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Refining Farmland Appraisals for SGMA and Subsidence Rules in California

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  • Dahl, Cody
  • Wall, JoAnn

Abstract

California’s new subsidence best management practices (BMPs), drafted under the Sustainable Groundwater Management Act, present a turning point for rural appraisal practice. Traditional reliance on past sales and conventional production assumptions is increasingly inadequate where groundwater cutbacks tied to critical head thresholds may abruptly shorten the economic life of orchards. This paper assesses how BMPs complicate the application of cost, sales comparison, and income approaches and provides guidance on integrating hydrologic indicators, groundwater sustainability criteria, and regulatory risk into appraisal reports.

Suggested Citation

  • Dahl, Cody & Wall, JoAnn, 2026. "Refining Farmland Appraisals for SGMA and Subsidence Rules in California," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2026, June.
    • Handle: RePEc:ags:jasfmr:410252
    DOI: 10.22004/ag.econ.410252
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