Cushman & Wakefield’s Agribusiness Solutions Team in San Diego has just launched a new report on the Imperial Valley Agriculture sector. This brand new Spring 2019 report recaps recent market sale activity and statistics, key and impacting trends, plus a team forecast. This is the first of what will be a regular market report forward.
Imperial Valley Agriculture Market Highlights
2018 Market Recap
- By all accounts, 2018 was another strong year for farmland sales in the Imperial Valley.
- Investment funds made several major purchases in the Valley in 2016 and 2017, but this was not a factor in 2018 when local farmers dominated the buying activity.
- In most other regions of California, SGMA’s groundwater restrictions are right around the corner in 2020; this is anticipated to make Imperial Valley’s reliable, affordable water and lower farmland prices even more attractive to both farmers and investors.
- Value of total sales in 2018 was nearly 70% below 2017 levels while there were only 28% fewer transactions, indicating that average transaction size and value of the acreage was much lower than the previous year.
- The market normalized in 2018 as expectations created by the significant investor assemblage in 2016 and 2017 cooled.
- The Westmorland, Brawley, and Calipatria submarkets represented over half of the total acres and total value of farmland sold within the market.
- Only one transaction had a value greater than $2,000,000 in 2018 compared to 14 transactions during 2017.
- Transaction value in the first quarter is up substantially from the previous year and equates to over 57% of the value transacted and almost 50% of the acres sold during 2018.
- Holtville and Brawley submarkets saw the bulk of the transactions.
Download the full report: Imperial Valley Agriculture Report – Spring 2019
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