Imminent California Legislation Increases Land Valuation Complexity... but Other Economic Factors Remain Relevant
After an unprecedented growth rate in California agricultural land values between 2010 and 2015, land prices have since softened. Lower tree nut prices, low capitalization rates for investors, some economically unsustainable land valuations, and rising production costs all play a part, but the impending implementation of California’s Sustainable Groundwater Management Act (SGMA) will continue to put additional downward pressure on specific types of property in specific California growing regions, particularly in the San Joaquin Valley (SJV).