Valuation of Intangible Capital in Agriculture

Fred C. White
1995 Journal of Agricultural and Applied Economics  
This study examines the valuation of research as intangible capital in agriculture using Tobin's q theory. The market value of public research capital is estimated to be 8.6 times higher than conventional assets. Private research capital is valued 5.2 times higher than conventional assets. The estimated valuation multiplier for all farm assets dropped 1/3 over the last decade. In recent years the valuation multiplier has dropped below a dollar, which indicates the market is undervaluing farm assets.
more » ... ndervaluing farm assets.
doi:10.1017/s1074070800028480 fatcat:mpqu5xuwm5go5cbocjduh2d63i