Participant Exercise

Valuation of Agricultural
Lands
Coconut Land
 Assumptions
• Labor cost increases by 10% per year

• Price of fertilizer and chemicals increases by 5% per year

• Labor cost for harvesting and processing increases every two years
by P50.00

• 3.5 nuts = 1 kilo of Copra

• Distance of planting results in approx. = 100 trees per hectare

• Man day (md) = P175.00/md

• Man-animal day (mad) = P350.00/mad

• One bag copra = 50 kgs.

 Production Cost per Hectare
PARTICULARS Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7
A. LABOR
Land Preparation
a. Clearing/ brushing
b. Excavating
c. Hauling/Planting
d. Fertilizer
i. Basal. 1 pd
ii. 6 mos. After(2 pd)
e. Under brushing
f. Spraying
g. ring weeding
h. Fertilizer Application
Production Cost per Hectare

PARTICULARS Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7

B. MATERIALS/INPUTS

1. Seedling 130 @ P10

2. Fertilizer
a. ammonium sulfate
b. Potassium chloride
3. Pesticides
Sub- Total

Total

Average
 Yield Per Hectare
(Including Cost & Income)
PARTICULARS Yr. 7 Yr. 8 Yr. 9 Yr. 10 Yr. 11 Total AVE.

Number of nuts harvested

Copra produced in kg.
Price per kg.
Amount

Harvesting & Processing:

- Saka/Tapok (per Has.)
- Labor cost/1,000 nuts
Total Amount

Transportation:
- cost/sack
amount

Ring weeding & under brushing

Total cost

NET INCOME

AVERAGE
 Computation of Unit Base Market Value

GROSS INCOME (Average)

Total Cost of Production (Average)

NET INCOME

Capitalization Rate = 14%

Capitalized Value V = I / R
V=
V=
Unit Base MV =
Unit Base MV =
Productivity Table for Coco Land per Class

With a productivity of more than 70 nuts

1st Class
per tree annually.

nd With productivity of 50 to 70 nuts per

2 Class
tree annually.

rd With a productivity of less than 50 nuts

3 Class
per tree annually.
 Schedule of Market Values
70 nuts/tree x 100
1st Class trees/ hectare
@
60 nuts/tree x 100
2nd Class trees/ hectare
@
30 nuts/tree x 100
3rd Class trees/ hectare
@