$36,000 per acre for walnuts. Yes, we sold an 80 at this price. What does it take to get that kind of money for a walnut property?
The property must be in the top 3% of walnut production.
It must have excellent soil for walnuts in a strong walnut producing area.
It does not need future development possibilities.
It is imperative to have reasonably priced water.
It needs at least three years of consistent production.
Trees should not be over 15 years old.
The variety must produce a high quality nut.
Trees must be in perfect health at the time of sale.
Trees must be extremely uniform.
It does not have to have any structural improvements.
It has to truly be a "Pride of Ownership" property.
The California Dairy Industry continues to struggle financially and consolidation seems to be the order of the day, not unlike other Ag operations that continue to grow while smaller producers drop out for various reasons. The California dairy industry has probably seen its 'heyday' and is not only consolidating but also has a large number from the coming generation looking at the greener pastures of the Midwest. Look for more dairies to shut down, improvements razed and the land placed into a different use.
"Trying to get government to be as efficient as business is as hopeless as trying to teach cats to bark and dogs to meow." - Thomas Sowell
When commodity prices are up, Ag property listings are difficult to obatin. Even owners of marginally producing property are able to make some money and consequently not eager to sell. Unfortunatley, when commodity prices drop and the marginal producer loses money, not only is his land (like all land) being worth less per acre but buyers also discount the property for the removal of permanent plantings and preparation for a new planting.
If you're selling during prosperous times, you have people begging you to sell your property to them. The reverse is also true - when you sell your proeprty (particularly marginal property), you are begging a buyer to buy it. If you're the seller, you don't want to be the beggar!
Do you have a neighbor that would possibly be interested in buying your property? Often a neighbor will attempt to negotiate a deal for less than market price, or he won't make a firm commitment and tell you to give him first chance. Over the years, we've found that if you list your property with an Ag broker, your neighbor becomes anxious and a bit nervous. He doesn't want to lose the opportunity to buy land next door, but he also knows that if you've picked an active broker, the word will be out to all the neighbors in under 4 days, plus the whole world of potential buyers will know about it over the next two weeks to a month. This guarantees that if your neighbor wants it, he'll put his best foot forward to put a quick deal together.
Appraisals - Ag and ag related property appraisals are a specialty of The Ranch Company. Appraisals for financing, estate planning, dissolutions, gifting, insurance, or simply for buying or selling property. We cover both the San Joaquin and Sacramento Valleys.
2012 Tulare county Farm & Ranch Sales
Agricultural land value in Tulare County took a sharp upward trend in 2012 with a total of 235 parcels sold (20 acres or more each). Total land sales consisted of 50,090 acres. Sales of the past 6 years are shown below:
Number of Parcels Sold
Total Estimate Value
Per Acre Value
* 2012 statistics had an unusual number of range land sales resulting in a very low average acreage price. By subtracting 2 cattle ranches which leaves a normal number or range sales, the average of the blanace (32,584 acres) creates an average sale price reflecting the types of properties as shown in previous years and averages out at $12,162 per acre.
Comments: Acreage of Ag land sales during 2012 were up well over 100% over 2011 and the highest numbers of acres sold for any one year since 1993. The price per acre for 2012, after adjusting for the excess range land sold, is $3,894 per acre higher than in 2011 reflecting the enormous demand for ag land in production (citrus) and open land for planting permanent plantings such as walnut, pistachio, almond and citrus trees.
The above statistics include all of the 2012 Tulare County land sales of parcels containing a minimum of 19.5 acres each. In addition, smaller acreage of 5 acres to 19.5 acres totaled 203 sales consisting of 1,283 acres.
Land not planted to permanent crops totaled 7,844 acres (15.5%) plus 32,513 acres of rangeland (64%). Permanent crops included citrus (8.8%), vineyard (2%), deciduous (3.39%), nuts (2%) and the balance in olives, kiwi, etc.
3 parcels appeared to be sold for development use. Bank sales consisted of 27 parcels totaling only 82 acres. Dairy operators purchased only 11 parcels for a total of 1,149 acres. Seven dairy facilities were sold on a total of 1,967 acres. Two packing houses transferred ownership plus one walnut dehydrator.