Ag Preservation

Does Ag Preservation Affect the Value of Your Farm or Land?

 

As someone who lives on a preserved farm, agricultural preservation is more than just a concept to me—it’s personal. For nearly 30 years, I’ve closely followed trends in farm and land values, watching how preservation impacts both buyers and sellers over time.

Back in the 1990s, the value difference between preserved and non-preserved farms was often about the same as the payment you’d receive for enrolling your farm in Ag Preservation. But everything changed during the real estate boom of 2004 to 2006. Developers were buying up land quickly, and farms with development potential saw their values nearly triple. The gap between preserved and non-preserved farms became substantial—if your farm was preserved, it might have felt like you were leaving money on the table.

Then came the crash.

From 2007 through 2009, real estate values took a nosedive, and once again, the price difference between preserved and non-preserved farms nearly disappeared.

Fast forward to 2022 and 2023, and things got interesting again.

Real-World Examples That Challenge Assumptions

We’ve recently sold several preserved farms that brought surprisingly high prices—defying traditional expectations.

Take the Barnhart Farm in Clear Spring, Maryland. The family had owned it for generations and had lovingly enrolled it in Ag Preservation years ago. When they made the difficult decision to sell, we sat in their living room and agreed that $1.6 million would be a fair reserve price. They assumed that, if not preserved, it might have fetched $2 to $2.5 million. But on auction day, the final sales price stunned everyone—$3.39 million. Clearly, the farm’s preserved status didn’t deter buyers or hurt the final price.

Another example is the Beiser Farm in Franklin County, Pennsylvania. Steve and Tammy Beiser were also grappling with the emotional decision to sell. Their farm, also preserved, was expected to bring less than $1.3 million—at least according to the local rumor mill. But when 15 bidders showed up and pushed the final price to $1.73 million, it was clear the market had other ideas.

So, what’s driving these surprising outcomes?

Why Preserved Land Is Holding (or Even Increasing) Its Value

We believe several factors are influencing these unexpected results:

1. Developers Are Pulling Back

In many areas, developers simply aren’t buying like they used to. There’s still an oversupply of building lots leftover from the mid-2000s boom, which means development land isn’t in as high demand as it once was.

2. Solar Is Changing the Game

A significant amount of farmland is being snapped up for solar projects. That’s reducing the overall supply of available farmland—making what remains more valuable. It’s not just sale prices climbing; rental rates for farmland are going up too.

3. Basic Supply and Demand

Farmland doesn’t hit the market often, and when it does, it attracts serious attention. Whether it’s farmers expanding operations or investors looking for long-term stability, interest is strong. We’ve seen record attendance at nearly all of our recent farm and land auctions.

The Bottom Line

Right now, being in Ag Preservation doesn’t seem to hurt land values—at least not in the way it once might have. In fact, it could be argued that preserved land is more attractive to certain buyers who value agriculture, conservation, and stability.

Of course, no one can predict the future, but if you’re a landowner considering your options, don’t assume that preserving your land automatically means a lower return. The market is shifting—and in many cases, preserved farms are holding their own or even exceeding expectations.

Have questions about how preservation might affect your farm’s value? We’d be happy to talk through your unique situation. Call us at 717-597-9100.

– Matt Hurley