The situation in the central San Joaquin overlaps into the southern valley and farm and ranch prices there are starting to ease downward too. The single biggest factor is value, Bakersfield appraiser Will Hutchison said. Average to below-average nut orchards won t be able to stay in business during this rough period. To the extent we see any sales, it s for good, versatile crop land. But for lesser-quality land, forget it.
Strong sellers are unwilling to sell at fire-sale prices.
These trends are very serious. In the Sacramento Valley, appraisers report that values are beginning to show decreases in response to depressed crop prices. Vegetable and field-crop rents are down. Prune orchard sales in the valley were limited in 2000 and the outlook for values in 2001 is not encouraging. Conversion of rangeland to permanent plantings has slowed because of low commodity prices.