# How the state values a farm in KwaZulu-Natal

By Landmatters. Published 2026-06-18.

The state values a farm at market value using comparable sales adjusted for land capability, water rights, improvements at depreciated replacement cost, and biological assets such as plantations and orchards. A seller cannot set the price, but a well-evidenced independent valuation and complete production records materially affect the state's figure. Landmatters briefs every valuer with the evidence that the state's own valuers test.

## Market value, not replacement value

The state pays what a willing buyer would pay a willing seller on the open market. Sentimental value, development potential outside current zoning, and what you paid are not factors.

## Comparable sales

The valuer looks for recent sales of similar farms in the district, adjusts for size, water, and improvements, and derives a value per hectare for each land use. We maintain our own register of completed sales to support this step.

## Land use and water

Irrigated land, dryland arable, grazing, plantation, and waste are valued separately. Registered water use lifts irrigated land materially, which is why we verify registrations early.

## Improvements

Houses, sheds, parlours, packhouses, fencing, and water infrastructure are valued at depreciated replacement cost. An inventory with ages and conditions helps the valuer and protects you from undervaluation.

## Biological assets

Cane ratoons, timber compartments, and orchards are valued on age and yield. Records of planting years and production are essential.

## Supporting a fair figure

Complete records, an independent valuation, and a clear brief to the valuer. Where the state's figure is below the evidence, we respond with a reasoned counter.

Source: https://srv1138707.hstgr.cloud/guides/how-the-state-values-a-farm