Trends in Agricultural Land & Lease Values

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Trends in Agricultural Land & Lease Values California and Nevada Presented by Outlook 2018 Agribusiness Conference March 22, 2018 Visalia, California This publication an d the charts, data,

1 Trends in Agricultural Land & Lease Values California and Nevada Presented by Outlook 2018 Agribusiness Conference March 22, 2018 Visalia, California This publication an d the charts, data, information and material herein are copyrighted by the California Chapter, ASFMRA and/or Janie Gatzman, ARA. All rights have been reserved. No part of this presentation may be reproduced. The information, views and opinions expressed in this presentation are those of the author and do not necessarily reflect the views of the California Chapter, ASFRMA. Any unauthorized reproduction, distribution, transmission, public display or performance, or preparation of a derivative, of this presentation or the individual pages, charts, or material herein, in print, electronic, multimedia, or other form, is expressly prohibited under Title 17 of the United States Code and its foreign counterparts. No portion of this presentation may be used, for commercial or non-commercial purposes, without the advanced written permission of the California Chapter, ASFMRA and the author(s) of this presentation.

Due to many factors, one should not assume that all of the farms or ranches within a certain market area or crop will fall within the ranges

2 Disclaimer The land value and lease data presented today and in the Trends publication represents a general range of sales and rental data for each stated market. Specific sales or leases may be present in the market which are higher or lower that the ranges noted. Due to many factors, one should not assume that all of the farms or ranches within a certain market area or crop will fall within the ranges shown. We strongly recommend that you obtain the assistance of a trained professional in your area to determine the value or appropriate rental level for a specific property.

3 Special Thanks to Janie Gatzman, ARA and Tiffany Holmes, ARA Co-Chairs of the Land Value Survey Committee Suzie Roget and Liz McAfee Members of the 2018 Trends Coordinating Team Regional Chairs: Kyle Dalrymple Kary Griffith Kristin Massetti, ARA Alison Renz Clark, ARA Michael Merkley, ARA Hal Forcey, ARA Jaime Bigham, ARA Mike Ming, ARA, FRICS Curtis A. Buono, ARA, MAI, AI-GRS David Bell, ARA and All Regional Committee Members

4 AND All of our sponsors, without whom this publication would not be possible Please check out their ads and patronize the businesses of our sponsors!

Regions Region One: Sacramento Valley Region Two: North Coast Region Three: North SJ Valley Region Four: Central SJ Valley Region Five: Southern SJ Valley Region Six: Central

5 Regions Region One: Sacramento Valley Region Two: North Coast Region Three: North SJ Valley Region Four: Central SJ Valley Region Five: Southern SJ Valley Region Six: Central Coast Region Seven: Southern California Region Eight: Mountains Region Nine: Nevada Janie Gatzman, ARA. All rights have been reserved. No part of this presentation may be reproduced.

6 Nut Crops Almonds Walnuts Pistachios

7 Almond Orchard Values Sac Valley North SJ Valley Central SJ Valley South SJ Valley Almonds High Price Paid per acre $50,000 $45,000 $35,

8 Almond Orchard Values Sacramento Valley Values per Acre Mean 4% from $35,000 N San Joaquin Valley Values per Acre Mean 6% from $50,000 $45,000 $35,000 Mean 14% from Mean 10% from

9 Almond Orchard Values East side Central SJ Valley Values per Acre $45,000 South SJ Valley Values per Acre $45,000 Mean 2% from $35,000 Mean 5% from $35,000 Mean 13% from Mean 22% from West side

10 Walnut Orchard Values Sac Valley North SJ Valley South SJ Valley Walnuts High Price Paid per acre $50,000 $45,000 $35,

11 Walnut Orchard Values Sacramento Valley Values per Acre Mean 2% from $45,000 $35,000 N SJ Valley Values per Acre Mean 5% from $45,000 $35,000 Mean 16% from Mean 11% from

12 Walnut Orchard Values S SJ Valley Values per Acre Mean 23% from $50,000 $45,000 $35,000 Mean 25% from

13 Pistachio Orchard Values Central SJ Valley South SJ Valley Pistachios High Price Paid per acre $45,000 $35,

14 Pistachio Orchard Values Central SJ Valley Values per Acre Mean 5% from $45,000 $35,000 South SJ Valley Values per Acre Mean 12% from $45,000 $35,000 Mean 9% from Mean 25% from

15 Winegrape Vineyards North Coast Central Coast Southern California Central Valley

16 Winegrape Vineyard Values Napa Sonoma SoCal Monterey SLO, SB Lodi Fresno Winegrape Vineyards High Price Paid per acre Premium = Stable $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,

17 Winegrape Vineyard Values Napa Prime Values per Acre $450,000 $400,000 Napa Secondary Values per Acre $450,000 $400,000 $350,000 $350,000 $300,000 $300,000 $250,000 $250,000 $200,000 $200,000 $150,000 $150,000 $100,000 $100,000 $50,000 $50,000

18 Winegrape Vineyard Values Napa Outlying Values per Acre $180,000 $160,000 Sonoma Prime Values per Acre $180,000 $160,000 $140,000 $140,000 $120,000 $120,000 $100,000 $100,000 $80,000 $80,000 $60,000 Secondary $60,000 Planted out, expanding

19 Winegrape Vineyard Values Lodi Values per Acre $45,000 Fresno Values per Acre $45,000 $35,000 $35,000

20 Winegrape Vineyard Values Monterey Values per Acre $80,000 $70,000 SLO, SB Values per Acre $80,000 $70,000 $60,000 $60,000 $50,000 $50,000

21 Winegrape Vineyard Values SoCal Values per Acre $120,000 $100,000 $80,000 $60,000

22 Irrigated Crop Land Central Valley Central Coast Southern California

23 Central Valley Irrigated Crop Land Values Sac Valley North SJ Valley Central SJ Valley South SJ Valley Cropland (good water) High Price Paid per acre $35,

24 Central Valley Irrigated Crop Land Values Federal Water Districts North SJ Valley-Stanislaus North SJ Valley-Merced Central SJ Valley South SJ Valley Crop Land-Federal Districts High Price Paid per acre

25 Irrigated Land Values: Sacramento Valley Yolo, S. Sutter, N. Sac. & Solano Irrigated Cropland Class 1-2 Class 3-4 $24,000 $22,000 $18,000 $16,000 $14,000 $12,000 $8,000 $6,000 $4,000 $2,000 NW Valley, Feather River & Sutter Basin Irrigated Cropland $24,000 $22,000 $18,000 $16,000 $14,000 $12,000 $8,000 $6,000 $4,000 $2,000 SGMA Who?

26 Irrigated Land Values: North San Joaquin Valley Cropland-North $35,000 Lodi, N County Districts, Well Water Delta Twin Tunnels

27 Irrigated Land Values: North San Joaquin Valley Cropland-Central Cropland-South SGMA What? $35,000 $35,000 Eastside Districts Non-Federal Westside Merced ID Westside-Well & Federal Non-Federal Westside Westside-Well & Federal Groundwater Ordinances

28 Irrigated Land Values: Central San Joaquin Valley Madera County Cropland Fresno County Cropland East District: Mean 16% from District: Mean 3% from District District Wells Wells: Mean 38% from Wells Wells: Mean 21% from Oh, that SGMA

29 Irrigated Land Values: South San Joaquin Valley Tulare County Cropland Hello SGMA

30 Irrigated Land Values: South San Joaquin Valley Kings County Cropland North Kern County Cropland NE & Central Southeast Central West State Water Hello SGMA: White Areas? No Thanks.

31 Central Coast Irrigated Farmland Values Ventura SLO-SB Monterey Santa Cruz San Benito Coastal Cropland High Price Paid per acre $120,000 $100,000 $80,000 $60, Stable highs & lows, except

32 Irrigated Land Values: Southern California Coachella Valley Open Land $35,000 Stability

33 Irrigated Land Values: Southern California Palo Verde Valley Irrigation Field Crops/Produce $16,000 Imperial Valley Irrigated Land $16,000 $12,000 $12,000 Good $8,000 $8,000 Average $4,000 Limited $4,000 Stable, low cap rates Volume nearly doubled

34 Soft Fruits Prunes Peaches, Plums, Nectarines and Cherries

35 Soft Fruits Sac Valley Prunes N. SJ Valley Cherries Cent. SJ Valley Stone Fruit S. SJ Valley Table Grapes S. SJ Valley Stone Fruit High Price Paid per acre $45,000 $35,

36 Citrus Cent. SJ Valley Citrus S. SJ Valley Citrus High Price Paid Per acre $50,000 SoCal Citrus

37 Dairy Facilities N SJ Valley Cent SJ Valley S SJ Valley High Price Paid per cow $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,

38 Rangeland Coastal Inland Coast Central Valley, East Central Valley, West Intermountain High Price Paid per acre $17,500 $12,500 $7,500 $2,

39 Nevada Cattle Operation (per AU) $12,000 Grazing Land (per acre) $2,500 $2,000 $8,000 $1,500 $6,000 $1,000 $4,000 Pasture/Meadow $2,000 $500 Dry Grazing/Range

40 Nevada Orovada, Kings R., Silver State, Paradise, Winnemucca $17,500 Lahomtan Valley $17,500 $12,500 $12,500 $7,500 $7,500 $2,500 $2,500 Lovelock, Carson, Mason & Smith Valleys all Stable

41 Trends in Agricultural Land & Lease Values California and Nevada Presented by Thank You!

The Economic Impact of Wine and Grapes in Lodi 2009

The Economic Impact of Wine and Grapes in Lodi 2009 Prepared for the Lodi District Grape Growers Association and the Lodi Winegrape Commission May 2009 A S T O N E B R I D G E R E S E A R C H R E P O R