Determining the replacement cost for tobacco farms is a complex endeavor, involving careful consideration of multiple factors. From the valuation of individual buildings, such as tobacco barns and sheds, to assessing the costs of materials, labor, ventilation systems, and permitting regulations, accurate estimation is crucial.
The Challenge of Estimating the Replacement Cost for Tobacco Farms
It’s important that attention be given to individual buildings when calculating tobacco farm valuation. Though designs vary widely between farms, commonalities include framed construction, gabled roofs, and some sort of ventilation to slow down the tobacco drying in order to aid the curing process. Many properties also have temporary housing structures for farm labourers. Up-to-date costs of wood and hardware as well as permitting regulations all need to be considered when estimating the replacement cost for tobacco farms.
Ventilation
The type of ventilation varies in sophistication from manually operated hinged vents that attach to the clapboards to elaborate roofing ventilation systems. Rebuild valuation for insurance needs to take into account whether the type of components that go into these systems is still available or has to be upgraded.
Greenhouses
While tobacco barns are the prominent features, greenhouses should not be overlooked in the farm replacement cost. Due to the cool temperatures in early spring, Canadian farmers use them to protect tobacco seeds they sow in sterile muck before transplanting them to the fields in May. So, the cost of replacing them with up-to-date safety glass and hardware needs to be factored in.
Hanging Apparatus
The interior of a tobacco barn is often filled with wooden crossbeams and posts to support tiers of “laths” or “tobacco sticks” from which drying tobacco leaves hang as they cure. Since wood varies in price according to grade, research is critical.
Inspection/Permitting
As in all construction and renovation projects, permitting and inspection must be taken into account. Since the cost of these change constantly, researching their current cost is an ongoing necessity.
The Douglas Agricultural Cost Guide: An Invaluable Companion in Arriving at The Most Accurate Replacement Cost For Tobacco Farms
When it comes to finding the most up-to-date, consistent cost estimates of resources and materials needed to rebuild existing structures or replace them with new construction, countless insurance appraisers, underwriters, and mortgage lenders turn to the Douglas Agricultural Cost Guide because they know that, unlike static one chart-fits-all pricing guides, the Douglas Agricultural Cost Guide reaches across all of Canada to account for regional differences to arrive at regional costs of materials and labor and the local inspection and permitting requirements that impact them.
Filled with the expertise and knowledge amassed in 30 years of experience in residential and agricultural valuation and real estate appraisal, the Douglas Cost Guide is updated in an ongoing fashion and is available as both an online platform and a hard copy physical manual.
