How to Sell Your California Agricultural Land in Today’s 2026 Market

California agricultural land sits at the intersection of strong demand, tightening supply, and complex rules around water, zoning, and environmental compliance. If you’re planning to sell, you’ll get better results when you treat your property like an operating asset—not just a vacant parcel—and prepare for a buyer pool that evaluates income potential, risk, and long-term viability.

The opportunity is real. California’s agricultural sectors generated $310.8 billion in sales in 2024, according to the UC ANR Working Landscapes Report 2025. That same report notes California’s working landscapes support nearly 1.5 million jobs and 75,500 businesses while generating $404 billion in sales in 2024 (UC ANR Working Landscapes Report 2025). At the same time, land supply is gradually tightening: total California farmland decreased from 24.5 million acres in 2017 to 24.2 million acres in 2022, according to the California Strategic Growth Council Agricultural Land Inequity Task Force Report (November 2025 Draft).

Those fundamentals shape pricing, timelines, and negotiation leverage. Below is a practical, up-to-date guide to selling agricultural land in California with fewer surprises and stronger outcomes.

The Lay of the Land: What’s Driving California Agricultural Land Sales Now

Supply is tightening—and ownership is shifting

California has fewer farms than it did just a few years ago. The number of California farms dropped from 70,521 in 2017 to 63,134 in 2022, according to the California Strategic Growth Council Agricultural Land Inequity Task Force Report (November 2025 Draft). The same report found that small farms under 180 acres declined by nearly 13% from 2017 to 2022 (California Strategic Growth Council Agricultural Land Inequity Task Force Report (November 2025 Draft)).

For sellers, this can cut two ways: fewer operators may reduce the buyer pool in some regions, but tighter supply and consolidation can increase interest from expanding growers, investors, and neighboring operations—especially when the parcel has reliable water and proven production history.

Values have risen, but pricing depends on what your land can reliably produce

California farm real estate has appreciated meaningfully. The value of farm real estate in California increased by 28.3% since 2018, according to the California Strategic Growth Council Agricultural Land Inequity Task Force Report (November 2025 Draft). In 2022, the average price of farm real estate in California reached $12,000 per acre, a 10.1% increase from the previous year, per the California Strategic Growth Council Agricultural Land Inequity Task Force Report (November 2025 Draft) citing USDA Census of Agriculture.

National context matters for investor expectations and lender underwriting. United States farm real estate value averaged $4,350 per acre in 2025, up $180 per acre (a 4.3% increase), according to the USDA NASS Land Values 2025 Summary (08/01/2025). That same summary is also cited here for the statement that California farm real estate value averaged $4,350 per acre in 2025 in this context (USDA NASS Land Values 2025 Summary (08/01/2025)).

Water reliability and regulatory compliance drive buyer confidence

In today’s market, buyers scrutinize water source reliability, pumping constraints, local Groundwater Sustainability Agency rules, crop suitability, and any environmental constraints. Parcels with clear documentation and lower compliance risk typically attract stronger offers and smoother closings.

How to Sell Agricultural Land in California: Step-by-Step

1) Price the property based on farm fundamentals (not just comps)

Agricultural land value is rarely “one-size-fits-all.” Start with a professional valuation that reflects:

• Location and access: proximity to processors, labor, and major routes
• Soil and production capability: soil class, drainage, salinity, and crop history
• Water: surface water contracts, well specs, pumping history, and any restrictions
• Improvements: irrigation systems, reservoirs, fencing, buildings, and utility access
• Operational performance: yields, crop mix, and income potential
• Zoning and permitted uses: including any ag preserve or contractual limitations
• Environmental conditions: habitat constraints, prior contamination, or sensitive areas

Use current market signals to sanity-check the appraisal. For example, the $12,000 per acre statewide average in 2022 (and the 10.1% year-over-year increase) helps frame expectations, but your final number should reflect what your specific parcel can reliably produce and how much risk a buyer must assume (California Strategic Growth Council Agricultural Land Inequity Task Force Report (November 2025 Draft) citing USDA Census of Agriculture).

2) Prepare a buyer-ready due diligence package

Serious buyers move faster when you answer their questions up front. Assemble a clean, organized packet that includes:

• Deed, vesting, and preliminary title information
• Parcel maps, legal descriptions, and boundary documentation
• Water rights and water delivery documents (as applicable)
• Well logs, pump tests, water quality results, and irrigation specs
• Soil tests and relevant agronomy reports
• Crop history, yield summaries, and any available financial performance data
• Existing leases, farm management agreements, or grazing arrangements
• Environmental reports (or a plan to obtain them)
• Property tax information and any special assessments

3) Plan for taxes and legal structure before you accept an offer

Land sales can trigger significant tax consequences. Talk with a qualified tax professional and real estate attorney early so you can evaluate:

• Capital gains exposure and basis documentation
• 1031 exchange timelines and identification rules (if you plan to reinvest)
• Conservation easements and how they affect value and transferability
• Williamson Act considerations (if applicable) and any contract cancellation issues

4) Choose the right selling path: agent, direct-to-buyer, or self-sale

Most California agricultural land sellers use one of three approaches:

• Specialized agricultural broker/agent: strong marketing reach and negotiation experience, but you pay commission.
• For Sale By Owner (FSBO): you control the process and costs, but you handle marketing, screening, and paperwork.
• Direct land buyer/company: typically faster and simpler with fewer contingencies, though offers may be discounted for speed and risk.

If speed and simplicity matter more than maximizing price, a direct buyer can reduce showings, contingencies, and uncertainty. If top-of-market value is the priority, an agent-led process with competitive exposure may fit better—especially for high-demand parcels with strong water security.

5) Improve marketability without over-investing

You don’t need to “stage” a farm, but you should reduce friction for inspections and tours. Focus on visible, high-impact items:

• Remove trash and scrap equipment
• Grade or repair access roads where practical
• Clearly mark boundaries and access points
• Create a one-page property summary (acres, water, crops, improvements, zoning, highlights)

6) Market with precision: sell the story buyers care about

Modern land marketing is data-driven. Buyers expect clear documentation and visuals, including:

• High-resolution photos and drone footage
• Maps showing parcels, water infrastructure, and access
• Soils and production narrative (what grows well here and why)
• Water reliability narrative (sources, constraints, and documentation)

List on agriculture-focused platforms, distribute to local and regional buyer networks, and target neighbors or operators who can capture operational efficiencies by expanding.

7) Negotiate terms that protect value and reduce risk

Price is only part of the deal. Strong agreements address:

• Earnest money size and release conditions
• Due diligence scope and deadlines
• Water and well representations (and any limits on those representations)
• Allocation of environmental responsibility
• Lease rollovers, crop transition timing, and possession date
• Owner financing options (if you want a broader buyer pool)
• Which rights transfer (mineral, water, access easements, etc.)

Use an attorney familiar with California agricultural transactions to draft or review the purchase agreement so your obligations stay clear and enforceable.

Common Challenges When Selling California Farm Land (and How to Prepare)

1. A smaller buyer pool: farm buyers are specialized and often financing-dependent.
2. Complex valuation: income potential, water, and compliance risk can matter more than nearby sales.
3. Regulatory and reporting requirements: buyers may demand extensive documentation before they remove contingencies.
4. Market volatility: commodity prices, interest rates, and water conditions can quickly change sentiment.
5. Longer timelines: agricultural properties often require extended due diligence and financing review, which can increase holding costs.

Final Thoughts

Selling agricultural land in California rewards preparation. The market remains economically significant—California’s agricultural sectors reached $310.8 billion in sales in 2024 (UC ANR Working Landscapes Report 2025)—but supply trends show gradual contraction, with farmland falling from 24.5 million acres in 2017 to 24.2 million acres in 2022 (California Strategic Growth Council Agricultural Land Inequity Task Force Report (November 2025 Draft)) and the number of farms dropping from 70,521 to 63,134 over the same period (California Strategic Growth Council Agricultural Land Inequity Task Force Report (November 2025 Draft)). Those pressures—along with rising values such as the 28.3% increase since 2018 and the $12,000 per acre 2022 average (California Strategic Growth Council Agricultural Land Inequity Task Force Report (November 2025 Draft))—make it even more important to document water, production history, and permitted uses.

Whether you sell through a specialized agent, handle the sale yourself, or work with a direct land buyer, align your strategy with your priority: maximum price, minimum hassle, or a balanced approach. When you present clean documentation and a clear value story, you position your property to stand out in a market where buyers must weigh opportunity against risk.