Kings County Farmland Market (2025)
What Families Should Know Before Selling Ag Land
For many families in Kings County and across California’s Central Valley, selling the family farm is more than just a financial decision—it’s a turning point for legacy, land, and the next generation. Whether you're facing water uncertainty, navigating generational transitions, or seeking liquidity, the process is complex and full of potential pitfalls. Avidity Capital’s Legacy Land Advisory offering is designed to guide families through every step—from preserving generational wealth to minimizing taxes and structuring the sale with intention.
1. Market Conditions & Land Values
The State of the Market (2025):
Farmland values in Kings County remain under pressure, especially on marginal ground. Lower commodity prices, higher input costs, and water insecurity continue to drive selective demand. That said, well-located parcels with strong water access are holding their value—and in some cases seeing increased interest.
Typical Values:
Land can range anywhere from $10,000 to $40,000+ per acre, depending on:
Water district access or secure surface water rights
Soil quality and productivity
Zoning and proximity to infrastructure
Pro Tip:
Before listing, get a valuation from a specialized ag appraiser or broker familiar with Central Valley sales comps.
2. Water Rights Matter—A Lot
The #1 Driver of Land Value:
Reliable water access significantly boosts buyer interest and price per acre. Properties in strong water districts (or with long-term surface water contracts) will trade at a premium, while groundwater-only properties or SGMA-restricted areas are more likely to see discounts.
Before You Sell:
Document all water rights, shares, and contracts
Clarify your district memberships and any usage limitations
Work with your broker and legal team to ensure disclosures are complete
3. Williamson Act & Farmland Security Zone
Tax-Saving Tools—But With Strings Attached:
Many Central Valley farms are enrolled in the Williamson Act or Farmland Security Zone contracts, which provide significant property tax reductions in exchange for restrictions on land use (ag-only).
What to Know:
Williamson Act: 10-year rolling contract
Farmland Security Zone: 20-year contract
Contracts renew automatically unless a non-renewal is filed
Must be disclosed during sale
These contracts often make land more attractive to ag buyers, but limit your buyer pool and must be accounted for during planning.
4. Estate & Tax Planning: Time Is Running Out
2026 Estate Tax Cliff:
Starting January 1, 2026, the federal estate tax exemption drops from over $13M to $7.61 million per person. Families with highly valued farmland may face a surprise estate tax bill if planning isn’t done in advance.
Other Tax Triggers to Watch:
Capital gains tax when selling appreciated land
Potential exposure to depreciation recapture
Options for 1031 exchanges to defer taxes
Section 2032A valuation for continued agricultural use
This is where Legacy Land Advisory shines:
We quarterback your planning team—CPA, attorney, and financial advisor—to ensure the transaction aligns with your legacy goals.
5. Succession Planning & Legal Prep
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
6. How to Prepare Your Farm for Sale
Steps to Maximize Value:
Clean up debris, abandoned equipment, or outbuildings
Organize all paperwork: water rights, tax records, contracts
Partner with an ag-experienced team: broker, CPA, estate attorney
Evaluate whether a 1031 exchange or DST investment is right for your goals
The Bottom Line
Selling farmland isn’t just a real estate transaction—it’s the culmination of a legacy. With major tax changes on the horizon, volatile market conditions, and complex legal considerations, it’s never been more important to plan proactively.
Avidity Capital’s Legacy Land Advisory was built specifically for families like yours—those who’ve spent decades (or generations) building something worth preserving. We bring together the team, the tools, and the tax-smart strategies to help you transition with confidence.
