Replacement cost is market value plus transaction costs, with no deduction for depreciation or salvaged materials.
For farmland it means land of equal productive potential nearby, plus preparation and registration costs. For a house it means the cost of building a new one of similar or better quality, including labour and fees.
For people who live from the land, replacement land is preferred over cash. Compensation is paid before land is taken, and where national rates fall short, the project makes up the difference.