Tuesday, Aug. 26, 2008

Our View: Farms thrive in crazy times

It's easy to see why when residential real estate is crumbling, the Valley's agriculture continues to grow.

Prices for farmland have been holding steady as other real estate sectors see their prices crumble.

Amid all the doom and gloom about real estate it might be a little confusing to understand why agriculture land is holding its value. With a closer look, it's easy to see.

Agriculture is the lifeblood of Merced County, and the Valley, too.

Prices for the things grown on land in the county are in record high territory or are well above historic averages.

Corn, alfalfa and wheat have all seen prices spurred by global demand.

Almonds, walnuts and pistachios continue to be popular among consumers here and abroad.

Dairy is king in our county and continues to command high prices.

All told, the stuff grown and sold here is worth billions of dollars and the dirt in which it's grown is worth more because of that.

Farmland, especially in the outlying areas, didn't get caught up in the fever-pitch real estate speculation earlier this decade. Even as our economy slowly diversifies, agriculture remains its cornerstone. It's clear why prices for these parcels of dirt are still commanding good prices.

Agriculture is still king in Merced County.

Until our economy matures we need to make sure agriculture is on top or very near the top of our collective priority list, including the availability of plenty of water, which makes it all happen.

It's important that farms have not just plenty of water, but water that's high quality.

Farmland prices, and commodities grown on the land, are holding up well. It's a bright spot in an otherwise gloomy atmosphere.