The California Farm Bureau reports a significant decline in San Joaquin Valley land values, attributed primarily to the Sustainable Groundwater Management Act (SGMA). SGMA restricts groundwater pumping, which has hit farms without surface water access the hardest, particularly almond orchards and vineyards, where values have reportedly dropped by as much as 50%. This plunge in land value is compounded by challenges like low crop prices, high operational costs, and increasing SGMA enforcement.
These financial pressures make it difficult for farmers to secure necessary loans, pushing some to consider selling or leaving their land. SGMA’s requirements, aimed at addressing water scarcity, have raised concerns about the viability of farming in California’s central valley.
Experts note that falling land values not only affect individual farmers but could reshape the agricultural landscape as some land transitions to other uses or is left fallow. This situation underscores the tension between environmental regulations and the economic realities of farming in water-limited regions.