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agricultural preservation is considered. This qualification is <br />necessary, since a PDR program may serve more than one <br />purpose, differing in the rights that are removed from land <br />and involving rights that are not valued the same. <br />As an example, the cost of a development right purchase for <br />agricultural preservation purposes is usually figured on a per <br />acre basis as follows: <br />Market Value - Agricultural Value = Development Rights Value <br />Market value is determined by an appraisal and usually based <br />on recent sales of comparable land. It represents the amount <br />for which the property with all rights intact would be sold. <br />Agricultural value is also based on an appraisal and based on <br />the current and prospective net returns from agricultural <br />production. It represents the amount for which the property <br />would be sold based on its income potential. Shown <br />graphically, the value relationship would look like Figure 1 <br />below. <br />Figure 1 <br />RELATIONSHIP OF VALUE OF DEVELOPMENT RIGHTS <br />TO MARKET VALUE AND AGRICULTURAL VALUE <br />Market Value <br />High Low <br />Development Development <br />Pressure Pressure <br />Land values <br />another and <br />if not unwi <br />development <br />the cost of <br />per acre. <br />vary widely from one part of <br />even within a single county, <br />Be, to draw conclusions about <br />rights in other PDR programs. <br />.purchasing development rights <br />Page - 6 <br />the country to <br />making it difficult, <br />the cost of <br />Nationally, however, <br />has averaged $1,500 <br />Market Value <br />: Value of . <br />; <br />: Develop- : <br />: Value of : <br />meet <br />: Develop- . <br />Rights <br />ment <br />: <br />• <br />• Rights <br />. <br />. Agricul- <br />: Agricul- <br />. tural <br />tural : <br />. value <br />. value <br />High Low <br />Development Development <br />Pressure Pressure <br />Land values <br />another and <br />if not unwi <br />development <br />the cost of <br />per acre. <br />vary widely from one part of <br />even within a single county, <br />Be, to draw conclusions about <br />rights in other PDR programs. <br />.purchasing development rights <br />Page - 6 <br />the country to <br />making it difficult, <br />the cost of <br />Nationally, however, <br />has averaged $1,500 <br />