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Ag real estate prices on the rise

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Prices are on the rise and it’s not a bad time to be a grower.  Some farmers are cashing in and others are staying put. Simonian Farms is in its 5th generation and they’re amazed at the prices Valley ag land can now command.

“Somebody bought a lot of acres from some other farmer and they paid $22,000 an acre.  I thought that was off the charts,” said Simonion Farms Owner, Dennis Simonion.

Simonian says no matter the price, he couldn't bear to part with his land.

“Everything in farming's doing well...the grapes, the citrus the nuts,” said Simonion.

Realtor,  Nat Dibuduo says the San JoaquinValley is the breadbasket of the country and  to some investors fertile local lands can be provide stability, rather than the volatility being seen on Wall Street.

“You also have ag investors that probably might have been involved in stock market, commercial real estate that are saying hey let's get involved in agriculture, so we've got everyone competing for this limited resource,” said Dibuduo.

The demand  for ag property is higher than the supply.  Dibuduo says commodities often compete for the same acreage of land.

“So you have almond growers that want more land and are competing against wine grape growers and pistachio growers,” said Dibuduo.

Some farmers on the other hand are just getting too old for the business.

“If they don't have siblings that want to stay in agriculture, then they'll probably start selling off some of those properties,” said Dibuduo.

It’s the reward at the end of the day that keeps Simonion going.

“To see people come in and buy it and taste it and love the taste and it gives you such a great satisfaction,” said Simonion.

There’s risk involved and it’s a gamble whether you’re an investor or a farmer. 

 


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