Fresno County Farmland Market (2025)

What Families Should Know Before Selling Ag Land

Selling the family farm is never a simple decision. In Fresno County, 2025 presents a mixed landscape for agricultural landowners—especially those looking to protect the legacy they’ve spent generations building. At Avidity Capital, our Legacy Land Advisory offering is designed to guide families through every step of this transition, helping you maximize value, reduce taxes, and preserve your family's hard work for generations to come.

Here’s what you need to know before listing your land.

1. Market Conditions & Land Values

Resilience Amid Challenges:
Fresno County’s farmland values have come down from recent peaks, driven by low nut prices, rising input costs, and ongoing groundwater uncertainty. Yet, for water-secure properties, the market is showing signs of stability.

Water Access Is Everything:
Land within top irrigation districts or with reliable surface water rights remains the most valuable. In contrast, parcels relying solely on groundwater are seeing the sharpest value declines.

Shift Toward Large Buyers:
Family farms are increasingly selling into a market dominated by large-scale operators, investment funds, and institutional buyers—many of whom benefit from tax structures and economies of scale that small farms simply can’t match.

2. The Williamson Act: What It Means for Sellers

Originally Meant to Help Small Farms—Now a Tool for Big Ag:
While the Williamson Act was created to offer tax relief and preserve farmland, today it disproportionately benefits mega-farms. Most small family farms see minimal tax advantages.

Impact on Sale Value:
If your land is enrolled in the Williamson Act, it may attract buyers seeking lower property taxes. However, these benefits tend to favor well-financed institutional buyers over independent family operators.

3. Preparing Your Land for Sale: A Step-by-Step Guide

Review Existing Leases:
Buyers will want to know the terms of any active leases. Notifying tenants and understanding your obligations is a must.

Property Maintenance Matters:
Clean boundaries, functional irrigation systems, and a tidy property all contribute to a stronger sale price and faster closing.

Get a Professional Valuation:
Use an ag-specific appraiser to analyze soil quality, water access, and comparable sales. It’s essential for setting realistic expectations.

Plan for Taxes Now, Not Later:
Work with a CPA or advisor to explore tax deferral strategies like a 1031 exchange or installment sale planning to potentially save hundreds of thousands in taxes.

Legal Review Is Critical:
Before listing, review title issues, easements, and purchase agreements with a knowledgeable ag attorney.

4. Family Dynamics: Don't Let the Sale Create Division

What Do Your Heirs Want?
Some family members may want to keep the land; others may prefer to sell. A clear plan avoids confusion and conflict.

Distributing Proceeds Fairly:
Selling can create liquidity, but it also requires clear communication to ensure that legacy and fairness are preserved across generations.

5. You Need a Team—Not Just a Realtor

Specialized Agents Only:
Farmland sales are not like selling a house. Choose a broker who knows how to value, market, and position agricultural land for institutional or farmer buyers.

Avidity Capital’s Coordinated Approach:
Our Legacy Land Advisory service provides a single point of contact backed by a curated team of:

  • Agricultural Real Estate Agents

  • CPAs and Tax Advisors

  • Estate and Transaction Attorneys

  • Qualified Intermediaries (for 1031 exchanges)

  • DST Providers (for hands-off real estate reinvestment)

  • Insurance Professionals for risk and liquidity planning

We quarterback the entire process so you don’t have to navigate it alone.

6. Timing the Market and Gathering Documentation

Who Will Steward the Land?
If your heirs don’t plan to farm, selling the land may be the cleanest path to equitable distribution. But leases, family expectations, and contract restrictions must all be navigated.

Checklist:

  • Review all lease agreements and give required tenant notice

  • Confirm Williamson/Farmland contract compliance

  • Discuss with heirs whether to farm, lease, or sell

  • Clarify how proceeds will be divided—or reinvested

Preserve the Legacy. Plan the Transition.

You’ve built something incredible. Whether you’re ready to transition out of farming or are managing a generational change, Avidity Capital is here to help. Our Legacy Land Advisory offering provides the strategy, team, and structure to ensure your farmland sale is handled with expertise—and your family’s legacy remains intact.

 
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Tulare County Farmland Market (2025)

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Navigating Ag Land Sales in Central California