Definition

The Agricultural uses of properties maybe classified in several broads groups, definitions of which follow:

Non Planting Asset. Non Planting Asset is infrastructure and all supporting facilities, including processing unit (if any) which is an inseparable part of the whole agricultural entity.

(Indonesian Valuation Standard 2007, Panduan Penerapan Penilaian Indonesia (PPPI-7, chapter 3.1)

Planting Asset. Planting Asset is a plant cultivated commercially in a particular field and managed by a generally accepted cultivation technique at a particular place.

(Indonesian Valuation Standard 2007, Panduan Penerapan Penilaian Indonesia (PPPI-7, chapter 3.2)

Biological Asset. A living animal or plant. (IAS 41 paragraph 5)

Plantation Property. Plantation Property is a unit of cultivated land in a particular area, with one or more of cultivated crops, infrastructure and other supporting facilities, which are managed by a general applicable estate management standard.

(Indonesian Valuation Standard 2007, Panduan Penerapan Penilaian Indonesia (PPPI) 7, chapter 3.9)

Forestry/ Timberland. Agricultural property used for the growing of non-orchard trees that are periodically harvested or extended growing periods (20 or 20 or more years). Considered to be agricultural properties because they produce a crop, i.e., wood, even though that crop requires a long-term growing period.

(International Valuation Standard 2007, eight edition, Guidance Note (GN) 10, chapter 3.3 / Indonesian Valuation Standard 2007, Panduan Penerapan Penilaian Indonesia (PPPI) 7, chapter 3.4)

Crop(ping) Farms. Agricultural properties used for growing commodities that are typically planted and harvested within a twelve-month cycle. Properties used for annual crop production may grow more than one type of annual crop over the same period and may or may not make use for irrigation to produce the crops. Some commodities are annual crops that may be left in the ground beyond a twelve-month cycle, per contract provisions or in circumstances where market conditions are unfavorable. These crops will last for more than one year after harvest but are considered less than permanent.

(International Valuation Standard 2007, eight edition, Guidance Note (GN) 10, chapter 3.1 / Indonesian Valuation Standard 2007, Panduan Penerapan Penilaian Indonesia (PPPI) 7, chapter 3.6)

Valuation Approach

The methodologies and approached that are used: Sales Comparison Approach, Cost Approach, Income Approach.