Highest and best use decision-making in a multifunctional agricultural land market

Abstract

This article takes a closer look at the choice of a HBU in agricultural land valuation practice in the presence of alternative land uses. This is done through a critical overview of the relevant valuation literature, with specific reference to the concepts of HBU and market value and problems associated with the application of these terms within the valuation context. The need for deferring the decision of a HBU, together with the use of a multiple perspective approach to inform the choice of a HBU are discussed as ways to deal with uncertainties and complexities associated with the valuation of agricultural land where alternative uses are present. Additional and improved information in valuation reports, complemented with comprehensive analysis will also assist in better decision-making by the users of these reports.