Agricultural Economics, Rural Appraisal and Agricultural Policy

Module Rural Appraisal

The course aims to provide students with the essential methodological knowledge for the valuation of private assets and in compliance with international real estate valuation standards.

Knowledge and understanding

By the end of the module, the student will know and understand the financial mathematics and statistical tools useful for valuation; the principles, postulates, economic aspects, and procedures of appraisal; the main information sources and valuation standards; the characteristics of the land market; and the applications of rural, cadastral, and legal appraisal.

Ability to apply knowledge and understanding

The student will be able to frame a valuation problem; identify consistent objectives, bases of value, and procedures; gather and interpret data; perform the necessary financial and statistical calculations; and apply the main procedures to the valuation of rural land, standing crops, unharvested produce, cultivation expenses, and land improvements, while justifying their choices in a valuation report.

Making judgments

Through exercises and case studies, the student will evaluate the reliability and limitations of data, compare alternative procedures, formulate explicit assumptions, and select the most appropriate solution for the case, while recognizing the technical, economic, and legal implications of the valuation.

Communication skills

The student will be able to explain the valuation process using correct technical terminology; present data, calculations, and results in both written and oral formats; and argue their conclusions clearly, transparently, and verifiably, including when communicating with non-specialists.

Learning skills

The student will acquire a working method that enables them to independently tackle new cases, update their knowledge and sources, consult standards, regulations, databases, and technical-scientific literature, and continue their study of economics and appraisal disciplines.

Teaching methods vary and include lectures, in-depth seminars, and educational visits.

To ensure equal opportunities and in compliance with applicable laws, interested students may request a personal interview to plan any compensatory and/or extenuating measures, based on their learning objectives and specific needs. For further details, please contact the CInAP (Center for Active and Participatory Integration - Services for Disabilities and/or DSA) contact teacher at the Di3A Department.

There are no formal prerequisites. Basic knowledge of mathematics, statistics, and economics is useful—specifically elementary algebra, percentages, data representation and interpretation, and fundamental economic concepts. However, the necessary tools will be reviewed during the course.

Attending classes is not mandatory, but strongly recommended, as it facilitates the learning process and contributes to the achievement of the learning objectives. Participation in exercises also provides immediate feedback on calculations and the treatment of appraisal cases.

Fundamentals of Financial Mathematics

Fundamentals of Statistics

General Appraisal: appraisal principles; appraisal criteria; market value; appraisal procedures based on market comparisons; appraisal procedures based on income capitalization; cost estimation procedures; valuation codes and appraisal standards; the report of the appraisal.

Special Appraisal: Land market analysis; appraisal of agricultural land using various methods; appraisal of pending fruits and anticipated crops; assessments of the appropriateness of land improvements; characteristics of the land and building cadastre; legal appraisals.

Assessment of the module consists of two written tests and an oral examination. The first written test assesses understanding of theoretical foundations, statistical tools and the valuation process through open-ended and/or structured questions and short applications. The second assesses the ability to perform and interpret financial mathematics calculations and applied valuation exercises. Each written test lasts up to 120 minutes. A non-programmable calculator and any materials expressly authorised by the lecturer may be used. A minimum mark of 18/30 is required in each written test.

Students who have passed both written tests take an oral examination assessing their command of the subject, ability to connect concepts, reasoned selection of methods, interpretation of results and use of technical terminology. The oral examination must also be passed. Passed written tests remain valid for the entire academic year; withdrawal from or repetition of a test is governed by the lecturer’s instructions and current academic regulations.

The module mark is based on an overall, rather than purely arithmetic, assessment of the written tests and oral examination, with particular emphasis on methodological correctness, consistency of assumptions, accuracy of calculations, application skills and clarity of presentation. As Rural Appraisal is a module of the integrated course Economics, Rural Appraisal and Agricultural Policy, its assessment contributes to the final integrated-course mark under the unitary procedures agreed by the examination board and established by the Degree Programme regulations.

 Grading criteria

1. Interest and discount regimes

2. Valuation assumptions

3. Classification of appraisal procedures

4. General appraisal system

5. NAT

6. Income capitalization appraisal

7. Valuation standards

9. Cadastral identification of agricultural land

10. Appraisal of agricultural land