The average value of California farm real estate is $6,500 per acre. That’s an increase of more than 8% from last year.
Mike Iliff is a senior appraiser with Fresno-Madera Farm Credit. He analyzes land values in the Sacramento and San Joaquin Valleys.
Iliff says rural real estate is doing well because commodities grown there…like almonds and dairy…are more valuable.
"Because agricultural property is an income producing property, the value is directly proportional to commodity prices. That’s the reason for the strong real estate values right now."
According to federal statistics, the average price of cropland in California is around $9,900 per acre. That’s almost 2% more than in 2007.