2016 TRENDS in Agricultural Land and Lease Values

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2016 COORDINATING TEAM 2016 Trends Coordinating Team...... 1 Janie Gatzman, ARA About ASFMRA...... 2 Tiffany Holmes, ARA California Chapter, ASFMRA...... 2 American AgCredit — Oakdale, CA Mission of the California Chapter...... 2 Friends of the Chapter...... 2 2016 REGION CHAIRS Introductory Membership...... 2 Message from the President...... 3 REGION 1 Chapter Officers...... 3 Kyle Dalrymple 2016 Trends Sponsors...... 4 Edwards, Lien & Toso, Inc. — Gridley, CA Photographers...... 4 Disclaimer/Copyright...... 4 REGION 2 Message from the Trends Co-Chairs...... 5 Hal Forcey, ARA American AgCredit — Santa Rosa, CA ARTICLE 2015: Another Banner Year, or the Beginning of the End? ...... 6 REGION 3 Kary Griffith,ARA REGION ONE Yosemite Farm Credit — Modesto, CA Sacramento Valley...... 11 Land and Lease Values...... 19 REGION 4 Historical Value Range per Acre...... 20 Jaime Bigham, ARA Fresno-Madera Farm Credit — Fresno, CA REGION TWO North Coast...... 23 Kristin Massetti, ARA Correira-Xavier, Inc. — Fresno, CA Land and Lease Values...... 31 Historical Value Range per Acre...... 32 REGION 5 REGION THREE Mike Ming, ARA,FRICS Northern San Joaquin Valley...... 35 Alliance Appraisal, LLC — Bakersfield, CA Land and Lease Values...... 45 Historical Value Range per Acre...... 46 REGION 6 Allison Renz Clark, ARA REGION FOUR American AgCredit — Salinas, CA Central San Joaquin Valley...... 49 Land and Lease Values...... 57 REGION 7 Historical Value Range per Acre...... 58 David Read American AgCredit — Ontario, CA REGION FIVE Southern San Joaquin Valley...... 63 REGION 8 Land and Lease Values...... 69 Jeff Myers Historical Value Range per Acre...... 70 American AgCredit — Stockton, CA REGION SIX REGION 9 Central Coast...... 73 David Bell, ARA Land and Lease Values...... 81 American AgCredit — Reno, NV Historical Value Range per Acre...... 82 REGION SEVEN 2016 LAND VALUES DATA Southern California...... 85 Coordinated by Land and Lease Values...... 89 the Appraisal Staff of Historical Value Range per Acre...... 90 American AgCredit and Correia-Xavier, Inc. REGION EIGHT Mountains...... 93 Land and Lease Values...... 97 Historical Value Range per Acre...... 98 REGION NINE Nevada...... 101 Land and Lease Values...... 103 Historical Value Range per Acre...... 104

Glossary...... 107

www.calasfmra.com 2016 TRENDS IN AGRICULTURAL LAND & LEASE VALUES 1 About ASFMRA California Chapter ASFMRA

The American Society of Farm Managers and Rural The California Chapter of the American Society of Farm Appraisers® (ASFMRA®) is the largest professional Managers and Rural Appraisers was chartered in 1949 society for rural property land experts in the United as an affiliate of the national organization. It is anon- States. ASFMRA represents The Most Trusted Rural profit mutual benefit corporation under California Property Professionals and is the organization for indi- law and supports the educational, ethical and profes- viduals who provide management, consultation, and sional standards of ASFMRA. The California Chapter valuation services, as well as real estate services on rural is the second largest ASFMRA Chapter in the country and agricultural assets. The land experts who hold and prides itself on being an innovator in education for membership in ASFMRA work under a professional code Western Ag Professionals. Through the annual Trends of ethics, which includes continuing education require- in Agricultural Land & Lease Values publication, Spring ments. You can rest assured that if you are working with Outlook Agribusiness Conference, Fall Meeting, FARMit someone who is an accredited member of the Society, you Education Program, California Water & Irrigation are truly working with a competent land expert and agri- District Maps and numerous classes and seminars, the cultural professional who can assist you with all of your Chapter is a trusted and reliable resource for agribusiness land asset needs. in the west. The members of the California Chapter are ASFMRA, founded in 1929, provides members with the dedicated to their profession and are relied upon as being resources, information, and leadership that enable them to the best in the business. provide valuable services to the agricultural community. Mission of the California Chapter, ASFMRA Empowering The focus of ASFMRA is providing education, accreditation agricultural property professionals with education and and networking opportunities for a members who offer farm expertise to provide premier valuation, management and and ranch management, rural and real property appraising, consulting services. review appraisal, and agricultural consulting services to Friends of the Chapter The California Chapter, ASFMRA the private and public sectors and to the governmental and provides an important link for professionals through an lending communities. affiliate membership category –Friends of the Chapter. Friends is intended for those individuals who do not qualify for membership in the ASFMRA as a rural appraiser, review ASFMRA Accredited Designations appraiser, farm manager or agricultural consultant but wish to be affiliated with the California organization. AAC Accredited Agricultural Consultant AFM Accredited Farm Manager Introductory Membership The California Chapter offers an Introductory Membership for individuals who are inter- ARA Accredited Rural Appraiser ested in membership in the ASFMRA but are not ready RPRA Real Property Review Appraiser to make the national commitment. This membership category is limited to two years and is available to any new non-member who does not qualify as a Friend of the Chapter. The Introductory Membership is an excellent way to ‘ease into’ membership in the American Society and determine if it is right for you. For more information on membership, please call (209) 368-3672 or email [email protected].

TRENDS in Agricultural Land & Lease Values published by

California Chapter of the American Society of Farm Managers and Rural Appraisers, Inc. (ASFMRA) P.O. Box 838 Woodbridge CA 95258 (209) 368-3672 www.calasfmra.com [email protected]

2 2016 TRENDS IN AGRICULTURAL LAND & LEASE VALUES MESSAGE from the President David F. Hamel, ARA CALIFORNIA CHAPTER Board of Directors

This 2016 issue of Trends in Agricultural Land and Lease PRESIDENT Values marks the 26th year of the publication by the California Chapter of the American Society of Farm David F. Hamel, ARA Managers and Rural Appraisers. Since 1991, the Hamel Appraisal Co. Santa Maria CA publication’s growth and evolution reflects the changes in agricultural crops and livestock production practices in California and Nevada. PRESIDENT-ELECT Anthony J. Toso, ARA The publication is the flagship Trends Edwards, Lien & Toso, Inc. of the chapter’s outreach to the Hilmar CA agricultural community. Complementing the Trends are the numerous educational seminars for the professional farm manager and appraisal FIRST VICE PRESIDENT communities. The roll-out of the FARMit! training series illustrates another facet of the chapter’s dedication to professional training for the agricultural Dan Whisenhunt, AAC consultant, farm manager, and appraiser. Agcom, LLC; Dan Whisenhunt Consulting Turlock CA As always, we extend our heartfelt gratitude to all the members of the California Chapter who have made this publication possible as well as SECOND VICE PRESIDENT those who came before them to lay the foundation for what Trends is today. JoAnn C. Wall, ARA We extend a special Thank You to our Co-Chairs, Tiffany Holmes, ARA, and Above & Beyond Real Estate Services, Inc. Janie Gatzman, ARA, the American Ag Credit Appraisal Staff, and the region Templeton CA chairs and committee members who have dedicated their time and resources to compile and present the Trends information from their respective regions. SECOND YEAR BOARD MEMBER We would also like to thank Liz McAfee, our publication graphic designer, Martin Seanez, ARA and Ben Slaughter, ARA of Correia-Xavier, Inc. who provides outstanding as- Edwards, Lien & Toso, Inc. sistance with the detailed graphs, charts, and tables. Finally, we extend a big Fresno CA Thank You to Suzie Roget, Executive Vice President, who continues to play an integral part in all aspects of Trends as well as the successful operation of the FIRST YEAR BOARD MEMBER California Chapter. James R. Pisani, ARA Our sponsors are an essential partner in the publication of Trends providing Farm Credit West financial assistance and support. Without our sponsors we would not be able Yuba City CA to provide this professional publication in a high quality format. Please review our list of sponsors throughout the pages of Trends and thank them with your SECRETARY/TREASURER business association. Peter M. Holmes, Jr., AAC If you would like to hear more about the exciting opportunities the Peter M. Homes Co., Inc. California Chapter has to share with you, please check out our website at Woodland, CA www.calasfmra.com. Additional copies of Trends are available in both print and electronic formats from the California Chapter website or through Suzie Roget IMMEDIATE PAST PRESIDENT at (209) 368-3672. Mark J. Peterson, AFM, ARA, AAC Please enjoy the 2016 Trends issue and share it with your colleagues and clients. Kefa Capital, Inc. If you have a burning desire to participate in one (or more) of our publications Clovis CA or educational programs, please feel welcome to let us know.

www.calasfmra.com 2016 TRENDS IN AGRICULTURAL LAND & LEASE VALUES 3 2016 TRENDS Sponsors 2016 Photography

2015 Chapter Member Accreditations...... 8 Institute for Food and Agriculture...... 62 We would like to thank the photogra- Advanced Ag Realty & Appraisal...... 51, 66 Intero Real Estate Services...... 18 phers who submitted their photos for Ag Lenders Society of California...... 56 James G. Palmer Appraisals Inc...... 51 our 2016 Trends publication. AG-LAND Investment Brokers...... 16 K.R. McBay Company...... 42 Kyle Dalrymple AgriBusiness Financial Inc...... 43, 54 Kefa Capital, Inc...... 39, 62, 66, 84 Edwards, Lien and Toso, Inc. — Gridley, CA AgriBusiness Investment Group...... 55 Leavitt United Insurance Services...... 54 Agri-Comm Appraisal...... 30 Lent-Burden Farming, Inc...... 48 Ken Dodderer Agricultural Investment Strategies Lynn E. Rickard, ARA...... 68 Fresno First Bank — Fresno, CA (AgIS Capital)...... 15 M. Green and Company LLC CPAs...... 62 Hal Forcey Agriculture and Business Professionals, Inc...... 22 Madison’s Grand Avenue Chocolates...... 37 American AgCredit — Santa Rosa, CA Agriculture Industries, Inc...... 55 Martin Hein Ranch Company...... 67 Roy Martin Alliance Appraisal LLC/ Merrill Real Estate & Ag Consulting...... 57 Alliance Ag Services...... 60, 65, 84, 87 Bank of the West, Ag Field Office — Fresno, CA Merriman Hurst & Associates Inc...... 68 Arthur C. Bliss, Jr...... 76 Mary Rickert MetLife Agricultural Investments...... 52 Atkinson Consulting Services, LLC...... 68 Western Agricultural Services Monte Vista Farming Company...... 40 AXA Equitable AgriFinance-Al Connor...... 34, 100 Fall River Mills, CA Murphy Austin Adams Schoenfeld LLP...... 13 AXA Equitable AgriFinance-Rudy Munoz...... 81 Pacific Gold Agriculture...... 10 Brittany Wilbur Baker Peterson & Franklin CPA LLP...... 61 Pacific Southwest Irrigation...... 43 www.brittanywilbur.com Bank of America Merrill Lynch...... 5 ParcelQuest...... IFC Bank of Stockton...... 38 Please contact the California Chapter, Pearson Realty...... 60 Bender Rosenthal, Inc...... 22 ASFMRA if you are interested in Pearson Realty-Craig Larson...... 48, 56, 66 Bergthold Ag Services...... 16 submitting photographs for the 2017 Pearson Realty-Robb Stewart...... 72 Bolen Fransen Sawyers LLP...... 61 publication: [email protected] Peter M. Holmes Co., Inc...... 13 California Outdoor Properties, Inc....19, 34, 48, 57, 72, 76, 89, 100, 106 Petersen & Company...... 48 California Water & Irrigation Maps...... 95 PMZ AG Real Estate...... 22, 43, 68 DISCLAIMER | COPYRIGHT Central Valley Community Bank...... 61 Premier Ag Appraisal ...... 56 Chandler Ag Appraisal...... 61 Prudential Agricultural Investments...... 53 DISCLAIMER: Chicago Title...... 54, 72 Rabobank, N.A...... 9 The information, views, and opinions Citizens Business Bank Dairy & Reeve - Associates Real Estate...... 45 expressed in this publication and the Livestock Industries Group...... 65 Ron Silva Realty, Inc...... 62 individual articles herein are those of Clark Company...... 79 Runyan Appraisal Service...... 66 the respective author(s), and do not Cogdill & Associates...... 43 Ryan, LLC...... 28 necessarily reflect the views and Community West Bank...... 75 Schenberger, Taylor, McCormick options of the California Chapter of the & Jecker, Inc...... 79 Correia-Xavier, Inc...... 61 American Society of Farm Managers Schuil & Associates, Inc...... 42, 53, 67 Cove Ranch Management...... 60 and Rural Appraisers, Inc. (California Seevers Jordan Ziegenmeyer...... 22 Cushman & Wakefield-Pacific Commercial Chapter, ASFMRA), its officers, Realty Advisors...... 67 Shasta Land Services, Inc...... 19, 97 directors, or members. Cushman & Wakefield- Simon Company, Inc...... 67 Valuation & Advisory...... 92 Ten Haken, Hinz & Company...... 22 This publication and the individual Donlon Realty...... 42 The Mayo Ryan Company...... 54 articles herein are provided as general Dumont Printing...... 100 The Mendrin Group...... 79 market commentary, and are not Edwards, Lien & Toso, Inc...... 41 The Ranch Co...... 68 intended to and do not constitute F&M Bank...... 42 Tri Counties Bank...... 14 financial, legal, investment, consult- Farm Credit - American AgCredit, CoBank, UBS AgriVest, LLC...... 34 Farm Credit West, Fresno Madera Farm Credit, ing or other professional advice. The Golden State Farm Credit...... BC Umpqua Bank...... 17, 29, 42, 77 California Chapter, ASFMRA has not FARMit Education Program...... 96 US Trust Bank of America Private verified the accuracy or basis-in-fact Wealth Management...... 55 Fenske Appraisal Services...... 84 of any claim or statement made in the Valbridge Property Advisors Fresno First Bank...... 60 ...... 22, 34, 43, 56, 65, 84, 92, 97, 106, IBC individual articles. If you have any Giomi Inc...... 43 Valley Republic Bank...... 72 questions about the information, views, Gladstone Land Corporation...... 78 Watson Realty...... 62, 72 or opinions expressed, including the Golden Valley Real Estate...... 56 Way and Associates...... 48 underlying basis or methodology, you Green Leaf Farms, Inc...... 60 Wegis & Young...... 68 should contact the respective author(s). Grimbleby Coleman CPAs, Inc...... 39 Western Agricultural Services...... 22 You should not rely on any information, H.R. Macklin & Sons, Inc...... 72 Western Ranch and Home, Inc...... 54 views, or opinions in this publication Hamel Appraisal Co...... 84 Wonderful Agricultural Management...... 54 or the individual articles, but rather, Hammond Real Estate...... 43 Yosemite Farm Credit...... 48 should seek the advice of a professional Hancock Agricultural Investment Zengel & Associates...... 62, 81 Group/Hancock Farmland Services...... 44 with regards to your specific needs. Heritage Oaks Bank...... 80 Accredited members of the American Home Realty and Land Co...... 72 Society of Farm Managers and Rural Hopper Company...... 66 Appraisers (ASFMRA), including House Agricultural Consultants...... 16 continued on page 106

4 2016 TRENDS IN AGRICULTURAL LAND & LEASE VALUES MESSAGE FROM THE 2016 Trends Co-Chairs

Welcome to the 26th year of members of the ASFMRA have the Trends publication! Thank completed a rigorous training you for your interest in the program in the valuation and premier publication of annual management of agricultural agricultural land and lease properties. The ASFMRA is value trends in California the only appraisal and manage- and Nevada. ment organization that offers a We want to point out that curriculum specifically based this publication is the product on agricultural real estate. of countless hours of effort Finally, the views and from volunteers throughout opinions expressed in California and Nevada. We the articles throughout would like to thank our regional chairmen: Kyle Dalrymple, this publication are those of the authors and do not nec- Hal Forcey, ARA, Kary Griffith, Jamie Bigham, ARA, Kristin essarily reflect the views of the California Chapter of the Massetti, ARA, Michael Ming, ARA FRICS, Allison Clark, ASFMRA or its members. This entire publication is copy- ARA, David Read, Jeff Myers, and David Bell, ARA. They and righted by California Chapter. All rights are reserved. Do their committees provide the raw value data and analysis that no reproduce without the expressed written consent form the backbone of this publication. The staff at Correia- of California Chapter. Xavier, Inc. led by Ben Slaughter, ARA does a great job of or- Thank you again for your interest and support; we hope you ganizing the data and presenting the data in updated charts enjoy the 2016 issue of Trends! and graphs. These professionals, along with their committee members, deserve our collective gratitude. Sincerely, We would also like to thank our sponsors. Without their Janie Gatzman, ARA Tiffany Holmes, ARA support we could not have created this publication to share Co-Chairs, 2016 Trends in Agricultural Land & Lease Values with you. We are grateful for their participation over the years and hope they continue to be partners in our Trends publication. As you read through this publication, please remember that the value and lease data presented represents a general range of data for each stated market. Specific sales or leases may be present in the market that are higher or lower than the ranges noted, but were considered “outliers” by the committee compiling the data. Due to the many factors that characterize agricultural properties in California and Nevada, one should not assume that all of the farms or ranches within a certain area, or of a particular crop, will fall within the ranges shown. The market is simply too dynamic to make such assumptions. We strongly recommend you obtain the assistance of a trained professional in your area to determine the value or lease rate of a specific property. You will find contact information for many seasoned professionals in this publication. Accredited

www.calasfmra.com 2016 TRENDS IN AGRICULTURAL LAND & LEASE VALUES 5 2015: Another Banner Year, or the Beginning of the End?

It should come as no surprise that 2015 saw increasing land values in nearly all land use categories and regions in California. After all, the reigning darlings of the industry — nut crops and premium wine grapes — posted record farm-gate prices yet again. As California weathered the fourth year of a crippling drought, persistent tightening of water supplies caused farmers to divert scarce and costly water to their most valuable crops, continuing the trend of strong farm profitability. But if you’re tired of the same old mantra, rest assured 2016 will bring change — and not just in the entertaining spectacle known as the presidential race. Nut prices began slipping in the latter half of 2015, led by the walnut market and followed in November by a stomach-clenching free-fall in the almond market. While the late-year volatility had little chance to impact 2015 land values, we can’t raise our brimming wineglasses to toast record-high land values without adding a sobering caveat: one of the key factors driving the increase in land values — record farm profitability — has fundamentally changed in 2016. Almonds continued their dominance in 2015, expanding to over quarter of 2016, orchards with the most expensive water are no one million acres in the Central Valley (890,000 acres bearing). longer profitable. The high end of almond orchard values increased in all four Walnut and pistachio orchards showed no change at the high growing regions, led by the northern San Joaquin Valley where end of the value range from the prior year, though walnut favorable growing conditions intersect with highly stable and orchards at the low end of the range softened in some regions. relatively inexpensive water supplies. Similar to almonds, walnut growers in expensive water areas Notably, 2015 showed the first evidence of erosion at the low have been pinched by crop prices slashed 50-65%, finding end of the range in some regions. While low-end sales used to themselves farming at a loss in the latter half of the year. be restricted to worn-out orchards ripe for redevelopment, this Soft fruits benefitted from greater availability of labor due year the low end included prime orchards that had unstable, to the idling of less profitable row-crop ground in the San costly or risky water sources. In early 2016 Wonderful Orchards Joaquin Valley, though oversupply issues still plague portions (formerly known as Paramount Farming) removed 10,000 of this industry. Sacramento Valley prunes are the star of stone acres of almonds in western Kern County, citing limited water fruits: with product supply more in-line with demand, strong resources and market factors. Paramount paid upwards of contract prices offered by packers created a run on producing $1,120 per acre-foot for surface water in that area in 2013, while orchards. Stone fruit orchards in the central San Joaquin Valley in contrast, farmers in eastern Stanislaus County paid as little have mirrored gains in land values for properties with adequate as $6 per acre-foot. No other input price varies so greatly based water sources. However, citrus, table grapes and cherries have on location. With kernel prices plummeting 50-60% in the first shown little to no change in value over the prior year.

ALMONDS Region 1: Sacramento Valley $50,000 Region 4: Fresno/Madera $45,000 Region 5: Kern/Tulare Region 3: San Joaquin Valley North $40,000

$35,000

$30,000

$25,000

$20,000

$15,000

$10,000

$5,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 $0

6 2016 TRENDS IN AGRICULTURAL LAND & LEASE VALUES Open land prices in the Central Valley also OPEN LAND continued their rise in 2015, though the Region 1: Sacramento Valley $40,000 pace of the increase was beginning to slow. Region 4: Fresno/Madera $35,000 Similar to nut orchards, land with the most Region 5: Kern/Tulare reliable and least expensive water sources, Region 3: San Joaquin Valley North $30,000 coupled with favorable growing conditions for the most desirable nut crops showed $25,000 the highest values. Most of this land was purchased for development to almonds, $20,000 with a smaller portion going into walnuts $15,000 and pistachios, though the most risky development areas recorded a slowdown in $10,000 2015. In the northern San Joaquin Valley there were virtually no sales of rangeland $5,000 intended for permanent planting development, as counties implemented strict 1993 1994 1995 1996 1997 1998 1999 200 200 200 200 200 200 200 200 200 200 201 0 201 1 201 2 201 3 201 4 201 5 $0 groundwater controls limiting the drilling 0 1 2 3 4 5 6 7 8 9 of new agricultural wells. Land values in the cool, rich coastal regions famous for leafy greens, berries, ar- SOFT FRUITS tichokes and more expanded on both ends Region 1: Prunes $40,000 of the value range, as premium locations Region 4: Stone Fruit commanded higher prices and increasing $35,000 Region 7: Citrus profits brought lower-quality land on to Region 5: Table Grapes $30,000 the market. Region 3: Cherries Dairy values have shown some stabiliza- $25,000 tion, though consolidation continues in $20,000 this industry that can’t seem to catch a break. The low end of the market, defined $15,000 by small facilities purchased mainly for conversion to permanent plantings in $10,000 past years, has strengthened — there are simply not many small dairies anymore, $5,000 vacant or otherwise. Orchard developers now encounter competition for the few fa- 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $0 cilities available from large dairies seeking to grow through transfer of permitted capacity. The pace of facility sales has slowed considerably from the last few COASTAL CROPLAND years; in fact there were no dairy facility San Benito $120,000 sales in some parts of the San Joaquin Santa Cruz Valley in 2015. Monterey $100,000 The wine grape vineyard market continues San Luis Obispo/ Santa Barbara to operate in a universe of its own. Water Ventura $80,000 concerns play second-fiddle to the wine industry’s obsession with supply matching fickle consumer demand that dances from $60,000 one market segment to another based on the strength of the economy. The mid-pre- $40,000 mium and premium wine markets are continuing their climb as consumers trade up $20,000 from bargain wines. Accordingly, vineyard values are stable to increasing nearly ev- erywhere but in the San Joaquin Valley

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $0 south of Lodi. Competition with low- priced imports has created an oversupply

www.calasfmra.com 2016 TRENDS IN AGRICULTURAL LAND & LEASE VALUES 7 in the economy-wine segment dominated by San Joaquin Valley vineyards. This has even spilled into the mid-premium Lodi market, WINE GRAPES $400,000 resulting in significant acreage removals over Fresno the last two years in an on-going effort to Lodi Monterey $350,000 bring supply back in line with demand. San Luis Obispo/ Thus, 2015 was by all measures a banner Santa Barbara $300,000 year for land values, which saw increases in Sonoma $250,000 nearly every value class over the entire state. Napa As some key commodity prices dip in 2016, $200,000 the historic rise in land prices may slow or even falter. Or, farmers flush with cash from $150,000 record profits may just double down on land with the best water resources, betting that $100,000 commodity price adjustments will bring $50,000 supply in line with demand, and herald the

return of the “good old days” of early 2015 — 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $0 such is the optimism of the California farmer! As your premier rural property professionals, the members of the ASFMRA’s California Chapter stand ready to ride right along with you — and yes, we’re still praying for rain! Janie Gatzman, ARA, Co-Chair 2016 Trends in Agricultural Land & Lease Values American AgCredit

Dave Hamel, President of the California Chapter, ASFMRA Lucas Avila, AFM congratulates these newly accredited Farmland Management Services Chowchilla, CA agricultural professionals for earning their designations from the Jose Baer, AFM, AAC American Society of Farm Managers Oso Ag LLC | Buellton, CA and Rural Appraisers in 2015. Carl Evers, III, AFM Accreditation from the ASFMRA is the Farmland Management Services society’s highest honor, awarded to Chowchilla, CA competent, highly educated and Renee E. Hendrick, ARA experienced land experts who have The Hopper Company | Visalia, CA met the stringent requirements of the program. Craig A. Owyang, ARA Craig Owyang Real Estate Elk Grove, CA ARA Accredited Agricultural Appraiser Brent Reed, AAC AFM Accredited Farm Manager Hancock Agricultural Investment Group AAC Accredited Agricultural Assistant Strathmore, CA Tim Sanchez, AFM Farmland Management Services David Hamel, ARA Orland, CA (805) 934-6674 David B. Wraa, ARA [email protected] Bender Rosenthal, Inc. | Sacramento, CA www.hamel-consulting.com 484 Highland Dr, Santa Maria CA 93455

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www.calasfmra.com 2016 TRENDS IN AGRICULTURAL LAND & LEASE VALUES 9 REGION ONE SACRAMENTO VALLEY Butte, Colusa, Glenn, Placer (West), Sacramento (North), Solano, Sutter, Tehama, Yuba, and Yolo

REGION TWO NORTH COAST Del Norte, Humboldt, Lake, Marin, Mendocino, Napa, Sonoma and Trinity

REGION THREE NORTHERN SAN JOAQUIN VALLEY Amador (West), Calaveras (West), Contra Costa, El Dorado (West), Merced, Sacramento (South), San Joaquin, and Stanislaus

REGION FOUR CENTRAL SAN JOAQUIN VALLEY Fresno and Madera

REGION FIVE SOUTHERN SAN JOAQUIN VALLEY Kern, Kings, and Tulare

REGION SIX CENTRAL COAST Alameda, Monterey, San Benito, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, and Ventura

REGION SEVEN SOUTHERN CALIFORNIA Imperial, Los Angeles, Orange, Riverside, San Bernardino, and San Diego

REGION EIGHT MOUNTAINS Alpine, Amador (East), Calaveras (East), El Dorado (East), Inyo, Lassen, Mariposa, Modoc, Mono, Nevada, Placer (East), Plumas, Shasta, Sierra, Siskiyou, and Tuolumne

REGION NINE NEVADA Carson City, Churchill, Clark, Douglas, Elko, Esmeralda, Eureka, Humboldt, Lander, Lincoln, Lyon, Mineral, Nye, Pershing, Storey, Washoe, and White Pine

10 2016 TRENDS IN AGRICULTURAL LAND & LEASE VALUES ONE: SACRAMENTO VALLEY

REGION CHAIR & COMMITTEE

Kyle Dalrymple CHAIR David Brown Lorrain Friant AFM, AAC, ARA John Maus ARA Greg Peters David Widlund region one

General Comments have been limited, being typical for these Water The past year saw an increase in market types of agricultural properties, a trend The availability of inexpensive and activity as compared to the relatively that is anticipated to continue. The few dependable sources of water for ir- quiet 2014 illustrating continual increas- known larger sized livestock ranches rigation has always been a significant ing values, largely pertaining to orchard occurring over the past year display factor affecting land values on nearly properties and/or those adaptable stable to slightly increasing value trends, all irrigated cropland and permanent to orchards. Available properties which appears to be partially boosted by plantings in the Sacramento Valley. continued to be limited with private/ 1031 exchange buyers as well as investors The 2015 irrigation season proved to be non-listed or pocket-listings again com- looking for safe harbor. very challenging, coming off the heel of prising a large share of the sale activity. Sales of turn-key dairy facilities have a several-year drought which continued Orchard markets throughout the region been non-existent in 2015, with through the exceptionally dry 2014/2015 remained robust with strong returns continued weak demand in this market rain season. Although the Sacramento again realized for almonds, prunes, area. The few dairy facility sales Valley has historically experienced more peaches and pistachios. The only ob- occurring in this region over the last reliable irrigation supplies as compared servable trepidation in the orchard year consisted of defunct facilities being to much of the San Joaquin Valley, the market pertains to walnuts which saw purchased by orchard developers or lasting drought conditions, resulting a significant slide in nut prices in early hay/cropland operators. Overall, nearly in exceptionally low reservoir levels 2015, causing many orchard developers all types of agricultural properties have led to significant fallowing of irrigated to shift their focus to other tree crops. shown a strengthening in value over the cropland throughout the region. Federal Commodity prices for irrigated field/ past year, primarily driven by permanent water contractors saw the harshest row crops appear stable and slightly planting development. It is antici- effects with allocation reductions above historical averages which was pated that land suitable for permanent between 25% and 100%. Furthermore, likely aided by the limited surface water plantings will remain at elevated levels many Sacramento River Settlement supplies and subsequent reduction in due to the limited supply of suitable Contractors were given very limited planted acreage. There continues to be land being offered for sale, paired with windows as to when water could be strong demand for nearly all agricultural growing demand from well-capitalized, pulled from the river, due to environ- properties, which is especially true for existing operators/buyers active in mental concerns. Although some of parcels that are adaptable to permanent the market. these districts were officially “given” plantings. Ranch and rangeland sales 75% to 100% allocation, the pumping

12 BUTTE | COLUSA | GLENN | PLACER (WEST) | SACRAMENTO (NORTH) | SOLANO | SUTTER | TEHAMA | YUBA | YOLO REGION ONE 13 10/6/2015, 12:07:32 PM IN AGRICULTURAL LANDIN AGRICULTURAL & LEASE VALUES 2016 TRENDS 2016 2015. Drought concerns have also added have also concerns Drought 2015. equation to the two at least there are as that area in the North State counties in drilling moratoriums enacted well in are to remain moratoriums 2015. The and normal rainfall resumes place until ends. the drought helps to create This for those properties a stronger demand irriga- reliable, relatively existing, with tion water sources. Recent transactions indicate a value of $20,000+ upwards range of $11,000 to types and 2 soil 1 per acre for Class development. suitable for orchard irrigated to 4 3 Class marginal of Sales year past over the cropland properties have also seen a significant increase in value, ranging from $8,000 to $12,000+/- - per acre, the result of market partici pants looking for any type of ground planting adaptability, permanent with namely for almonds and walnuts. - 2016_Trends_MAAS_edited_ad_file_outlines.indd 1 CroplandIrrigated www.calasfmra.com out the past year with values remaining year with values out the past of available Supply stable to increasing. was however, for sale; properties par- Most of the market limited. very irrigated for was interest ticipant that was adaptable cropland property development, to permanent planting namely for almonds The and walnuts. occurred indicate transactions that have value trend with a stable to upward prices being driven by a lack of supply, and stable to strong statewide demand, nut commodity prices over the past five years. The significant decline inwalnut decline commodity prices and slight in almond commodity prices in the latter part of 2015 could have a negative impact on irrigated cropland values though none were noted the end of by Strong demand for nearly all types of types all for nearly Strong demand cropland irrigated in the properties area continued North State through - restrictions reduced the actual amount actual amount the reduced restrictions deliveredof water 50% in some to 35% to of delayed announcements Also, areas. allocation figures forced many growers to reduce side of the valley on the east al- normal in fear their planting acreage location after their would be reduced pre- normal planted. Above were crops cipitation experienced and in late 2015 to El Nino weather thanks 2016, early to a drought- pattern brings relief State, however the 2014 stricken North seasons serve as a and 2015 irrigation as to the importance of painful reminder strong water rights. With the transition acreage being converted of substantial to permanent from irrigated cropland relying more are plantings, growers and more on pumped groundwater to less reliable cost and supplement high several areas However, water. district which have seen significanthis- ment to permanent plantings had develop of available limited sources torically groundwater, and are now experiencing groundwater depletion leading to the failure of some wells. Rice Only a handful of rice ground sales occurred in the strong rice growing areas of the North Valley during 2015. Prices are considered to be stable for these limited offerings. Most demand has come from area farmers looking to expand their operation or orchardists in search of acreage which could be adapted to permanent crops. Rice properties with a dependable water source either from ground water or a reliable water district command prices at the upper end of the market. Properties with strong waterfowl hunting are also in high demand. Due to drought conditions only ±385,000 acres were planted to rice in 2015, this figure represents an 11% decrease from 2014. If normal rain conditions return during the winter/spring of 2016, planted rice acres are expected to rebound. With the passage of the 2014 Farm Bill, the guaranteed USDA direct and countercyclical payments Most farmers have signed up for the PLC are no longer being issued to producers. program which provides a payment only In its place, USDA has created the when prices fall below a “reference” price set Agricultural Risk Coverage (ARC) and by federal statute. Price Loss Coverage (PLC) programs.

14 BUTTE | COLUSA | GLENN | PLACER (WEST) | SACRAMENTO (NORTH) | SOLANO | SUTTER | TEHAMA | YUBA | YOLO REGION ONE 15 IN AGRICULTURAL LANDIN AGRICULTURAL & LEASE VALUES 2016 TRENDS 2016 evident towards the end of the year. A of almond orchard very limited supply properties for sale, almond orchard to sell due owners reluctance property of orchard lack returns, to the favorable adaptable open land for sale to develop to almonds, and the waiting period for young almond trees from the nurseries with which to plant a new orchard have rootstock) (especially Krymsk all contributed to the strong demand. A few recent listings have been seen in - the market, however, most at unrealis tic asking prices. A very limited number of good quality almond orchard sales Valley over in the Sacramento occurred in the low to with values the past year high $20,000/acre range. Almonds www.calasfmra.com Demand continues to be strong for Demand continues in this properties almond orchard decrease the sharp With area. market in walnut prices, almonds have become the shining star in the north valley nut of focus observed switch with industry from market participants. The Krymsk rootstock has had a significant impact on the north valley almond industry and and generally renewed optimism has confidence in almonds due to the strong to and ability rooting characteristics survive the strong winds often endured during the wet winter months in this to provide Almonds continue area. eventual although strong grower returns softening price started to become alnuts W The current market for walnut orchard for walnut orchard market The current active. described as can be properties available appropriately, When priced offerings walnut orchard readily clear Due to recently enjoyedthe market. high been have prices, orchardists commodity reluctant to sell their walnut orchards, orchards in their prime particularly the supply a result, As producing years. properties available of walnut orchard continue Buyers is minimal. to buyers desire to purchase to show a strong the and have orchards walnut quality Demand is resources for acquisition. walnut good. Although good to very have reached record commodity prices market saw the levels in recent years, an abrupt adjustment in early 2015. By years’ end Chandler nut prices hovered around $1.15 per pound, with Howard lower. being slightly prices and Tulare Varieties such as Vina and Ashley nuts typically reflectto Annual total production continues the lowestto due primarily highs, historic reach prices. the increased number of bearing acres as well as stronger per acre yields. favors Chandlers, world market The Howards and Tulare walnuts. This trend was reflectedbeing planted most new orchards with throughout 2015 to these three varieties. Prunes when developing new orchards. Quality Peaches California prune market continued prune orchards with strong crop pro- Very similar to what’s happening in its recent revitalization with another duction are rarely listed for sale, largely the prune industry; demand for quality year of strong commodity prices, this due to the fact that operators of high peach orchard properties in the market following ±10-15 years of stagnant caliber orchards are often in member- area has rebounded in this histori- grower returns. A rapid decline in ship with desirable packers/marketers cally strong cling peach producing California prune acreage starting in the who have historically paid higher prices area. This is attributed to the surging mid-2000s coupled with low inventory compared to that received on the cash or commodity price observed since 2012 levels appears to have caused a market open market. This has usually resulted coupled with limited supply of desirable correction illustrated by surging prices in only the less desirable prune orchard peach orchards available for purchase. beginning with the 2013 crop. Several properties available for purchase. Very There have been limited sales of peach of the large prune processors/marketers few prune orchards are currently listed orchards over the past year with those are also soliciting growers for develop- for sale; however, the modest crop pro- consisting of good quality orchards ment of new acreage, something that has duction on these orchards makes them setting record high prices. For the not been seen for many years. This has less attractive as stand-alone prune-pro- most part, growers are not illustrating spurred some, yet limited, new planting ducing units. The conclusion drawn is a willingness to sell high quality peach of prune orchards in the area and has that current prune growers are enjoying orchards that are providing strong temporarily staved off removal of many elevated commodity prices which returns. Many area peach orchard sales older orchards during this time of has led to some new prune orchard tend to be older orchards near the end of strong commodity prices. Despite these plantings however, the overall prune its economic life or those in fair or poor historically strong prune prices, the market continued to be somewhat over- condition. Previously, peach orchards extremely high nut prices enjoyed over shadowed by the demand for alternative that sold with a processor contract in the last several years continue to entice permanent plantings. place showed a readily observed value operators towards walnuts/almonds difference compared to non-contracted peach orchards. Recently, this has not been the case as peach orchard sales are displaying consistent values regardless of contract status. This is attributed to the current shortage of peaches resulting in processors looking for product in addition to those established peach growers who already have relationships with canneries. Overall, the current real estate market for quality peach orchard parcels is considered to be strong with a good demand from established growers, and few properties available for sale.

Investment Brokers www.aglandbrokers.com

Agriculture Real Estate Specialists Big news: Rod Carter has joined the AG-LAND team!

Bert Owens 275 Sale Lane, Sam Mudd 530-524-4900 Red Bluff, CA 530-949-4054 Broker/Owner Broker/Owner CA Lic. # 01707128 (530) 529-4400 CA Lic. # 01710463

16 BUTTE | COLUSA | GLENN | PLACER (WEST) | SACRAMENTO (NORTH) | SOLANO | SUTTER | TEHAMA | YUBA | YOLO REGION ONE 17 IN AGRICULTURAL LANDIN AGRICULTURAL & LEASE VALUES 2016 TRENDS 2016 close to prices paid in those areas for areas in those paid prices to close con- if any little land, suggesting open improve- the orchard value to tributory ments on Although, activity average. appears increased, this has apparently alternative by primarily to be driven and uses not agricultural by improving conditions. market olive commodity market conditions Overall, commodity are considered 2014 stable. After a light expected, strong 2015 yield was a year, increasing gives little hope for which Over the next year, commodity prices. continued expected to face olives are competition agricul- from alternative with values expected ventures to tural increasing. remain stable to slightly

www.calasfmra.com production sold at prices that are very are that prices production sold at motivated many growers to expand into to expand growers many motivated is little there Even though this market. light of product and a annual carryover there has not been 2014 crop, strengthening to a level in table olive prices where expanding would consider growers purchasing additionalacreage or olive creating a somewhat stagnant orchards, table olive picking costs, demand. High and availability, labor annual uncertain situation have been negative the drought be noted factors as well. It should that of years two large over the past couple density olives in plantings of high Glenn County have been removed by to redevelopthe owners in order the the sales Analyzing acreage to almonds. 50% approximately that have occurred, for rede- of the sales were purchased of types to other velopment primarily orchards permanent plantings. The that were purchased for ongoing olive Olives The current market for commercial-sized for commercial-sized market current The olive relatively stable orchards appears by in part increasing, affected to slightly commodity other land need demands by few years, to the past farmers. Compared increase in been an apparent there has In 2015, orchards. sales activity for olive Glenn, and Tehama throughout Butte, more olive orchard counties there were than seen from sales tracked and closed the end thru of 2014. the beginning of 2012 table traditional all seen were sales The super no sales of with olive orchards, high density noted (oil olive) orchards in 2015. The demand for land in Butte, counties to develop Glenn, and Tehama high density olive orchards for oil has come to a near halt, as major processors orchard have backed off of any further development and contract offerings. The limited past profitability of this tree crop both in table and oil olives has not VINEYARD Sales and/or listings of vineyards have been few with good demand for most types of young, quality vineyard properties. Current outlook for the California wine industry is strong with signs of strengthening grape prices with profitable planting contracts occurring during 2015. This region has seen some very large, vertically integrated grape growers/vintners enter the Sacramento Valley market (primarily Glenn, Yolo and Solano Counties) for new vineyard development, largely due to location ac- cessibility, land cost and perception of reliable irrigation supplies. WINTER RANGE/DRY PASTURE Land values for large, winter range/dry pasture ranches have been stable to fairly strong, with several bon-a-fide sales occurring in early to mid-2015. Strictly prices. This uncertainty surfaced in It is difficult to ascertain how the current based upon transaction count there mid-2015 and has continued thru ongoing drought situation will affect appears to be a slight pickup in activity the end of the year. These condi- values on these winter range ranches. over 2013 and 2014 although price tions are expected to continue into The projected El Nino rains for the levels appear to have remained stable at least mid-2016. Despite this uncer- 2015/16 season have created a hopeful to possibly slightly increasing. The vast tainty, purchase and lease demand has but uncertain current situation. The majority of the larger current sales of remained fairly strong for winter range cattle market saw record commodity winter range/dry pasture have been for grazing units. The drought remains a prices in 2014; however as the end of continued cattle grazing; however, there major concern, however most regional 2015 approaches substantial commodity were some medium sized generally open ranches received enough rain to have market and feed market uncertainty low elevation dry pasture properties on decent to nearly average feed condi- still exists. This could have an activity the west side of the valley that sold for tions in the 2015 season. Late season slowing effect on ranch land property as development to permanent plantings. 2015 rains have given hope for a better well as possible downward pressure on The cattle commodity market seen water situation going forward, but values this year. in 2014 was very strong; however, as drought is still a substantial concern. Over the past decade, the driving force 2015 played out it has proved to be A fair number of the sales noted were behind high ranch land values was very challenging due to poor finished traditional tenants purchasing lands 1031 exchanges, done primarily by cattle commodity prices, relatively high they have leased for in most cases outside investors rather than livestock replacement costs, and unstable feed several years. producers. This has slowed considerably the past few years, predominantly bon- a-fide livestock operations now purchasing winter range for expansion. Out of all of the sales noted in 2015, only one was obtained by an investor planning to lease out operations. Although, the relatively poor commodity market conditions is expected to have a softening effect on the demand from the cattle market, there remains a very tight supply of desirable rangeland parcels available for purchase. The commodity market conditions are somewhat offset by the ongoing tight realty market and attractive interest rates.

COLUSA, GLENN, BUTTE and TEHAMA (Northwestern Counties) Rice $8,000 - $10,500 Limited/Stable $250 - $450 Moderate/Stable Vegetable Crops: Class I/II Soil $10,000 - $22,000 Strong/Stable to Sl. Increasing 10% - 25% Very Limited/Stable Irrigated Field Crops $7,000 - $20,000 Moderate/Stable to Sl. Increasing $150 - $300+ Moderate/Stable Rangeland: 1,000+ acres $600 - $1,500 Moderate/Stable $10 - $25+ Moderate/Stable Almonds $14,000 - $30,000 Limited/Increasing 12% - 25% Very Limited/Stable Walnuts $17,000 - $33,000 Limited/Stable 12% - 25% Very Limited/Stable Prunes $22,000 - $31,000 Limited/Increasing 12% - 25% Very Limited/Stable Olives $10,000 - $19,500 Limited/Increasing 12% - 25% Very Limited/Stable

YUBA SUTTER AREA (Feather River Basin and Sutter Basin) Rice $7,750 - $10,000 Limited/Stable $250 - $400 Moderate/Stable Vegetable Crops: Class I/II Soil $15,300 - $23,000 Moderate/Increasing 10% - 25% Very Limited/Stable Irrigated Field Crops $9,500 - $16,500 Limited/Increasing $150 - $250 Moderate/Stable Walnuts $32,000 - $41,000 Limited/Increasing 10% - 25% Very Limited/Stable Prunes $20,600 - $35,000 Limited/Increasing 12% - 25% Very Limited/Stable Peaches $30,000 - $35,000 Limited/Increasing 12% - 25% Very Limited/Stable

SOUTH SUTTER, WESTERN PLACER, SOLANO and YOLO COUNTIES Rice $7,500 - $13,000 Moderate/Increasing $200 - $350 Moderate/Stable Vegetable Crops: Class I/II Soil $13,000 - $23,500 Strong/Increasing 12% - 30% Mod/Sl Increasing Irrig. Field Crops: Class II/III Soil $5,250 - $14,500 Strong/Increasing 12% - 30% Mod/Sl Increasing Rangeland $750 - $5,000 Moderate/Stable $10 - $40 Mod/Sl Increasing Walnuts $18,000 - $35,000 Very Limited/Increasing 20% - 25% Very Limited/Stable Vineyards $13,000 - $30,000 Limited/Increasing 20% - 25% Very Limited/Stable

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Bill Wright (530) 941-8100 www.ranch-lands.com [email protected] 358 Hartnell Avenue, Ste C Redding CA 96002

www.calasfmra.com 2016 TRENDS IN AGRICULTURAL LAND & LEASE VALUES 19 20 BUTTE | COLUSA | GLENN | PLACER (WEST) | SACRAMENTO (NORTH) | SOLANO | SUTTER |TEHAMA |YUBAYOLO |SUTTER (WEST) |SACRAMENTO (NORTH) |COLUSAGLENN |PLACER |SOLANO BUTTE HISTORICAL VALUE RANGE per acre VEGETABLE/ IRRIGATED RANGELAND LAND USE ROW CROP Class 1 Soil FIELD CROPS RICE (Thousand + Acres) WALNUTS PRUNES OLIVES ALMONDS COLUSA, GLENN, BUTTE and TEHAMA COUNTIES (NORTHWESTERN COUNTIES) 2015 $10,000 - $22,000 $7,000 - $20,000 $8,000 - $10,500 $600 - $1,500 $17,000 - $33,000 $22,000 - $31,000 $10,000 - $19,500 $14,000 - $30,000 2014 $10,000 - $20,000 $6,800 - $19,000 $8,000 - $10,500 $1,000 - $1,500 $25,000 - $40,000 $9,500 - $24,000 $3,500 - $12,000 $13,000 - $28,000 2013 $9,000 - $15,000 $6,000 - $12,000 $6,000 - $10,000 $600 - $1,500 $12,000 - $25,000 $6,000 - $12,000 $3,500 - $10,000 $12,000 - $20,000 2012 $6,000 - $12,000 $3,500 - $9,000 $5,000 - $9,000 $600 - $1,250 $8,000 - $18,000 $5,000 - $10,000 $3,500 - $11,000 $6,000 - $16,000 2011 $6,000 - $10,000 $3,500 - $7,500 $5,000 - $8,000 $600 - $1,250 $8,000 - $16,000 $5,000 - $10,000 $3,500 - $11,000 $6,000 - $15,000 2010 $5,000 - $8,000 $4,000 - $7,000 $4,500 - $7,500 $700 - $1,000 $8,000 - $15,000 $5,000 - $9,500 $3,500 - $10,000 $6,000 - $14,000 2009 $5,000 - $8,000 $4,000 - $7,000 $5,500 - $7,000 $500 - $1,300 $8,000 - $15,000 $7,000 - $10,000 $3,500 - $9,000 $8,000 - $14,000 VEGETABLE/ IRRIGATED LAND USE ROW CROP FIELD CROPS RICE WALNUTS PRUNES PEACHES YUBA SUTTER AREA (FEATHER RIVER BASIN and SUTTER BASIN) 2015 $15,300 - $23,000 $9,500 - $16,500 $7,750 - $10,000 $32,000 - $41,000 $20,600 - $35,000 $30,000 - $35,000 2014 $13,000 - $20,500 $7,900 - $19,800 $8,500 - $11,000 $23,000 - $30,000 $15,500 - $26,000 $20,000 - $28,000 2013 $9,000 - $15,000 $5,000 - $12,000 $6,000 - $8,000 $12,000 - $25,000 $8,000 - $13,000 $10,875 - $19,500 2012 $5,000 - $12,000 $5,000 - $12,000 $6,000 - $8,000 $12,000 - $17,500 $8,000 - $13,000 $10,875 - $19,500 2011 $5,000 - $10,000 $5,000 - $10,000 $5,000 - $8,000 $12,000 - $16,000 $8,000 - $12,000 $12,000 - $15,000 2010 $5,000 - $7,000 $5,000 - $5,500 $5,000 - $7,000 $12,000 - $16,000 $8,000 - $10,000 $12,000 - $15,000 2009 $5,000 - $7,000 $5,000 - $5,500 $5,500 - $7,000 $8,000 - $16,000 $7,000 - $10,000 $6,000 - $15,000 VEGETABLE IRRIGATED LAND USE CROPS FIELD CROPS RICE RANGELAND WALNUTS VINEYARDS PEARS SOUTH SUTTER, WESTERN PLACER, NORTH SACRAMENTO and YOLO COUNTIES 2015 $13,000 - $23,500 $5,250 - $14,500 $7,500 - $13,000 $750 - $5,000 $18,000 - $35,000 $13,000 - $30,000 none 2014 $13,000 - $22,500 $7,000 - $13,000 $7,000 - $10,000 $1,000 - $5,000 $18,000 - $30,000 $13,000 - $25,000 none 2013 $9,000 - $15,000 $5,000 - $7,000 $5,000 - $9,000 $500 - $2,000 $12,000 - $25,000 $10,000 - $25,000 $5,000 - $7,500 2012 $6,500 - $12,000 $3,500 - $7,500 $4,500 - $9,000 $500 - $2,000 $9,000 - $18,000 $8,000 - $18,000 $5,000 - $7,500 2011 $4,500 - $10,000 $2,500 - $5,500 $5,000 - $8,000 $400 - $1,200 $9,000 - $18,000 $10,000 - $25,000 $5,000 - $7,500 2010 $4,000 - $8,000 $2,600 - $6,500 $5,000 - $7,000 $400 - $1,500 $5,500 - $13,000 $10,000 - $25,000 $5,000 - $10,000 2009 $4,000 - $11,000 $2,600 - $8,000 $5,000 - $7,000 $400 - $4,800 $9,000 - $20,000 $15,000 - $25,000 $6,000 - $10,000

REGION ONE 21

$0 2009 2009 2009 2015 2013 2011 2009 2007 2005 2003 $0 2015 2013 2011 2007 2005 2003 2015 2013 2011 2007 2005 2003 2015 2013 2011 2007 2005 2003 2001 2001 2001 2001 1997 1995 1993 1997 1995 1993 1997 1995 1993 1999 1997 1995 1993 1999 1999 1999

IN AGRICULTURAL LANDIN AGRICULTURAL & LEASE VALUES

$5,000 $5,000

0 $10,00 $10,000

2016 TRENDS 2016

$15,000 $15,000

0 $20,00 $20,000

0 $25,00 $25,000

$30,000 $30,000

VINEYARDS

$35,000 0 $35,00

ALMONDS OLIVES & Yolo Counties Yolo &

0 $40,00 $40,000 s Countie hama Te s Countie hama Te North Placer, North Sacramento North Placer, North WALNUTS

& Butte Glenn, Colusa, & Butte Glenn, Colusa, South Sutter, Western Placer, Western Sutter, South

0 $45,00 $45,000

2009 2011 2009 2015 2013 2007 2005 2003 2011 2009 2015 2013 2007 2005 2003 2011 2009 2015 2013 2007 2005 2003 2011 2015 2013 2007 2005 2003 2001 2001 2001 2001 $0 1997 1995 1993 $0 1999 1997 1995 1993 1999 1997 1995 1993 1999 1997 1995 1993 1999

$2,000 $2,000 www.calasfmra.com

$4,000 $4,000

$6,000 $6,000

$8,000 $8,000

0 $10,00 $10,000

0 $12,00 $12,000

$14,000 $14,000

$16,000 $16,000

$18,000 $18,000

RANGELAND

0 $20,00 $20,000

hama Counties hama Te CROP LAND CROP

ROW CROP LAND CROP ROW

RICE RICE LAND

$22,000 $22,000

& Butte Glenn, Colusa, D FIEL IRRIGATED VEGETABLE/

0 $24,00 $24,000 SpecialistsSili iniA Agriculturalil lA Appraisalsil throughout California Contact: Cydney Bender Reents, MAI, CEO BRI David Wraa, MAI, ARA, Vice President Headquarters: 4400 Auburn Blvd, Suite 102 Providing Sacramento, CA 95841 tel (530) 674-3500 fax (530) 674-0426 Right of Way (916) 978-4900 1505 Starr Drive, Yuba City, CA 95993-2623 Services and Real Property Regional Offices: San Diego, Fresno, Walnut Creek, [email protected] [email protected] Valuation and Murrieta [email protected] since 1997 www.benderrosenthal.com

Kevin Ziegenmeyer Partner

3825 Atherton Road Seevers Suite 500 Rocklin, CA 95765 Jordan 916.435.3883 x224 Ziegenmeyer Fax: 916.435.4774 [email protected]

R eal Estate Appraisal & Consultation

Ribacchi & Associates, Inc.

Sacramento Valley & Sierra Foothills Richard A. Ribacchi, MAI (916) 361-2509 www.valbridge.com

REGION CHAIR & COMMITTEE

Hal Forcey ARA, CHAIR Russ Forsburg ARA Mark E. Gregg ARA Mike Pipkin ARA region two

North Coast Overview move to organic or other specialty pro- Combined, there are about 140,000 acres This region covers the North Coast of duction, as the higher returns from these of wine grape vineyards in the North California, from San Francisco to the specialty products are necessary to Coast, and over 887 physical wineries. Oregon border, bounded by the Pacific offset the higher underlying land prices Based on these figures, the North Coast Ocean on the west and the Central impacting much of the region. The accounts for about 23% of the State’s Valley on the east. Geographically and region is also a highly desirable area to wine grape acres, and 50% of the State’s economically, the region can be divided live, with much of the southern portion physical wineries (Note, there are 4,285 into the southern and northern regions, impacted by strong rural residential bonded wineries in CA, but only about with the southern region overlying demand and above average residential 1,850 physical wineries). By County: Napa, Sonoma, Mendocino, Lake, and entitlement values. Napa has about 45,000 acres of vines Marin County, and the northern region The regions vineyard and wine industry and 467 wineries; Sonoma 65,000 acres including Humboldt, Del Norte, and is mainly centered in the south, in of vines and 250 wineries; Mendocino Trinity County. The key economic California’s North Coast American 17,000 acres of vines and 100 wineries; driver for the southern area is vineyards Viticultural Area (AVA). This AVA Lake 8,500 acres of vines and 35 wineries; and wineries, although specialty dairy overlies nearly three million acres, and is Solano (Suisun & Green Valley AVA) and poultry production remain active in roughly 100 miles long by 50 miles wide, 3,800 acres of vines and 20 wineries; southern Sonoma and northern Marin along the coast, north of San Francisco. and Marin about 80 acres of vines and County. The northern area is more This area has been recognized as a prime 15 wineries. agriculturally diverse and consists vineyard and winery area since the mid mostly of forest products, specialty 1900’s. The North Coast includes Napa, dairy, and cattle. Sonoma, Mendocino, and Lake Counties, The region’s diversity is attributed to plus portions of northern Marin and the mild coastal climate, good water southwestern Solano Counties. There resources, and proximity to urban are over 45 sub-appellations within the population centers (southern portion). North Coast, with Napa and Sonoma Animal husbandry industries (dairy, the two best known appellations in the beef, poultry, and eggs) continue to North Coast, California, and the US.

- - IN AGRICULTURAL LANDIN AGRICULTURAL & LEASE VALUES County Napa 2016 TRENDS 2016 lifestyle buyers. Napa is that concern today is major A effectively planted is being out, which seen in strong demand and increasing land and vineyard prices. Today most of al uses of note. Napa currently has about has currently al uses of note. Napa over serving of vineyards, 45,000 acres 467 physical wineries. In 2015 Napa wineries saw generally good profitability, with many able to increase is their bottle prices. Market success enhanced for many wineries through wine to consumer increasing direct rooms, wine including tasting programs, programs. and other web based clubs, Direct/retail sales cantly higher returns than traditional generate wholesale distribution channels. This signifi- is critical for many small and mid-sized wineries who find it nearly impossible to gain access to traditional wholesale improving the but it is also distributors, bottom line for large wineries as well. 2015 was an unusual growing year, which early below 20 to 40% ended about up 2012-2014 season estimates. Although were the three largest harvests on record, demand and prices for wine grapes prices also held strong. The small 2015 harvest bolstered grape prices, resulting in more wineries extending term contracts for 2016, while keeping spot market grape and bulk wine demand and prices up. market, Napa is not a typical agricultural the driven by are demand and prices as national and international reputation (goodwill) of the area. The premium the wine reputation combined with attract desirable residential attributes including spectrum of buyers a broad wineries (local, national, internation al), growers, investment firms, and Napa County lies about 45 miles north miles north lies about 45 Napa County established and has of San Francisco, premium quality high reputation for a industry above average wines and Bay Area proximity to returns. Napa’s rural centers and idyllic employment it a highly desirable atmosphere, make strong region, with vineyard and winery wineries and market interest from lifestyle and financial as well as growers, wine, and grapes, investors. Wine the driving economic related tourism are agricultur no other with forces in Napa, www.calasfmra.com industry as “Trading up”, which is which up”, “Trading as industry continue to is expected trend that a consumers existing wine as new and drinking experience wine expand their wines. priced to higher moving up by see if we don’t should continue This significant economic problems in 2016. Coast, North to the important is This to the international as it is directly tied wine market. focuses on past While this analysis experienced have and we performance, for several years, above average markets that the increas- it is important to note, abroad economic uncertainty ing global US in 2016, which will be felt by the wine and could impact the vineyard global of the part are they as industry, economic market. verview ndustry O Wine I As wine sales are a primary economic economic sales are a primary As wine we must the North Coast, driver for US 2015, In market. US the understand its record continued wine consumption, the as on record went 2014 setting trend. of positive consecutiveyear twentieth While wine industry. for the US growth figures for 2015 are not yet available, it looks 21 years. like the trend to will carry at- is trend wine industry positive This US consumption tributed to growing well as and foreign wines, as US of both declining growth, continued economic unemployment, to low and ready access interest financing. in the strong performance saw 2015 premium wine segments, with wines bottle perform- $20 per priced above referred to in the is This ing strongly. VALUE RANGE VINEYARDS PLANTABLE LAND HOME SITES Prime Napa Valley $250,000 to >$370,000 $130,000 to >$200,000 $1,000,000 to >$5,000,000 Secondary Napa Valley $120,000 to >$270,000 $50,000 to >$130,000 $250,000 to >$2,000,000 Outlying Napa Valley $50,000 to >$120,000 $25,000 to >$50,000 $0 to >$350,000 The above table reflects general market trends throughout the county, realizing that certain factors could result in prices moving outside the stated ranges.

the valley floor and readily developable ronmental factors affecting the quality had historically been used for lower hillside parcels are already planted, with of a specific crop). Relative to market price point Cabernet, or high quality little additional land available to develop. demand and prices, Napa has histori- Merlot, Chardonnay, Sauvignon Also, over the past twenty years there cally had three fairly distinct geographic Blanc and Zinfandel, and cooler has been increasing governmental regu- markets or areas, which are categorized climate Pinot Noir and Chardonnay lations limiting vineyard developments as: Prime, Secondary, and Outlying. in the Los Carneros AVA. in the hills surrounding the Napa Valley. • Prime Napa Valley has historically Since 2014, there have been several Tough erosion control, view-shed, and included the heart of the Napa Valley properties located mostly along the stream setback ordinances coupled and the surrounding hills, including foothills of the Secondary markets, with growing resistance from voters some of the best recognized valley mostly in Calistoga, Yountville, and environmental groups are making floor appellations including Oakville, Oak Knoll, and Coombsville, with vineyard development time consuming, Rutherford, St. Helena and Stags established reputations for producing expensive, and highly speculative. This Leap, in addition to the surrounding estate quality Cabernet Sauvignon, is having a distinct impact on supply hillside appellations including that have sold at Prime area and demand for existing properties, and Howell Mountain, Spring Mountain, price points. ultimately driving prices higher. and Diamond Mountain, plus geo 2015 also saw a decided shift in a Winery development has also come graphically significant growing areas number of Secondary area locations under tighter scrutiny, with local gov- like Pritchard Hill. This area has that have been developed to lower ernment and voters looking to revise the historically produced very high quality Cabernet Sauvignon grapes, Winery Definition Ordinance, which quality Cabernet Sauvignon and as growers are receiving significantly has also resulted in a record number of Bordeaux style red wines. Vineyards higher per acre returns. Specifically, new winery permit applications being in these areas that aren’t well suited a grower can expect yields on par filed. Traffic concerns in Napa have to premium Cabernet production, fall with Merlot and Chardonnay, but are reached critical mass, with the two near the bottom of the value range. able to sell the Cabernet for $2,000 to main access roads suffering from almost This category has experienced stable $3,000 per ton higher than these constant gridlock. The traffic issues are growth and demand over the past 30 traditional varieties. Overall, the from wine industry tourists, an increas- years, with good sales activity and values Secondary Markets saw above ing population, and the growing number seen in 2015. Key buyers continue to be average demand and prices in 2015 of displaced workers forced to commute wineries looking to secure additional from both wineries and large growers. into Napa. This has sparked growing throughput to assure more stable grape • Outlying Napa County includes opposition to new winery construction supplies and pricing in the future, as and expansion projects, which is forcing growing regions located outside well as to secure locations in these prime the Napa Valley, most notably Chiles County Officials to undertake more com- appellations for their wine programs. pliance reviews for wine production and Valley, Pope Valley, American The life style buyer continues to actively Canyon, and Solano County’s Green hospitality issues. Concerns regarding pursue “Trophy” estates in the heart of the time and cost to obtain winery use and Suisun Valley AVA’s. While the valley, in keeping with the lifestyle these areas can produce high quality permits, coupled with uncertainty as of the rich and/or famous. to what approvals will ultimately be fruit, they are generally subject to more • Secondary Napa Valley generally granted, are forcing many would be extreme weather patterns that includes two specific Napa Valley winery developers to look at existing fa- increase productive risk. This reduces locations which lie above, and below cilities. These factors are placing upward their long term earnings and holds the Prime areas. To the north is the pressure on winery demand and values. property values down. There were Calistoga appellation, with Yountville, several key vineyard sales in the Napa is a highly diverse market with Oak Knoll, Coombsville and Carneros region this year at above average unit vineyard prices ranging from $50,000 to to the south, plus the surrounding hills, prices. This is due to the intense >$370,000 per acre, plantable land from including Atlas Peak, Soda Canyon, demand for Napa vineyards, and $25,000 to >$200,000 per acre, and site and Mt. Veeder. These areas have the fact that the market has had above components from $0 to over >$5,000,000. generally been considered too hot average weather for the past few These are significant ranges, which result (north) or too cool (south) for years. This has resulted in strong from distinct differences in location, premium Cabernet production, and yields, above average fruit quality, and AVA, and terroir (the collective envi-

26 DEL NORTE | HUMBOLDT | LAKE | MARIN | MENDOCINO | NAPA | SONOMA | TRINITY REGION TWO 27 $11,200/acre to PER ACRE VALUE RANGE VALUE PER ACRE IN AGRICULTURAL LANDIN AGRICULTURAL & LEASE VALUES $4,500 2016 TRENDS 2016 2015 Sonoma and Marin Counties agricultural markets Sonoma County’s agricultural seen was to what similar remained very years. 2015 saw in the three previous strong demand and sales volume for and vineyard estate commercial vineyard continued This sizes. properties of all of a good result trend is a direct potential rates, economy, low interest excess vineyard earnings, and wineries plantable vineyards and purchasing land to better control grape supplies and costs, given increasing regulations de- new vineyard for costs and higher pricing has velopments. Overall market continued an upward trend with values now exceeding Cool record highs. and Chardonnay Noir Pinot climate reputations established with vineyards continue wine quality to cult for luxury to lead the market. Sonoma and Napa County wineries and large investment for large buyers the principal entities are LANDUSE + acre) Pasture (1,000 Sonoma-Marin pasture value range. pasture Sonoma-Marin www.calasfmra.com >$3,100,000/site $100,000/acre $150,000/acre need for quality fruit has resulted in a need fruit for quality lines blurring of the geographic between and Secondary traditional Prime premium prices such, As markets. Secondary market are being paid for of properties capable producing truly wine) Bordeaux (red quality premium demand fruit. Additionally, prices and of the Secondary markets were in much for sites capable record highs also at to of producing and ripening average This Cabernet Sauvignon. good quality is because wineries are paying $2,000 - to $3,000 per ton more than tradition al varieties and Zinfandel. like Merlot, Chardonnay, to to to PER ACRE VALUE RANGE VALUE PER ACRE $0

- - $70,000 $45,000 investors, looking back home. to ship wine Napa fruit, as well as Chinese Napa fruit, as well investors looking to control more investors looking buyers have been local growers and buyers the past four years. The primary the past four years. above average economic above average economic over success above average grape prices, resulting in above average grape (countywide) Site Contribution Open Plantable Land Open Plantable LANDUSE Vineyards Modern Continued economic improvement, planted and of the limited availability plantable land, plus increasing develop ment constraints and restrictions, had a demand and values on the strong impact of vineyards and plantable land through out all of Napa’s market segments in 2015. While demand and prices remain markets, the the strongest in the Prime

This reflects general market trends throughout the county, realizing that certain factors certain factors realizing that the county, throughout market trends general This reflects stated ranges. outside the in prices could result Within the range for Mendocino and Lake County, values can be broken down as follows:

VALUE RANGE VINEYARDS PLANTABLE LAND SITE Anderson Valley $65,000 to $100,000/acre $25,000 to $35,000/acre $200,000 to $500,000 Inland Mendocino Co. $22,000 to $35,000/acre $10,000 to $14,000/acre $50,000 to $300,000 Lake County $25,000 to $50,000/acre $8,000 to $12,000/acre NA This reflects general market trends throughout the two counties, realizing that certain factors could result in prices outside the stated ranges.

commercial vineyards, as well as small “Non-farm” and “non-local” profes- increasing government regulations and vineyard designate or boutique style sionals, executives, or business owners local opposition. vineyards. Other buyers included local remain the principal buyers for proper- Excluding properties in secondary or growers, foreign and local investors. ties that provide a “lifestyle” element, outlying locations, Sonoma County American Viticultural Areas (AVA) such as private view sites in desirable values can be broken down as listed in and vineyard designates continue to locations or properties improved with the chart on the next page. large estate quality homes. Lifestyle play a greater role in property pricing. The Sonoma-Marin agricultural area There can be substantial value differ- properties have clearly rebounded in value since 2011. is described as coastal foothill pasture ences within a single AVA due to indi- and hardwood forested lands within vidual micro climates, soils, and grape About six Sonoma County wineries fa- Southwestern Sonoma County and varieties grown. These factors greatly cilities sold in 2015. The winery sales Northwestern Marin County. Most influence grape tonnage and quality and indicated a stable to increasing value of the area is devoted to agricultural directly impact net earnings. Vineyard trend for smaller facilities (40,000 uses of livestock pasture and dairies, in designates with registered trademarked cases or less). Sales of wineries with addition to a limited number of equestri- names are becoming more common. successful brands, daily public tasting, an facilities, poultry facilities, vineyards, Large grape crops were harvested in and locations in primary tourist areas olive orchards, and specialty vegetable 2012, 2013 and 2014. The 2015 crop was exhibited little building depreciation. production. Average to estate quality small so expectations are for continued Wineries that sold without a recog- homes are also positioned throughout strong demand for both wine grapes nized brand exhibited normal levels of the area. The residential appeal is attrib- and vineyards. Vineyard viability physical deprecation. Larger facilities utable to the desirable coastal climate, remains highly scrutinized and marginal (40,000 cases or more) were discounted rural foothill settings, and proximity vineyards continue to be purchased at beyond typical levels of physical depre- to San Francisco and Bay Area prices near bare land values. However, ciation due to a very limited buyer base. employment centers. Vested winery permits for unimproved buyers are showing some caution as it Grade A dairies producing organic milk is uncertain if the earnings generated by properties typically only contribute value when the property is in a primary tend to be the dominant commercial the high yields obtained in 2012 through use of the area. Low conventional milk 2014 can be sustained. In the current tourist area. Significant premiums are paid for permits on sites in prime prices and high feed costs resulted in market environment, even lifestyle most conventional producers transition- vineyards are expected to provide a tourist areas that allow for public tours, tastings, retail sales, and events due to ing their herds and facilities to organic return over farming cost. milk production. Organic dairies have established a niche due to substantially higher organic milk prices, the ability to pasture cows, proximity to Bay Area consumer markets, and the development of artesian cheese, butter, and yogurt products. Land values continued to increase in 2015 primarily due to the demand for organic pasture by local dairies. Premiums are also being paid for properties that are comprised of multiple legal parcels or have the potential to be subdivided. For local dairies and livestock producers, the sale of development rights to conservation organizations has provided a means of offsetting the high cost of purchasing pasture.

IN AGRICULTURAL LANDIN AGRICULTURAL & LEASE VALUES 2016 TRENDS 2016 winery. Inland Inland winery. Mendocino sales County with but year, past the in also stabilized of number The activity. limited market in Mendocinovineyard listings County low levels. is at historic like Mendocino Lake County has also centered industry seen its agricultural and on vineyards exclusively almost demand for wineries. The market County remained vineyards in Lake sales. of a modest number strong, with Big in the were these sales Most of valley is primarily Valley region, which Blanc Sauvignon to suited best land floor Sales in this or other white varieties. to $25,000 ranged from generally area for vineyards typically $38,000 per acre, acre. tons per to over 7 6 producing from in Lake vineyards priced highest The County were located in the Red Hills for mostly Valley regions, and High vineyards upland Cabernet high quality, developed on volcanic soils. The market over the stabilized to have appears past year.

www.calasfmra.com Mendocino County. Mendocino throughout activity sales The modest, with a County in 2015 was large vineyard sales, mix of small and Valley to Hopland. scattered from Potter Most sold average quality vineyards in quality one good with mid-$20,000’s, the vineyard selling for around $40,000 per in Anderson Valley The sale activity acre. typical for the is was very limited, which appear Anderson Valley vineyards area. continued with to have stabilized, but strong demand from Napa and Sonoma County wineries for area vineyards and recent sale in Anderson most The fruit. Valley have sold for $85,000 to $100,000 per acre and purchased by a Napa region. The market price of Chardonnay Chardonnay of price market The region. to $1,200 at stable remained and Merlot late good demand ton, with $1,500 per The fruit. for uncontracted in the season in Lake Sauvignon Blanc demand for with high, an all-time at was County of $1,100 receiving prices most growers demand and prices to $1,500 per ton. The for Cabernet Sauvignon County in Lake prices similar to was also strong, with ake Counties and L Mendocino Mendocino County agriculture is Mendocino agriculture County and wine to the vineyard mostly tied distinct The region has two industry. including the County, markets within renowned Anderson Valley, the coastal and Inland Pinot Noir, quality high for Mendocino, a wide which produces The wine grapes. of premium variety most throughout crop grape 2011 short region of the North Coast instru- was wineries back to mental in bringing Mendocino to buy and Lake Counties wine grapes. The increased demand has contract their fruit enabled growers to past several years. at good prices for the saw yields that were The 2015 grape crop off) for most below average (10-25% continued Anderson Valley growers. to experience strong demand for most growers with Pinot Noir in 2015, to $6,000 of $3,500 receiving prices per ton, while Inland Mendocino Pinot Noir was closer to $1,800 per ton. The demand for Cabernet Sauvignon was exceptionally strong at $2,000 to over most of the $2,400 per ton throughout Mendocino and Lake County’s pear Humboldt, Del Norte & Trinity Counties of the Smith River and the adjacent acreage has stabilized in the last few Humboldt County is located on the coastal benches. Agricultural production years, after years of continued decline. Pacific Coast in the northwestern includes dairying, beef cattle, Easter lily Most of the remaining orchards are high California, approximately 200 miles bulbs and irrigated pasture crops, and producing and owned by a handful of north of San Francisco. Agriculture is one nursery operation. Agricultural land long-time growers. The 2015 crop was tied primarily to dairies, pasture crops, is closely held and sales activity is very near historical averages, with general and cattle ranching. This market has limited. Pasture land values range from good size and fruit quality. Given the seen very few sales or significant value $3,500 (dry) to $6,000 (irrigated) per strong demand from canneries and fresh trends over the past ten years. Marked acre. Easter lily cropland values range fruit, the market price for pears was at demand for pasture is strong but most from $7,500 to $8,000 per acre. record highs. Most growers received properties are closely held and seldom Trinity County is located on the average prices from $400 to $450 per ton, available for sale. Pastureland sales are Klamath Mountains in northwestern which is nearly double the price received often between a long-term tenant and California. This is also a remote and five years ago. The outlook appears the landlord. In recent years there has very steep area, with over 95% of the bright for the remaining growers in the been an increase in the number of prop- land area being forestland that is mostly business, with forecast demand and erties listed by realtors. This is because owned by the federal government. prices both being good. The outlook for sellers are realizing that their proper- Agricultural activity is mostly limited to the industry is somewhat concerning, ties must be well marketed to garner the the mountain valleys along the Trinity with the increasing operating costs, un- best price. River, but there are several large cattle certainty of labor, and new regulations ranches located in the southwest corner which could have a major impact on Agricultural production in the region includes dairying, beef cattle, irrigated of the county. Agricultural produc- profitability going forward. There were tion includes beef cattle, range pasture, only a few orchard sales in the area (Lake pasture crops, small truck farms growing organic crops, and a larger irrigated pasture, and a small number of County), and for the first time in nearly a vineyards. Agricultural land is closely decade, good orchards are contributing a nursery operation. Increasingly dairies in Humboldt County are converting to held and sales activity is non-existent. few thousand dollars per acre above bare Generally sales from adjacent counties land values. That said, no new orchards organic operations. The County’s diaries tend to be small (200 to 300 cows) must be relied on to value the agricul- have been planted or are scheduled to be tural land in Trinity County. planted in the market. turn-key operations with the cows on pasture most of the year. High organic North Coast Region Timber Production: milk prices relative to lower conven- Timber production occurs in most of tional prices have encouraged this tran- the counties (except for Napa) that sition. Organic operators are interested comprise the North Coast Region. For in expanding operations and demand for Humboldt and Mendocino Counties it is pastureland, particularly in Ferndale. a major contributor to the local economy. Del Norte County is located on the Approximately 26% of all the timber Pacific Coast in the extreme northwest harvested in California comes from the corner of the state. This is a remote area North Coast Region. Private timberland with over 97% of the land area identi- ownership is almost equally divided fied as forestland that is mostly owned between large industrial holdings by the federal government. Agricultural and small privately owned tree farms. activity is limited to the flood plain Improvements in the housing market have led to increased demand and prices for sawlogs. Demand for timberland, particularly redwood timberland, is strong with few properties available for sale. Increasing stumpage values should result in higher timberland values over time. Markets for smaller timberland parcels (160 acres and less) are primarily driven by marijuana growers.

NAPA COUNTY Vineyards - Prime Napa Valley $250,000 - >$370,000 Strong/Increasing Vineyards - Secondary Napa Valley $120,000 - >$270,000 Stable/Increasing Vineyards - Outlying Napa County $50,000 - >$120,000 Moderate/Increasing Plantable - Prime Napa Valley $130,000 - >$200,000 Strong/Increasing Plantable - Secondary Napa Valley $50,000 - $130,000 Stable/Increasing Plantable - Outlying Napa County $25,000 - >$50,000 Limited/Increasing Homesite - Prime Napa Valley $1,000,000 - >$5,000,000 Strong/Increasing Homesite - Secondary Napa Valley $250,000 - >$1,000,000 Stable/Stable Homesite - Outlying Napa County $0 - >$350,000 Limited/Stable

SONOMA COUNTY Vineyards - Resistant Rootstock $70,000 - $150,000 Moderate-Strong/Increasing Plantable Land (or Old Vines) $45,000 - $100,000 Moderate-Strong/Increasing Homesite $0 - $3,100,000 Moderate-Strong/Stable Sonoma - Marin Pasture $6,000 - $13,800 Moderate-Strong/Increasing

MENDOCINO COUNTY Vineyards - Anderson Valley $65,000 - $100,000 Limited/Stable Vineyards - Inland Mendocino $22,000 - $40,000 Limited/Stable Plantable - Anderson Valley $25,000 - $35,000 Limited/Stable Plantable - Inland Mendocino $10,000 - $14,000 Limited/Stable

LAKE COUNTY Vineyards - Resistant Rootstock $25,000 - $50,000 Moderate/Stable Plantable Land or Pears $8,000 - $12,000 Limited/Stable

DEL NORTE COUNTY Dairy Pasture $3,500 - $6,000 Limited/Stable-Increasing Irrigated Cropland (Lily Bulbs) $7,500 - $8,000 Limited/Stable-Increasing

HUMBOLDT COUNTY Dairy Pasture $5,000 - $7,800 Limited/Stable-Increasing

LAND USE PRIME SECONDARY OUTLYING PLANTABLE LAND (or AXR Vines) PRIME SECONDARY OUTLYING NAPA COUNTY VINEYARDS NAPA PLANTABLE 2015 $250,000 - $370,000 $120,000 - $270,000 $50,000 - $120,000 $25,000 - $200,000 $130,000 - $200,000 $50,000 - $130,000 $25,000 - $50,000 2014 $220,000 - $320,000 $100,000 - $220,000 $50,000 - $100,000 $25,000 - $190,000 $100,000 - $190,000 $50,000 - $100,000 $25,000 - $50,000 2013 $200,000 - $300,000 $100,000 - $200,000 $50,000 - $100,000 $25,000 - $175,000 $100,000 - $175,000 $50,000 - $100,000 $25,000 - $50,000 2012 $200,000 - $300,000 $100,000 - $200,000 $50,000 - $100,000 $25,000 - $150,000 $100,000 - $150,000 $50,000 - $100,000 $25,000 - $50,000 2011 $225,000 - $300,000 $90,000 - $165,000 $35,000 - $75,000 $35,000 - $175,000 $100,000 - $175,000 $50,000 - $100,000 $30,000 - $50,000 2010 $225,000 - $300,000 $100,000 - $165,000 $30,000 - $75,000 $35,000 - $175,000 $100,000 - $175,000 $50,000 - $100,000 $35,000 - $50,000 2009 $225,000 - $300,000 $115,000 - $215,000 $55,000 - $75,000 $35,000 - $175,000 $100,000 - $175,000 $50,000 - $100,000 $35,000 - $65,000 LAND USE PRIME SECONDARY OUTLYING NAPA HOME SITES 2015 $1,000,000 - $5,000,000 $250,000 - $1,000,000 $0 - $350,000 2014 $1,000,000 - $5,000,000 $250,000 - $1,000,000 $0 $350,000 2013 $1,000,000 - $5,000,000 $250,000 - $1,000,000 $0 - $350,000 2012 $1,000,000 - $5,000,000 $250,000 - $1,000,000 $0 - $350,000 2011 $1,000,000 - $3,000,000 $250,000 - $1,000,000 $0 - $350,000 2010 $1,000,000 - $3,500,000 $250,000 - $1,000,000 $0 - $500,000 2009 $1,000,000 - $3,500,000 $350,000 - $1,000,000 $0 - $500,000 LAND VINEYARD: PLANTABLE LAND HOMESITE VINEYARD: OPEN LAND USE RESISTANT ROOTSTOCK (OR AXR VINES) CONTRIBUTION RESISTANT ROOTSTOCK (or Pears) DAIRY PASTURE DAIRY PASTURE

SONOMA COUNTY LAKE COUNTY HUMBOLDT SONOMA/MARIN 2015 $70,000 - $150,000 $45,000 - $100,000 $0 - $3,100,000 $25,000 - $50,000 $8,000 - $12,000 $5,000 - $7,800 $6,000 - $13,800 2014 $60,000 - $125,000 $35,000 - $85,000 $0 - $3,100,000 $25,000 - $50,000 $8,000 - $12,000 $5,000 - $7,800 $4,500 - $11,200 2013 $60,000 - $125,000 $35,000 - $80,000 $0 - $3,100,000 $20,000 - $35,000 $6,000 - $10,000 $5,000 - $7,500 $4,500 - $10,500 2012 $60,000 - $125,000 $35,000 - $80,000 $0 - $3,100,000 $15,000 - $35,000 $4,000 - $8,500 $5,000 - $7,500 $4,500 - $8,500 2011 $60,000 - $140,000 $32,500 - $75,000 $0 - $3,100,000 $15,000 - $35,000 $4,000 - $8,500 $5,000 - $7,500 $4,500 - $7,500 2010 $60,000 - $125,000 $35,000 - $55,000 $0 - $3,100,000 $15,000 - $25,000 $4,000 - $8,000 $5,000 - $7,500 $4,500 - $6,000 2009 $60,000 - $100,000 $35,300 - $50,000 $0 - $2,600,000 $15,000 - $30,000 $5,000 - $10,000 $5,500 - $8,000 LAND VINEYARD: VINEYARD: VINEYARD: PLANTABLE PLANTABLE CROPLAND USE RESISTANT ROOTSTOCK ANDERSON VALLEY INLAND MENDOCINO ANDERSON VALLEY INLAND MENDOCINO DAIRY PASTURE (LILY BULBS)

MENDOCINO COUNTY DEL NORTE 2015 $22,000 - $100,000 $65,000 - $100,000 $22,000 - $40,000 $25,000 - $35,000 $10,000 - $14,000 $3,500 - $6,000 $7,500 - $8,000 2014 $22,000 - $100,000 $65,000 - $100,000 $22,000 - $35,000 $25,000 - $35,000 $10,000 - $14,000 none none 2013 $22,000 - $95,000 $65,000 - $95,000 $22,000 - $30,000 $25,000 - $35,000 $8,000 - $11,000 $3,500 - $6,000 $7,500 - $8,000 2012 $15,000 - $85,000 $65,000 - $85,000 $15,000 - $30,000 $25,000 - $35,000 $7,500 - $10,000 2011 $14,000 - $75,000 $35,000 - $55,000 $12,000 - $20,000 $15,000 - $28,000 $7,000 - $11,000 2010 $20,000 - $55,000 $45,000 - $60,000 $20,000 - $32,000 $15,000 - $23,000 $8,000 - $12,000 2009 $20,000 - $60,000 $50,000 - $75,000 $30,000 - $36,000 $20,000 - $30,000 $10,000 - $15,000

REGION TWO 33

$0 $0 2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 2001 1999 1997 1995 1993

$2,000 $2,000

$4,000 $4,000

0 $6,00

$6,000 LANDIN AGRICULTURAL & LEASE VALUES

$8,000 $8,000

2016 TRENDS 2016

0 $10,00 $10,000

PASTURE PASTURE

Humboldt Dairy Humboldt Sonoma -Marin

$12,000 $12,000

2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2014 2012 2010 2008 2006 2004 2015 2013 2011 2009 2007 2005 2003 $0 $0 2001 1999 1997 1995 1993 2001 1999 1997 1995 1993 2002 2000 1998 1996 1994 2001 1999 1997 1995 1993

D AN INL

0 $50,00 $50,000

OUTLYING

EY LL VA ON RS DE AN

$100,000 $100,000

NDARY SECO

$150,000 $150,000

$200,000 0 $200,00

$250,000 0 $250,00 www.calasfmra.com

E PRIM

$300,000 $300,000

VINEYARDS VINEYARDS VINEYARDS VINEYARDS

Lake County Lake Napa County Napa Sonoma County Sonoma $350,000 $350,000 Mendocino County Mendocino

$0 2015 2013 2007 2005 2003 $0 2011 2009 2015 2013 2007 2005 2003 2015 2013 2007 2005 2003 2015 2013 2007 2005 2003 2011 2009 2011 2009 2011 2009 2001 1999 1997 1995 1993 2001 1999 1997 1995 1993 2001 1999 1997 1995 1993 2001 1999 1997 1995 1993

D AN INL

0 $20,00 $20,000

EY LL VA ON RS DE AN

$40,000 $40,000 OUTLYING

$60,000 0 $60,00

NDARY SECO $80,000 $80,000

0 $100,00 $100,000

$120,000 0 $120,00

E PRIM

$140,000 $140,000

(or AXR VINES) AXR (or 0 $160,00 $160,000

OPEN LAND OPEN OPEN LAND OPEN OPEN LAND OPEN

OPEN OPEN LAND

$180,000 $180,000

Lake County Lake Napa County Napa Sonoma County Sonoma Mendocino County Mendocino

$200,00 0 $200,00 0 Al Connor P.O. Box 1035 Vice President Walnut Grove, CA 95690

209 581-5645 www.axa-equitable-ag.com [email protected]

Central Valley CA/Central Counties San Francisco Bay Area/Silicon Valley | Monterey/Carmel John Hillas, SRA | Walt Carney, MAI 209-569-0459 x7301 | 408-279-1520 x7145 www.valbridge.com

REGION CHAIR & COMMITTEE

Kary Griffith CHAIR James A. Abel ARA, MAI, SRA Brian Donald Jerry A. Furtado ARA Jeff Myers Brian Sousa

region three

GENERAL COMMENTS There were few dairy sales in 2015. As and just shy of that in San Joaquin and Demand for agricultural properties in a result of the fickle dairy market and Merced Counties. Marketing times Region 3 remained strong in 2015, con- strong demand for land that is adaptable decreased for almond orchards in tinuing an increasing trend over the to permanent plantings, the viability 2015, and market exposure increased last several years. Productive tree nut of marginal or small dairies continues as sellers took advantage of seemingly and desirable wine grape properties to weaken. Many are purchased only unlimited demand. Most orchard sales continue to define the upper market for to be razed and developed to almonds, were concentrated in favorable irriga- the region, reaching record-high values and very limited sales activity makes it tion districts, though a few were found this year. The market was most heavily difficult to determine the demand for in outlying areas or unfavorable districts influenced by demand for permanent large, modern dairy facilities. (usually discounted). Orchards at the end of their economic lives defined the planting properties by both local and in- ALMONDS vestment buyers. midpoint of the range, while orchards Almonds continue to dominate the with insufficient water supplies defined The drought has also had a strong market in Region 3 as demand and the low end of the range; the low point is impact on land values, with clear value profits have remained strong. Region 3 is below land value in areas with adequate divisions between properties with good considered the “Central” growing region water supplies. There were limited sales water sources (surface and groundwa- for California Almonds, accounting for of young, non-bearing almond orchards; ter) and properties with more question- 30% of statewide almond production. the few that sold showed very little able supplies. Land in districts with Stanislaus County ranks 3rd in total discount from mature orchards. The the strongest water rights and best almond production for all California abrupt downturn in commodity price delivery histories experienced over- counties, while Merced ranks fifth and toward the end of the year casts uncer- whelming demand and corresponding San Joaquin ranks sixth. tainty into 2016 on whether orchard value increases in 2015, while demand in prices will stabilize or soften. Federal Districts or weak groundwater In 2015, average-to good-quality orchards areas was non-existent and prices were commanded very high prices, reaching stable or softening. $45,000 per acre in Stanislaus County

36 AMADOR (WEST) | CALAVERAS (WEST) | CONTRA COSTA | EL DORADO (WEST) | MERCED | SACRAMENTO (SOUTH) | SAN JOAQUIN | STANISLAUS REGION THREE 37 WINE GRAPESWINE IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016 The 2015 harvest declined The 2015 over the prior its very marked for it was though year, crop smaller the With good quality. able to will be better size, wineries previous from carryovers reduce large the some of help correct will This years. and further ex- oversupplied varieties in the highly acerbate supply shortages and varieties. desired appellations vineyard category grape wine The Grape Pricing includes various California are District 6 (Contra Districts, which 10 (Amador, Costa County), District Counties, and El Dorado & Calaveras Sacramento County District 11 (southern Joaquin County). and northern San Districts known sales in no were There reported were values thus 6 and 10, grape-grow- as stable. The primary ing area of District 10 lies within the Shenandoah Valley of Amador County and the southern El Dorado County also concentrated wineries with area, and County) (Calaveras in Murphys District Apple Hill (El Dorado County). activity, sales experienced moderate 11 opera- smaller part-time with primarily tions ranging from 30 to 60 There was strong demand for commer- acres in size. cial wine grape vineyards; however, properties on there is a shortage of such the market. CHERRIES www.calasfmra.com This includes This includes cherry-growing the Costa Joaquin and Contra areas of San There was only one Counties. known located in Thornton the year, sale during of the area outside in an outlying area of East Stockton growing primary and Linden. This sale defines theend of the value range at $30,500 per low acre. The upper end is defined by sales located of orchards in 2014 occurred that growing area. There has in the primary traditionally been sales very few, if any, of cherries in reflective of these the continued regions, stability of this commodity. which is - WALNUTS Although walnut commodity prices commodity prices walnut Although declined significantly in 2015 and there - through sales of orchards few very were remained demand region, walnut the out is This of the year. most strong through aesthetic char to favorable due, in part, and orchards walnut of the acteristics the effect on rural residential appeal. orchards walnut sites with home Rural constitute a significant segment of the sales activity. walnut acreage and RANGELAND shrinking groundwater supplies, and a CROPLAND Activity for rangeland was very limited growing local backlash against rangeland In the north portion of Region 3, in 2015, but supports a stable trend. conversion. Concern regarding overdraft cropland is separated into three geo- Traditionally values for rangeland in the of groundwater supplies has prompted graphical submarkets. The lower end of south and west portions of the region Merced and Stanislaus Counties to the range is defined by Delta land that define the low end of the range, while enact groundwater ordinances and more has limited permanent planting adapt- rangeland in the north and east portions restrictive well permitting processes. ability, while the high end is defined by of the region (with higher rainfall and These combined risks have substantially cropland on highly productive soils in better access to populated areas) define slowed demand for permanent-planting the central areas adaptable to high-value the high end of the range. adaptable rangeland; in fact, only those plantings such as walnuts, wine grapes with well permits in-place, wells already Rangeland in the north and east portions and cherries. All saw values increase drilled, or water available from an in 2015. of the region at lower elevations also adjacent property owned by the buyer has experienced pressure for conver- sold in 2015. Sales of rangeland intended In the central and southern portions of sion to permanent plantings over the for conversion to permanent plantings Region 3, cropland is divided by water last decade, due to fairly good access is expected to decline further or halt in source. Land located in districts with to groundwater and positive climactic 2016, though development of rangeland the strongest water rights, lowest water conditions. However, this land poses purchased and permitted over the last costs and best delivery histories (east substantial risk for such uses: poor soils, few years will continue. side districts) and/or with plentiful high slopes and potential for erosion, groundwater commands the highest environmental constraints on land uses, prices and saw significant demand increases this year. Cropland in non- federal West Side districts (Exchange

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38 AMADOR (WEST) | CALAVERAS (WEST) | CONTRA COSTA | EL DORADO (WEST) | MERCED | SACRAMENTO (SOUTH) | SAN JOAQUIN | STANISLAUS REGION THREE 39 IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016 Contractors) Contractors) defined the middle land experienced this at deliveries water moderate of the range,moderate prices, mostly with as sufficient supplemental federal west-side Land in availability. groundwater thus 2015, allocation in no water were given districts groundwater did land where as demand plummet, saw levels were significantly falling or beingmade unavail- ordinance. able through county Region 3 most irrigated cropland leases in Although annual leases for to $450, $125 generally range from the sandy soil areas of northern sweet potatoes in District and a small portion of Merced Irrigation Irrigation District have soared to southern Turlock strong competition for due to acre $700 to $1,200 per trend has been noted this land. A similar within South demand for where Irrigation District, Joaquin San leased plants competing land suitable for strawberry with almond leases has driven up annual leases from $600 to $1,000 per acre. www.calasfmra.com DAIRY experienced a nearly 30% drop in milk continued to minimize to nearly a non- Since 2009, dairymen have been forced prices from 2014, and in most months existent state. Overall, depreciation to take a hard look at their operations during the year was below $15 to rates were found to be near straight line and decide whether they are “in,” or $16 per hundredweight. However, there deprecation, indicating that the market “out,” and 2015 was no exception as the was a silver lining in softened feed and has returned near a point of equilibrium. industry continues to evolve towards fuel costs that allowed top operators Some dairy facilities, which had the prudently managed and environmentally to remain at or near breakeven, benefit of adjoining or lying close by conscious large scale operations that but did little to help small or less another facility, were purchased by are able to remain profitable through efficient operations. neighboring dairymen with the intention commodity price swings, environmental Vacancy rates remained low as there to transfer the capacity of these smaller compliance, and competition for land are very few dairies for rent within the dairy units (400 to 600 milk cows) from almond grower/developers in the market. By and large, rental facilities that to their existing facilities. This has face of the on-going drought crisis. once inundated the market and caused allowed the dairymen to capitalize on Overall, the market for dairy facili- vacancy rates to increase have fallen out the benefits of operating a single, larger ties in 2015 remained stable and largely of compliance with the General Order dairy unit rather than multiple satellite unchanged from 2014. Thanks to strong and have been demolished or converted facilities and has become the most milk prices in 2014, most dairymen to heifer feedlots. High levels of obso- effective avenue to increase capacity on were able to weather 2015, which lescence that once plagued the market the main facility.

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40 AMADOR (WEST) | CALAVERAS (WEST) | CONTRA COSTA | EL DORADO (WEST) | MERCED | SACRAMENTO (SOUTH) | SAN JOAQUIN | STANISLAUS REGION THREE 41 Kay J. Austin Jeffrey A. Lien Mary Anne Dores Anmmar Alsaggaf Kyle E. Dalrymple George L. Morasci John J. Strohmaier IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016 Fax: (209) 634-0765 4 Appraisers & Consultants www.calasfmra.com (209) 634-948 eltappraisers.com [email protected]

Agricultural ARA ARA ARA 8408 N. Lander Ave Hilmar, CA 95324 ARA Martin Seanez, Stephanie Bengard Randal H. Edwards, Anthony J. Toso, Richard L. Kilgore, In years past it was common that small, that was common past it In years and purchased were facilities older demolished plant permanent in favor of plantings. over the last few However, has increased the motivation years, facilities moderate sized dairy such that (1,150 to 1,400 milk cows) with signifi- also been purchased cant land base have plantings. for conversion to permanent highest and best use of dairy the Thus, lies on a razor’s facilities in the region and dairy a as edge between continuing almond orchard development. Ranches Since 1965

Kevin H. Donlon John Hospenthal Vice President Commercial Account Officer 121 W. Pine Street Lodi, CA 95240 209-367-2383 cellular 209-661-3679 310 N. 2nd Street Office: (209) 892-8543 [email protected] Patterson, CA 95363 Cell: (209) 606-7308 fax 209-334-6817 [email protected] Fax: (209) 892-2871 Member FDIC www.fmbonline.com

42 AMADOR (WEST) | CALAVERAS (WEST) | CONTRA COSTA | EL DORADO (WEST) | MERCED | SACRAMENTO (SOUTH) | SAN JOAQUIN | STANISLAUS REGION THREE 43 urlock Dixon T Stockton IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016 (209) 460-0450 (209) 634-0450 (707) 678-4277 www.calasfmra.com ppraisal A Acampo 95220 .com one Road Stockton, CA 95215 Fax (209) 982-1832 e Real Estate e Real Estate 9610 East Peltier Road 9610 East Peltier Road .pacsouthwestirr Consultation & Management Consultation Business (209) 368-7888 Cellular (209) 915-1963 Business (209) 368-7888 Agricultur 8372 South Jack T www General Engineering Contractor #835461 44 AMADOR (WEST) | CALAVERAS (WEST) | CONTRA COSTA | EL DORADO (WEST) | MERCED | SACRAMENTO (SOUTH) | SAN JOAQUIN | STANISLAUS REGION THREE 45

N/A ACTIVITY / TREND Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Moderate/Stable Moderate/Stable Moderate/Stable Moderate/Stable Moderate/Stable Moderate/Stable Moderate/Stable Limited/Sl. Increasing Limited/Sl. Increasing Limited/Sl. Increasing Limited/Sl.

$350 $1,200 $500 30% $200 $400 $1,200 35% $450 N/A $400 $35 IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016 - $300 - - $18 - - - - - 30% - 30% ------$5 $12 15% N/A 25% 25% 25% $125 $350 $300 $300 $250 $200 $200 $200 $200 RENT RANGE Limited/Stable Limited/Stable Limited/Stable Strong/Increasing ACTIVITY / TREND Limited/Increasing Very Limited/Stable Very Very Limited/Stable Very Limited/Stable Very Very Limited/Stable Very Limited/Stable Moderate/Increasing Moderate/Increasing Moderate/Increasing Very Limited/Increasing Limted/Slightly Increasing DAIRIES Moderate/Slightly Increasing Moderate/Slightly

VALUES: LANDVALUES: & LEASE www.calasfmra.com CROPLAND COUNTY SOUTH: MERCED $22,000 $31,000 $30,000 $8,000 $45,000 $35,000 $24,000 $16,000 $15,000 $3,500 - - - - $22,000 - $2,400 - $35,000 - $31,000 - - - $40,000 - $36,000 - - - - - $500 $1,200 CROPLAND & STANISLAUS CENTRAL: COUNTIES SOUTH SAN JOAQUIN $5,000 $8,000 $4,000 PER ACRE VALUES $17,000 $17,000 $13,000 $12,000 $14,000 $30,500 $22,000 $22,000 $22,000 $22,000 $20,000

CROPLAND NORTH: NORTH SAN JOAQUIN, CONTRA COSTA & SACRAMENTO COUNTIES CONTRA & SACRAMENTO CROPLAND COSTA SAN JOAQUIN, NORTH NORTH:

Class II MID & CWD Westside, Federal District & Well Federal Districts & Well Water Well Water, Westside Non-Federal Westside Non-Fed Dist (incl. Gustine) Eastside Dists. (SSJID, OID, MID, TID) per lactating cow - without underlying land Cropland: Merced ID Walnuts Cherries 6, 10 & 11 Wine Grapes: Districs Cropland: Lodi Region Cropland: Delta Cropland: Rangeland: Permanent Planting Potential Rangeland: Permanent Rangeland: Grazing Only LANDUSE Dairies: Cropland:

Cropland: Cropland: General Cropland: Cropland: Almonds Cropland:

CHERRIES $15,000 - $20,000 $30,500 - $36,000 $32,000 - $36,000 $25,000 - $38,000 $25,000 - $35,000 $25,000 - $35,000 $25,000 - $38,000

DAIRIES

WINE GRAPES

$700 - $2,500 $700 - $2,500 $500 - $2,500 $600 - $2,300 $1,200 - $2,400 $1,200 - $2,400 $1,000 - $3,500 $15,000 - $33,000 $15,000 - $32,000 $15,000 - $32,000 $12,000 - $35,000 $12,000 - $18,000 $12,000 - $25,000 per Milk Cow with Equipment per Milk Cow $22,000 - $35,000 MERCED, STANISLAUS & SAN JOAQUIN COUNTIES STANISLAUS & SAN JOAQUIN MERCED,

WALNUTS DELTA LANDS DELTA ON THE WESTSIDE DISTRICTS & WELL WESTSIDE: FEDERAL WELL & FEDERAL WATER $7,500 - $12,500 $3,500 - $8,000 $3,500 - $8,000 $3,500 - $8,000 $3,500 - $5,500 $3,500 - $5,500 $3,500 - $5,500 $7,000 - $12,000 $5,000 - $12,500 $5,000 - $12,500 $5,000 - $10,000 $5,000 - $8,000 $8,000 - $16,000 $6,000 - $10,000 $4,000 - $10,000 $4,000 - $8,000 $4,000 - $7,500 $4,000 - $7,500 $15,000 - $26,000 $15,000 - $31,000 $15,000 - $18,500 $15,000 - $18,000 $12,000 - $25,000 $12,000 - $25,000 $12,000 - $22,000 $14,000 - $25,000 $22,000 - $40,000 $20,000 - $40,000 HISTORICAL VALUE RANGE per acre VALUE HISTORICAL

RANGELAND LODI REGION LODI $500 - $2,000 $500 - $4,000 $500 - $2,000 $500 - $5,000 $500 - $3,300 $500 - $3,300 $500 - $3,500 NON-FEDERAL WATER WELL WATER, WESTSIDE WELL WATER, $7,000 - $15,000 $7,000 - $12,000 $5,000 - $11,000 $5,000 - $11,000 $5,000 - $11,000 $11,000 - $15,000 $11,000 - $15,000 $11,000 - $15,000 $11,000 - $15,000 $11,000 - $15,000 $13,000 - $15,500 $13,000 - $24,000 $15,000 - $18,000 $15,000 - $20,000 $10,500 - $17,500 $10,000 - $15,000 $10,000 - $15,000 WESTSIDE (includes Gustine) $10,000 - $15,000 $10,000 - $20,000 $14,000 - $22,000 $20,000 - $31,000 NON-FEDERAL, CLASS II MID & CWD $25,000 $25,000 $18,000 $12,000

GENERAL ALMONDS MERCED ID MERCED EASTSIDE DISTRICTS (SSJID, OID, MID, TID) $8,000 - $15,000 $8,000 - $12,000 $8,000 - $24,000 $8,000 - $16,000 $8,000 - $15,000 $8,000 - $17,000 - $30,000 $17,000 - $32,500 $17,000 - $31,000 $16,500 - $37,000 $15,000 - $31,000 $15,000 - $27,000 $12,000 - $24,000 $12,000 - $25,000 $12,000 - $12,000 - $24,000 $10,000 - $24,000 $10,000 - $21,000 $10,000 - $25,000 $10,000 - $10,000 - $20,000 $10,000 - $20,000 $10,000 - $18,000 $10,000 - $14,000 - $30,000 $14,000 - $24,000 $22,000 - $45,000 $22,000 - $35,000 2011 2010 2009 2012 2013 2012 2011 2010 LAND USE 2013 2009 LAND USE COUNTIES STANISLAUS & MERCED SAN JOAQUIN, 2015 LAND USE CROPLAND: NORTH 2015 CROPLAND: CENTRAL 2015 CROPLAND: SOUTH 2015 2014 2013 2012 LAND USE 2014 2014 2011 2014 2010 2013 2012 2011 2010 2009 2009

2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 2015 2013 2011 2009 2007 2005 2003 2001 $0 $0 $0 $0

WESTSIDE-WELL & FEDERAL & WESTSIDE-WELL WESTSIDE-WELL & FEDERAL & WESTSIDE-WELL

IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016

$500 $500

$5,000 $5,000

DELTA WESTSIDE

NON-FEDERAL

$1,000 $1,000

$10,000 $10,000

WESTSIDE LODI REGION LODI

$1,500 $1,500 MERCED ID MERCED NON-FEDERAL

$15,000 $15,000

DISTRICTS

GENERAL

$2,000 $2,000

E EASTSID

$20,000 $20,000

$2,500 $2,500

Counties

$25,000 $25,000

$3,000 $3,000 n Joaqui San

& Stanislaus Merced,

0 $30,00 0 $30,00

$3,500 $3,500

S DAIRIE

RANGELAND H NORT - CROPLAND CENTRAL - CROPLAND SOUTH - CROPLAND (per milk cow) milk (per

0 $35,00 0 $35,00 $4,000 $4,000

$0 $0 2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993

www.calasfmra.com

$5,000 $5,000

0 $10,00 $10,000

0 $15,00 0 $15,00

0 $20,00 $20,000

0 $25,00 0 $25,00

0 $30,00 0 $30,00

$35,000 0 $35,00

0 $40,00 0 $40,00

S CHERRIE WALNUTS ALMONDS WINE GRAPES WINE

0 $45,00 0 $45,00 CRAIG LARSON, G.R.I. Vice President Farm Lands Department

www.pearsonrealty.com [email protected] 7480 N. Palm Ave, Suite 101 559.432.6200 OFFICE 559.281.3338 CELL Fresno, CA 93711 559.432.2938 FAX 559.447.6261 DIRECT

Petersen & ComPany Agricultural Real Estate

Joe Petersen

Petersen & Company (209) 368-8010 office 498 E. Kettleman Lane (209) 210-8010 cell Lodi, CA 95240 (209) 339-8445 fax [email protected] lic. # 01489372

FRESNO | MADERA

REGION CHAIR & COMMITTEE

Jaime Bigham CO-CHAIR Kristin Massetti CO-CHAIR

region four

GENERAL COMMENTS TREE NUT ORCHARDS parallel nut orchard value increases seen Demand for agricultural properties in Sale activity among tree nut orchards in other areas of the San Joaquin Valley. Region 4 continued to increase in 2015, was moderate in 2015. Sales occurring The low end of the value ranges are rep- consistent with the trend over the last subsequent to the 2014 harvest and into resentative of old orchards in fair to poor several years. Sales data for almonds and early 2015 indicated record high pricing; condition and/or orchards that have raisin vineyards are moderate through- however, these values were surpassed arrived at the end of their economic lives. out Fresno and Madera Counties, indi- by sales occurring post-harvest 2015. Activity for pistachio orchards was cating record high values. High demand Westside almond sales, located in the limited in 2015, but supports a relatively and a limited supply of properties federal districts indicate substantial- stable value trend. For Fresno County, available, resulted in value trends that ly softer values as compared to East the range of values for pistachios is were generally stable to increasing. The side properties. The low end of the $25,000 to $40,000 and from $18,000 to majority of the activity encountered in value range represents these west side $38,000 per acre in Madera County. The the market has been driven by buyers transactions, with prices ranging from low end of the range in Madera County seeking permanent plantings, such as $13,000 per acre to $18,000 per acre for is for older orchards planted on non-re- almonds and pistachios, or land suitable mature almond orchards. The soft prices sistant rootstocks, with the most recent for permanent planting development. are a direct reflection of the water condi- transactions indicating a slight increase There were no known sales of dairy fa- tions on the west side and the inability in values as compared to 2014. A sizable cilities in Region 4 in 2015; however to apply marginal ground water without number of these older orchards remain sales data for dairy facilities in the blending. The bottom of the west side in Madera County but a few exist in Central Valley indicated a stable value range reflect orchards lacking supple- Fresno County. trend. Although milk prices declined in mental water sources. Eastside sales There continues to be a high number 2015, prices for dairy facilities remained indicate substantially stronger pricing, of new almond and pistachio orchard stable as a result of competition from with the most recent transactions developments throughout Fresno and permanent planting growers and occurring in Madera County. Late 2014 Madera Counties, as well as in many demand for land. and early 2015 east side almond sales areas of the San Joaquin Valley. Walnut indicated highs in the mid $30,000 per sales are extremely limited in Fresno acre range; however, several transac- County, with no sales available in tions have occurred post-harvest 2015 Madera County. However, this limited with values ranging between $38,000 data supports strong values correlating and $42,000 per acre for young, good with the overall nut market. quality orchards. These values generally

50 FRESNO | MADERA REGION FOUR 51

G030405 , CA 93654 ARA a.com , VINEYARDS alues IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016 AG i er/Appraiser er/Appraiser x 849, Reedley APPRAISAL ennebaker ending ok ok YEARS EXPERIENCE Estate Planning Dissolution Buy/Sell V L Ld

Activity among raisin, table, and wine table, raisin, among Activity to limited very was vineyards grape 2015, depending strong in on vineyard involved of the activity majority The type. in raisin producing vineyards traditional with an Madera Counties, Fresno and and Fresno County abundance of sales in in Madera County. moderate activity increased in vineyards raisin Values for more a increase was 2015; however, the of the general function of the strength market than the antici- agricultural Market data raisins. pated income from consideration supports little to no given vineyard, as buyer to the quality of raisin motivation for land to develop to nut crops is the driving force. A single sale involving a dried-on-the-vine vineyard in lacking an enhancement occurred, value as compared to conventionally trellised vineyards. Wine grape vineyard sales activity continued to be limited in 2015, although the data available suggests an the data available although Br Br .advancedagr tel: 559-259-0756 Matt P www email: [email protected] AG mailing: PO Bo OVER 20 CABRE #01987838/CABREA #A Buying Selling Investment Consulting

BROKERAGE CITRUS www.calasfmra.com Sales of citrus groves in Fresno County in Fresno County groves Sales of citrus In 2012, limited in 2015. were also citrus for trend and value activity the followedincreased; by a stabilizing A slight in 2013 and 2014. market trend noted in 2015 was values increase in desirable groves with quality good for end of the range varieties. The low with of older groves characteristic is indicating values inferior varieties, open land with generally consistent these oldergroves of Most buyers values. for the short them to farm continue will newer, redevelopland to the and term varieties in the more desirable citrus range end of the The high near future. is typically reflective ofmodern groves developed varieties to desirable citrus to produce good quality the ability with segment fruit. The specialty-citrus Mandarin or as of the industry, such Clementine varieties, continues to gain momentum in the consumer market, toward rede- an increasing trend thus, been has types velopment to these citrus observed in the market.

TREE FRUIT ORCHARDS TREE FRUIT The sales activity among The sales tree fruit Fresno limited in very was orchards recent consistent with 2015, County in proper- orchard fruit Most tree years. varieties, of numerous fruit ties consist packers/ are in favor with some of which not. As are that and others consumers histor- has demand for tree fruit the such, ically been influenced more by location rather and general land characteristic, year 2015 crop The quality. orchard than was profitable for most growers due to prices. The low end strong commodity represents typically of the value range varieties are tree fruit whose orchards or are located in not in high demand In most markets. secondary tree fruit range tends end of the low the markets, to parallel open land value as buyers to orchards redevelop the typically new tree fruit varieties or other permanent plantings. been con- has industry The tree fruit few large solidated into the control of a operations smaller of the entities. Many have sold their orchards to these larger, vertically integrated entities. increasing value trend. Similar to raisin grapes, strong demand for land in general is a driving force. Commodity prices for wine grape varieties softened in 2015 with many growers struggling to find good prices or buyers for un-contracted vineyards. Table grape vineyard sales were also extremely limited in 2015, with the data suggesting a range from $20,000 to $30,000 per acre in Fresno and Madera Counties. The increase is propelled by the demand and strength in the market for agricultural land, with primary focus placed on the suitability to develop nut crops.

52 FRESNO | MADERA REGION FOUR 53

IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016 1/21/16 1:41 PM range is represented by cropland proper - cropland by is represented range west end the ties toward of county, the and drainage conditions where soil are relate they especially as less desirable, planting development. to permanent end The high range of values is of the seen competition in markets where water, and soil, is higher among buyers good. The are and drainage conditions increased 20% high end of the range over 2014, as demand continues to quality properties be strong for high for permanent that are adaptable planting developments. water well cropland with for Activity in limited was supply sole water its as a range of values from $10,000 with 2015, markets, Like other to $28,000 per acre. conditions soil values are dictated by and water supplies. County for cropland in Madera Activity was also limited in 2015. Most of the recent activity occurred in Chowchilla Water District where an increasing value and high low the observed at trend was activity the range. Most of ends of the competing and demand derived from motivated to develop buyers permanent been observed trend has plantings. This in the market over the past several years. of the outside Cropland sales activity limited, but even more was districts suggested an increase in values at the low end of the value range, primarily of properties and limited supply due to a high demand among buyers. GCD CD AD CW AE Traffic Proof Stoeckel, Pamela A4393 1-21-2016 1:41 PM 3” x 4.25” 3.5” x 4.75” None None None None None 973-802-7361 PAI______Prudential Advertising Scaled Studio Job # Date Live Trim Bleed Gutter Pub P. Date Approvals: 1

T:4.75” S:4.25” www.calasfmra.com in these markets tends to be tightly tightly to be tends markets in these by multi-generational held farming the of benefit the recognize who families reliable and inexpensive water supplies in these Buyers enjoy. these districts land neighboring be tend to markets like to expand their would owners who a is there past, the operation. Unlike in toward permanent trend in this market planting development in areas where This suitable. are drainage conditions response to in consideredbe to trend is in the supply water a dwindling surface permanent planting USBR Districts as irriga- where developers look to markets are more reliable and tion water supplies Contractor affordable. The Exchange stability. districts provide such Sales activity of Fresno County cropland with surface water delivery in- an with moderate in 2015, was range of The trend in values. creasing values observed is wide, from $10,000 low end of the The to $30,000acre. per S:3” T:3.5” WE GET IT. DONE. WE GET IT. Agricultural financing is a lot like agriculture itself—both require meticulous care and nurturing to yield success. more than 115 years of With industry experience, Prudential Agricultural Investments is focused on building lasting relationships. By listening. Sharing. Understanding. And guiding clients to financial solutions, with competitive products, terms and pricing.

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FINANCING. DONE. WE GET AGRICULTURAL WE GET AGRICULTURAL PRUDENTIAL AGRICULTURAL INVESTMENTS PRUDENTIAL AGRICULTURAL © 2016. Prudential, the Rock symbol, and the Prudential logo are service marks of Prudential Financial, Inc. and its related entities. Steve Garland Nicole Pedro FRESNO Frank Oberti Johan Dam Jake Cutler For more information, visit prudential.com/agloans or contact For more information, visit prudential.com/agloans or contact ROSEVILLE Beyer William The sales activity for cropland in all for cropland in activity The sales and Madera counties in Fresno markets to moderate, with limited ranged from increasing value trends observed in most of the markets USBR In the markets. was Fresno County, demand westside of an increasing value strong indicating trend. Open - land lacking a supplemen poor soils and tal water source and/or drainage conditions reflect theend of the range and those properties lower wells, goodwith supplemental quality drainage condi- soils and favorable tions are reflective of the upper end of was driven by the range. Sales activity prop- intend to develop the who buyers erties to permanent plantings, mostly pistachio and almond orchards. Contractor in the Exchange Activity districts of Western Fresno and Madera in 2015; but limited Counties was very suggested occurred those sales that another increasing value trend. Land PAI_Brand_3.5x4.75.indd 1 RANGELAND Market activity for rangeland properties in the westside and eastside markets of Fresno County and the eastern Madera County market slipped from limited to very limited with few current transactions. Market demand and values appear stable as the rural home site and recreational buyer influence has diminished since the economic crisis of 2008. The high end of the range in the eastside markets, at $3,000 per acre, is reflective of smaller parcels suitable for rural home sites.

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54 FRESNO | MADERA REGION FOUR 55 - IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016 and restrictive environmental environmental restrictive and - regula trended has market dairy The tions. ca- operations with milking to larger head plus excess of 1,000 pacities in replacement capacity, heifer full dairy of as- with sizeable amounts combined sociated open fieldrow and for cropland waste management and feed production. prices have historically been Premium those facilities in the 1,000 to paid for range, as this size 3,000 milking head to have the greatest appears of facility in the mar- market demand of buyers ketplace with the financiala facility of this size. Amount purchase ability to another primary of support land is also consid a as values, dairy affecting factor land erable amount of support needed is - in order to grow forage crops and accom modate waste management. www.calasfmra.com milk prices declined in 2015, prices for for prices 2015, in declined prices milk a result stable as remained facilities dairy of competition from permanent planting sales for land. Most and demand growers of valley continue facilities in the smaller - mainly for the underly to be purchased on these dairies facilities The ing land. were either abandoned removed or Larger dairies after the close of escrow. by continue to be purchased primarily a couple of sales dairymen; however, sizeable with involving modern dairies by permanent acreage were purchased planting developers. of dairies liquidat- There were a number older the with years, ed over the last few and less efficient units being impacted a result of the most. This was primarily an extended period of low prices paid to dairy producers, higher costs for feed, g 3 M VM 661.304.9221

DAIRY INDUSTRY DAIRY [email protected] CA1-527-01-01 1510 East Shaw Avenue Suite 10 Fresno, CA 93710 T 559.243.8766 Daniel A. Leith, AF Senior Vice President, Specialty Asset Manager Global Wealth and Investment Management Bankin Bank of America, N.A. The exception to the upward trend in the trend in to the upward The exception has been in the dairy market agricultural production milk showed 2014 industry. consistent previous year with or above at products of dairy levels, inventories products exports of dairy low levels, continuing paid to be strong, and prices levels. Recently, 2013 above to producers declined however, milk prices over the result of pro- 2015 season as a direct weakeningduction outpacing global prices paid to consumption. In 2015, producers averaged - $14.85 per hundred through September 2015, weight (cwt) average 2014 the from down significantly (cwt). of $21.83 per hundredweight A few dairy sales occurred in the Central were there however 2015; Valley during no known sales in Region 4. Although CRAIG LARSON, G.R.I. Vice President Farm Lands Department

www.pearsonrealty.com [email protected] 7480 N. Palm Ave, Suite 101 559.432.6200 OFFICE 559.281.3338 CELL Fresno, CA 93711 559.432.2938 FAX 559.447.6261 DIRECT

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56 FRESNO | MADERA REGION FOUR 57 oker .com -Br 661-6354 ACTIVITY / TREND Fax Owner (559) 661-6363 CA Lic. # 0079663 Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Moderate/Stable Moderate/Stable Moderate/Stable Moderate/Stable Moderate/Stable Moderate/Stable Moderate/Stable Moderate/Stable Moderate/Stable Limited/Declining Limited/Declining Limited/Declining Limited/Decreasing Limited/Decreasing Moderate/Increasing James K. Merrill merrillrealestate@yahoo IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016 $30 $15 $30 $400 $300 $350 $250 $450 $350 25% 25% $1,000 $20 $15 ------$400 - - - - 25% - 25% - 30% - - - - 30% - 35% - 35% None N/A N/A $5 $5 RENT RANGE .com $12 $12 $10 $175 25% 25% 25% 25% 20% 20% 20% 20% $250 $500 $200 $200 $200 $200 $200

.JamesMerrillRealEstate ACTIVITY / TREND www Limited/Stable Strong/Increasing Limited/Increasing Limited/Increasing Limited/Increasing Limited/Increasing Limited/Increasing Limited/Increasing Limited/Increasing Limited/Increasing Very Limited/Stable Very Limited/Stable Very Limited/Stable Very Limited/Stable Very Limited/Stable Moderate/Increasing Moderate/Increasing Moderate/Increasing Moderate/Increasing Very Limited/Increasing Very Limited/Increasing Very Limited/Increasing Very Limited/Increasing Moderate/Slightly Increasing Very Limited/Slightly Increasing Very Limited/Slightly FRESNO COUNTY MADERA COUNTY VALUES: LANDVALUES: AND LEASE www.calasfmra.com DAIRIES (FRESNO & MADERA COUNTIES) $3,000 $750 $3,000 $10,000 $30,000 $28,000 $25,000 $25,000 $24,000 $25,000 $30,000 $30,000 $30,000 $30,000 $33,000 $30,000 $30,000 $30,000 $38,000 $2,600 $1,400 $40,000 $42,000 $42,000 ------PER ACRE VALUES $700 $650 $600 $250 $1,400 $6,000 $13,000 $18,000 $18,000 $15,000 $16,000 $18,000 $18,000 $12,000 $21,000 $10,000 $10,000 $25,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 Chowchilla Water District Rangeland: Eastside Rangeland: Westside Cropland: Well Water Rangeland Cropland: USBR - West Cropland: Exchange Contractors Cropland: Districts Cropland: Cropland: Well Water Cropland: Madera Irrigation District Wine Grapes Wine Grapes Table Grapes Table Grapes Grapes Raisin Raisin Grapes Raisin Citrus Tree Fruit Pistachios Dairies, Older* *per lactating cow - without underlying land Pistachios Dairies, Newer* Almonds Almonds LAND USE

Cropland:

FRESNO | MADERA HISTORICAL VALUE RANGE per acre

LAND USE ALMONDS PISTACHIOS TREE FRUIT CITRUS RAISINS TABLE GRAPES WINE GRAPES FRESNO COUNTY 2015 $13,000 - 42,000 $25,000 - $40,000 $18,000 - $30,000 $15,000 - $30,000 $20,000 - $33,000 $20,000 - $30,000 $20,000 - $30,000 2014 $14,000 - $36,000 $25,000 - $40,000 $16,000 - $28,000 $12,000 - $20,000 $18,000 - $30,000 $18,000 - $25,000 $18,000 - $28,000 2013 $15,000 - $28,000 $25,000 - $33,000 $12,000 - $25,000 $12,000 - $20,000 $15,000 - $23,000 $15,000 - $20,000 $15,000 - $24,000 2012 $15,000 - $20,000 $25,000 - $33,000 $12,000 - $17,000 $12,000 - $20,000 $13,000 - $18,000 $13,000 - $19,000 $16,000 - $22,000 2011 $12,000 - $18,000 $18,000 - $25,000 $9,000 - $14,000 $7,500 - $15,000 $10,000 - $15,000 $10,000 - $15,000 $10,000 - $14,000 2010 $9,000 - $16,000 $10,000 - $18,000 $9,000 - $12,500 $7,500 - $14,000 $9,000 - $13,000 $10,000 - $15,000 $9,000 - $12,000 2009 $8,000 - $15,000 $8,000 - $15,000 $8,700 - $12,500 $7,500 - $14,000 $9,000 - $13,000 $10,000 - $15,000 $8,000 - $10,000 CROPLAND CROPLAND CROPLAND CROPLAND RANGELAND RANGELAND LAND USE USBR-WEST EXCHANGE CONTRACTORS DISTRICT WATER WELL WATER WEST EAST FRESNO COUNTY (continued) 2015 $6,000 - $10,000 $12,000 - $24,000 $10,000 - $30,000 $10,000 - $28,000 $250 - $750 $600 - $3,000 2014 $5,000 - $8,500 $10,000 - $16,000 $10,000 - $25,000 $10,000 - $22,000 $250 - $750 $600 - $3,000 2013 $5,000 - $8,500 $9,000 - $11,000 $7,500 - $19,000 $7,000 - $16,000 $250 - $750 $600 - $3,000 2012 $4,000 - $8,500 $8,000 - $20,000 $7,500 - $15,000 $4,500 - $13,000 $200 - $750 $500 - $3,000 2011 $2,500 - $5,500 $7,500 - $9,000 $4,500 - $13,000 $4,000 - $8,000 $200 - $750 $500 - $3,000 2010 $2,500 - $4,500 $7,000 - $8,500 $4,500 - $11,000 $3,000 - $8,000 $200 - $750 $750 - $3,000 2009 $2,500 - $4,000 $6,750 - $8,000 $3,500 - $10,500 $3,000 - $9,000 $125 - $750 $500 - $3,000 CROPLAND-MADERA CROPLAND-CHOWCHILLA CROPLAND LAND USE ALMONDS PISTACHIOS RAISIN GRAPES TABLE GRAPES WINE GRAPES IRRIGATION DISTRICT WATER DISTRICT WELL WATER MADERA COUNTY 2015 $21,000 - $42,000 $18,000 - $38,000 $20,000 - $30,000 $20,000 - $30,000 $20,000 - $30,000 $18,000 - $25,000 $18,000 - $25,000 $16,000 - $25,000 2014 $17,000 - $32,000 $15,000 - $32,000 $18,000 - $25,000 $18,000 - $25,000 $18,000 - $26,000 $16,000 - $20,000 $16,000 - $20,000 $13,000 - $20,000 2013 $15,000 - $27,000 $15,000 - $30,000 $12,000 - $18,000 $12,000 - $18,000 $13,000 - $28,000 $11,000 - $15,000 $11,000 - $15,000 $9,000 - $11,000 2012 $15,000 - $20,000 $15,000 - $30,000 $12,000 - $15,000 $12,000 - $16,000 $13,000 - $22,000 $10,000 - $14,000 $10,000 - $14,000 $7,000 - $11,000 2011 $11,000 - $17,000 $12,000 - $20,000 $10,000 - $14,000 $10,000 - $14,000 $10,000 - $14,000 $8,000 - $11,000 $8,500 - $10,000 $7,000 - $10,000 2010 $9,000 - $16,000 $10,000 - $18,000 $8,000 - $12,000 $8,000 - $12,000 $9,000 - $12,000 $7,000 - $9,000 $7,000 - $9,000 $5,000 - $8,000 2009 $8,500 - $15,000 $8,000 - $15,000 $7,000 - $10,500 $7,000 - $11,000 $8,000 - $10,000 $5,500 - $8,000 $4,500 - $8,000 $3,500 - $5,500 LAND USE RANGELAND DAIRIES NEWER DAIRIES OLDER MADERA COUNTY (continued) FRESNO & MADERA COUNTIES 2015 $650 - $3,000 $1,400 - $2,600 $700 - $1,400 2014 $650 - $3,000 $1,400 - $2,600 $700 - $1,400 2013 $650 - $3,000 $1,200 - $2,400 $500 - $1,200 2012 $650 - $3,000 $1,400 - $2,800 $500 - $1,200 2011 $650 - $3,000 $1,600 - $2,800 $500 - $1,800 2010 $650 - $3,000 $2,000 - $3,500 $750 - $2,000 2009 $650 - $2,750 $2,500 - $4,000 $1,800 - $2,650 REGION FOUR 59

1 5 3 1 3 1 5 3

$0 2015 $0 201 2009 201 201 201 2009 2007 2005 201 201 2009 2007 2005 2003 201 201 2007 2005 2003 2001 1999 1997 1995 1993 2001 2003 1999 1997 1995 1993 2001 1999 1997 1995 1993

$5,000 $5,000

0 $10,00 0 $10,00

0 $15,00 0 $15,00

0 $20,00 $20,000

0 $25,00 $25,000 LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016

TABLE GRAPES TABLE S GRAPE RAISIN WINE GRAPES WINE

$30,000 $30,000 Counties Counties Counties

Fresno & Madera & Fresno Fresno & Madera & Fresno Fresno & Madera & Fresno

$35,000 $35,000

$0 $0 $0 2015 2013 2011 2009 2007 2005 2003 2011 2009 2015 2013 2011 2009 2007 2005 2003 2015 2013 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2001 2001 1999 1997 1995 1993 1999 1997 1995 1993 2001 1999 1997 1995 1993 2001 1999 1997 1995 1993

$6,000 $6,000

$6,000

0 $12,00 $12,000

0 $12,00

$18,000 $18,000

$18,000

0 $24,00 $24,000

0 $30,00 $30,000 0 $24,00

www.calasfmra.com

PISTACHIOS ALMONDS

0 $36,00 $36,000 TREEFRUIT CITRUS

Counties Counties 0 $30,00

Fresno & Madera & Fresno Fresno & Madera & Fresno Fresno County Fresno Fresno County Fresno

0 $42,00 $42,000

0 $36,00

$0 $0 $0 $0 2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 2001 1999 1997 1995 1993 2001 1999 1997 1995 1993 2001 1999 1997 1995 1993

$5,000 $5,000

$1,000 $1,000

$10,000 $10,000

$2,000 $2,000

$15,000 $15,000

$3,000 $3,000

$20,000 0 $20,00

CROPLAND CROPLAND RANGELAND (East) RANGELAND (East)

Madera County Madera Fresno County Fresno ) (West County Fresno Fresno & Madera Counties Madera & Fresno

$25,000 $4,000 $4,000 $25,00 0 Farm Management and Leasing for Investors and Institutions since 1972

Specializing in Almonds, Walnuts, Citrus and Prunes from Tulare to Stanislaus County Long and Short-Term Orchard Leases Orchard Development Almond & Walnut Harvesting Joint Ventures Court-appointed Receiver GAAP Financial Reporting

John Colbert, AFM, President Bob Kolberg, Vice President Nick Hill, Vice President Aaron Attebery, Controller

60 FRESNO | MADERA REGION FOUR 61 eet enue, Suite 101 irst Str IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016 1044 E. Herndon Avenue, Suite 106 Suite Avenue, 1044 E. Herndon CA 93720 Fresno, (559) 323-3493 Cell: (559) 246-7656 (559) 448-0193 Fax: Terry Crawford Crawford Terry Leader Team & President Vice Senior , California 93720 , California 93711 omwell Av .bolenfransen.com (559) 226-8177 esno esno TEL st Cr 7405 North F Fr Fr Satellite Office in Monterey www 652 We www.cvcb.com www.cvcb.com [email protected] [email protected] www.calasfmra.com Assisting dairy and farming concerns in making sound SAVE THE DATE! tax, accounting and management decisions 35th Annual Agribusiness Management Conference M. Green and Company LLP CERTIFIED PUBLIC ACCOUNTANTS

62 FRESNO | MADERA FIVE: SOUTHERN SAN JOAQUIN VALLEY

KERN | KINGS | TULARE

REGION CHAIR & COMMITTEE

Michael Ming ARA, FRICS, CHAIR Emily Ming Evie A. Portugal ARA Lynn E. Rickard ARA, MRICS Steve Runyan ARA, FRICS Robb M. Stewart AFM region five

OVERVIEW CITRUS - ALL TREE FRUIT - ALL ALMONDS - ALL Demand for citrus plantings is consid- Sales of tree fruit orchards continue to ered steady with sales of citrus groves be primarily limited to existing grower/ The commodity price for almonds in Tulare and Kern counties ranging packers or to buyers seeking ground weakened towards the end of 2015, with from $15,000 to $27,000 per acre in 2015, suitable for re-development. Tree fruit prices near $3.25 per pound by the end level from 2014. The upper end of the orchards, in general and regardless of of the year. The demand for almond range reflects sales in northern Tulare planted varieties, were and continue to orchards has been strong all year. The County including newer navel varieties. be purchased primarily for the underly- movement of almond orchards has been This end of the range might also capture ing ground. However, there have been steady and there have been good quality some sales that are partially planted to a couple of sales of young orchards, orchards selling at near record prices of Mandarin varieties; however, sales with with desirable varieties, showing that $27,000 to $40,000 per acre. The older Mandarins have been very limited and a premium was paid with values up to orchards with limited economic life our analysis makes no effort to cover $32,000+. In areas of good ground and are generally at $22,000 to $26,000 per that market in detail. The low end of water conditions, orchard sales indicate acre. There appear to be an unlimited the range reflects sales primarily in values from $16,000 to $26,000 per acre. number of buyers, which are primarily the Terra Bella-Ducor area of southern Due to the reduction in tree fruit orchard outside investors. Tulare County and the McFarland area plantings, supply and demand is coming TABLE GRAPES - ALL of northern Kern County. Values in back into balance, allowing for better Sales of table grape vineyards were the Wheeler Ridge-Maricopa area in returns and a slightly more optimis- limited in 2015, as is typical, with no southern Kern County would fall near tic future. The bulk of tree fruit sales sales of young, high quality properties. the upper end of the range but sales in continue to be concentrated in Fresno The value range of $22,000 to $32,000 that area rarely occur. County, northern Kings County, or near per acre was measured at the lower end the Fresno-Tulare County line, with by recent sales and at the upper end by moderate sales reported in the central to a combination of adjusting older sales southern Tulare County area. and income analysis of younger vineyards with newer varieties. The wide range is due to the economic viability of the vineyards.

64 KERN | KINGS | TULARE REGION FIVE 65 IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016 limited limited market and reflectedin the ac- this occasional From table. companying data of crop share permanent we crops, equiva- estimate cash attempted to have lower a for providing without lent rents, cash rents return on to less risk to due and cash share These crop the landlord. equivalent the as- rents are made under owns the landlord both sumption that the ground and developed the permanent to 15 leased for is planting. Often, land tenant develops20 years, and the the the and therefore, permanent planting receive the full crop landlord would not share or cash rent equivalents reflected in the data provided. www.calasfmra.com t RENTAL DATA ON PERMANENT CROPS ON PERMANENT DATA RENTAL In Region Five, rental data for open Five, rental data In Region but the relatively common, ground is In is rare. permanent crops leasing of there is not some cases enough to data provide even educated an at lease guess more there is seemingly terms. Where between are leases of the many data, held are the terms members or family This holders. investment by confidential crop the of not all if most in resulted has crops being share data for permanent data as new years, unchanged in many is seldom uncovered. On the occasion it has been in- when new data is found, understanding of the corporated into our m 661-587-1010 www.valbridge.co Michael Burger, MAI, R/W-AC WALNUTS - ALL WALNUTS PISTACHIOS - ALL PISTACHIOS Southern San Joaquin Valley and Central Coas The 2015 commodity price increased to The 2015 commodity a result there were around $6.00/lb. As sale for orchards good quality few very supply. water dependable a with in areas crops nut other from Due to competition for good soils with good water sources to and the pistachio tree’s better ability handle stressful conditions, pistachio orchards are consistently being planted on marginal soil that often has marginal water supplies. Walnut prices continued to strengthen continued to Walnut prices trends price nut the mirroring in 2015, for almonds Sales of and pistachios. but were moderate, properties walnut from ranging stabilized sale prices in Tulare $26,000 acre to $43,000 per and $20,000 acre to $43,000 per County in Kings County. KERN COUNTY RANGELAND - EAST RANGELAND - WEST CROPLAND – ALL AREAS Sales activity was limited from the level Traditionally there is little rangeland of 2014, with a decreasing number of sig- sold for grazing purposes on the west Sales activity in 2015 continued at about nificant rangeland transactions. Prices side of Kern County. The economics the same rate as in the previous year, did not increase from last year’s levels. of grazing land in this area do not vary reflecting demand for land suitable Sales of smaller parcels, reflected in the much from one year to the next. There for permanent crop development in Recreation Land segment, were limited. is no home site influence and limited the face of prevailing high commodity recreational potential. Land values did prices for nut crops and table grapes. not increase in 2015, with a stable value Values increased again in all areas, with trend is projected going forward. increases ranging from 5% to 17% over 2015. This is lower than the 11% to 38% increase from 2014. Buyers are still active but water concerns are starting to drive decisions. Sellers appear to be more receptive to offers.

CRAIG LARSON, G.R.I. Vice President Farm Lands Department

www.pearsonrealty.com [email protected] 7480 N. Palm Ave, Suite 101 559.432.6200 OFFICE 559.281.3338 CELL Fresno, CA 93711 559.432.2938 FAX 559.447.6261 DIRECT

Matt Pennebaker, ARA Broker/Appraiser tel: 559-259-0756 [email protected] AG BROKERAGEBROKERAGE PO Box 849 BBuyinguying SSellingelling Reedley, CA 93654 IInvestmentnvestment CConsultingonsulting CABRE #01987838 AG APPRAIAPPRAISALSAL CABREA #AG030405 LLendingending EEstatestate PlPlanninganning www.advancedagra.com Dissolution Buy/SellBuy/Sell Values OVER 20 YEARS EXPERIENCE

66 KERN | KINGS | TULARE REGION FIVE 67 IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016 www.calasfmra.com Lic. #01514403 Lic. Kevin Palla Kevin Senior Associate Ag & Land Division (661) 633-3803 - [email protected] CROPLAND TULARE COUNTY & KINGS KEVIN PALLA KNOWS AG! KNOWS KEVIN PALLA Ag land values are at an all-time Ag land values are land worth? What is your high! experience. Kevin now combines his expertise with the platform of Cushman & combines his expertiseof Cushman & with the platform Kevin now experience. orchards, ranches, to help clients capitalize on opportunities in farms, Wakefield|Pacific as transitional land. as well and vineyards Kevin Palla is a third generation member of a pioneer Kevin Palla with farming and Involved farm family. Bakersfield and management he has a decade of real estate brokerage agriculture all of his life, A Member of the Cushman & Wakefield Alliance Wakefield A Member of the Cushman & Suite 1000 Avenue, 5060 California CA 93309 Bakersfield, www.paccra.com Pacific Commercial Realty Advisors, Inc. Advisors, Realty Pacific Commercial The trends in real estate values and values estate real trends in The continued buying interest to increase with the region 2015, during throughout the values of 6% to 7% over increases of driver principal The reported for 2014. to be persis- rising land values continues particu commodity prices, tently high larly for nut crops. The highest demand highest The nut crops. for larly with prime soils has been for open land combination a from and irrigation water ground and water of dependablesurface Northern Kings water sources. In County, open land properties moved in western Land 2015. in higher slightly including Westlands Kings County, a Water District, remained stable in range of $7,500 to $11,000. The higher sales prices in this area were dependent from sources water upon supplemental deep wells. [email protected]

Darrell Atkinson AFM, AAC Office (661) 835-1080 Cell (661) 332-8688 Fax (661) 885-8004 PO Box 20040 Bakersfield, CA 93390 [email protected] CA BRE: #01082451

68 KERN | KINGS | TULARE VALUES: LAND AND LEASE

LAND USE VALUES PER ACRE ACTIVITY / TREND RENT RANGE ACTIVITY / TREND

KERN COUNTY Cropland: NE & Central $22,000 - $26,000 Limited/Increasing $250 - $400 Moderate/Increasing Cropland: Southeast $18,000 - $22,000 Moderate/Increasing $250 - $450 Moderate/Increasing

Cropland: State Water $10,000 - $22,000 Moderate/Sl. Increasing $175 - $250 Limited/Stable REGION FIVE

Rangeland: East (2,000 acres or more) $750 - $1,200 Limited/Stable $16 - $22 Limited/Stable Rangeland: Recreational $750 - $1,500 Limited/Stable None None Rangeland: West $450 - $700 Limited/Stable $6 - $9 Moderate/Stable Almonds $30,000 - $40,000 Limited/Increasing 20% - 30% Moderate/Stable Table Grapes $22,000 - $30,000 Very Limited/Increasing $400 - $800 Moderate/Stable Citrus $15,000 - $25,000 Moderate/Stable 20% - 25% Moderate/Stable Pistachios $35,000 - $41,000 Very Limited/Sl. Increasing 20% - 25% Moderate/Stable

TULARE COUNTY Cropland $15,000 - $27,000 Moderate/Increasing $200 - $400 Moderate/Increasing Rangeland $900 - $1,500 Moderate/Stable $14 - $20 Moderate/Stable Walnuts $26,000 - $43,000 Moderate/Sl. Increasing 20% - 30% Limited/Stable Almonds $29,000 - $40,000 Moderate/Increasing 20% - 30% Limited/Stable Table Grapes (South) $22,000 - $32,000 Limited/Increasing $400 - $800 Moderate/Stable Citrus (South) $10,000 - $14,000 Moderate/Sl. Increasing 20% - 30% Moderate/Stable Citrus (North) $15,000 - $27,000 Moderate/Sl. Increasing 20% - 30% Moderate/Stable Tree Fruit (North) $22,000 - $28,000 Moderate/Sl. Increasing $400-$800 or 20%-30% Moderate/Stable Olives $14,000 - $17,000 Limited/Stable None None

KINGS COUNTY Cropland (North) $19,000 - $25,000 Moderate/Increasing $250 - $450 Moderate/Increasing Cropland (Central) $18,000 - $22,000 Moderate/Increasing $250 - $450 Moderate/Increasing Cropland (West) $7,500 - $11,000 Moderate/Increasing $150 - $350 Moderate/Increasing Walnuts $20,000 - $43,000 Moderate/Increasing 20% - 30% Moderate/Stable Rangeland $200 - $300 Moderate/Stable $7.50 - $12 Moderate/Stable Tree Fruit $15,000 - $22,000 Moderate/Increasing $300-$800 or 20%-30% Moderate/Increasing

DAIRIES (Kings, Tulare and Kern Counties) Dairies, Newer* $1,3500 - $1,650 Limited/Declining $14 - $20 Limited/Decreasing Dairies, Older* No Contributory Value Moderate/Declining $8 - $12 Limited/Decreasing *per lactating cow - without underlying land

www.calasfmra.com 2016 TRENDS IN AGRICULTURAL LAND & LEASE VALUES 69

- $11,500 - $14,000 - $15,500 - $25,000 - $25,000 - $21,000 - $20,000

CITRUS $8,500 $8,500 $15,000 $15,000 $12,000 $10,000 $14,000 $8,500 $8,500 $10,000 $22,000 $20,000 $14,500 $12,000 ------

$8,000 $8,000 $6,000 $4,500 $9,000 $4,500 CROPLAND WATER STATE $10,000 - $9,000 - $10,000 - $12,000 - $22,000 - $20,000 - $16,000 - $16,000

CROPLAND SOUTHEAST $8,000 $9,000 $11,000 $15,500 $13,000 $18,000 $16,000 $9,000 $20,000 $24,000 $10,500 $26,000 $28,000 $18,000 $11,500 $21,500 $18,000 $15,000 $10,500 $12,500 $12,500 ------

TREE FRUIT $9,500 $9,500 $8,000 $8,000 $9,000 $17,000 $13,000 $16,000 $16,000 $16,000 $10,000 $14,000 CR0PLAND NE & CENTRAL $22,000 $22,000

CROPLAND PISTACHIOS TREE FRUIT $7,000 - $11,000 $8,500 - $12,500 $6,500 - $12,500 $5,000 - $10,000 $8,000 - $12,000 $9,000 - $12,500 $13,000 - $18,000 $15,000 - $20,000 $15,000 - $24,000 $15,000 - $18,000 $15,000 - $25,000 $15,000 - $22,000 $15,000 - $27,000 $16,000 - $24,000 $12,000 - $14,500 $10,000 - $15,000 $35,000 - $41,000 $35,000 - $41,000 $32,000 - $35,000 $20,000 - $29,000 $24,000 - $32,000 HISTORICAL VALUE RANGE per acre VALUE HISTORICAL

TABLE GRAPESTABLE CROPLAND WEST $750 - $1,500 $750 - $1,500 $750 - $1,200 $750 - $1,200 $750 - $1,200 $750 - $1,200 TABLE GRAPESTABLE (SOUTH) $1,000 - $1,500 RECREATION LANDRECREATION (EAST) $2,750 - $4,500 $2,750 - $4,000 $2,750 - $4,000 $7,500 - $11,000 $7,500 - $11,000 $5,500 - $4,500 - $7,500 $11,500 - $14,000 $11,000 - $14,000 $17,700 - $32,000 $16,000 - $22,000 $16,000 - $22,000 $12,000 - $15,000 $12,000 - $17,000 $12,000 - $15,000 $14,000 - $17,500 $22,000 - $30,000 $22,000 - $30,000 $22,000 - $32,000 $22,000 - $30,000 $22,000 - $30,000

$12,000 $8,000 $12,000 $15,000 $9,000 $9,000 $17,000 $10,000 $500 $1,500 $1,300 $12,000 $19,000 $500 $700 $15,000 $1,500 $1,500 $17,000 $17,000 $22,000 $500 $600 $600 $700 $1,300 $1,000 $1,200

------

OLIVES RANGELAND RANGELAND WEST $750 - $475 - $475 - $600 - $600 - $200 - $200 - $200 - $900 - $900 - $900 - $900 - $450 - $450 - CROPLAND CENTRAL $6,500 - $5,000 - $8,000 $6,000 $6,000 $9,000 - $9,000 $11,500 $15,000 - $18,000 - $12,000 - $10,000 - $14,000 $14,000 $15,000 $15,000 $20,000 $24,000 $27,000 $27,000 $24,000 ------WALNUTS CITRUS (N) $0 - $0 - $0 - $0 - $1,000 $0 - $1,000 DAIRIES OLDER* RANGELAND EAST CROPLAND NORTH $750 - $1,200 $750 - $1,150 $750 - $1,200 $650 - $900 $500 - $700 $600 - $1,000 $400 - $700 $1,200 - $1,800 $5,000 - $12,000 $2,200 - $3,250 $9,000 - $14,000 $9,000 - $11,000 $9,000 $9,000 $11,000 $12,500 - $17,500 $15,000 - $18,500 $15,000 $15,000 - $20,000 $15,000 $18,000 $16,000 - $24,000 $12,000 - $17,000 $19,000 - $25,000 $10,000 - $15,000 $14,000 $26,000 - $43,000 $26,000 - $43,000 $20,000 - $28,000 $24,000 - $32,000 $10,000 $11,000 $12,000 $15,000 $14,000 $14,000 $18,000 ------WALNUTS ALMONDS ALMONDS CITRUS (S) DAIRIES NEWER* $800 - $2,200 $1,750 - $2,500 $1,350 - $1,650 $1,000 - $2,000 $1,400 - $2,000 $3,250 - $4,250 $7,000 $8,000 - $12,000 $8,000 - $12,000 $8,000 $6,000 $2,000 - $3,000 $11,000 $18,500 - $22,500 $18,500 - $24,000 $13,000 - $16,000 $12,500 - $16,500 $15,000 - $18,000 $15,000 - $19,000 $16,000 - $19,000 $10,000 - $14,000 $10,000 $10,000 $10,000 - $14,000 $14,000 $23,000 - $27,000 $30,000 - $40,000 $25,000 - $30,000 $25,000 - $35,000 $25,000 - $35,000 $22,000 - $28,000 $29,000 - $40,000 $20,000 - $28,000 $20,000 - $43,000 $20,000 - $43,000 2011 2010 2009 2012 2010 2009 2013 2013 2012 2011 2014 2009 2010 LAND USE KERN COUNTY 2015 LAND USE TULARE COUNTY 2015 LAND USE TULARE COUNTY (continued) 2015 LAND USE KINGS COUNTY 2015 LAND USE DAIRIES (KINGS, TULARE AND KERN COUNTIES) 2015 *(per cow basis, including milk barn equipment and residence) 2014 2014 2011 2014 2013 2012 2014 2013 2012 2011 2010 2013 2009 2012 2011 2010 2009

70 KERN | KINGS | TULARE

REGION FIVE 71

$0 $0 2003 2003 2003 2009 2009 2009 2007 2005 2007 2005 2007 2005 2015 2013 2011 2015 2013 2011 2015 2013 2011 2001 2001 2001 1999 1997 1995 1993 1999 1997 1995 1993 1999 1997 1995 1993

$5,000 $5,000

$10,000 0 $10,00

$15,000 0 $15,00

$20,000 0 $20,00

$25,000 0 $25,00

$30,000 $30,000

IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016

$35,000 0 $35,00

TABLE GRAPES TABLE WALNUTS ALMONDS

$40,000 $40,000

Tulare & Kern Counties Kern & Tulare Counties Kings & Tulare Kern & Tulare Counties Tulare & Kern

$45,000 0 $45,00

$0 $0 2003 2003 2003 2009 2009 2009 2015 2013 2011 2007 2005 2015 2013 2011 2007 2005 2015 2013 2011 2007 2005 2001 2001 2001 1999 1997 1995 1993 1999 1997 1995 1993 1999 1997 1995 1993

$5,000 $5,000

$10,000 0 $10,00

$15,000 0 $15,00

$20,000 $20,000

www.calasfmra.com

$25,000 $25,000

CITRUS TREE FRUIT TREE OLIVES

Tulare & Kern Counties Kern & Tulare Tulare & Kings Counties Kings & Tulare Tulare County Tulare

$30,000 0 $30,00

$0 $0 $0 $0 2003 2003 2003 2003 2003 2009 2009 2009 2009 2009 2015 2013 2011 2007 2005 2015 2013 2011 2007 2005 2015 2013 2011 2007 2005 2015 2013 2011 2007 2005 2015 2013 2011 2007 2005 2001 2001 2001 2001 2001 1999 1999 1997 1995 1993 1999 1997 1995 1993 1999 1997 1995 1993 1997 1995 1993 1999 1997 1995 1993

$200 0 $20

$5,000 $5,000

$400 $400

$10,000 0 $10,00

$600 $600

$800 $800 $15,000 $15,000

$1,000 $1,000

$20,000 0 $20,00

) (East $1,200 $1,200

RANGELAND ) (West

$25,000

0 $25,00

D RANGELAN D CROPLAN CROPLAND $1,400 $1,400 Kern Counties Kern CROPLAND

& Tulare Kern County Kern Kings County Kings Tulare County Tulare y Count Kern

$30,000 $30,00 $1,600 0 $1,600 There’s no place like “HOME” H.R. Macklin & Sons, Inc. 34854 Road 124 Visalia CA 93291-9514 FARM & RANCH Sales / Purchases Appraisals/Inspections Management Financing Office (559) 784-4000 Fax (559) 783-1000 Michael Bennett 120 N. Main Street Porterville, CA 93257 MIKE TOOMEY Cell (559) 359-0781 [email protected] Office (559) 733-1000 Fax (559) 733-3578 DRE #475779 [email protected] www.hrmacklin.com

ROBB M. STEWART, A.F.M. Senior Vice President Farms, Ranches and Transitional Properties CA Lic. #01158293

[email protected] www.pearsonrealty.com 661.303.2930 CELL

1801 Oak St, Ste 159 3447 S. Demaree St Bakersfield CA 93301 Visalia CA 93277 661.334.2796 DIRECT DIRECT 559.302.1912 661.215.5417 FAX FAX 661.215.5417

72 KERN | KINGS | TULARE SIX: CENTRAL COAST

REGION CHAIR & COMMITTEE

Allison Renz Clark ARA, CHAIR Mike Cullinan Dee Dee Dunstan MAI Gary L. Fenske ARA Dave Hamel ARA Rick Mercier ARA

region six

SANTA CLARA COUNTY Pasture San Benito County Row Crops While livestock and recreational rents Row Crops alone do not support the purchase price The south county areas of Morgan of ranch properties, demand for such While there were a limited number of Hill and Gilroy remain the key areas of properties along the Central Coast transactions over the past year, San irrigated cropland in the county. Santa remains strong. The area remains an Benito County row crop values appear to Clara land values are influenced heavily important, if somewhat limited, range be reasonably stable with prime farmland by speculative development potential for many producers due to large tracts in the San Juan Bautista Valley ranging and the area’s proximity to Silicon held by public entities for wildlife and from $27,000 to $30,000 per usable acre. Valley. Agricultural land typically falls watershed. These continue to be rented at While the supply of available properties into three subgroups. Small parcels (five competitive levels economic to ranchers, is very limited, there is strong demand acres and less) are generally considered as the land owners are primarily inter- that would likely push values higher if rural residential homesites. Agricultural ested in conservation, good land stew- a good quality ranch was on the market. properties less than 40 acres are often ardship, and fire control. There is strong Farmland in secondary farming areas sought after by investors. These proper- demand for leased ground and pasture typically range from $15,000 to $25,000 ties are often leased and in many cases rents in the market area typically range per usable acre. farmed in conjunction with adjacent from $18 to $30 per acre. Since land and rental values in San Benito land on an interim basis. Tracts larger County are typically less than those of than 40 acres are considered to be com- similar properties in Monterey County, mercial agricultural properties. The there continues to be interest in prime Gilroy area tends to have larger tracts San Benito County agricultural land. of agricultural land and per-acre land Farmland rents have seen an increase values are correspondingly lower than in over the past several years as more the Morgan Hill area.

IN AGRICULTURAL LANDIN AGRICULTURAL & LEASE VALUES 2016 TRENDS 2016 to be involvedto be although with sales, ever actively few ranches are very there Investors, market. open the listed on are and local farmers grower/shippers, market, buyers in the current the typical and are often by sellers and/or contacted Realtors directly. depending land rents vary Agricultural factors These factors. upon many negotiationinclude the lease term, skills of the owner and lessee, condition and system, type quality of the irrigation and topography. of drainage system, to be considered rents are Farmland and there stable to slightly increasing, of available limited supply is a very area. With the properties in the market investment rates, capitalization lower competitive less of a playing are groups and the cash normally Rents are role. paying for responsible lessee is usually the taxes, water costs, and irrigation system maintenance. (805) 683-4944 Ron Aschwanden [email protected] FOR AGRICULTURAL LENDING FOR AGRICULTURAL Crops Row MONTEREY COUNTYMONTEREY www.calasfmra.com CommunityWestBank.com or financing capital improvements, Community West Bank is ready to support your Ag business or financing capital improvements, Community Bank is an approved lender for Farmer Mac and the USDA Farm Service needs. Community West find out how we can help your business, contact: Agency (FSA) small farm loans. To Whether it’s an agricultural mortgage loan for a land acquisition, refinancing existing debt an agricultural mortgage loan Whether it’s John Lane John Farms Lane Owner, Community West Bank provided great service in getting our loanCommunity West Bank provided great We are very happy we came completed in a timely manner. to them, as they got the job done with flying colors!” Laura Maffei [email protected] (805) 938-1690 “ Monterey Monterey row crop land County activity increasing. Sales values are a year with the past over typical was - of transac limited number somewhat 2015 sales indicated The tions occurring. $20,000 ranging from to $62,000 values the prime Blanco per acre. Sales in District farming region Salinas near $55,000 to $60,000+ per acre. range from notable, a was there year the in Late area. the Chualar new high sale in was actively gross acre ranch The 440 market, soliciting listed on the open from both local several competing offers growers and investment The companies. purchased was a local farmer who buyer the property for just less than $57,000 per usable acre (≈17% above the asking and trending upward Values are price). is capitalization rates have dropped. It becoming more common for Realtors

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a We Love Our Bank Our Love We Monterey Monterey have entered farmers County with conversations Current the market. have indicated market participants that rents in San Benito farmland County are to increase. continuing is in the County water Agricultural wells and a combination of provided by of the Central Valley San Felipe Division Felipe unpredictable San The Project. proper- allocations make district water place in supplemental wells ties with much more desirable. There have been no sales of the very best quality land in recent years, but marginal and outlying areas have stepped upward with growers showing a willingness to travel greater distances to protect and expand their crop production base. Values in outlying areas like the Nipomo Mesa, Buellton to Lompoc, and east of Santa Maria have been between $20,000 and $45,000 per acre. One significant land sale ($34,000/acre) of a property that abuts a high-end residential subdi- vision appears to downplay the existing land use entitlements that allow for conversion to residential development. The parcel was purchased by an agricultural investor and continues to be farmed to berries. Additionally, a $54,000/acre land sale in the Edna Valley is a new high for vegetable crop land and is a Wine Grapes SANTA MARIA VALLEY step upward of about $15,000/acre from previous sales of similar land in the area. There was limited activity related to Irrigated Vegetable/Strawberry Land vineyard properties this past year, with The primary market interest has been for Current land prices are presently the principal parties involved in recent land that is suitable of organic crops and ranging from $20,000 to $70,000+ per transactions tending to be both local raspberries grown under high-hoops. acre in the Santa Maria Valley, assuming vineyardists and investment companies. Rolling and sloping land along the good adaptability to crops along with a Vineyard properties generally range southern edge of the Santa Maria Valley good water supply. The current market from $25,000 to $50,000+ per net vine that formerly was used for dry farmed for farmland in the Santa Maria Valley is acre. The wine grape market appears to grain hay in combination with grazing is stable with very little inventory offered be strong. Vineyard sales in Monterey now being converted to berries (straw- for sale. Rents in the Santa Maria Valley County consist almost entirely of com- berry, raspberry, and blackberry). There have increased steadily over time with mercial operations. Typically there have not been any sales of the newly the current vegetable crop rents ranging are very few, if any, small vineyard converted land, but the rental returns from $1,350 to $1,900 per acre, and sale transactions. are significantly better than livestock the strawberry rents higher at $2,000 pasture rents. Potential groundwa- to $2,700 per acre, depending on the ter shortfall and urban encroachment adaptability of the soils to strawber- continue to plague the infill farms in the ries. Due to the demand for strawberry Nipomo area. land, many irrigated field crop land owners are leasing the land out to strawberry growers.

IN AGRICULTURAL LANDIN AGRICULTURAL & LEASE VALUES 2016 TRENDS 2016 Santa Barbara County vineyard sales vineyard County Barbara Santa in sale a range with been sparse have $66,000 than to more from prices scale Large vine acre. net per $100,000 af- by commercial growers purchases filiated with wineries have been limited, un- lament being the the common with relative too high derlying land is price to alternative locations, like Monterey several parcels year, County. Late in the sold that are intended for development the highest with of high-end vineyards in the Santa Rita prices being parcels these years, several For AVA. Hills but buyers parcels have been available, too the land price was indicated that cool and the low yields in this for high Now, Realtors are windy microclimate. reporting the interest seems to focus of on having an established source irrigation water for the proposed vineyard development. www.calasfmra.com associated associated the implementation with of management groundwater the State’s for the market slowed has plan (SGMA) enhanced the have may but vacant land, value of old that can be rejuve- vineyards modern plantings. nated with Land conversion pasture or low from emerged again has intensity crop uses of land sales along the with a number Buellton from corridor 101 Highway properties Grande. These to Arroyo range in sale prices from showed a $18,000 to $35,000 per usable acre with the upper $20,000 many of the sales in to majority of these The low $30,000 range. developed be to wine properties will of the real estate grapes. At the height have would these parcels 2006, in boom also had a value component attributed to this element the potential homesite, but the by factor a not been expressed as has in the real estate agents or the buyers current market. Wine Grapes SAN LUIS OBISPO & SANTA BARBARA& SANTA OBISPO SAN LUIS COUNTY The market for vineyard properties and properties and vineyard for market The land in suitable for vineyards Santa Luis Obispo Counties and San Barbara May 2015. in 2013 and through was strong Rita Hills, Santa Vineyards in the Santa Valley, Edna Maria Santa Valley, Ynez Robles are currently Valley, and the Paso $25,000 to more than selling from The acre. vineyard $60,000+ gross per and Templeton areas east of Paso Robles selling for approximately are currently gross $40,000 per $25,000 to more than fringe areas further vineyard acre. The north and east typically sell toward the lower end more of the range; however recently have sold for similar prices. impacted been The Paso Robles area has attempt to implement the County’s by an ordinance to regulate pumping in the Paso Robles Groundwater Basin. The uncertainty litigation and area-wide Dry Pasture Rangeland and of little use for grazing. These sites, with these properties typically Central Coast dry pasture/rangeland ranches tend to set the upper limit of being less than 1,000 acres in size. Sales sales are divided into two main groups: the price range. range from $2,500 per acre for large dry parcels of 1,500 acres and smaller, and For several years, the Temblor Mountain pasture ranches with limited usability parcels 1,500 acres to 15,000 acres. The Range/Carrizo Plains market was influ- and/or without ocean views, to $15,000 first group generally ranges from $800 enced by out of town buyers purchas- per acre for smaller, desirable parcels to $7,500 per acre, while the second ing ranches for recreational, retreat, and with coastal influence, ocean views, and/ group ranges from about $300 to $1,200 home site purposes. Since the downturn or cultivatable land. per acre. The primary influence that in the economy, the demand from these Coastal ranches along the San Luis drove prices up on the smaller parcels types of buyers has been reduced. Obispo County Coast from Morro Bay was residential and/or recreational uses. Parcels along the Pacific Ocean and to Cambria are recently selling for about The larger parcels may also be further Coastal Mountain Range with rural resi- $6,000 per acre. These transactions divided into those parcels that can be dential appeal have continued to remain continue to underscore the notion that purchased for recreational, retreat, stable to strong during the past several the area is desirable and attracts buyers and homesite desirability, versus those years. After 2007, this market saw a willing to pay a premium for the life- parcels purchased for grazing land. The decline in activity and prices; however, style ranch. larger ranches that offer scenic vistas, it has shown substantial recovery over hunting, and other forms of recreation that past several years. This area is are typically forested, watershed land, very attractive for large, rural home

Gladstone Land Corporation is actively acquiring California farmland for the production of row and permanent crops. We do not farm the land – we lease the land to farmers. Owning over 3,500 acres of farmland along the coast and in the central valley, we seek to buy more farmland in all parts of California. If you wish to sell farmland, please contact us: We can pay cash or we can purchase the land in a tax-free transaction. If you know of a farm for sale and would like to farm it yourself, contact us. Visit our website for more information: www.gladstonefarms.com

Bill Reiman (805) 263-4778 Bill Frisbie (703) 287-5839 [email protected] [email protected] 417 Avocado Place Camarillo, CA 93010 1521 Westbranch Dr, Ste 100 McLean, VA 22102

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a y r r e o IN AGRICULTURAL LANDIN AGRICULTURAL & LEASE VALUES k s Oranges i o v r Ventura County d B 2016 TRENDS 2016

A l

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u g t There were no sales of commercial- no sales were There the past plantings over size orange sold orange orchards small Two year. end of the $60,000 the lower in 2015 at of these properties value range. The primarily reflect their home site desirability and not their commodity - profit in the Most orange plantings are ability. of the County which far eastern portion experiences more extreme temperatures, negatively con- affecting crop growing ditions. The demand for Valencia/Navel for many years in oranges has been weak sales of Valencia/ Ventura County. Most who to people are Navel orange orchards generally remove the plantings and use including purposes other land for the Valencia/Navel irrigated crop land. Thus, considered the sales are orange orchard same as the lower end irrigated land estimated is it case, the being This sales. stable for this the market would be that type of property. l n i u t l

c - i u r s g n A o C vocados VENTURA COUNTY & f Lemons & A www.calasfmra.com SOUTHERN SANTA BARBARASOUTHERN SANTA COUNTY BRE# 00656930 BRE# Ventura County and Southern Santa and Southern Santa County Ventura for lemon values County Barbara tial market and its influence properties. The lower sale prices are on rural from properties located in the far eastern portions of the county, in which more extreme temperatures negatively affect growing conditions. commercial size orchards have size orchards commercial been Ventura year. past increasing over the Santa Barbara County and Southern for commercial County avocado values in- have been slightly size orchards values The year. creasing over the past small (home site) have increased for to command them causing parcels, size per acre prices than commer- higher This appears to be cial size properties. a reflection of the improving residen and Fax: (805) 238-1324 Phone: (805) 238-7110 VENTURA COUNTY 1031 Pine Street Paso Robles, CA 93446 www.clarkcompany.com | [email protected] www.clarkcompany.com L /Strawberry Vegetable Irrigated The prime area of the county for truck for county of the prime area The Oxnard crops) is the crops (irrigated of sales been no 2015 have There Plain. in the Oxnard Plain. crop land truck Plain sales in the Oxnard 2015, to Prior have been ranging for vegetable land $79,000 per acre, between $72,000 and $1,700 to $2,900 with rents ranging from in the Oxnard per acre. While sales ground have been ranging Plain for berry between $79,000 and $100,000 per acre, ranging from $2,900 to $4,200 rents with irrigated crop areas per acre. The other more inland (to in the county are located lower prices the east). They command more experience they as rents and lower nega- which extreme temperatures, tively affect crop growing conditions. in the generally are in those areas Prices $40,000 to $60,000 per acre range, with The acre. per $1,700 to $2,500 rents at in farmland best the for market current to be is estimated the VenturaCounty Oxnard for market current The stable. estimated to land is vegetable crop Plain be stable. The current market for other Currently, stable. to be appears areas offered inventory of land little is there for sale. What’s central to your business? Help to weather the seasonal ups and downs. BUSINESScentral Agribusiness Specialists

Our clients tell us that agribusiness is all about change. Seasonal changes you expect. And sometimes changes in weather and other conditions you don’t expect. For decades, local farmers and ranchers have trusted our experienced team of Agribusiness Banking Specialists to help them adapt successfully to change and meet the unique financial needs of the agribusiness industry.

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2016 AgTrendsAgTrends, .indd 1 7”x9.25 + .125 bleed, Color CMYK 2/28/16 10:26 PM 80 ALAMEDA | MONTEREYHeritage | SAN BENITO Oaks | SANBank LUIS OBISPO Ag |D SAN v.7 MATEO 02/28/16 | SANTA BARBARA | SANTA CLARA | SANTA CRUZ | VENTURA REGION SIX 81 N/A N/A N/A ACTIVITY / TREND Stable/Stable Strong/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Strong Moderate/Stable Stable/Increasing Strong/Increasing Strong/Increasing Strong/Increasing Strong/Increasing , CA 93940 esident IN AGRICULTURAL LANDIN AGRICULTURAL & LEASE VALUES ice Pr V 2016 TRENDS 2016 $30 $20 $1,500 $3,000 $20 $15 $1,000 $30 $3,000 $2,700 $3,000 $4,200 $30 ------N/A N/A N/A $7 $7 $8 $5 $5 866-268-1865 $18 RENT RANGE Crop Share $750 $750 $450 $400 $1,350 $1,700 $1,200 [email protected] udy C. Munoz R 2600 Garden Road Suite 234 Monterey ACTIVITY / TREND Limited/Stable Limited/Stable Limited/Stable Limtied/Stable Moderate/Stable Moderate/Stable Moderate/Stable Very Limited/Stable Moderate/Increasing Moderate/Increasing Moderate/Increasing Moderate/Increasing Moderate/Increasing Very Limited/Increasing VENTURA COUNTY MONTEREY COUNTY SANTA CRUZ COUNTY SANTA SAN BENITO COUNTY SAN BENITO Moderate/Stable-Increasing SANTA CLARASANTA COUNTY Moderate/Slightly Increasing Moderate/Slightly Increasing VALUES: LANDVALUES: AND LEASE www.calasfmra.com

SAN LUIS OBISPO AND SANTA BARBARASAN LUIS OBISPO AND SANTA COUNTIES $2,500 $15,000 $70,000+ $85,000 $40,000 $30,000 $3,000 $15,000 $7,500 $70,000 $60,000 $62,000 $2,000 $60,000 $42,000 $100,000 $100,000 ------$700 $300 $600 PER ACRE VALUES $1,500 $2,500 $2,500 $15,000 $18,000 $37,000 $25,000 $25,000 $25,000 $25,000 $50,000 $20,000 $42,000 $40,000 Rangeland Wine Grapes LANDUSE Wine Grapes

Inland Rangeland (San Luis Co) Rangeland (Santa Barbara Co) Row Crops/Strawberries Row Crops Row Crops Row Crops Row Crops Row Crops (Gilroy) Row Crops Rangeland Rangeland Coastal Rangeland (San Luis Co) Oranges Avocados Lemons

LAND USE ROW CROPS RANGELAND WINE GRAPES MONTEREY COUNTY 2015 $25,000 - $60,000 $700 - $2,000 $25,000 - $60,000 2014 $25,000 - $60,000 $700 - $2,000 $25,000 - $50,000 2013 $25,000 - $55,000 $700 - $2,000 $25,000 - $40,000 2012 $25,000 - $55,000 $700 - $1,900 $25,000 - $40,000 2011 $21,000 - $55,000 $700 - $1,200 $18,000 - $38,000 2010 $15,000 - $55,000 $700 - $1,200 $18,000 - $38,000 2009 $14,000 - $45,000 $700 - $1,200 $18,000 - $38,000 LAND USE ROW CROPS ROW CROPS

SANTA CRUZ COUNTY SAN BENITO COUNTY 2015 $25,000 - $62,000 $15,000 - $30,000 2014 $25,000 - $62,000 $10,000 - $30,000 2013 $25,000 - $51,000 $11,000 - $32,000 2012 $25,000 - $51,000 $11,000 - $30,000 2011 $25,000 - $51,000 $11,000 - $28,000 2010 $20,000 - $40,000 $11,000 - $26,000 2009 $15,000 - $45,000 $11,000 - $30,000 LAND USE ROW CROPS WINE GRAPES ROW CROPS - Gilroy RANGELAND SAN LUIS OBISPO COUNTY & SANTA BARBARA COUNTY SANTA CLARA COUNTY 2015 $20,000 - $70,000 $25,000 - $70,000 $18,000 - $40,000 $1,500 - $3,000 2014 $20,000 - $54,000 $40,000 - $85,000 $15,000 - $40,000 $1,000 - $2,500 2013 $20,000 - $54,000 $25,000 - $60,000 $15,000 - $40,000 $2,500 - $5,000 2012 $20,000 - $60,000 $18,000 - $50,000 $15,000 - $40,000 $1,200 - $5,000 2011 $20,000 - $60,000 $11,500 - $50,000 $14,500 - $14,500 $1,200 - $5,000 2010 $30,000 - $65,000 $16,500 - $57,000 Not gathered $1,200 - $2,000 2009 $15,000 - $60,000 $11,200 - $56,000 Not gathered $2,500 - $5,250 LAND USE COASTAL INLAND RANGELAND SAN LUIS OBISPO COUNTY, RANGELAND SANTA BARBARA COUNTY 2015 $2,500 - $15,000 $300 - $7,500 $2,500 - $15,000 2014 $2,500 - $12,500 $300 - $7,500 $1,500 - $12,000 2013 $2,500 - $9,000 $500 - $7,500 $1,000 - $9,000 2012 $3,000 - $9,000 $300 - $7,000 $1,000 - $9,000 2011 $3,000 - $9,000 $500 - $4,800 $500 - $9,000 2010 $3,000 - $9,000 $300 - $4,800 $500 - $9,000 2009 $3,000 - $9,000 $300 - $4,500 $500 - $9,000 LAND USE ROW CROPS LEMONS ORANGES AVOCADOS VENTURA COUNTY 2015 $42,000 - $85,000 $50,000 - $100,000 $40,000 - $42,000 $37,000 - $100,000 2014 $42,000 - $100,000 $45,000 - $65,000 $40,000 - $42,000 $43,000 - $65,500 2013 $54,000 - $95,000 $34,000 - $73,000 $36,000 - $36,000 $34,000 - $65,000 2012 $55,000 - $88,000 $60,000 - $68,000 $36,000 - $36,000 $38,000 - $73,000 2011 $52,500 - $88,000 $46,000 - $73,000 $46,000 - $47,000 $38,000 - $73,000 2010 $50,000 - $75,000 $40,000 - $50,000 $40,000 - $41,000 $25,000 - $50,000 2009 $40,000 - $95,000 $20,000 - $75,000 $38,500 - $56,000 $25,000 - $50,000

REGION SIX 83

$0 2015 2013 2011 2009 2007 $0 2015 2013 2011 2009 2007 2015 2013 2011 2009 2007 2015 2013 2011 2009 2007 2015 2013 2011 2009 2007 2003 2003 2003 2003 2003 2001 1999 1997 1995 1993 2005 2001 1999 1997 1995 1993 2001 1999 1997 1995 1993 2005 2001 1999 1997 1995 1993 2005 2001 1999 1997 1995 1993 2005 2005

$10,000 $10,000

0 $20,00 $20,000

$30,000 $30,000

$40,000 $40,000

0 $50,00 $50,000 LANDIN AGRICULTURAL & LEASE VALUES

$60,000 $60,000

0 $70,00 0 $70,00 TRENDS 2016

$80,000 $80,000 WINE GRAPES WINE

WINE GRAPES WINE AVOCADOS ORANGES LEMONS

Santa Barbara Counties Barbara Santa

$90,000 $90,000

Monterey County Monterey Ventura County Ventura County Ventura Ventura County Ventura & Obispo Luis San

$100,000 $100,000

$0 2015 2013 2011 2009 2007 $0 2015 2013 2011 2009 2007 2015 2013 2011 2009 2007 2015 2013 2011 2009 2007 2003 2003 2003 2003 2005 2001 1999 1997 1995 1993 2005 2001 1999 1997 1995 1993 2005 2001 1999 1997 1995 1993 2005 2001 1999 1997 1995 1993

$2,500 $2,500

$5,000 $5,000

$7,500 $7,500

0 $10,00 0 $10,00

0 $12,50 0 $12,50

www.calasfmra.com

$15,000 0 $15,00

RANGELAND

RANGELAND RANGELAND COASTAL RANGELAND RANGELAND INLAND RANGELAND County 0 $17,50 0 $17,50

Monterey County Monterey San Luis Obispo County Obispo Luis San San Luis Obispo County Obispo Luis San Santa Barbara Santa

0 $20,00 $20,000

$0 2015 2013 2011 2009 2007 $0 2015 2013 2011 2009 2007 2015 2013 2011 2009 2007 2015 2013 2011 2009 2007 2015 2013 2011 2009 2007 2003 2003 2003 2003 2003 2005 2001 1999 1997 2005 2001 1999 1997 1995 1993 2005 2001 2005 2001 2005 2001 1999 1997 1995

0 $12,50 0 $12,50

$25,000 $25,000

0 $37,50 0 $37,50

0 $50,00 $50,000

0 $62,50 $62,500

$75,000 $75,000

ROW CROPS ROW

ROW CROPS ROW ROW CROPS ROW S CROP ROW S CROP ROW

s Countie Barbara Santa 0 $87,50 0 $87,50

Monterey County Monterey Ventura County Ventura Santa Cruz County Cruz Santa San Benito County Benito San & Obispo Luis San

$100,000 $100,000 Central Valley CA/Central Counties San Francisco Bay Area/Silicon Valley | Monterey/Carmel John Hillas, SRA | Walt Carney, MAI 209-569-0459 x7301 | 408-279-1520 x7145 www.valbridge.com

Accredited Rural Appraiser State Certified General Real Estate Appraiser Specialed experience in appraising

Permanent Plantings: Avocados, Lemons, Vineyards Facilities: Coolers, Wineries, Greenhouses, Warehouses Specialities: Litigation Support, Partial Interests, Easements, Eminent Domain

(805) 934-6674 Fax (888) 307-0831 [email protected] www.hamel-consulting.com 484 Highland Dr, Santa Maria, CA 93455

REGION CHAIR & COMMITTEE

David Read CHAIR Coleman Anderson Myron Fortin ARA Todd Menvielle Kathleen T. Wing

region seven

Region 7 covers the various farming COASTAL MOUNTAINS & INLAND VALLEYS Citrus regions of Southern California and Avocados Market activity has been very limited includes farmland located within Los with generally weak demand for most As with most crops grown in the coastal Angeles, Orange, San Bernardino, varieties of citrus within the coastal and region, the largest challenge continues Riverside, and Imperial Counties. With inland valleys. Lemons have been the to be the skyrocketing cost of imported varying micro climates, from the arid citrus crop of choice for most growers. water. On-going trends to become less low deserts to the temperate coastal Overall the consensus is values remained reliant on district supplies, water man- foothills, trends in agricultural land and stable during 2015. lease values are best analyzed by area and agement has included the development commodities grown. In spite of urban of onsite wells and ultra-filtration to Dairy encroachment, agriculture continues to improve quality, development of salt In spite of a continued downsizing of be an important contributor to Region tolerant root stock, and high density dairy farms over the past decade, milk 7’s economy. plantings to increase overall yields. is still the leading crop for both San Grove values where suitable alternative Bernardino and Riverside Counties. The water sources exist have seen higher primary dairy markets are the Chino price trends, while areas where the only Basin of southwestern San Bernardino option is imported water are experi- County, and the San Jacinto River Basin encing decreasing values. As with most in western Riverside County. New permanent plantings, high producing rooftops continue to replace former groves with potential for estate devel- dairy farms in the Chino Basin creating opment demanded the highest values an upward trend in land values. New during 2015. development is non-existent in the San Jacinto River Basin resulting no closed sales during 2015.

86 IMPERIAL | LOS ANGELES | ORANGE | RIVERSIDE | SAN BERNARDINO | SAN DIEGO REGION SEVEN 87 alley IN AGRICULTURAL LANDIN AGRICULTURAL & LEASE VALUES DESERT REGION DESERT Orange County Coachella V Countyos Angeles L 2016 TRENDS 2016 Los Angeles Los Angeles 4,061 square County covers from the varied topography miles of coastal plains along the Pacific coast to - San foothill Santa Monica the rugged Gabriel Range of Mountains, termi- and the Mojave the arid region of nating in Desert. Los Angeles the most County is the nation whereas populous county in encompassesone less than agriculture percent of the land area. Activity and is very estate real value of agricultural location-specific whereas value trends difficult to measure. The Coachella Valley extends for approx- in Riverside County, miles 45 imately from the San Bernardino Mountains in the north to the Salton Sea in the south. Approximately 60,000 acres in the valley benefit from surface watertion that is delivered from the Colorado for irriga- of River via the Coachella Canal branch the Canal. Currently, the All-American does District Water Coachella Valley not use its entire allotment of water; so they are planning to extend delivery in the Oasis water to farmers of surface area that are currently pumping ground- The desertregion is attractive as water. it produces some of the earliest crops in to nation, resulting in good returns the The main crops include table growers. (mostly lemons), vegeta- grapes, citrus bles, dates, and nursery stock. There was primarily in 2015 limited sales activity for available of farmland lack due to a sale. The properties that did sell ranged for fallow farmland $18,000 per acre from needed that to be reclaimed to about table good quality $43,000 per acre for a grape vineyard. Orange County has a total land area of area total land a Orange County has 948 square miles that extends from the coastal plains along the to the foothills of the Santa Ana Range Pacific coast of Mountains. Like neighboring Los has a small Angeles County, agriculture influence on value trends. www.calasfmra.com & Vineyards Wineries Region the South Coast 7 includes (AVA), Area Viticultural American in grown grapes includes which Los Angeles, Riverside, San Orange, Counties. and San Diego Bernardino, grape and most well-known The largest growing region gaining is in popularity of southwestern the Temecula Valley Riverside of County. Market activity been and vineyards has wineries both values considered very limited with to increasing. 2015 saw be stable to slightly of new construction number limited a properties, winery of hospitality-based foodincluding some featuring service and lodging in during 2015, especially the Temecula Valley. Nursery Prior trends coastal relocating from crop nurseries of nursery inland markets to have ended areas and and floral during was very limited sales activity has sales there limited In spite of 2015. within positive attitude been a general or some expansion with the industry existing facilities modernization of is the the industry taking place. Helping along market, improved construction with renovation and conversion of large to low-water commercial landscapes use plants and designs. Mandated re- use has motivated ductions in water in favor a turf homeowners to remove landscape. Cost/ more drought-tolerant “big box” stores the squeeze from price remains a challenge to the many family in values operated nurseries. Nursery general are remaining stable. Imperial Valley Imperial Valley is a flat, northerly sloped irrigated valley established in the early 1900s, consisting of 462,359 irrigated acres. This valley lies directly north of the Mexican Border, west of Arizona, east of San Diego County (San Diego is 120 miles west) and south of Riverside County. 2015 sales have remained flat with 25 closed transactions, the same as in 2014, compared to 40 sales in 2013, 46 sales in 2012, and 42 in 2011. Like the Coachella and Palo Verde Valleys, Imperial Valley benefits from low cost surface water coming from the nearby Colorado River. Imperial Irrigation District (IID) is the provider at a current cost $20 per acre-foot. Typical water use is 6-8-acre-feet per acre. Water availability is impacted by the drought conditions. There was an Equitable Distribution Plan (EDP) in farmable acre. Average quality land has fallow up to 35% of the Valley’s farmland place reducing allocations from a histori- also been steady with purchase prices for 35 years. This equitable agreement cal use of 7.00-acre-feet per farmable acre ranging from $8,500 to $11,499 and pays farmers for Colorado River water to 5.25-acre-feet. A water apportion- clustering around $10,000 to $11,000 per that would have been used for farming in ment plan modifying the IID’s existing net farmable acre. Limited adaptable the area and transfers the water to MWD EDP was implemented in May of 2013, land has been limited ranging from for urban use in Southern California. increasing the water allocation to 5.45- $6,500 to $8,499. The MWD payment is $770.62 per acre acre-feet per acre. This apportionment for the land that is fallowed for the will be more equitable to growers and Palo Verde Valley 2015-2016 year. The Palo Verde Valley is located in eastern should effectively manage the Valley’s There is a moderately active real estate Riverside County along the Colorado Colorado River water supply. The 2015 market in the Palo Verde Valley for 2015. River basin. The valley is approximately Apportionment Plan will be based on: The sellers were primarily absentee 29 miles long (north and south) and has 50% of the “straight line” and 50% of the owners. The buyers were long time area a maximum width of about 15 miles. Hot historical use. Straight line is calculated farmers and an out of the area investor summers, mild winters, and very little by dividing the available water supply farmers. There were several smaller rainfall characterize this desert climate. for agriculture by the number of eligible acreage sales to one investor farmer. The The major commodities include cotton, agricultural parcels which is 2,548,000 farm land sales ranged from $10,500 to alfalfa, small grains, leafy vegetables, and AF / 453,000 acres which is 5.62 acre $15,000 per water toll acre. feet. The historical usage is based on melons. According to the 2013 Palo Verde the water usage on the field for the years Valley Acreage and Agricultural Crop There was a 12,100 water toll acre sale 2002 through 2012 less the high year Report the total crop value was $167.7 that closed in July 2015 in which water and low year. Each field could have a million from 91,298 total harvested acres. was the primary motivator. This sale is different water allotment. The main crops in order of crop value not reflective of the current farmland market. In 2011 an out of the area investor Local participants appear to be more were field and seed ($142.5 million), vegetable, melon and miscellaneous crop farmer purchased approximately 11,600± active in the current land market. With water toll acres for $125,000,000 higher than normal crop returns and ($21.7 million), citrus ($3.0 million), and tree/vine crops ($0.5 million). Farmland ($10,500± per water toll acre net of crop rotation disruptions caused by the buildings). They sold this property and fallowing program, a large share of local sales in 2015 remained stable at $8,250 to $11,600 per water toll acre with the some additional land they had purchased farmers are purchasing ground to farm. for $255,644,000 ($21,100± per water There is significant price discrimina- upper limit being fueled by speculation in Colorado River water rights. toll acre net of building) to MWD. The tion between classes of land. Prices paid water from the Fallowing Program is a In a 2005 agreement, Metropolitan for produce-quality land have been in- major source of domestic water for the Water District of Southern California creasing with better-quality land prices Metropolitan Water District. ranging from $11,500 to $14,000 and clus- (MWD) negotiated with Palo Verde tering around $11,500 to $13,000 per net Irrigation District (PVID) in Blythe to

WESTERN RIVERSIDE & SAN BERNARDINO COUNTIES Dairies: San Jacinto None None/None $8 - $10/MC/Co Limited/Stable Dairies : Chino $180,000 - $500,000 Limited/Slightly Increasing $7 - $10/MC/Mo Very Limited/Stable Citrus None None/None 30% - 40% Share Very Limited/Stable Wine Grapes $45,000 - $90,000 Limited/Slightly Increasing $500 - $700 Limited/Stable REGION SEVEN SAN DIEGO COUNTY Citrus None None/None 30% - 40% Share Limited/Stable Avocados* $13,000 - $35,000 Moderate/Slightly Increasing 30% - 40% Share Limited/Stable Cropland $40,000 - $60,000 Limited/Stable $150 - $500/Ac Limited/Stable *Includes Southwestern Riverside County

COACHELLA VALLEY Citrus $20,000 - $25,000 Very Limited/Stable 30% - 40% Share Very Limited/Stable Dates None None/None $400 - $600 Very Limited/Stable Table Grapes $38,000 - $38,000 Very Limited/Stable $500 - $700 Very Limited/Stable Open Land $18,000 - $29,000 Very Limited/Stable $350 - $500 Very Limited/Stable

PALO VERDE VALLEY Irrigated Field Crops $8,250 - $11,600 Very Limited/Stable $300 - $400 Very Limited/Stable

IMPERIAL VALLEY Good Adaptability (Produce) $11,500 - $14,500 Strong/Increasing $400 - $500 Limited/Stable

Average Adaptability (Alfalfa) $8,500 - $11,500 Strong/Increasing $325 - $400 Limited/Stable Limited Adaptability $6,500 - $8,500 Strong/Increasing $250 - $425 Limited/Stable

LOS ANGELES COUNTY Cropland None None/None None N/A

ORANGE COUNTY Cropland None None/None None N/A

www.calasfmra.com 2016 TRENDS IN AGRICULTURAL LAND & LEASE VALUES 89

DATES AVOCADOS* WINE GRAPES $3,500 - $4,500 $3,500 - $4,500 $5,500 - $7,000 $3,000 - $4,800 $6,500 - $8,500 $5,000 - $6,000 $13,000 - $35,000 $13,000 - $28,000 $13,000 - $28,000 $15,000 - $40,000 $16,000 - $50,000 $14,500 - $45,000 $10,000 - $24,000 $14,000 - $27,000 $14,000 - $24,000 $14,000 - $22,000 $35,000 - $70,000 $35,000 - $70,000 $35,000 - $70,000 $35,000 - $70,000 $70,000 - $100,000 $30,000 - $75,000 $30,000 - $75,000 $22,000 - $25,000 $22,000 - $25,000 $45,000 - $90,000 $45,000 - $90,000

DAIRIES CROPLAND OPEN LAND LIMITED $7,000 - $8,000 $8,500 - $11,500 $6,000 - $9,000 $4,500 - $7,000 $4,500 - $7,000 $4,800 - $6,750 $15,000 - $80,000 $18,000 - $29,000 $18,000 - $27,000 $18,000 - $27,000 $16,000 - $29,000 $10,000 - $30,000 $14,000 - $25,000 $23,000 - $29,000 $65,000 - $170,000 $65,000 - $170,000 $65,000 - $250,000 $80,000 - $150,000 $90,000 - $250,000 $40,000 - $60,000 $40,000 - $60,000 $40,000 - $60,000 $40,000 - $55,000 $40,000 - $60,000 $40,000 - $65,000 ADAPTABILITY $188,000 - $475,000 $180,000 - $500,000 HISTORICAL VALUE RANGE per acre VALUE HISTORICAL $11,600 $12,000 $10,500 $10,000 $11,600 - - - - - ADAPTABILITY AVERAGE CITRUS CITRUS CITRUS (Alfalfa) (Produce) $6,750 - $8,500 $7,500 $7,200 $7,000 - $10,000 $8,250 $8,250 $6,500 - $11,500 $6,500 - $11,500 $8,000 $9,000 - $11,000 $9,000 - $12,500 $9,000 - $10,000 $11,500 - $14,500 $15,000 - $30,000 $16,000 - $29,000 $16,000 - $25,000 $19,000 - $27,000 $14,500 - $80,000 $10,000 - $20,000 $10,000 - $24,000 $10,000 - $24,000 $10,000 - $24,000 $10,000 - $20,000 $10,000 - $20,000 $10,000 - $20,000 $10,000 - $20,000 $10,000 - $20,000 $10,000 - $20,000 $10,000 - $20,000 $10,000 - $20,000 $14,000 - $22,000 IRRIG FIELD CROPS/PRODUCE $22,000 - $25,000 $20,000 - $25,000 $20,000 - $25,000 ADAPTABILITY GOOD 2014 2014 2013 2012 2011 2010 2012 2011 2010 2009 2013 2012 2011 2010 2009 2014 LAND USE WESTERN RIVERSIDE AND SAN BERNARDINO COUNTIES 2105 LAND USE COUNTY SAN DIEGO 2015 2014 2013 2012 2011 LAND USE COACHELLA VALLEY 2015 LAND USE VERDE VALLEY PALO 2015 LAND USE IMPERIAL VALLEY 2015 2009 2010 2009 2011 2014 2013 2010 2009 2012 *includes Southwestern Riverside Co.

2001 2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2004 $0 $0 2001 1999 1997 1995 2001 1999 1997 1995 2001 1999 1997 1995 1993 1993 1993 1993 1999 1997 1995

$2,500 $2,500

$5,000 $5,000

IN AGRICULTURAL LANDIN AGRICULTURAL & LEASE VALUES

$7,500 $7,500

2016 TRENDS 2016 0 $10,00 $10,000

(Alfalfa) (Produce) CROPS/PRODUCE FIELD

Y ADAPTABILIT AVERAGE ADAPTABILITY GOOD D IRRIGATE Y ADAPTABILIT LIMITED

0 $12,50 0 $12,50

y Valle Imperial y Valle Imperial Valley Verde Palo y Valle Imperial

5 3 1 5 3 5 3 1 5 3 1

$0 2001 $0 2001 201 201 201 2009 2007 2005 2003 201 201 2009 2007 2005 2003 201 201 201 2008 2007 2005 2003 2001 2001 201 201 201 2009 2007 2005 2003 2011 1993 1993 1993 1993 1999 1997 1995 1999 1997 1995 1999 1997 1995 1999 1997 1995

0 $25,00 0 $25,00

$50,000 0 $50,00

0 $75,00 0 $75,00

www.calasfmra.com

S GRAPE D LAN

$100,000 S DATE $100,000 E TABL OPEN CITRUS

y Valle Coachella y Valle Coachella y Valle Coachella y Valle Coachella

$0 $0 2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2001 1995 1993 1995 1999 1997 1995 2001 1999 1997 1995 1993 2001 1999 1997

0 $25,00 0 $25,00

0 $50,00 $50,000

0 $75,00 0 $75,00

$100,000 $100,000

$125,000 $125,000

CITRUS CITRUS

County S AVOCADO San Bernadino Counties Bernadino San $150,000 $150,000

San Diego San San Diego County Diego San & Riverside Western

$175,000 $175,000

SOUTHERN CALIFORNIA Calvin Cummings, MAI | John Penner, MAI 626-498-2990 | 714-449-0852 [email protected] | [email protected] www.valbridge.com

REGION CHAIR & COMMITTEE

Jeff Myers CHAIR David Bell ARA Al Bunt

region eight

Northern Inter-mountain Valleys this market area appears stable with a fertile bottomlands; and power from the (Lassen, Modoc, Shasta & Siskiyou Counties) very limited number of sales. Surprise Valley Rural Electric Co-Op at Located in northeastern California, the In the past, the surrounding forest- some of the lowest rates in the state. All leading commodities for the Northern lands in this region provided timber for of these features combine to make this a Inter-mountain Valleys in order of value the many saw mills. The decline in the productive farming and ranching region are forage (primarily alfalfa), cattle and timber industry began in the mid 1990’s in the intermountain east. Historically, calves, vegetables (primarily potatoes due to the placing of the California the principal crops grown in this area and onions), nursery plants (primarily Spotted Owl on the sensitive species list are alfalfa hay, irrigated pastures for beef strawberries), timber, wild rice, and and the resulting reductions in federal cattle, cereal grains, and dry pasture. grains. Walnuts are also a fairly new timber sales. More recently, lumber Tulelake is situated in the agricultural crop being grown in Shasta County prices have softened and volume has district known as the Klamath Basin in and having slight increases in planted dropped dramatically after the housing the northeastern portion of California acreage. There is currently average to crash of 2008. These two factors have and extends into south-central Oregon. good demand throughout for irrigated resulted in the closure of most of the Historically, the principal crops grown farms and livestock grazing. Time on smaller mills in Northern California and in this area are cereal grains, alfalfa market for both property types remains Southern Oregon and the loss of many hay, irrigated pastures for beef cattle, fairly short. Commodity prices have timber related jobs. Timber production onions, potatoes, and grass seed. More remainaed high during the year with has tapered off. Sales of timber parcels recently, mint, garlic, and strawberry strong cattle prices and a rebound in in the area are usually limited with sets have also been planted. The area is the hay market. Those factors, combined extended marketing periods as well. noted for the production of its potatoes with the current drought, are antici- The Northern Inter-mountain Valleys and malting barley. Irrigation water has pated to create increased demand for are broken into various sub-market been at the forefront in recent years due good quality ranches. Most livestock areas. The Alturas area and Surprise to the numerous entities that are vying producers are still wary of overpaying Valley are located in northeastern Modoc for it. The parties laying claim to the for average-quality ranches, and these County. A key attribute of the area is water vary and include Indian tribes less desirable properties tend to sit on the abundant supply of federal range- on the Klamath River, farmers and the market for a lengthy period. Overall, land available for a relatively low cost; irrigation districts, wildlife refuges,

IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016

d ter hi Wa ! . County, and lies near the northeastern northeastern near the and lies County, the State. Historically, of the corner crops grown in these principal areas are beef pastures for irrigated alfalfa hay, pasture. grains, and dry cattle, cereal tapered off as in has production Timber A key attribute sub-markets. the other of is the the Sierra Valley market area federal rangeland abundant supply of low cost; fertile available for a relatively for irrigation. bottomlands; and water is situated in eastern Pittville/McArthur and western Lassen Counties Shasta of Fall River near the communities and Pittville. This Mills, McArthur Valley. the Fall River within falls area the principal crops grown Historically, irrigated in this area are alfalfa hay, pastures for beef cattle, cereal grains, and forestlands surrounding The rice. wild several saw and support provide timber mint, More recently, area. in the mills sets have been and strawberry garlic, also planted. The area is noted for the production of wild rice and strawberry is the area in property Demand for sets. over stable been average and values have the past year. townships and AY - .calasfmra.com it sections, Irrigation and ReclamationIrrigation and Reclamation dt , , TOD shipping terter and WaWa ld ASFMRA , tax sales Mi Maps include roads, Published by: plus OURS .calasfmra.com or call (209) 368-3672 hi www.calasfmra.com Y each California Chapter CA 95258 | (209) 368-3672 | www ehachapi. T Th ater & Irrigation District Maps $10.00 each plus sales tax and shipping$10.00 oodbridge, tt W W future. Despite the ongoing water issues issues ongoing water the Despite future. area, demand Tulelake the surrounding stable is average with values for property year. over the past farming intensive an Valley is Butte key A County. located in Siskiyou area abundant the is area of the attribute of relatively low cost irriga- supply underground wells tion water from Irrigation District. and the Butte Valley the principal crops grown Historically, irrigated hay, alfalfa were area in this cereal grains, and pasture for beef cattle, potatoes. have More recently potatoes the growing of straw been replaced by also production has Timber sets. berry from various tapered off. Competition nurseries is strong for lands capable of producing the sets. Demand for property to good and values average is in the area were stable during the past year. Valley are Valley and Scott Shasta Siskiyou north-central situated within County. Sierra Valley is located within Counties. Honey Lake and Sierra Plumas Lassen located in southeastern Valley is County and Big Valley comprises the County of Lassen northwestern part of Modoc part southwestern and the Sh Order on-line www Box 838 .O. ORDER tf P ti alifornia District contact information is also included. ranges with easy to read county outlines and water district boundaries Districts from Shasta to Full color maps provide coverage of California Full color maps provide coverage of California Di C environmentalists, environmentalists, the on and wildlife best Even in the endangered list. species does not available the water of years, which parties the needsof all the satisfy 2001 emergencyState claim to it. In lay money to grants provided and Federal of 2004 wells and as drill supplemental nine wells were completed and were 1/4 of the able to serve approximately Due to the wells’ total lands irrigated. location and capacity, not all the farms water to the access have basin in the private wells from these wells. Several have also been drilled supple- and can adjudica- the With areas. ment small March completed in rights tion of water set of problems of 2013, a whole new priorities right arose affecting water those ranches for and access to water and farmers in the upper basin. Those producers dependent on water from Rivers were the Sprague and Sycan denied beginning in June of 2013 water with the water going to fulfill the water needs adjudicated to and claimed by secondThis water Tribe. Klamath the sent shock has shut-off to agriculture waves through the community with extensive wondering how growers many near in the could be reduction water Rangeland in all Sierra Nevada Mountain Counties Prior to the downturn in the economy, the rangeland market was influenced by buyers looking for ranches for recreational, retreat, and home site purposes. At the present time, the demand from these types of buyers has decreased. There was very limited sales activity in most of the market area in 2015, and the very limited sales that did occur indicated stable prices. During the mid-2000’s, values of rangeland ranches were being driven by 1031 Exchange transactions, primarily by outside investors and not livestock producers. This type of transaction has slowed considerably due to other weak sectors of the economy. At the same time, there appears to be limited interest from livestock producers in purchasing these large ranches at current listed prices, as there is no justification for a positive return. The cattle market continues to look strong with record prices being seen due to the historically low cattle inventory and a growing export market.

• Looking for additional training for yourself or your employees? • Need to increase productivity in your operation? • Desire a program that offers a variety of training topics? Education for Agribusiness The FARMit program offers training on the topics that are applicable in day to day business operations. From communications and employee relations to property transactions, finances and efficiency, you will find a class to fit your needs. Owner/operators, farm managers and agricultural consultants as well as lenders, brokers, crop consultants and PCAs will find something of value in the FARMit course list. Custom training programs are also available. Contact us today to find out about future classes being planned in your area.

(209) 368-3672 [email protected] www.calasfmra.com

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iiiiiiiiiiiiiiiiiiiiiiiiiii $15 - $15 $15 $80 $80 s s s s s s s sos s sosos sos s s s s sosos sos sos sos sososs sss s s s sssssssssssssssss sssss ssssssssss ssssssssssssss oooonoonoononooooooooooooonooooooooooooooooonooo hhihihihihihhihhhihihhihihihihhhihihihihihhhihhihihihihihihhihihhhhihihihhhihhhhhihhhhhhhihihhihihhihihhihihih iiionionionioionionionioniiiionionionionioioionioioiioniionionionioioiioioiioniioioiionioionionionionioiionionii rrrrrrrrrrrrrrrrr ttttttttttttttttttttttttttttttttttttttttttttttttt ThiThiThiTThiThiThiThThiThiThiThiThiThiThiThiTThiThiThThiThiTTThiThiThiThiThThiThiThiThiThiThTThThThiTThThThiTTTThTThThiThiThiThiThiTThiThiThiThiThiThiTThiThiTThThiThiThiTThThiThiThiThiThThiTThiThiTTTTThThThiTTTTTTTTTTThiThThThiThiTThTThiTTTThiThiThThiThTThiThThThiThTThThThTTThThTTTThThTThTT This ranch is currently for sale! arararaaaaarararararararaararararararararaaaaaaaaraar aaatatatatatataataataaatatataaaa eareareareareareareareareareareareareareareareareareareareaeareareareareareareaeareaeareareareaeareaeeareareareareaeaeaeareaeeee eateateateateateateateaeateeateateateateateateaeaeateateateateateateateateateateateateateateeeateeeeeateateateeeeeee yyyyyyyyyyyyyyyyyyyyyyyyy yyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy rrrrrrrr ccrcrcrcrcrcccrcccccccc 0 0y0 0 0 0 0 0y0 0y0 0y0 0 0 0 0 0 0 0 00 0y0y0y0 0 0 0 000y0y0 0 000 0 0y00 00 0 0 0 0000 0 0 0000 0 00 000y0y00 ecrecrecrecrecrecececrecrecrecrecrecrecrecrecrecrecrecrececrecrecreececrecreecrecrecreececreececeeeeeceeece 333333333333333333 3333333333333 RRRRRRRRRRRRRRRRRRRRRR RRRRRRRRRRRRRRR r r r r r r r3r r r r r3r r3r3r r r r3r r r3r3r r r3rrrrr eeeeee d d d dRd dRd d d d d d dRd d d d d dRd dRdRd d d d dRd dddRd d dRddddddd vvvevevevevevevevvevvvvevvvvvvvvvevvvvvvvvvvvvvvvvvvv nnnnnnn OveOvOOveOvOveOOOOveOveOveOveOveOveOveOveOveOveOvOvOOveOOveOveOveOvOOveOveOvOOOveOvOveOveOOOveOOOOvOveOveOveOOOvOvOOvOvOveOOOOOvOOveOvOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOvOOOvOvOOvOvOOOOOOvOOOvOO Over 30 years of experience in anananananananananananananananananananaananaanaanananananananananaaananananaaanaaaanaan ll lllllllllllllllllllllllllllll aalalalaaaaaa rararararararararararararararararararararararararararararararararrrararrrrrarrrrarrrrarrrrararrr (530) 941-8100 uuuuuuuuuuuu tututututututututututtttutututututttutututtututut ltultultultultultultultultultultultultultultultultultultultultultultultultultultultultultultultultultultu uuuuuuuuuuuuuuuu cucucucucucucuccucccucccccucuccucuccccc icuicuicuicuicuicuicuicicuicuicuicuicuicuicuicuicuicicuicuicuicuicuicuicuicuicuicuicuicuicuicuicuicicuicuiicii rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr rrrrrrrrrrrr grgrgrggrgrgrgggggrgrgrgrggggrgggggggggggggggggggggg AgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAgAAgAgAgAgAAgAAgAgAgAgAgAgAgAAgAgAgAgAgAgAgAgAgAgAgAgAgAgAAAgAgAAgAgAAgAgAgAAAAgAgAAAAAgAgAgAgAgAAAgAgAgAAAgAgricultural and Recreational Real Estate Sales throughout Northern California [email protected] ACTIVITY / TREND Limited/Stable Moderate/Stable Moderate/Stable Counties) , Siskiyou , Shasta assen, Modoc Very Limited/Stable Very Limited/Sl Increasing Increasing Limited/Sl Limited/Sl Increasing Limited/Sl Increasing Limited/Sl Increasing Limited/Sl Limited/Sl Increasing Limited/Sl Limited/Sl Increasing Limited/Sl Increasing Moderate/Sl Decreasing Counties) of Siskiyou assen, Modoc and a portion TULE LAKE BUTTE VALLEY SIERRA VALLEY PITTVILLE/MCARTHUR VALUES: LANDVALUES: AND LEASE www.calasfmra.com

TUOLUMNE, MARIPOSA, MONO & INYO COUNTIES TUOLUMNE, MARIPOSA, MONO & INYO $3,500 $6,000 $3,000 $3,000 $2,000 $4,000 $5,000 $5,000 $2,500 $4,000 EAST EL DORADO, AMADOR & CALAVERAS COUNTIES ------PLUMAS, EAST PLACER, & ALPINE COUNTIES SIERRA, NEVADA Walt Carney, MAI PER ACRE VALUES $250 - $1,000 | $1,250 $1,000 $1,000 $1,000 A $3,500 $3,000 - $5,000 $3,000 $2,500 $2,500 - $5,000 $2,000 $2,000 $4,000 NORTH INTERMOUNTAIN VALLEY AREAS (L VALLEY INTERMOUNTAIN NORTH NORTH INTERMOUNTAIN CATTLE INTERMOUNTAIN RANCHESNORTH (L John Hillas, SR | www.valbridge.com Foothill & Mountain Counties 916-623-1451 | 209-623-1451 | 408-722-9125 Richard Ribacchi, MAI Rangeland Dry Pasture Dry Strawberries Copic Bay Area Pasture Hayed Meadow/Irrigated Range Operation (>15% Public) Meadow Pasture LANDUSE Rangeland Rangeland Inside Operation (0-15% Public) Irrigated Crop Acreage

Quality Acreage Irrigated Crop/Good

Dry Pasture Dry

$1,000 $1,000 $1,200 $1,200 $1,000 $1,250 $1,250

DRY PASTURE $250 - $500 - $500 - $500 - $500 - $500 - $500 - $4,000 $4,000 $6,000 $6,000 $4,000 $2,000 $3,000 $4,000 $4,000 $4,000 $4,000 $4,000 $,5000 $5,000 $5,500 $5,000 $5,000 $6,000 $6,000

RANGELAND (>15% Public) (>15% PASTURE MEADOW RANGE OPERATION $1,750 - $1,750 - $1,750 - $1,750 - $1,750 - $1,500 - $1,200 - $1,000 - $1,000 - $1,000 - $1,000 - $3,000 - $3,000 - $2,500 - $2,500 - $2,500 - $2,500 - $2,500 - $2,000 - EASTERN EL DORADO, AMADOR, & CALAVERAS $5,000 $12,500 $12,500 $12,500 $5,000 $3,000 $6,000 $3,000 $5,500 $5,000 $5,000 $5,000 $12,500 $12,500

------

(0-15% Public) (0-15% MEADOW/ HAYED INSIDE OPERATION PASTURE IRRIGATED HISTORICAL VALUE RANGE per acre VALUE HISTORICAL $3,500 $3,500 $5,000 $5,000 $5,000 $2,200 $2,200 $2,000 $2,000 $2,000 $2,000 $2,000 $4,500 $4,500

IRRIGATED RANGELAND RANGELAND VEGETABLE CROPS VEGETABLE $700 - $2,800 $700 - $2,500 $700 - $4,000 $700 - $5,500 $500 - $5,000 $500 - $4,500 $1,250 - $2,500 $1,000 - $3,500 $1,000 - $3,000 $1,000 - $4,000 $1,000 - $4,000 $1,000 - $4,500 $3,000 - $5,000 $3,000 - $5,000 $2,000 - $3,000 $2,000 - $5,500 $2,000 - $5,500 $2,000 - $5,000 $2,000 - $5,000 2014 2013 2012 2011 2010

Counties) AREAS (Lassen, Modoc, Shasta & Siskiyou VALLEY INTERMOUNTAIN NORTH 2015 2014 2013 2012 2011 2010 2009 LAND USE PLUMAS, EAST PLACER, & ALPINE COUNTIES SIERRA, NEVADA 2015 2014 2013 2012 2011 LAND USE COUNTIES TUOLUMNE, MARIPOSA, MONO & INYO 2015 LAND USE 2009

2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 $0 $0 $0 2001 1999 1997 2001 1999 1997 2001 1999 1997 2001 1999 1997 $0

$1,500 $1,500

$1,000 $1,000

$3,000 $3,000

$4,500 $4,500 LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016

$2,000 $2,000

0 $6,00 0 $6,00

$3,000 $3,000 $7,500 $7,500

$9,000 $9,000

$4,000 $4,000

0 $10,50 0 $10,50

0 $12,00 0 $12,00

$5,000 $5,000

MEADOW PASTURE MEADOW PASTURE DRY (0-15% Public) $ per AU per $ Public) (0-15%

(>15% Public) $ per AU per $ Public) (>15%

0 $13,50 0 $13,50

: Valley Intermountain North Valley Intermountain North INSIDE OPERATION INSIDE CATTLE RANCHES RANGE OPERATION RANGE RANCHES CATTLE

$6,000 $6,000 0 $15,00 0 $15,00

$0 $0 $0 2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 2001 1999 1997 2001 1999 1997

www.calasfmra.com

$1,000 $1,000 $1,000

$2,000 $2,000 $2,000

$3,000 $3,000 $3,000

$4,000 $4,000 $4,000

$5,000 $5,000 $5,000

$6,000 $6,000 $6,000

$7,000 $7,000 $7,000

RANGELAND

$8,000 $8,000 $8,000

D CROPLAN PASTURE Mono & Inyo) & Mono

IRRIGATED VEGETABLE IRRIGATED HAYED MEADOW/IRRIGATED HAYED

, Mariposa (Tuolumne, $9,000 $9,000 $9,000

: Valley Intermountain North : Valley Intermountain North Sierra Nevada: Sierra

$10,000 0 $10,00 0 $10,00 Al Connor P.O. Box 1035 Vice President Walnut Grove, CA 95690

209 581-5645 www.axa-equitable-ag.com [email protected]

REGION CHAIR & COMMITTEE

David K. Bell ARA, CHAIR Michael F. Merkley ARA

region NINE

There are numerous valleys rich in ag- in 2015 milk prices declined to levels have remained stable. The Walker River ricultural resources across the state of that were at or below the cost of produc- Restoration Program has had some Nevada. Most of these valleys go unseen tion. The drought attributed to a lack of impact on values in the area with eleven from highways and roads that traverse surface irrigation water supplies in most water purchases made starting in 2010 the State. Nevada agriculture is directed areas, had impacts on cattle grazing, through 2014. There have also been primarily toward range livestock pro- and also attributed to declining ground several sales of alfalfa farms through- duction. Cattle and calves are the leading water levels. Pershing County Water out Nevada that rely solely on pumped agricultural industry. Cow-calf opera- Conservation District in Lovelock has ground water. The sale activity has been tions predominate with a few stocker not delivered any water for irrigation for strong with stable to increasing prices operators and feedlots. Nevada’s high the past two years. The Truckee Carson that could be attributed to the strong desert climate is also very well suited Irrigation District that delivers irriga- alfalfa prices seen for the past few years, to the production of high quality alfalfa tion water to farmers in the Fallon area regardless of the more recent downturn hay, which accounts for over half of the received a 19% allocation this year. The in alfalfa hay prices. There have been a total value of crops produced in the state. Walker River Irrigation District that few cattle ranch sales that have indicated Much of the alfalfa is marketed to dairies delivers irrigation water to farmers in a fairly stable market throughout 2015. in California and a significant quantity Mason and Smith Valleys also had little Even with the softening in cattle prices, is exported overseas. Additional crops to no water available for irrigation. most ranchers are still making a profit. produced in Nevada include potatoes, Even with the declining commodity Overall, the agricultural real estate barley, winter and spring wheat, corn, prices and lack of surface irrigation market has remained fairly stable oats, onions, garlic and honey. Smaller water as a result of the past four years throughout 2015. More recently, pre- acreages of alfalfa seed, mint, turf grass, of drought the real estate values have cipitation has been above average with fruits and vegetables are grown through- not shown any signs of declining. In the the predictions of an above normal pre- out the state. Demand for agricultural Lovelock area there have only been a cipitation winter. It remains to be seen properties in Region 9 remained good couple of sales in the past two years with as to what impacts the softening in throughout 2015. no known properties being offered for commodity prices and the possibility of The alfalfa and cattle markets started sale. In the Fallon area there have been another drought year may have on farm out similar to 2014, but have steadily several farm sales and also sales of water real estate values. fallen throughout the year. 2014 was a rights that indicate no decline in values. good year for dairy operations, however, In Mason and Smith Valleys farm values

102 CARSON | CHURCHILL | CLARK | DOUGLAS | ELKO | ESMERALDA | EUREKA | HUMBOLDT | LANDER | LINCOLN | LYON | MINERAL | NYE | PERSHING | STOREY | WASHOE | WHITE PINE REGION NINE 103 ACTIVITY / TREND None/Stable None/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable IN AGRICULTURAL LAND TRENDS IN AGRICULTURAL & LEASE VALUES 2016 $30/AUM $200/AU $150/AU $150/AU $200/acre $200/acre $200/acre $200/acre $200/acre $400/acre $200/acre N/A N/A N/A ------RENT RANGE $25 - 33% Crop Share $150 $150 $150 $150 $150 $150 $150 $100 $100 $100 cre alue per AU alue per A cre NEVADA AGRICULTURAL COMMODITIES BY COUNTY COMMODITIES BY AGRICULTURAL NEVADA alue per AUM ACTIVITY / TREND alue per A Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable Limited/Stable potatoes, forage, grains, mint, alfalfa seed, garlic, turf, alfalfa, livestock livestock, bedding plants forage, grains, vegetables, melons, alfalfa, dairy, forage, grains, alfalfa, dairy, livestock, melons onions, grapes forage, pasture, grains, dairy, livestock, garlic, forage, grains, pasture, livestock alfalfa, grains, carrots, livestock forage, grains, alfalfa, timothy hay, livestock bean seed, honey, peas, onions, livestock forage, grains, alfalfa seed, livestock forage, grains, potatoes, apples, turf, livestock onions, garlic, corn, alfalfa, dairy, turf, potatoes, vegetables, livestock forage, grains, livestock forage, grains, melons, row crops, pecans, pistachios, turf, livestock alfalfa seed, forage, grains, honey, livestock potatoes, onions, vegetables, livestock forage, grains, onions, garlic, potatoes, dairy, livestock, turf forage, grains, livestock VALUES: LANDVALUES: and LEASE www.calasfmra.com GRAZING LAND V GRAZING PERMITS V $2,000 $5,000 $3,000 $500 $7,000 CLARK ESMERALDA EUREKA LANDER LINCOLN LYON MINERAL PERSHING STOREY CARSON CITY CHURCHILL DOUGLAS ELKO NYE WASHOE WHITE PINE $3,200 $4,200 $4,200 $3,500 $9,000 $3,000 $8,000 $8,000 HUMBOLDT NORTHERN NEVADA IRRIGATED CROPLAND IRRIGATED V NEVADA NORTHERN ------NORTHERN NEVADA CATTLERANCH NEVADA NORTHERN OPERATIONS V 1 8 7 3 5 6 2 9 4 11 17 13 15 16 12 10 14

$80 - $200 PER ACRE VALUES $100 $3,500 $3,500 $3,000 $2,500 $6,000 $6,000 $6,000 $2,000 $1,000 $7,000 - $10,000 $2,500 $5,000 $2,400 Orovada Valley Kings River/Silver State Winnemucca Area Elko/Diamond Valley/ Reese River Valley Pasture/Meadow Range Operation Range Operation Desert Dry Grazing (Range) Grazing Permits Grazing Inside Operation Inside Lahontan Valley (Fallon) Smith Valley LANDUSE Lovelock Mason Valley Valley Carson

- $3,200 - $3,000 - $3,000 - $2,200 - $2,000 - $1,800 - $2,000

REESE RIVER ELKO, DIAMOND VALLEY, ELKO, $1,800 $1,800 $1,500 $1,200 $2,500 $2,500 $2,500 $2,500 $3,500 $3,000 $3,000 $3,500 $3,000 $2,500

AREA WINNEMUCCA $1,700 - $1,800 - $1,500 - $3,000 - $2,500 - $2,500 - $2,000 -

- $2,500

KINGS RIVER/ VALLEY STATE SILVER $1,800 - $3,000 $1,500 - $2,500 $1,200 $3,500 - $4,200 $2,500 - $3,500 $2,500 - $3,500 $2,000 - $3,500

- $3,500 - $4,200 - $3,500 - $3,500 - $3,000 - $2,500 - $2,500 OROVADA

$1,500 $1,800 $1,200 $3,500 $3,000 $3,000 $2,000 $20,000 $12,000 $12,000 $10,000 $15,000 $20,000 $20,000

------

CARSON VALLEY $7,500 $7,000 $7,000 $7,000 $10,000 $10,000 $10,000 HISTORICAL VALUE RANGE per acre VALUE HISTORICAL $10,000 $8,000 $8,000 $8,000 $8,000 $10,000 $10,000

------

SMITH VALLEY $5,500 $5,500 $5,000 $5,000 $6,000 $6,000 $6,000 $8,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $8,000 $8,000 $7,500 $10,000 $10,000 $12,000

------

MASON VALLEY DESERT OPERATION DESERT $5,500 - $5,500 - $5,000 - $5,000 - $5,000 - $5,000 - $6,000 - $2,000 $2,000 $2,000 - $2,400 $2,400 $2,400 $2,400 $3,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $3,000 $3,000 $2,000 $1,500 $1,200 $1,200 $1,500 $1,500 $1,500 $2,500 $2,300 $2,300 $2,300

------LOVELOCK PASTURE/MEADOW RANGE OPERATION $500 $500 $500 $500 $500 $500 $1,700 - $1,500 - $1,800 - $1,500 - $1,000 $2,300 - $2,300 - $3,000 $3,000 $3,000 $2,500 $2,000 $2,000 $2,000 - $2,000 - $7,000 $7,000 $8,000 $1,000 $7,000 $7,000 $200 $500 $120 $120 $120 $150 $120 $125 $300 $300 $300 $300 $120 $300 ------(FALLON) $75 $75 $75 $75 $75 $75 $80 $80 $80 $80 $80 GRAZING PERMITS LAHONTAN VALLEY INSIDE OPERATION $100 $100 $100 DRY GRAZING (RANGE) $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 - $10,000 $5,000 $5,000 - $7,000 $6,000 - $8,000 $6,000 - $8,000 $6,000 - $9,000 $4,000 - $8,000 $4,000 - $8,000 $4,000 - $10,000 2014 2014 2013 2012 2011 2010 2009 LAND USE 2013 CROPLAND IRRIGATED NEVADA NORTHERN 2015 LAND USE CATTLE RANCH PER AU) NEVADA NORTHERN OPERATIONS (VALUE 2015 LAND USE PER AUM) GRAZING PERMITS (VALUE 2015 LAND USE GRAZING LAND PER ACRE VALUE 2015 2014 2013 2012 2011 2010 2009 2014 2013 2012 2011 2010 2009 2012 2011 2010 2009

2013

2011 & Antelope

Elko, Diamond, Reese River, 2009

2015 REGION NINE

2013

2011 Paradise, & Winnemucca

Orovada, Kings R., Silver State, 2009

2015

Valleys 2013 & Carson Mason, Smith, $2,500 $2,000 $1,500 $1,000 $500 $0 2015 2011

2013 2009

2011 (per acre) 2015 GRAZING LAND VALU E 2009 2013

Lovelock 2011

2009 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 2015 2015

2013 2013

2011

(per AU ) 2011 Lahontan Valley CATTLE OPERATION

2009 2009 0 0 $20,000 $17,50 $15,000 $12,50 $10,000 $7,500 $5,000 $2,500 $0

www.calasfmra.com 20162015 TRENDS IN AGRICULTURAL LAND & LEASE VALUES 105

Ribacchi & Associates, Inc.

Sacramento Valley & Sierra Foothills Richard A. Ribacchi, MAI (916) 361-2509 www.valbridge.com

continued from page 4 DISCLAIMER | COPYRIGHT

those whose contact information may any loss or damage directly or indirectly obtained by contacting the following the be found in this publication, have caused by such reliance. California Chapter. completed a rigorous training program California Chapter, ASFMRA in the valuation and management of ag- COPYRIGHT NOTICE, RIGHTS, AND PERMISSIONS: Attn: Copyright Permissions ricultural properties. ASFMRA is the P.O. Box 838 only appraisal organization that offers This publication and the individual Woodbridge, CA 95258 a curriculum specifically based on the articles and material herein are copy- Tel: (209) 368-3672 appraisal and management of agricul- righted by the California Chapter, tural real estate. Fax: (209) 368-3602 ASFMRA and/or the respective Email: [email protected] The California Chapter, ASFMRA author(s) and are protected by United provides this publication “as-is” and States and international laws. All rights The California Chapter, ASFMRA may makes no warranty of any kind, express have been reserved. Any unauthorized charge a reasonable fee for any use that or implied, including but not limited to reproduction, distribution, transmis- it permits. The fee may be based on the any warranties of merchantability or sion, public display or performance, type and amount of material used, the fitness for a particular purpose. To the or preparation of a derivative, of this method and manner of use, whether the extent that you make any use or reliance publication or the individual articles use is for commercial or non-commercial on this publication or the information, or material herein, in print, electronic, purposes, among other factors. views, or opinions expressed herein, multimedia, or other form, is expressly you expressly agree that (i) California prohibited under Title 17 of the United Chapter, ASFMRA shall not be liable for States Code and its foreign counterparts. any loss or damage directly or indirect- No portion of this publication may be ly caused by such reliance and (ii) you used, for commercial or non-commercial will indemnify and hold harmless purposes, without the advance written California Chapter, ASFMRA, its permission of California Chapter, officers, directors, and members from ASFMRA. Written permission may be

% Crop Share: Rent paid as a percent- cwt: Hundred weight. Forage Crops: Historically the term age of gross income from crop sales, forage has meant only plants eaten Delta Land: Land located in the sometimes with a guaranteed minimum. by the animals directly as pasture Sacramento Delta region. This type of rent transfers some crop or immature cereal crops, but it is risk from the tenant to the landowner, Desert Operation: 50 to 100% outside also used to describe chopped hay usually resulting in a higher level of grazing (public grazing permits) or silage. potential profit. Double Crops: A second crop that can Free Tonnage: Raisin tonnage received Adaptability: The suitability of the land be planted in the same season, and on by a handler, for which the only Federal for use with higher valued crops. the same land, after the first crop has marketing order regulation is a minimum been harvested. quality or size standard. Ancillary Markets: A market other than what is commonly perceived as DOV - Dried on the Vine: A manner in Grape Contracts: A written agreement being the primary or historical use for which raisin grapes are harvested which between the buyer of grapes (typically the property. allows for their drying while they remain a winery) and the grape grower speci- on the vine instead of being separated fying the terms and conditions of the AU: Animal Unit, which is considered a from the vine and laid on trays on the agreement. The contracts typically cow calf pair. ground. Typically require upgraded include the price per ton, time period, AUM: Animal Unit Month, which is a trellis systems. acceptible brix (sugar), variety, acreage, cow calf pair per month. ENID: El Nido Irrigation District and minimum quality standards. AVA: American Viticultural Area. A (Merced County). Groundwater: A sub-surface water geographical area designated by the Early Fruit: Fruit that is harvested source, usually underground aquifers United States Alcohol and Tobacco during the very earliest part of the overall tapped with deep wells. Tax and Trade Bureau (TTB) as having growing season. This fruit typically IID: Imperial Irrigation District. IID homogenous growing conditions for receives higher prices because it is the delivers water to over 450,000 acres of wine grapes, such as climate, soils, and first to reach the consumer. highly productive farmland in southern- topography. The name of the AVA may most Southern California. be used on a wine bottle, however if Entitlements: In the context of used, 85% of the wine must originate ownership, use, and/or development Inside Operation: 0-15% outside from the named region. of real property, the right to receive grazing (public grazing permits) governmental approvals for annexa- AXR-1 Vines: Refers to vineyard Irrigated Field or Row Crops: Any tion, zoning, utility extensions, con- planted on AXR-1 rootstock, which is crops that are irrigated for a season struction permits, and occupancy/use not resistant Biotype B-Phylloxera. permits. The approval period is usually Late Fruit: Fruit that is harvested during Biotype B Phylloxera: A small, root- finite and may require the owner and/ the latest part of the overall growing feeding insect. This specific biotype or developer to pay impact and/or user season. This fruit usually receives higher will feed on the AXR-1 rootstock and fees in addition to other costs to secure prices because it is the last fruit to reach ultimately kill the vine. the entitlement. Entitilements (sic) may the consumer. be transferable, subject to covenants or Boutique Acreage: Small acreage parcels Marketable: Appeal to market for sale. government protocols, may constitute where the grapes typically are used by vested rights, and may represent an en- Market Consolidation: Process of the owner to make wine for his or hers hancement to a property’s value.” concentrating the market in a smaller private labels marketed through small number of typically larger participants. Boutique wineries. Exchange Contractors: The Central California Irrigation District, Firebaugh MID-Madera: Madera Irrigation District Cash Rental Rates: Cash money Canal Water District, Columbia Canal (Madera County). exchanged for the rental for real Company, and San Luis Canal Company. property. MID-Merced: Merced Irrigation District These entities exchanged their riparian (Merced County). Cropland: Irrigated land suitable for rights on the San Joaquin River for a field crops or row crops. water right entitlement from the Delta- MID-Modesto: Modesto Irrigation District (Stanislaus County). CCID: Central California Irrigation Mendota Canal. District (Exchange Contractor District. Exchange Money: See §1031 exchange. Milk Cows: Lactating cows that are being milked on a daily basis. Custom Crush: A service arrangement Field Crops: Any of the herbaceous whereby a winery processes grapes into plants grown on a large scale in cultivat- MWD: Metropolitan Water District wine for a fee. ed fields; primarily a grain, forage, sugar is a consortium of 26 cities and water districts that provides drinking water to Custom Farmed: Farmed or operated or fiber crop. nearly 18 million people in parts of Los by a professional farmer or organization Angeles, Orange, San Diego, Riverside, other than the owner. San Bernardino, and Ventura Counties. CWD: Chowchilla Water District (Merced and Madera Counties).

www.calasfmra.com 2016 TRENDS IN AGRICULTURAL LAND & LEASE VALUES 107 Nonbearing: Trees or vines that are Soften: To lose value or decrease in USBR: Irrigation Districts under the immature, not old enough to bear a mar- demand. United States Department of the Interior ketable crop. Bureau of Reclamation. Spot Market: The buying and selling Nonpareil: The premier almond variety of agricultural commodities generally Vinyardist: Grower of grapes on a wide in California. on a one-year or one-time basis. Spot range of parcel sizes under a wide range market sales are done through brokers of climate conditions. OID: Oakdale Irrigation District. or directly between producer and Wastewater: Water produced as a Open Land: Unimproved or undevel- processor, and are contrasted by sales byproduct of an agricultural or indus- oped land with adaptability to crops. of commodities done via pre-arranged trial activity such as milk production or contract or through membership in Owner-Operated: Operated by the fruit and vegetable processing. owner of the real property. a cooperative. Water Allocation: Term generally Stabilized: Generally level or flat. Palo Verde Irrigation District (PVID): used to describe the amount of surface A privately developed district located Stable: Firmly established. water provided to a property by the in Riverside and Imperial Counties, district provider. Stocker Cattle: Weaned calves that are California near and around Bythe, held over for another grazing season or Water Banking: The act of storing California. Water for irrigation is diverted year for the eventual sale to feedlots. water, either physically or legally, for from the Colorado River at the Palo Verde use at another time. Physical water Diversion Dam. Super High Density olive planting: a banking can be done in public or private system of planting olives specifically Perfected Water Rights: Generally, reservoirs or in underground contained for the production of olive oil, whereby water rights that are established, docu- aquifers. trees are densely spaced in hedgerow mented, and approved by the California configuration and suitable for mechani- Westlands Land Retirement: State Water Resources Control Board. cal harvest with an over-the-row type Permanent removal of up to 200,000 Per Unit Values: Values or prices on a machine. acres of farmland from irrigated agricul- per unit basis such as acres, cows, square ture. All of the land that would be eligible Surface Water: A typically renewable feet, etc. for retirement remains productive but is water supply that flows in channels impacted by drainage problems. Plottage: land purchased to add to along the surface of the earth. In this adjoining/neighboring acreage context said water is typically irrigation Rangeland: An extensive stretch of water that is provided by rivers, irriga- grazing land or land that produces tion companies or water districts. forage plants. Terroir: The set of special character- Recreational Land: Can generally be istics that the geography, geology and described as the current use for lands climate of a certain place, interacting that historically were used for grazing with plant genetics, express in agricul- or farming, but are now being purchased tural products; the term is primarily and used for leisure uses such as hunting, used in the wine industry, but also used trapping, fishing, wildlife preservation for coffee, tea, artisan cheese, etc. or nature study. TID: Turlock Irrigation District Rent Range: The low and high values in (Stanislaus and Merced Counties). a data set of rental rates (annual unless Topography: Elevation(s) or contour otherwide noted). of land. Reserve Tonnage: The raisin tonnage Total Digestible Nutrients (TDN): set aside as authorized by a Federal term that comes from the old system of marketing order. measuring available energy of feeds and Resistant Rootstock: Vine or tree energy requirements for animals found rootstock varieties which have tolerance in crops. or resistance to insects or diseases. Transistional Property: Generally used Rootstock: A root and its associated to describe a rural property where the growth buds, used as a stock in plant highest and best use is potential urban propagation. development making existing agriculture activities an interim use. Roughage Requirements: Amount of non-digestible matter (fiber) needed in Trophy Properties: Properties livestock feed mix. that are typically purchased as much for the status of owning them Share Rental Arrangements: Typically as for their capacities to landord’s percentage of gross crop produce a profit or support a proceeds in exchange for property rental. certain lifestyle. SLCC: San Luis Canal Company (Exchange Contractor District).

108 GLOSSARY

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