Need Help
If you need help setting up services or accessing your accounts, please call our Customer Care Team at 866.552.9172 during business hours (7 a.m. — 5 p.m. PST, M-F) or email us at CustomerCare@AgWestFC.com.
Location
If you need help setting up services or accessing your accounts, please call our Customer Care Team at 866.552.9172 during business hours (7 a.m. — 5 p.m. PST, M-F) or email us at CustomerCare@AgWestFC.com.
Location
If you need help setting up services or accessing your accounts, please call our Customer Care Team at 866.552.9172 during business hours (7 a.m. — 5 p.m. PST, M-F) or email us at CustomerCare@AgWestFC.com.
Securely update and exchange balance sheet information with your AgWest team.
Put your idle cash to work with a suite of banking services that sweeps funds between accounts. Fees apply.
High interest rates, generally low inventories, falling farm income and shifting water availability and regulations are among the main drivers influencing land values in the West.
Overall, land values remain relatively stable across Washington, Oregon, Montana and Idaho (see charts below). Values continue to increase in California, where premium vineyard and high-quality vegetable/strawberry land values in the Central Coast appear to be increasing and offsetting declines in the Central Valley, where falling commodity prices have led to a decline in value for walnut and table grape acres. In Arizona, sales activity has slowed and marketing times are extended due to high interest rates, softening commodity prices and decreasing irrigation water supply in some regions.
Land Values Per Acre, AgWest Territory
Land value considerations
Interest rates – During Q4 2023, high interest rates were one of the most frequently reported deterrents to land acquisition. See our Quarterly Economic Update for a more in-depth analysis of interest rates.
Residential – The housing market in most areas has cooled, largely due to high interest rates. A cooling market may lead to fewer developments and alleviate upward price pressure on agricultural lands, particularly those surrounding population centers. Lower prices have yet to be seen as agricultural lands remain in high demand.
Availability – Inventories of agricultural land are low in the much of the region, which continues to bolster values despite elevated interest rates. Inventory of land in water secure areas adaptable to high value commodities is low in California.
Farm income/commodity prices – After reaching record highs in 2022, the USDA forecasts farm-sector income will decline by 25.4% in 2023. While this may disincentivize prospective buyers, the correlation between land values and commodity prices in recent years has been weak as many perceive land as a stable, long-term investment. The outlook for commodities is mixed, but little to no negative impact on land values has been seen. Visit our Industry Insights Webpage for more information and market updates.
Water Supply – CA and AZ – California Central Valley growers banked millions of acre-feet of water in 2023, replenishing over-drafted aquifers (when groundwater use exceeds recharge). Many expect significant precipitation this winter; however, the Sustainable Groundwater Management Act may lead to strict pumping restrictions and hefty fees in certain regions. Falling water levels at Lake Mead and limited flow on the Colorado River led to severe shortage declarations in 2023. All Colorado River user states and Native American tribes continue with contentious negotiations over water rights and use cutbacks under pressure of looming federal intervention by the U.S. Bureau of Reclamation. Water supply uncertainty and rising interest rates are reducing activity in the speculative/investment market for agricultural land, although the full effect of these developments cannot yet be determined.
Drought – Good snowpack last winter and spring rains brought relief to drought-stricken areas throughout the West. Year-to-date precipitation levels throughout the West range from 77% to 140% of average (see map below). Storage water and irrigation conditions were generally favorable through the 2023 growing season; however, over half of the West saw some level of drought conditions return in late summer and into fall. There are significantly fewer areas under severe, extreme or exceptional drought than in January 2023 (see maps below). Despite the presence of El Niño, the first California snowpack survey conducted in late December of 2023 was only 25% of the historical average.
Drought Classifications, Western States
Year to Date Precipitation, Western States
Arizona
California
Idaho
Montana
Oregon
Washington
AgWest appraisers provide appraisal services on rural properties throughout our territory. This Snapshot covers sales and market data from Idaho, Montana, Oregon, and Washington.
This report provides a high-level look at trends and market characteristics and does not provide detail for specific areas or land types. The report should not be used to identify a value for a specific property. This information is limited only to an analysis of trends in identified land values within the specified geographic area served by AgWest Farm Credit.
For more information or to share your thoughts and opinions, contact the Business Management Center at 866.552.9193 or bmc@AgWestFC.com.
To receive email notifications about western and global agricultural and economic perspectives, trends, programs, events, webinars and articles, visit www.AgWestFC.com/subscribe or contact the Business Management Center.
AgWest supports customers with a wide range of industry and business management resources
Learn more