Currently, the Republic of Slovenia has not officially prescribed a uniform methodology for calculating the market value of agricultural land. The income method, which is most often used in judicial estimates of agricultural land, has a deficiency in the equation since it does not provide clearly defined conditions for calculating the expected return on agricultural land. Based on the study of the equations and the results of the evaluation of agricultural land from the Primorska region and the Pomurje region, using the known methods, we demonstrated what would happen to the estimated values if we were using the precisely calculated expected yield. We have described a new procedure for calculating the expected return, based on an estimate of the real yield of agricultural land in the Republic of Slovenia, whereby agricultural land is considered as own capital. We used a ten-year interest rate for government bonds, unrelated beta and the calculated rate of capitalization of agricultural land. We have found that the Western region has a lower expected return than the Eastern region. It has also been shown that there is an undetermined influence in the income method, which was shown only using the calculated expected return. The new method allows calculating the realistic market value of agricultural land in order to take into account price movements. The new method makes it possible to calculate the fair market value of agricultural land during the time of the country's extreme economic situation, such as the recession.
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