Investors and farmers from California are desperately seeking farm ground acquisition opportunities in the Pacific Northwest. Topping the list of due diligence for these investors is water supply, which with California’s major drought and stringent state water rules, explains why we are seeing a major focus on the Pacific Northwest for potential opportunities. Many of these investors will present cash offers to purchase farmland with the desire to lease the property back to the seller or current tenant, which provides continuity with the farm plan and potentially, the lifestyle that the seller has been accustomed to.
Washington State has seen a 44% increase in farm land values since 2010 (www.nbcnews.com). This has created a tremendous opportunity for owners of farm land to cash in their asset and, with our assistance, potentially craft a deal that allows them to continue enjoying their agricultural lifestyle. Strong demand and a severely limited supply of farm land continues to drive prices to the top of the market for now, but with the future stability of commodity prices an unknown, it is difficult to predict how much longer these high land prices will continue. There is strong evidence that, in the coming months if commodity prices do not bounce back, we may be looking toward a market downturn for certain types of farm land.
For the time being, we continue to sell farms for record setting prices and have many clients looking for acquisition opportunities. If you have been contemplating your options regarding your agricultural asset, now is a very good time to consult with us before the market does change. We can help you achieve your long term financial goals and initial consultations are fully confidential and, as always, at no cost to you. We look forward to learning more about you and your valued agricultural asset and how we can become a part of your future plans.