Abstract
This paper presents an application of the Analytic Network Process (ANP) to farmland appraisal. The purpose of this new methodology is to solve some of the drawbacks found in comparative and capitalisation methods, called classical appraisal methods, which cannot deal with contexts where only partial information is available and/or qualitative variables are used. The ANP is a method based on the Multiple Criteria Decision Analysis (MCDA). Previous works have already applied other MCDA techniques to the appraisal context, such as the Analytic Hierarchy Process (AHP), however they have not been able to handle all the complexities of many real world appraisal problems. The ANP provides a more accurate approach for modelling complex environment because it allows the general study of the quantitative and qualitative explanatory variables of the price and the incorporation of feedback and interdependence relationships among variables. The new proposed methodology has been applied to a case study of a farm located in Valencia (Spain) in order to demonstrate its goodness. Both quantitative and qualitative variables, such as the age of the trees, productivity or water quality, have been considered to assess the market value of the farm. Six farms from the same region have been selected as reference assets. The appraisal problem has been solved in three different ways in order to study the influence of each model on the value of the problem farm. In this study it has been proved that the more information is incorporated into the model, the higher accuracy of the solution. From the results of this work we can conclude that the approach proposed stands out as a good alternative to current farmland appraisal approaches, as it has proven to be useful when data are only partially available, qualitative variables are used and influences among the explanatory variables are present.
Similar content being viewed by others
References
Agarwal A., Shankar R. and Tiwari M.K. (2006). Modeling the metrics of lean, agile and leagile supply chain: An ANP-based approach. Eur. J. Oper. Res. 173: 211–225
Aznar J. and Caballer V. (2005). An application of the analytic hierarchy process method in farmland appraisal. Spanish J. Agric. Res. 3(1): 17–24
Aznar J. and Guijarro F. (2004). Métodos de valoración basados en la programación por metas: modelo de valoración restringida. Revista Española de Estudios Agrosociales y Pesqueros 204: 29–45
Aznar J. and Guijarro F. (2007). Modelling aesthetic variables in the valuation of paintings: an Interval Goal Programming approach. J. Oper. Res. Soc. 58: 957–963
Aznar J. and Guijarro F. (2007). Estimating regression parameters with imprecise input data in an appraisal context. Eur. J. Oper. Res. 176(3): 1896–1907, DOI: 10.1016/j.ejor.2005.10.029
Ballestero E. and Romero C. (1992). Il rischio d’errore nella stima secondo il metodo sintetico. Revista del Catasto e dei Servici Tecnici Erariali XLVII(1): 5–12
Belton V. and Stewart T.J. (2002). Multiple Criteria Decision Analysis: An Integrated Approach. Kluwer Academic Publishers, Boston
Charnes A. and Cooper W. (1961). Management Models and Industrial Applications of Linear Programming. Wiley, New York
Cheng E.W.L. and Li H. (2004). Contractor selection using the analytic network process. Construct. Manage. Econ. 22: 1021–1032
Chung S., Lee A.H.I. and Pearn W.L. (2005). Analytic network process (ANP) approach for product mix planning in semiconductor fabricator. Int. J. Product. Econ. 96: 15–36
Diakoulaki D., Mavrotas G. and Papayannakis L. (1995). Determining objective weights in multiple criteria problems: the critic method. Comput. Oper. Res. 22(7): 763–770
Erdoğmuş Ş., Aras H. and Koç E. (2006). Evaluation of alternative fuels for residential heating in Turkey using analytic network process (ANP) with group decision-making. Renew. Sust. Energy Rev. 10: 269–279
Murray W.G. (1969). Farm Appraisal and Valuation. Iowa State University Press, Iowa
Niemira M.P. and Saaty T.L. (2004). An Analytic Network Process model for financial-crisis forecasting. Int. J. Forecast. 20: 573–587
Partovi F.Y. and Corredoira R.A. (2002). Quality function deployment for the good of soccer. Eur. J. Oper. Res. 137: 642–656
Saaty T.L. (1980). The Analytic Hierarchy Process. RWS Publications, Pittsburgh
Saaty T.L. (1996). The Analytic Network Process: Decision Making with Dependence and Feedback. RWS Publications, Pittsburgh
Saaty T.L. (2001). Decision Making with Dependence and Feedback: The Analytic Network Process. RWS Publications, Pittsburgh
Saaty T.L. (2006). Theory and Applications of the Analytic Network Process. Decision Making with Benefits. Opportunities, Costs and Risks. RWS Publications, Pittsburgh
Yurdakul M. (2004). AHP as a strategic decision-making tool to justify machine tool selection. J. Mater. Process. Technol. 146: 365–376
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
García-Melón, M., Ferrís-Oñate, J., Aznar-Bellver, J. et al. Farmland appraisal based on the analytic network process. J Glob Optim 42, 143–155 (2008). https://doi.org/10.1007/s10898-007-9235-0
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10898-007-9235-0