Those accustomed to buy and sell farm lands determine land values by fertility, location, and height of interest rate. Their first consideration is to ascertain the average yield of the piece of land they are trying to buy. Obviously, the more fertile the land the greater the yield. But this is not the only consideration. They must also estimate the cost of getting its product to market. An acre of corn land ten miles from an elevator, other things being equal, is less valuable than an acre nearer at hand. For in both cases the item of transportation cost must be taken into account. Finally, the value of a piece of land, or if we prefer, the value of its economic rent, depends also on the normal interest rate, for as the interest rate declines land values rise. Thus, a farm which would be considered to be worth $20,000 when the normal interest rate is 5 per cent, would be worth $25,000 if the interest rate should drop to 4 per cent. The methods employed to determine the value of a piece of unimproved land may be explained by the simple device as shown on page 340. First the economic rent is determined. Divide the rent by the normal rate of interest. The quotient is the value of the land.