Current Agricultural Land Values 2016

<img src="agricultural-land-values-2016-agriculture-current-price-per-acre-farms-for-sale-in-washington-state-farmland-farm-for-sale-walla-walla-farm-ground-property-for-sale-sold-land-for-sale-farms-for-sale-washington-state-farms-in-washington-state.jpg"title="Agricultural Land Values for 2016 Current Price per Acre for the Pacific Northwest and California ag farm ground"alt="agricultural land values for 2016 for sale in washington state farmland farm for sale walla walla farm ground for sale sold land">

The latest data from the USDA’s National Agricultural Statistics Service tells us that the value of agricultural land has increased this year in California and the Pacific Northwest.

Washington is up 4.9 percent, to $2,760 per acre. Oregon is up 5 percent, to $2,730 per acre. Idaho is up 3.1 percent, to $3,300 per acre. California is up 2.1 percent, to $10,910 per acre. Pasture land values average $1,330 per acre. Washington is up 2.4 percent, Oregon is up 3 percent, Idaho is up 4 percent and California stayed the same as the prior year.

Although land values have increased in the Pacific Northwest and California overall nationwide there has been a 1.9 percent drop. Ben Eborn, a Univeristy of Idaho Extension economist, said “this drop is most likely because the buyers paid more than they could generate from their land.” He also believes that “The bubble is getting ready to burst and the land values will probably go down for several years.” Eborn said.

Supply and demand is what has generated the increase of agricultural land values. If you have considered divestment in the past or are just curious about the current market, now would be a great time to confidentially speak with us and give us the opportunity to better understand your goals and valued asset. 

Many of our clients wish to be absentee owners and would likely be interested in a lease back situation with you or your current tenant.  If you are currently farming your land, a sale to a buyer of this type would produce a large cash infusion to your portfolio while likely not affecting your ability to make a living.  If your property is currently leased to a tenant, your tenant would likely enjoy a smooth transition to a new owner with little or no changes to their current lease. 

Currently, farm land is trading at an all-time high and with the future ability in jeopardy to trade real estate with capital gains deferred, now is an excellent time to take steps to secure a bright future for you and your family.