Land Mix Analysis Video

This tutorial video will demonstrate the select land lists and the calculate land values buttons, as well as the calculations that occur for an unimproved sale and an improved sale.

DataLog uses an improvement residual method for allocating the sale price. That means that the land components should be allocated first and the residual amount for the improvement contribution will auto-calculate. As a second step, the improvement's contributions will be adjusted to match this residual value.

The land mix analysis section is the fifth section in a sale. With a sale open, I will go to the Land Mix Analysis title bar. If this section is not expanded, clicking anywhere on the title bar will expand it.

There are two buttons in this section select land list and calculate land values. The first button select land list can be very useful for adding the same land types for multiple sales. Multiple land lists can be created. To save a land list, enter in the land use types and their respective ratios.

The ratio is a price ratio between the land types. For example, if the market’s best crop ground typically sells for $1,000 per acre and the second-best crop ground sells for $800 an acre, they will have a 100% to 80% ratio. The ratio for the first row should always be 100. However, that does not need to be the highest priced land. It should be the market’s most prevalent land type. The other ratios may be less than 100, greater than 100, or exactly 100 depending on how they compare to the price of the first land row.

Up to 10 land rows can be created in this section. I will enter a few land types and ratios to demonstrate the save land list feature. I will go to the select land list dropdown and click save current list as. This will bring up a dialog box asking to name the land list. I will name this one Demo and click OK. Clicking on select land list again will show the land list at the bottom of the menu. The land lists that are created and saved in DataLog will also be available in ClickForms.

To demonstrate how the land values are calculated, I will start with the Demo land list. For an unimproved sale, the sale needs to be set to Unimproved in the Sale Identification section. Either enter the land types, ratios, and acreages directly or use a saved land list by clicking Select Land List, choose the land list for the market. Then enter the respective acreage for each land type. To calculate the land values, click the calculate land values button and the land values will fill in for all land rows. The total of the land value is equal to the total CEV price. This sale is unimproved, so it has allocated all the dollars to the land contribution. The calculated price per acre between the different land types is based on the entered ratios. in this example cropland avg is 80% of cropland above avg.

For an improved sale, the sale needs to be set to Improved in the Sale Identification section. Using the demo land list again, enter in the respective acreages for each land type. For an improved sale, enter the $/acre for the first land row before clicking the calculate land values button. For this sale, I’ll enter $2500 per acre for the first land row. And click calculate land values. It calculates the remaining land values based on the ratios and the first $/acre amount and the residual dollars fall out into the improvement contribution.

Because of rounding, there may be a small difference between the allocated dollars and the dollar per acre. This is normal and does not affect the use of the sale. We have chosen to round the total dollars to whole numbers and show the actual total for the land contribution.

Again, the first land row should always have a ratio of 100, and for an improved sale, the first land row is manually entered prior to calculating the land values as the unallocated dollars go to the improvement contribution. Land lists can be saved by entering land types and ratios, then clicking select land list, and selecting save current list as. Always check the Sale Identification section to set the sale to improved or unimproved before clicking the calculate land values button.

If you have any questions or comments about DataLog’s land-mix section, feel free to give us a call at 605-787-7871, or send an email to support@uaar.net.