Written by Tim Cobb, AFM, MBA
Coming to the end of 2018 we find land values relatively flat but stable in nature. Much like other areas of the country the Pacific Northwest (PNW) benefited from the commodity run earlier this decade, however unlike other areas of the country that saw huge increases in land value the PNW steadily increased to the turn in the cycle. We have not seen land values decrease across the market.
Washington and Oregon both have very diverse areas of agriculture, ranging from permanent plantings (fruit and vineyard) and highly productive row crop irrigated land (potato, corn, forages), to dryland small grain (wheat, barley, pulse crops). The range of land value is as varied as the crops grown and there continues to be interest in the region for quality producing land with a stable water source.
Estimated ranges of value by crop type are as follows:
- Established fruit and vineyard land $25k-$35K++ per acre
- High quality row crop land (good water) $10k-$15K per acre
- Moderate quality row crop land (good water) $5k-$10k per acre
- High rainfall dryland grain land $2k-$4k per acre
- Moderate rainfall areas $1k-$2k per acre
It continues to be critical for groups interested in PNW agriculture to know what region they are investing and that values can change by the county due to the diversity of soil, crops and weather patterns. We look forward to continued stability in sales volume and land value into 2019.