a whole;
- Infrastructure and outbuildings on it;
- Composition, quality, structure and fertility of the soil;
- Profitability and productivity of the allotment, with maximum use of all its potential capabilities over a certain period of time;
- Costs associated with the assessment procedure.
The cadastral value of agricultural land plots is determined using the first two criteria, which are also the most indicative.
As an illustration, consider a privately held land parcel that was arbitrarily discovered as agricultural land on a public cadastral map.
The screenshot displays the current cadastral value, which is 100,381,600 rubles. This location has a sizable land area of 53,680,000 square meters. This indicator had a major impact on the cadastral value of this land plot, along with factors like its category and allowed use.
Which territories are classified as agricultural lands?
Let us take a quick look at the regions that fall under the category of agricultural land:
- Arable lands;
- Farms;
- Pastures;
- Haymaking;
- Gardens;
- Lands with natural and artificial plantings that are not part of the forest fund;
- Lands occupied by water bodies;
- Internal communications of farmland;
- Land intended for any agricultural production.
Land assessment
When determining the cadastral value of agricultural land, there are three primary methods to consider:
All three methods must be employed by the appraiser.
A thorough explanation must be provided if one or more approaches cannot be implemented for whatever reason.
Every one of the three strategies comprises an array of distinct techniques for cadastral appraisal.
Farmland’s cadastral value can be ascertained for a single area or multiple at once (mass rating).
- To do this, the market value of these plots should be established. Also, appraisers can compare and analyze the values of similar plots (comparative approach).
- The assessment is made by determining the specific cost indicator (based on all of the above factors) and multiplying it by the specified area of the site. The specific indicator is the regional average cost per square meter of land.
- The appraiser has the right to evaluate the site individually, without taking into account market trends and indicators, due to their insufficient information content.
- The appraiser is obliged to draw up a report in which the entire assessment procedure and the criteria that he applied for it will be described in detail.
- The cadastral value of agricultural land is assessed at the expense of federal or municipal budget funds.
State requirements and the actual yield over time are used to evaluate the fertility of the soil on a plot of land. Plot profit, both real and potential, is considered (income approach).
Every potential risk for farming in a particular area is considered, including those related to the region’s physical characteristics and environmental factors, in addition to the maintenance expenses (cost approach).
Only specialized companies and institutions in the Russian Federation are authorized to employ them for appraisal work.
They need certified appraisers on staff and the proper permits for this kind of work in order to accomplish this.
The process for the evaluation itself is as follows:
- Having collected the necessary list of documents (more about them below), you should submit an application for work to the appraisal organization.
- A technical specification is drawn up, which describes in detail: the purpose of the assessment, the name of the organization that will accept the assessment report, all technical information about the land plot, the name and address of the assessment company, the address of the land plot, etc.d.
- An assessment is made taking into account all the above indicators.
- Upon completion of all work, a detailed evaluation report is drawn up, which indicates: information about the contractor and the customer; the methods by which the assessment was carried out; all the main characteristics of the land; assessment results with justification for all cost indicators and the cadastral value itself determined for this agricultural land.
Documentation
A certificate of cadastral value of land is the primary document attesting to the cadastral value.
This certificate was granted by Rosreestr authorities in accordance with earlier assessment work. This document includes the object’s cadastral number in addition to its cadastral value.
You can order an extract from the Rosreestr website or pick it up in person at the territorial cadastral authorities.
The list of documents needed to determine the cadastral value is as follows:
- Passport of the owner of the land plot;
- Title document for ownership;
- Cadastral plan;
- Land survey plan;
- Cadastral passport.
You must also submit information about communications and a work plan for previously completed improvement projects in addition to the required paperwork.
The cadastral valuation will also make use of this data.
Anyone working in farming, real estate, or land management has to understand the cadastral value of agricultural land plots. Government agencies use this value to calculate land-related taxes, rental rates, and other financial obligations. It is an indication of the land’s value determined by a number of variables, including market conditions, location, and soil quality.
The cadastral value is determined by a rigorous analysis and evaluation process. Experts evaluate the land’s accessibility, potential for production, and any infrastructure that may already be in place. They also take economic trends and environmental factors into account. This all-encompassing strategy guarantees a reasonable and accurate valuation that is in line with the conditions of the market today.
Understanding the cadastral value can give landowners insight into the financial health of their property. Making well-informed decisions regarding the purchase, sale, or leasing of land is aided by it. Furthermore, knowing this value is essential when navigating the legal and administrative procedures associated with land ownership.
To sum up, the agricultural sector relies heavily on the cadastral value of agricultural land plots. It affects land use planning, tax obligations, and economic activity. Landowners and other stakeholders can more adeptly negotiate the complexities of land management and make the most use of their resources if they are aware of the factors that go into determining this value and its implications.
For both buyers and landowners, knowing an agricultural land plot’s cadastral value is essential because it affects market value evaluations and property taxes. The cadastral value, which is based on a number of variables including location, potential land use, and soil quality, aids in ensuring equitable taxation and promotes well-informed decision-making in real estate transactions. Understanding the fundamentals of cadastral valuation will help you better understand the legal and financial ramifications of buying or owning agricultural land.
