Pacific Northwest Region

Peoples Company

The Pacific Northwest (PNW) includes the incredibly productive and diverse agricultural regions of Washington and Oregon. Washington leads with roughly $13 billion in annual agricultural production with over two thirds of that represented by crop production. Apples represented about 16% of the state’s total value of agricultural production (slightly down from its historic share) and account for more than 70% of the total U.S. production. Milk production ranks second with wheat, cattle and potatoes rounding out the top five. Washington is also the top U.S. producer of blueberries, hops, pears, and sweet cherries, and it is the number two U.S. producer of apricots, asparagus, grapes, potatoes, and raspberries. In total, over 300 agricultural products are commercially grown in Washington, and the flexibility to shift production based on evolving demands is a key differentiating feature for the region.

Oregon’s total annual value of agricultural production is about half that of Washington’s, but also produces an incredibly diverse set of more than 220 crops over 16 million acres of production. Oregon is viewed as a progressive state with a family-farm centric ethos, and higher than average share of women in ownership or leadership positions.

The top commodities produced in the state are hay, milk, wheat, potatoes, wine grapes, berries, hazelnuts, and pears. It is noted for its major wine grape and berry production regions and has very strong dairy sector as well.

It is worth noting that Idaho, in a neighboring production region, directly competes with eastern Washington and Oregon. Idaho and Washington together form the top potato production region in the U.S., growing approximately with Idaho accounting for about $1.5 billion and Washington accounting for just under $1 billion in annual sales. In addition to potatoes, Idaho ranks first in the nation for production of barley, and alfalfa hay. The state is also the second largest grower in the U.S. of sugar beets and hops, and Idaho is the third largest producer of cheese and milk.

Key features of the PNW region include massive water resources and a highly developed water rights system. Some slight drought concerns remain for northwest portions of Washington and sub areas of the Willamette Valley, but have substantially abated relative to the previous year. And, while some portions of the Pacific Northwest do face specific water supply constraints, producers with access to the Columbia River water system and historic permitted wells hold a major advantage relative to those in other parts of the country. Enforcement and allocation issues are always in the news, but approximately 8 million acres are irrigated with water from the Columbia River representing only about 6% of the Columbia River Basin’s yearly runoff. Hydropower from dams in the region results in the area also having clean energy sources that rank among the most affordable in the United States. Low-cost energy for irrigation results in a substantial cost advantage compared to some part of California for example, where electricity costs can be roughly 10 times as expensive per kwh. The irrigation infrastructure in the region is highly developed, and water rights are correspondingly highly influential in determining best uses, and production locations for major crops.

Headwinds for the region are reasonably light but include continued labor issues and the need to manage production and harvesting costs under emerging laws related to overtime and temporary worker treatment. Wine grape production in the region is also strong but consolidating and reorganizing with stories related to loss of access to historic marketing channels, and the need for more scale increasingly of note. The large recent sale of the Chateau St. Michelle in 2021 has continued to create ripples in the industry as production systems supporting the industry adjusted. Land transaction volumes have slowed dramatically, but the longer-term turnover patterns tend to revert through time with indications of a bit of a “back-log” for land sales. High demand remains and sales prices have also remained reasonably strong.

Turning to the financial performance of agriculture in the region, the Pacific Northwest has been among the strongest performing regions, despite some recent issues with apple prices, and export market access for other crops. The pattern for land appreciation in the region has been notably smoother than in other production regions, and both small and large-scale investment opportunities exist with a mixture of institutional scale and family farm sized operations. Over both the most recent three-year cycle, and over the long term since 1991, gross returns have average around 12% per year, representing an exceptionally attractive investment with low annual income risk and reasonably stable appreciation. Those features of the returns pattern make the region particularly attractive for long duration investors in particular.

SUMMARY
The Pacific Northwest remains in an attractive position to continue to absorb displaced production from other areas due to its flexibility in productive capacity, low energy and water resource costs, proximity to West Coast consumers, and increasing reputation as a supplier of vegetable crops, specialty crops, wine grapes, along with dominantly established hay, wheat, potatoes, dairy, apples, and seed production industries. These historic performance of the region and the versatility to respond to changing demand conditions suggest that the future will remain among the top performing regions into the future.

ALL REGIONS


Regional Offices

AgriBusiness Trading Group

Pacific Northwest

109 W. Poplar Street
Walla Walla, WA 99362

509.876.8633

Info@AgTradeGroup.com

Peoples Company - Walla Walla

Pacific Northwest

109 W. Poplar Street
Walla Walla, WA 99362

509.540.0228

Info@PeoplesCompany.com


Regional Listings

18035

Yakima County, WA

Vintage Rd
Zillah, WA 98953

This Washington State vineyard offering is comprised of 659.98 +/- deeded acres. The asset is located approximately 15 miles northeast of Zillah, WA in the Rattlesnake Hills American Viticultural Area...

659.98

ACRES M/L

$3,500,000

#18035

LISTING

17812

Payette County, ID

6600 Little Willow Rd
Payette, ID 83661

 This Idaho irrigated farm asset is comprised of 299.73 +/- deeded acres across two tax parcels in Payette County, Idaho, approximately 63 miles northwest of Boise. There are 198.04 +/- cropland ...

299.73

ACRES M/L

$3,500,000

#17812

LISTING

17684

Franklin County, WA

431 Buffalo Rd
Mesa, WA 99343

This organic, Washington State apple and cherry orchard offering is comprised of 119.50 +/- deeded acres across two tax parcels in the heart of the Columbia Basin – a region that accounts for approx...

119.50

ACRES M/L

$3,500,000

#17684

LISTING

17645

Franklin County, WA

1571 Ash Rd
Mesa, WA 99343

This Washington State vineyard offering is comprised of 281.90 +/- deeded acres. The asset consists of one tax parcel and is located north of Pasco, WA in the newly formed White Bluffs American Viticu...

281.90

ACRES M/L

$5,400,000

#17645

LISTING

17480

Umatilla County, OR

Umapine Road
Umapine, OR 97862

Carbondale Farms is comprised of 3,118 contiguous acres located in Umatilla County, Oregon directly adjacent to the Washington-Oregon state line, located 15 miles southwest of Walla Walla, Washington....

3118.00

ACRES M/L

$35,000,000

#17480

LISTING

17431

Franklin County, WA

Highway 260
Kahlotus, WA 99335

This offering is comprised of 957.72 +/- deeded acres across two non-contiguous assets, that are less than three miles apart, in Franklin County, Washington. The farm is located in central Washington ...

957.72

ACRES M/L

$9,300,000

#17431

LISTING

17409

Grant County, WA

Road 13.5 NW
Ephrata, WA 98823

This Washington State orchard asset is comprised of 269.92 +/- deeded acres across three tax parcels in Grant County, Washington. This multifaceted property currently consists of permanent crop planti...

269.92

ACRES M/L

$4,500,000

#17409

LISTING

16997

Adams County, WA

S Steele Rd
Othello, WA 99344

This unique row crop farm and dairy complex asset consists of 435.20 +/- deeded acres, across three tax parcels, in Adams County, Washington near Othello, the potato processing capital of the world. T...

435.20

ACRES M/L

$8,500,000

#16997

LISTING

16994

Jackson County, OR

N Mountain Ave
Ashland, OR 97520

Located along the Bear Creek Wine Trail in Ashland, Oregon, the Dana Campbell Vineyard is a serene winery estate boasting spectacular views of Ashland and the Siskiyou mountain range. With a total of ...

32.84

ACRES M/L

$4,500,000

#16994

LISTING

16174

Walla Walla County, WA

Klicker Mountain Rd
Walla Walla, WA 99362

Here is a unique opportunity to own a sizeable, contiguous property in the foothills of the Blue Mountains with live water! The Klicker Mountain Ranch is located just twenty minutes from historic, dow...

996.61

ACRES M/L

$2,500,000

#16174

LISTING

View All Listings


Regional Team