Water is key factor in farmland values

February 6, 2020
by Lois Henry
Lois Henry

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Mike Ming, owner of Ag Alliance Services, Inc., puts out a quarterly report looking at farmland valuations in Kern County.

Following the passage of the Sustainable Groundwater Management Act (SGMA), water access has become a key factor in land prices – and not in a good way.

Key takeaways in Ming’s 3rd quarter report include:

  • Lands outside water districts on groundwater only dropped in value from 20% to 30% in 2018 and will drop 15% to 20% in 2019.
  • Lands in districts without state and/or federal water contracts dropped in value from 5% to 20% in 2018 and will drop 10% to 15% in 2019.
  • Districted lands with state and/or federal water contracts dropped in value from 0% to 10% in 2018 and will hold steady at that valuation 2019.
  • Lands with water rights to Kern River water dropped in value from 0% to 5% in 2018 and will hold steady at that valuation in 2019.

Read Ming’s report here:

Quarterly Update 2019 Q3 Powerpoint

 

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