Historical Values & TrendsKern County Agriculture

Through 3rd Quarter 2011

Alliance Appraisal, LLCAlliance Appraisal, LLC Alliance Ag Services, LLCAlliance Ag Services, LLC

Historical Values & TrendsHistorical Values & Trends Agriculture in Kern CountyAgriculture in Kern County

Land Uses• Farmland

– State Water Project Districts– Federal Water Project Districts– Kern River Water Districts

• Almonds• Pistachios• Citrus• Table Grape Vineyard

Farmland LandFarmland Land

Overview– State Water Project Districts

• Water remains the key component of value• Inadequate water supply faces downward value pressure• Values and Rents remain strong and increasing

– Federal Water Project Districts• As with SWP Districts water is key but most areas within

FWP Districts have groundwater but water levels are being affected adversely by heavy pumping

• Values and Rents remain strong and increasing– Kern River Water Districts

• Water is available through Kern River flows and canals• Groundwater is widely available• Values and Rents remain strong and increasing

Almond OrchardsAlmond OrchardsLocations

– Water Districts• Semi Tropic, North Kern, Southern San Joaquin, Cawelo,

Wheeler Ridge-Maricopa, Shafter-Wasco, and Belridge, with smaller plantings in Kern Delta and Arvin-Edison

Components to Value• As with all districts Water is the key• Soils need to be compatible to ensure viability• Establishment and Cultural Care• Yields

Values and Prices Received• Values remain strong and continue to strengthen• Prices Received remain strong

Pistachio OrchardsPistachio Orchards

Locations– Water Districts– Semi Tropic, North Kern, Southern San Joaquin, Cawelo, Shafter-

Wasco, Buena Vista and Belridge, with smaller plantings in Kern Delta, Wheeler Ridge-Maricopa and Arvin-Edison

Components to Value• As with all districts Water is the key• Soil Class can vary and still remain viable• Establishment and Cultural Care• Yields

Values and Prices Received• Values remain strong and continue to strengthen• Prices Received remain strong

Citrus OrchardsCitrus Orchards

Locations– Water Districts

• Arvin-Edison, Belridge and Wheeler Ridge-Maricopa, with smaller plantings in Cawelo, Delano-Earlimart, Southern San Joaquin, and Kern-Tulare

Components to Value• As with all districts Water is the key• Soil Class can vary and still remain viable• Establishment and Cultural Care• Yields

Values and Prices Received• Values remain strong and continue to strengthen• Prices Received were strong but softened late

Table Grape Table Grape VineyardsVineyards

Table Grape Vineyards– Water Districts

• The table grape vineyards in Kern County are predominantly in Arvin-Edison, Delano-Earlimart, North Kern, Southern San Joaquin, and Wheeler Ridge- Maricopa, with smaller plantings in Cawelo, Kern Delta, and Shafter-Wasco

• As with the all Districts water is the key component• Prices Received have fallen below 10-year average but

newer varieties have shown strong returns and should continue while older varieties will be weak

• Vineyard values will remain stable as long as Prices Received for fruit remains stable to stronger