Farmland Ho! Economic Engine in Florida Still Growing Strong
March 9, 2020 
Florida Gov. Ron DeSantis addresses attendees of the 2020 Lay of the Land Conference, touting the Florida’s strong economy and 3% unemployment rate.
Photo courtesy of SVN | Saunders Ralston Dantzler
When attendees gathered for the 2019 Lay of the Land Conference, there was an air of uncertainty for how the year would go. Would it be the year of the market correction? After all, Florida’s economy had been on a roll for a long stretch.
But, as people gathered for the 2020 Lay of the Land Conference in late February, that correction had not occurred, and prognosticators seemed to believe signals remain strong for economic expansion to continue. The event hosted by SVN | Saunders Ralston Dantzler Real Estate drew more than 250 attendees to the LP Funding Center in Lakeland.
Dean Saunders, Founder and Managing Director of the real estate company, told the group indicators look good for 2020, driven by Florida’s population growth, which is keeping land in high demand.
“I don’t see any headwinds against the state’s strong land market,” he noted. “Our population will grow by more than a million people within three years, and they come here for the reasons they always have — sunshine, water, and low taxes.”
Florida Gov. Ron DeSantis also spoke during the conference and echoed the positive vibes. He noted the state’s unemployment rate of only 3%. He also touted fiscal responsibility by pointing out that Florida’s state budget is about half that of New York State even though Florida has a higher population.
Saunders and other speakers conceded that one caveat to the positive economic signals is the unknown course the coronavirus will take in the days and months ahead. However, Kevin Maggiacomo, President of SVN International, said commercial real estate could actually strengthen as a result of the virus and stock market uncertainty. Real estate might be the preferred “tangible” investment over stocks.
The conference concluded with the release of the eighth annual “Lay of the Land Report,” which lays out verified land sales from across the state for the previous year. According to the report, agricultural land sales were vigorous in 2019.
Southwest and Central Florida
Annual sales in these regions were far busier last year than in 2018. Sales were prevalent in multiple counties. Hendry Country registered the largest land sale of 35,652 gross acres. Hillsborough County held the top spot for most irrigated farmland transactions, coming in at 11 and covering 396 gross acres.
Hardee County irrigated farmland value averaged $7,143 per farmable acre. In the Southwest region, larger-acreage farm prices ranged from $8,285 to $12,580 per farmable acre. In the midst of urban encroachment, Hillsborough County continued to command the highest recorded sales, ranging from $20,745 to $39,992 per farmable acre for strawberry land. The average was $28,183 per farmable acre.
Another notable difference between 2018 and 2019 was the lack of institutional funds playing in the market last year. To continue to grow their acreage, larger, corporate farms dominated purchases in the Southwest region. In Hillsborough County, one large strawberry grower sold out, and several smaller farmers purchased various farm locations. Also, notable in Hillsborough was active purchasing by local, Hispanic farmers.
Citrus Lands
Citrus groves continued to make up a significant portion of agricultural real estate sales in 2019. Prices ranged widely based on the quality of the grove land and water accessibility. Typical buyers were seasoned growers, institutional investors, and vertically integrated grower/processors/packers skilled in citrus production and marketing. Sales activity reflected the continued trend of industry consolidation.
There were 68 citrus land sales last year in the Central Ridge, South Central, and Southwest citrus-growing regions totaling $48,379,625. The average for these 2019 sales was $8,442 per gross acre and $10,369 per net tree acre, with $8,000 per net tree acre at the midpoint.
Treasure Coast
The citrus industry on the Treasure Coast has consolidated to a handful of strong and established growers. While the grapefruit industry in the region has suffered mightily due to the threat of citrus greening, there were some signs of optimism for the 2020 crop, with projected increased production and good pricing for fresh fruit.
Last year, about 4,000 acres of productive grapefruit land changed hands to new ownership and another just less than 2,000 acres were purchased for replanting in the area. Terms of those deals were not disclosed.
To access the full “Lay of the Land Report,” visit SaundersRealEstate.com.
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