Drought impacts farmland purchases
FRESNO, Calif. (KFSN) -- The ongoing drought is impacting how Valley growers are buying farmland.
The Central Valley has long been home to some of the best produce in the world. Now growers are working harder than ever to keep up quality production in this unprecedented drought.
Ron Silva runs a real estate company focusing on Ag Land sales. He says this dry year has created a frenzy in the marketplace.
"There is not a lot of land for sale now. If you have open grow crop land for sale now with good district water and a well, I can do about two to three phone calls and it's gone. You'll never see it out on the market place. If I list it today, I have that kind of buyer. We have cash buyers," Ron Silva.
Silva says any property in a water district which offers higher allocations commands much more money than farm land in a district with zero allocations.
"We sell property to people who farm on the west side, large farmers. They farm 10-15 thousand acres and what they are looking for in Fresno is the water district and good ground water and good soil of course. Those are the major ingredients," added Silva.
Fresno County assessor Paul Dictos says lots in Fresno Irrigation's District draw buyers fast.
"That place is commanding a higher price than any other place, yes. FID has so much water that the price has kept up there," said Dictos.
According to the county Assessor's office empty lots of Ag Land with access to surface water and groundwater go for about $20,000 per acre. The same piece of property in a district with no surface supply or underground wells goes for $750 per acre.
Distoa believes prices everywhere will take a hit if the drought continues for years.
"I think that without water land prices will drop. Our economy will really bottom out," said Dictos.
Lawmakers recently passed a bill which aims to put restrictions on groundwater pumping.
The bill is currently on Governor Jerry Brown's desk. Dictos says if the Governor signs it, expect land prices in the Valley to drop dramatically.
