California farmland values have taken a hit.
It is a price trend our friends at the American Society of Farm Managers and Rural Appraisers have been warning of for quite a while.
A new groundwater law combined with poor commodity prices has led to double digit year-over-year farmland declines. While the San Joaquin Valley tends tohave greater water access than other parts of the state, farmland values there have still fallen.
Almond orchards that once sold for $60,000 an acre are now facing prices below just $44,000 an acre.
Meanwhile in Hawaii, the state is looking to purchase over 1,000 of farmland in Kaua’i that is currently owned by a billionare tech entrepreneur.
The $39 million deal is still waiting legislative approval. The state hopes to use the land to achieve local food production goals by allowing Hawaii’s Agribusiness Development Corps to satisfy the demand of farmers looking for access to more land.
Farmland values remain stable, but weakened credit conditions and lower expected farm income signal tighter financial margins heading into 2026.
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For many farm businesses, property taxes on business assets have become a significant and highly visible expense, threatening liquidity, discouraging investment, and creating a disproportionate burden when compared to other industries.
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The ACRE Act modestly reduces farmland borrowing costs now, with more savings possible once federal guidance clarifies which loans qualify.
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