Farmland appraisal based on the analytic network process
- 161 Downloads
This paper presents an application of the Analytic Network Process (ANP) to farmland appraisal. The purpose of this new methodology is to solve some of the drawbacks found in comparative and capitalisation methods, called classical appraisal methods, which cannot deal with contexts where only partial information is available and/or qualitative variables are used. The ANP is a method based on the Multiple Criteria Decision Analysis (MCDA). Previous works have already applied other MCDA techniques to the appraisal context, such as the Analytic Hierarchy Process (AHP), however they have not been able to handle all the complexities of many real world appraisal problems. The ANP provides a more accurate approach for modelling complex environment because it allows the general study of the quantitative and qualitative explanatory variables of the price and the incorporation of feedback and interdependence relationships among variables. The new proposed methodology has been applied to a case study of a farm located in Valencia (Spain) in order to demonstrate its goodness. Both quantitative and qualitative variables, such as the age of the trees, productivity or water quality, have been considered to assess the market value of the farm. Six farms from the same region have been selected as reference assets. The appraisal problem has been solved in three different ways in order to study the influence of each model on the value of the problem farm. In this study it has been proved that the more information is incorporated into the model, the higher accuracy of the solution. From the results of this work we can conclude that the approach proposed stands out as a good alternative to current farmland appraisal approaches, as it has proven to be useful when data are only partially available, qualitative variables are used and influences among the explanatory variables are present.
KeywordsFarmland appraisal Multicriteria AHP ANP
Unable to display preview. Download preview PDF.
- Aznar J. and Caballer V. (2005). An application of the analytic hierarchy process method in farmland appraisal. Spanish J. Agric. Res. 3(1): 17–24 Google Scholar
- Aznar J. and Guijarro F. (2004). Métodos de valoración basados en la programación por metas: modelo de valoración restringida. Revista Española de Estudios Agrosociales y Pesqueros 204: 29–45 Google Scholar
- Ballestero E. and Romero C. (1992). Il rischio d’errore nella stima secondo il metodo sintetico. Revista del Catasto e dei Servici Tecnici Erariali XLVII(1): 5–12 Google Scholar
- Belton V. and Stewart T.J. (2002). Multiple Criteria Decision Analysis: An Integrated Approach. Kluwer Academic Publishers, Boston Google Scholar
- Charnes A. and Cooper W. (1961). Management Models and Industrial Applications of Linear Programming. Wiley, New York Google Scholar
- Murray W.G. (1969). Farm Appraisal and Valuation. Iowa State University Press, Iowa Google Scholar
- Saaty T.L. (1980). The Analytic Hierarchy Process. RWS Publications, Pittsburgh Google Scholar
- Saaty T.L. (1996). The Analytic Network Process: Decision Making with Dependence and Feedback. RWS Publications, Pittsburgh Google Scholar
- Saaty T.L. (2001). Decision Making with Dependence and Feedback: The Analytic Network Process. RWS Publications, Pittsburgh Google Scholar
- Saaty T.L. (2006). Theory and Applications of the Analytic Network Process. Decision Making with Benefits. Opportunities, Costs and Risks. RWS Publications, Pittsburgh Google Scholar