What does "current use value" of agricultural land refer to?

The term "current use value" of agricultural land refers specifically to the value assessed based on the land's actual use for farming and agricultural activities, rather than its potential value for other uses or development. This concept emphasizes that land should be valued according to its present function, which involves evaluating factors such as crop production, soil quality, and available resources for farming.

By focusing on how the land is currently utilized, current use value often results in a valuation that reflects a lower tax burden for farmers. This approach recognizes that land might have a much higher market value if it were converted to urban or commercial use, but appreciates its true worth in its current agricultural purpose. This aligns with the ongoing efforts to support local farming economies and maintain agricultural land.

Other responses do not capture the essence of "current use value" properly. The market value of land in urban areas pertains to land not used for agriculture, while assessed value set by the municipality may not consider current agricultural use specifically. Lastly, the highest price achieved in recent land sales typically reflects speculative value rather than agricultural functionality.