The study investigates the usefulness of land values to measure the capitalized damages to agricultural land resulting from flooding by using a multiple linear regression technique to control for nonflood factors affecting land values. The model is applied to a study area on the Missouri River by using appraisal data on the value of land and improvements. Significant differentials in land values between two flood‐free areas and a flood‐prone area attributable to flood risk are individually established. Comparison of the results with other measures of flood risk shows the results to be reliable.