For what type of land is price per animal unit considered an appropriate unit of valuation?

Price per animal unit is typically used to evaluate agricultural pasture land because this measurement directly relates to the land's capacity to support livestock. In agricultural contexts, particularly pasture, the productivity of land is often assessed based on how many animal units it can sustain effectively. An animal unit is a standardized measurement that accounts for the differences in the size and feed requirements of various types of livestock.

This method allows valuation to reflect the income-generating potential of the land based on its ability to support these units of livestock. Consequently, the price per animal unit serves as a valuable tool for assessing the value of pasture land in agricultural settings, capturing its primary use and economic function.

Other types of land, such as forestry, residential, and commercial, have distinct valuation metrics that take into account their specific characteristics and market dynamics, making them unsuitable for valuation based on animal units. For instance, forestry land would be valued based on timber volume, residential land by comparables and amenities, and commercial land by factors such as location, business potential, and traffic patterns.