BUCKEYE, Ariz. (RFD-TV) — Economic and geographical challenges continue to shape agricultural land values across the West, with water availability remaining one of the biggest factors influencing Arizona’s farmland market.
Shawn Wood, broker and accredited appraiser with the American Society of Farm Managers and Rural Appraisers (ASFMRA), joined us on Wednesday’s Market Day Report to discuss the factors impacting agricultural land and ranch values in Arizona.
In her interview with RFD-TV, Wood said uncertainty surrounding Colorado River water allocations is one of the biggest issues affecting the market. He said properties with secure water rights are attracting the most interest and are seeing premiums as buyers place a higher value on water security.
When it comes to buyers in Arizona’s agricultural land market, Wood said existing producers continue to look for opportunities to expand, while institutional buyers, high-net-worth individuals, and water and power entities are also active participants.
Wood said Arizona’s agricultural market highlights the importance of water conservation and technology, with producers focused on maximizing crop production while managing limited water resources.
He also discussed concerns among ranch buyers surrounding New World screwworm, saying drought remains the top concern for many producers, followed by questions about how the disease would be managed if it reaches the Southwest.
Looking ahead, Wood said water availability, market conditions, and continued uncertainty around resources will remain key factors influencing Arizona farmland and ranchland values over the coming years.
