Are you a broker, bank, or lender looking to corner a new market? Wholesale land loans in California are a great opportunity to expand your portfolio. California is the nation’s #1 agriculture-producing state. With diverse lands and a temperate climate, the possibilities for growers and outdoors enthusiasts are limitless.
Of course, agricultural real estate loans are not always accessible. That’s why we began United Ag Lending, structuring unique wholesale loan products for a wide variety of rural properties. Here, you’ll get insights from our experts on the functionality and profitability of wholesale land loans within the California market.
What are wholesale land loans?
Wholesale land loans enable brokers and lenders to serve the borrower to purchase rural land to be used however they like. If your client wants to start from scratch and create their own vision, a land loan might be the perfect solution. Learn more about our California wholesale land loans by reviewing these key features:
- Fixed-rate loans from 10 to 30 years
- 1- to 15-year adjustable rates are available
- Down payments as low as 25%
- Multiple properties or contiguous parcels allowed
- Outbuildings, sheds, and other land improvements allowed
- Minimum acreage is 10 acres
- Minimum loan size is $500K
While this type of loan can be tricky with other lenders, United Ag Lending simplifies the process, often closing on loans in fewer than 60 days. We offer expertise in agricultural financing, competitive rates for brokers and lenders, and a streamlined loan process, allowing for flexibility based on your client’s individual needs. Your client may use their land for an array of different ventures.
Some of the ways our customers have used their land loans are:
- Building a ranch and raising horses, sheep, and cattle.
- Establishing a vineyard.
- Starting a dairy farm.
- Starting a Christmas tree farm.
- Expanding their equestrian property.
California’s Agricultural Land: A Prime Market for Brokers
The size, value, and economic role of California’s agricultural land create an abundance of opportunity for wholesale land loans. California, therefore, is a prime market for our broker and lending partners.
Size of California’s Agricultural Land
California’s vast rural land creates a large lending market, making it beneficial for brokers to explore its opportunities.
There are approximately 40 million acres of agricultural land in California—that’s nearly half the state! For context, the average farm is less than 500 acres. Farmers use approximately 8.5 million acres for irrigated crops, such as nuts, fruits, vegetables, grains, hay, and fiber. Livestock grazing uses another 32 million acres.
Value of California’s Agricultural Land
California’s soaring agricultural land values are leading to a surge in demand for loans.
The average value per acre of California farm real estate in 2022 was $12,000, which is more than double the national average. Land in California is valuable for many reasons. For one, the quality of the soil paired with the temperate climate contribute to ideal growing conditions for an array of crops. Therefore, it’s a highly desirable area for farmers.
Moreover, California has many major metropolitan centers. Being close to major cities, with their plentiful business and entertainment resources, makes this land an even more attractive investment. Not to mention, the state has impeccable natural beauty and a distinct social status, amplifying the value of the land.
Economic Role of California’s Agricultural Land
The significant role of California’s agriculture in the U.S. economy and food supply demonstrates its lasting viability and profitability. As a result, there’s meaningful potential for wholesale land loans in California.
Agriculture accounts for 2% of California’s economy. This seemingly small percentage is deceptive because of the sheer size of the state’s economy. The value generated by California agriculture reached almost $60 billion in 2023—the largest amount for any state.
California’s agricultural output is a massive 13% of the national total, exceeding the second largest state (Iowa) by tens of billions of dollars. Further perspective is provided by the fact that, according to the Northern California Water Association, the agricultural production in California was greater than the total gross domestic product (GDP) of 3 states in 2017.
Rural Living is Trending Upward
In a world dominated by technology, surveillance, and rapid cultural shifts, many people are seeking a slower pace of life, free from constant stimulation. Living in the countryside offers a more down-to-earth lifestyle that millions of Americans seek. As a result, many of them may need their broker or lender to have access to wholesale land loans in California.
This popular way of thinking isn’t just clear in online discussions; it’s backed up by actual data. City dwellers have been trading urban life for a more peaceful existence in rural areas since 2011, leading to continued growth in rural populations.
People are drawn to the countryside not only for its beauty and tranquility, but also because of a growing interest in cultivating their own food. This trend is a result of financial, health, and environmental concerns. These emerging attitudes will likely encourage more and more people to relocate to rural areas.
Partnering with United Ag Lending
To take advantage of the significant demand for land loans in California, you need a partner like United Ag Lending. When you work with us, you gain exclusive access to a range of specialized real estate loan products. As a wholesale agricultural lender, we offer informed support regarding the industry at large and California’s regulations.
With our unique loan options and competitive rates, you can grow your client base and close more deals. Entering this lucrative niche market can be challenging without help. That’s why our support team offers comprehensive training and resources for brokers, along with easy onboarding processes and tools for new brokers and lenders wanting wholesale land loans in California.
Start Your Journey as a Lending Partner in California
Wholesale land loans in California present a great opportunity for brokers, lenders, and banks to grow their offerings. However, these loans aren’t always readily available, so it’s key to find a reliable, knowledgeable wholesale lender to carry out this offer. United Ag Lending is committed to make rural living more accessible to a wide variety of people, especially your clients.
Send us a message or visit our website to explore our partnership opportunities.
You can also get started by filling out our loan planning tool. Simply tell us about your situation, and we’ll prepare a custom lending solution tailored to your needs.
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United Ag Lending’s TPO Licensed States: Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Washington, and Wyoming
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