Interesting news from the US on the value of Almond orchards...

Interesting news from the US on the value of Almond orchards there: https://landvalues.acres.com/recent-bid-results-highlight-difficulty-california-almond-industry

Synopsis from a post on the 'Acres' LinkedIn company page:

The bid results of the almond ranches owned by Trinitas Advantaged Agriculture Partners IV, LP fund highlight the difficulty facing the California almond industry. The forced sale of ~7,500 acres of almond ranches, nearly 88% of the fund’s portfolio, was approved on June 14 at an weighted average price per acre of $16,161.

▪️At a Glance: The fund’s portfolio comprised 25 almond ranches covering 8,610 acres across 5 counties. These ranches ranged from 4th leaf to 9th leaf, meaning 4 to 9 years in age. Almond orchards reach full maturity at 6th leaf and are generally considered economical until their 25th leaf.

▪️Market Interest: The ranches were marketed for over three months. Thousands of parties were contacted with over 190 parties signing non-disclosure agreements and ultimately 17 bidders submitted bids and deposits.

▪️Approved Bids: Totaled approximately $121.5M.

▪️Remaining Ranches: Expected total proceeds including the remaining ranches are $135M to $140M. This implies a 45% markdown from the lender’s most recent appraised value.

▪️The Big Takeaway: Limited bidder price interest across a large amount of land led to an ultimate price per acre that is illustrative of a difficult time for almond ranches in California’s Central Valley.