According to the latest release from Northwest Farm Credit Services, agricultural real estate values in Washington, Oregon, Idaho, and Montana, are stable and increasing through the first half of 2017. Despite weaker commodity prices and less than favorable weather patterns in parts of the northwest, the constrained supply of properties for sale has continued to stabilize land values.
In Washington, Oregon, and Idaho, land values have increased since 2014. In Montana, land values through the first half of 2017 show a more level trend.
AVERAGE DOLLAR / ACRE LAND VALUE
For sales of properties 40 acres and larger
AVERAGE DOLLAR / ACRE LAND VALUE & NUMBER OF SALES
For sales of properties 40 acres and larger
Year-to-date transaction volume has been lower than the same period in 2016 due to limited supply. The number of sales for the first half of 2017 reflects the pace of sales from 2009 to 2015.
Recent sales of ranches and pasture units have all been at or above historical values. Demand remains table for land in most agricultural segments.
Washington
In Washington, sales of agricultural lands with development / conversion potential for commercial or industrial uses has driven up the average dollar / acre land value. Additionally, sales of high-quality permanent-planting acreages have contributed to the strength of the market. In Central Washington, land values in fruit-growing areas remain strong due to purchases by integrated fruit operations developing future supplies.
Oregon
In Western and Southern Oregon, interest from investors in properties with permanent planting potential has led to strong sales activity. Over the last two years, the vineyard market has shown a significantly higher number of sales transactions in Western Oregon. Favorable crop prices have driven the expansion of wineries, hazelnut, and blueberry operations in Western Oregon as well as Western Washington. The development of hazelnut farms in particular has boosted the demand for high-quality irrigated and dry land.
For more information, check out the full report released by Northwest Farm Credit Services.