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Eminent Domain and Agricultural Property in California

Farms and ranches raise questions no residential parcel does. A corridor across an irrigated field can cost more in severed access and lost water delivery than the acreage itself is worth.

Why agricultural takings are different

An appraisal that values farmland by the acre misses most of what a corridor does to a working operation. The land that remains may be the wrong shape for the equipment, cut off from the headgate, or too small to farm economically. California measures that loss as severance damages to the remainder under Code of Civil Procedure section 1263.410.

Questions for farms and ranches

  • Does the take sever any parcel from its water delivery, well or district turnout?
  • Can equipment still reach every part of the remainder, or does the corridor force a longer route?
  • Do fencing, drainage, roads or livestock crossings need to be rebuilt, and who pays?
  • Is the remainder still an economic unit, or has it become an uneconomic remnant?
  • Will construction interrupt a growing season, and how is that measured?

Permanent plantings and improvements

Orchards, vineyards and other permanent plantings are valued as part of the realty rather than as a crop. Removing them midcycle destroys years of establishment cost and future production, and the valuation should reflect the stage of the planting rather than a per acre land figure.

Goodwill applies to farming too

A farming operation is a business. Where a taking causes a loss of goodwill and the elements are met, Code of Civil Procedure section 1263.510 makes that loss compensable.

Projects that reach farmland

Transmission corridors, water conveyance, flood control, highway widenings and the Central Valley segment of the California High Speed Rail project all cross working farmland. The identity of the agency and the design of the project shape which questions above matter most.

SEVERED FROM WATER DELIVERY CANAL
Fig. 3 — Corridor severing irrigated acreageNot to scale

Start with your situation

Where are you in the process?

Related resources

Read next

More resources are on the way. New guides publish every week.

Questions owners ask

About agricultural property

Is farmland valued by the acre?

Land value is only part of it. On a partial take, severance damages to the remainder often exceed the value of the acreage taken.

What if the corridor cuts me off from my water?

That is a severance damage question and usually a significant one. Document the delivery system as it exists before construction.

How are orchards and vineyards valued?

Permanent plantings are valued as part of the realty, taking account of the stage of establishment and remaining productive life.

Does my farming business have a goodwill claim?

It can. A farming operation is a business, and section 1263.510 applies where the statutory elements are met.

Next step

Understand Your Next Steps

Review the questions that apply to your operation before the appraisal.

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