• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Farmland - Good Investment at High Price?

Status
Not open for further replies.
My personal observation in Nevada is that rural land prices in agricultural areas (mostly ranching with some alfalfa fields) have not been feasibly priced for years.

My perception is that "gentlemen farmers" (read rich guys who want to get out of the big city every now and then) have screwed up the market so badly in areas out here in the Southwest that the whole thing is like a speculative Ponzi scheme. None of the prices seem to be based on any actual agricultural reality. Then the water district comes in and buys some other ranches and drives up the price further to pipe water down to Vegas.

None of these influences seem to have anything to do with the feasibility of any normal agricultural motivation. Guess I'm just waiting for the bubble to pop like all the others but this one seems a bit more stubborn than the others doesn't it?

The water districts purchases are a whole other issue, aren't they? Water rights seperated from the land, transferred over to the purchaser and moved to their project to ship H2O to places like Vegas and LA.
 
Tricky Dick Lamm (we have a duty to die) in CO was supposedly champion of the Environment as gov. of Colorado...then he promptly helped dry up the San Luis and South Park by acting as agent to gobble up "deep" water rights for Denver. What do you expect from a lawyer and CPA...as well as college professor?

Tap the deep aquifers in those high valleys, however, and they drained the shallow one that farmers relied upon. They were not separate aquifers so the deep one drains the shallow water. The drying of the Mtn. valleys reflects as much the water use of the Front Range and points west as it does any droughty conditions.

We have a bizarre America where we consume anything and everything and at the same time people wave their ipads overhead and drive off in an electric car to a anti-mining protest in Alaska...they are demanding more and more electronic devices using the very metals being mined. They protest the oil wells and fracking but hold up signs made from plastic and written with inks that are petrochemical...drive in a car to the rally...then eat at a restaraunt that has plastic decor on the walls and cooks in metal pans.
 
Can't blame Nevada.

Look at what they get from the Colorado River. Worst allotment of the bunch.

http://en.wikipedia.org/wiki/Colorado_River_Compact

But at least we have a boat-load of water going to otherwise economically non-feasible agricultural tracts in California.
 
Nevada has nothing to gripe at... Look at Mexico. The mouth of the Colorado used to have a booming fishing economy and we dried up the whole river...leaving Mexico high and dry...altered an entire ecosystem.
 
Nevada has nothing to gripe at... Look at Mexico. The mouth of the Colorado used to have a booming fishing economy and we dried up the whole river...leaving Mexico high and dry...altered an entire ecosystem.

My only point is whether all that water going to California agricultural use is the highest and best use of the water. In areas I appraise in agricultural water rights may be measured in the $100's of dollars per acre foot in some rural areas. In urban water basins it's thousands or tens of thousands.

Seems to me that you could shut down a lot of that marginal agricultural use in California and use some towards conservation and re-allocate the rest to under-served urban areas. Are we going to miss a lot of that alfalfa?

Nevada's not griping. They're doing something about it. Time will tell whether taking water from northern agricultural aquifers and piping it down to Vegas will cause problems or not.
 
In areas I appraise in agricultural water rights may be measured in the $100's of dollars per acre foot in some rural areas. In urban water basins it's thousands or tens of thousands.
And who then raises the crops need for agriculture that feeds us? A friend just spent $19,000 to deepen his irrigation well in the Delta. The water table has dropped by 20' plus and forced that move. Without irrigation water, he would go bankrupt. We are living on a knife edge.

The city folk will have plenty of water but no food. Food is going to be a critical shortage in the future and water is key to so many other things that farmers likely will be dried up and go to cities. So what happens to Las Vegas if we go back into a 75 year drought like happened to the Anasazi's about 1000 years ago? What happens when the West runs out of potable water? Can people get packed up and leave in time to not starve to death?

What happens when Boulder Dam has to be replaced or a quake destroyed it?...We are living on the edge of technology. Nothing is going to survive without water - But being what we are, no one can or is planning for a future where we have to decide who lives and who dies. It will come...probably not in our lifetime but it will come so long as the population continues to increase. Mother Earth has her limits.

We are seeing a 40% loss in corn. Soybeans will be in a similar state. If this persists into next year - look for $20 a bu. corn...and a ban on ethanol production from corn.

Japan long ago realized that they had to support their domestic farmers or be at the mercy of foriegn markets for all their food. There are people alive in America that knew genuine hunger in the depression. It was drought. It was poverty. It was real.
 
My only point is whether all that water going to California agricultural use is the highest and best use of the water. In areas I appraise in agricultural water rights may be measured in the $100's of dollars per acre foot in some rural areas. In urban water basins it's thousands or tens of thousands.

Seems to me that you could shut down a lot of that marginal agricultural use in California and use some towards conservation and re-allocate the rest to under-served urban areas. Are we going to miss a lot of that alfalfa?

Nevada's not griping. They're doing something about it. Time will tell whether taking water from northern agricultural aquifers and piping it down to Vegas will cause problems or not.

This is not a 'highest and best use' issue. Water is not just an economic commodity. It's life and death for all beings here on our planet.

We're talking food and feed production here. Before anyone moves to shut down farmers, it's first time to shut down municipal golf courses, quit watering grass on the medians, and shut down home owners to a small patch of grass or small gardens on their own sites.

Can farmers minimize waste? You bet. My area is served by an intricate system of irrigation ditches that feed off the Rio Grande River. Many of the ditches are dirt bottom, including the main canals and drain ditches that feed to and from the river. About the only ditches that are lined with concrete are the private, final destination canals. We could do light years better with simple heavy duty plastic liners in the bottom of these main ditches.

Were it me running the Middle Rio Grande Conservancy, I'd move to up the annual taxes ( A pittance. I pay $75 for 2.5 acres/year) to fund the project and the minute those canals were shut down for the season, I'd begin dredging and then break out the rolls of plastic and get busy. The semantics of the process could be worked through. It's imperative. We'd save somewhere between 60 and 80% of our agricultural water useage.

The California farming operations I've personally seen in Camarillo and Oxnard are far advanced in comparison to the similar food production operations I see in the southern end of my state and we truly need to adapt some of those practices. Mulch, black plastic, and specific delivery systems rather than flood irrigation would be huge. Unfortunately, the power to run pumps is also huge, which is why many have hung with the flood irrigation instead.

Marginal farming? That 'marginal' farming puts food on American tables, whether it be personal use or commercial production.
 
indeed...beef is going to get VERY high when the drought is over because cow numbers will be down significantly after this year.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Back
Top