Water Spotlight from our Evaluation Services Team
Colorado
Agricultural real estate activity on Colorado’s Western Slope continues to be defined by a pronounced quality divide. Demand remains strongest for high-quality farm and ranch properties with reliable water, year-round access, and recreational attributes. Ranches remain among the strongest segments, supported by lifestyle buyers, conservation interests, and long-term land investors.
On both the Western Slope and Front Range, irrigated farms with dependable water rights are positioned for stable to modest price growth, driven by production capacity and water scarcity rather than lifestyle demand. In contrast, dryland and lower-productivity tracts are expected to be flat to slightly declining.
Water availability remains a dominant theme for 2026 across all of Colorado with below-normal snowpack and expectations for an early and shortened runoff are increasing the premium placed on senior water rights. Water values, particularly Colorado-Big Thompson units, appear to be stabilizing. While not an immediate concern, this trend bears monitoring. Demand is also supported by livestock-related operations, including dairy and feedyard activity, which remain sensitive to water pricing and availability.
Kansas
Kansas agricultural markets continue to operate under elevated financial stress due to high input costs and weak crop margins.
Drought remains a concern, particularly in central and western portions of the state. Water issues remain central to the outlook. Ongoing discussions under the Kansas Water Plan, along with litigation involving the Quivira Wildlife Refuge and Groundwater Management Districts, continue to influence sentiment around aquifer depletion and long-term water security.
Overall land values are stable in areas with strong soil productivity, though transaction volume is lower. Western Kansas values remain resilient despite current headwinds. Auction activity is increasing, with a steady pipeline of upcoming sales suggesting continued buyer interest. Auction prices to date appear to be holding steady.
The livestock sector remains a source of strength. Beef prices are expected to remain elevated, supported by tight supplies and strong demand.
New Mexico
New Mexico agricultural markets are entering 2026 with water availability as a critical concern, particularly in several irrigation districts facing limited snowpack and minimal improvement in runoff expectations.
Farm listings remain limited, and strong demand has resulted in short marketing times. Prices are generally stable, though anecdotal reports suggest potential softening in select areas that has not yet been confirmed by closed sales.
Ranch markets are characterized by tight supply and stable-to-strong pricing. Inventory entering 2026 is limited following an active close to 2025. Northern and eastern areas benefited from a favorable winter forage, while western and southern regions remain very dry, prompting herd reductions or liquidation in some cases.
The dairy sector remains stable through the first quarter of 2026 with herd sizes remaining steady. Dairy facility transactions remain limited, with minimal activity recorded in 2025 and a stagnant 2026 to date.
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