Need Help
If you need help setting up services or accessing your accounts, please call our Customer Care Team at 866.552.9172 during business hours (7 a.m. — 5 p.m. PST, M-F) or email us at CustomerCare@AgWestFC.com.
Location
If you need help setting up services or accessing your accounts, please call our Customer Care Team at 866.552.9172 during business hours (7 a.m. — 5 p.m. PST, M-F) or email us at CustomerCare@AgWestFC.com.
Location
If you need help setting up services or accessing your accounts, please call our Customer Care Team at 866.552.9172 during business hours (7 a.m. — 5 p.m. PST, M-F) or email us at CustomerCare@AgWestFC.com.
Securely update and exchange balance sheet information with your AgWest team.
Put your idle cash to work with a suite of banking services that sweeps funds between accounts. Fees apply.
High interest rates, generally low inventories, falling farm income, shifting water availability and regulations are among the main drivers impacting land values in the West. Land values in most of AgWest’s region remain strong as demand outpaces available inventory; however, these drivers have led to decreased buyer interest and/or lower land values for various permanent plantings, including hazelnuts, almonds, walnuts and table grapes. The slight drop in land values in Idaho shown in the chart below is more indicative of fewer high-quality properties being sold rather than an overall decline in property values.
Market participants for land include a combination of local operators, absentee operators and institutional investors. Developers remain a player in the market, but acquisitions for development have decreased due to persistently elevated interest rates. Some areas are reporting longer listing times for properties and decreases in listing prices, although final sales prices indicate stable to increasing land values.
Average land values, thousands of dollars per acre
Interest rates – High interest rates were one of the most frequently reported deterrents to land acquisition in the first half of 2024. Greater instances of creative financing such as owner-carried notes have been reported. Interest rates are expected to come down over the next several months.
Rural residential/recreational – The rural residential and recreational markets in most areas continue to cool, largely due to high interest rates. Longer listing times are becoming more common and prices appear to be stabilizing.
Farm income/commodity prices –The relationship between land values and commodity prices in recent years has been weak as many perceive land as a stable, long-term investment, with the exception of some permanent planting properties. While the outlook for agriculture industries is mixed, little if any negative impacts on land values have been seen by verified sales outside of certain isolated regions. Visit our Industry Insights webpage for more industry information and market updates.
Drought – Drought concerns are mixed throughout the West, with much of Washington, northern Idaho, Montana, and northern Arizona showing below average year-to-date precipitation levels and similar drought conditions as a year ago. Concerns over future water availability in Arizona are causing hesitancy among some buyers. The remainder of the territory shows at or above average year-to-date precipitation. Although specific areas have water concerns, overall delivery of irrigation water through the remainder of the 2024 growing season is reportedly positive. See our Drought and Water Update for more information.
Share your feedback! Click here to complete a two-minute survey about this report.
AgWest appraisers provide appraisal services on rural properties throughout the West. The Appraisal Services team continually researches sales and tracks market data throughout Arizona, California, Idaho, Montana, Oregon and Washington. They compile the market data and analyze it using a central database.
This report provides a high-level look at trends and market characteristics and does not provide details for specific areas or land types. The report should not be used to identify the value of a specific property. This information is limited only to an analysis of trends in identified land values within the geographic area served by AgWest Farm Credit.
For more information or to share your thoughts and opinions, contact the Business Management Center at 866.552.9193 or bmc@AgWestFC.com.
To receive email notifications about western and global agricultural and economic perspectives, trends, programs, events, webinars and articles, visit www.AgWestFC.com/subscribe.
Improved farmer sentiment amid anticipated rate cuts.
In July, the Purdue University/CME Group Ag Economy Barometer reported an improvement in monthly farmer sentiment, even though key commodity prices have been decreasing. High interest rates have been a top concern for many producers, and the improvement in sentiment could be attributed to the anticipated rate cuts by the Federal Reserve in September. While the impact of a rate cut will not be felt right away, there is hope amongst producers that this is a crucial step towards easing financial headwinds and stabilizing their operations in the long term. Given the current economic climate, effective risk management is essential to navigate high interest rates and fluctuating commodity prices.
Wednesday, August 14, 2024
by AgWest Farm Credit
Monthly economic trends, data and major industry headlines.
Read moreAgWest Farm Credit’s industry research team covers the state of major agricultural commodities in Alaska, Arizona, California, Idaho, Montana, Oregon and Washington. The market updates are based on various sources, and include boots-on-the-ground insights from AgWest’s own lending, appraisal and crop insurance teams across the West. For industry specific information, news and upcoming events, check out our industry pages below.
High interest rates, generally low inventories, falling farm income, shifting water availability and regulations are among the main drivers impacting land values in the West. Land values in most of AgWest’s region remain strong as demand outpaces available inventory; however, these drivers have led to decreased buyer interest and/or lower land values for various permanent plantings, including hazelnuts, almonds, walnuts and table grapes. The slight drop in land values in Idaho shown in the chart below is more indicative of fewer high-quality properties being sold rather than an overall decline in property values.
Market participants for land include a combination of local operators, absentee operators and institutional investors. Developers remain a player in the market, but acquisitions for development have decreased due to persistently elevated interest rates. Some areas are reporting longer listing times for properties and decreases in listing prices, although final sales prices indicate stable to increasing land values.
Average land values, thousands of dollars per acre
Interest rates – High interest rates were one of the most frequently reported deterrents to land acquisition in the first half of 2024. Greater instances of creative financing such as owner-carried notes have been reported. Interest rates are expected to come down over the next several months.
Rural residential/recreational – The rural residential and recreational markets in most areas continue to cool, largely due to high interest rates. Longer listing times are becoming more common and prices appear to be stabilizing.
Farm income/commodity prices –The relationship between land values and commodity prices in recent years has been weak as many perceive land as a stable, long-term investment, with the exception of some permanent planting properties. While the outlook for agriculture industries is mixed, little if any negative impacts on land values have been seen by verified sales outside of certain isolated regions. Visit our Industry Insights webpage for more industry information and market updates.
Drought – Drought concerns are mixed throughout the West, with much of Washington, northern Idaho, Montana, and northern Arizona showing below average year-to-date precipitation levels and similar drought conditions as a year ago. Concerns over future water availability in Arizona are causing hesitancy among some buyers. The remainder of the territory shows at or above average year-to-date precipitation. Although specific areas have water concerns, overall delivery of irrigation water through the remainder of the 2024 growing season is reportedly positive. See our Drought and Water Update for more information.
Share your feedback! Click here to complete a two-minute survey about this report.
AgWest appraisers provide appraisal services on rural properties throughout the West. The Appraisal Services team continually researches sales and tracks market data throughout Arizona, California, Idaho, Montana, Oregon and Washington. They compile the market data and analyze it using a central database.
This report provides a high-level look at trends and market characteristics and does not provide details for specific areas or land types. The report should not be used to identify the value of a specific property. This information is limited only to an analysis of trends in identified land values within the geographic area served by AgWest Farm Credit.
For more information or to share your thoughts and opinions, contact the Business Management Center at 866.552.9193 or bmc@AgWestFC.com.
To receive email notifications about western and global agricultural and economic perspectives, trends, programs, events, webinars and articles, visit www.AgWestFC.com/subscribe.