While the frequency and intensity of extreme weather events due to climate change is expected to gradually increase, various industrial groups are exposed to the effects of climate change. In particular, the agricultural sector is very vulnerable to natural disasters, as it causes damage to crops and farmland directly when an extreme event occurs. This study especially focused on the effect of the occurrence of storm and flood on farmland prices in Korea. The materials mainly used in this study are official land value, inundation trace map, and the properties of individual parcels and regions. In addition, Hausman-Taylor estimation method was used considering the endogeneity of the rice yield variable. It is shown that the number of disaster risk zones, inundation in the previous year, cumulative frequency, and the average inundation depth in the last three years have a negative effect on farmland prices. The results imply that the occurrence of natural disasters which can affect both net income from farmland and the value when converted to other uses in the future actually lead to price reduction. The flooding affects not only the production of crops, but also requires the repair cost for damaged farmland. This risk cost can be seen as a result of price internalization.