Recent Hail Storm Beats Down on Farm Values

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Schuil & Associates Real Estate states farmland values are impacted by extreme weather conditions.

Recent extreme weather conditions have impacted farm values, including the recent hail storm in California's Central Valley. Schuil & Associates Real Estate (http://www.schuil.com) is watching the weather to monitor its bearing on farmland sales. What does farmland for sale have to do with extreme weather? A lot, according to Michael Schuil, broker for Schuil & Associates Real Estate. “The weather impacts commodity prices and commodity prices are the driving factor in determining farmland values. For example, a damaging freeze in Georgia will increase peach prices, and that in turn will increase the value of a peach orchard in California.”

The weather also influences the demand for farmland. A devastating weather event, like a hail storm, will not only jeopardize the farmer’s income, it will negatively impact his farm value. Schuil adds, “Although investors are making up more and more of our buyer base, it is still local farmers purchasing the majority of the neighboring farms. If the neighbors are financially strapped, then they will be in no position to make an offer, and lower demand means lower prices.”

It seems what is true for real estate is true for the weather and real estate. It is a matter of location. If the bad weather happens elsewhere, but impacts your commodity, then your farmland values will tend to increase. If the inclement weather happens to you and to your neighbor’s farm, then your farmland values may fall.

Whether it is record heat waves, severe frost warnings, or high wind alerts, extreme weather impacts farm values all across the country. Schuil & Associates is licensed to sell real estate in several states, but is headquartered in Visalia, CA. More information on farmland for sale may be found on their website at http://www.schuil.com.

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Michael Schuil
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