Two new federal reserve surveys, found the value of farmland in those parts of the country is up 25 percent since last year.
That's the highest increase in three decades.
The surveys show successful harvests and higher farming incomes are contributing to the surge.
Here in California, farm land values are at about $9200 per acre.
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California farmers are using water wisely.
The study by the Center for Irrigation Technology at Fresno State found that farmers are not wasteful with their water supply.
The study also contradicts claims that large volumes of water would be available through agricultural water conservation.
The report also found little potential exists for new water unless large amounts of agricultural land are taken out of production.