Farmland Partners Inc. Acquires 8,349 Acres of Louisiana Farmland for $26.8 Million

Rhea-AI Summary

Farmland Partners Inc. (NYSE: FPI) acquired 8,349 acres of cropland in Southern Louisiana for $26.8 million. This property includes 5,943 tillable acres known for rice and soybean production and features advanced irrigation capabilities. The transaction also protects over 1,200 acres of fresh-water marshland, boosting environmental and recreational benefits. The farm will be leased at a yield of approximately 4.2%, enhancing FPI's portfolio in the Delta region, according to CEO Paul A. Pittman.

Positive

• Acquisition of high-quality farmland enhances FPI's portfolio.
• The farm contributes to environmental preservation with the protected marshland.
• Current lease yield of approximately 4.2% provides stable income.

Negative

• None.

DENVER, June 1, 2021 /PRNewswire/ -- Farmland Partners Inc. (NYSE: FPI) (the "Company") today announced that it purchased 8,349 acres of cropland in Southern Louisiana for total consideration of $26.8 million. This highly improved property consists of 5,943 tillable acres, with a rich history of growing rice and soybeans. The farm is located close to the Mermentau River and contains over 20 miles of canals for surface irrigation during the growing seasons. In addition, the transaction will preserve over 1,200 acres of fresh-water marshland known throughout South Louisiana for its outstanding waterfowl habitat.  This marshland will continue to offer environmental benefits and recreational opportunities.  The farm will be leased for the next several years at a current yield of approximately 4.2%. 

"We are pleased to add this high-quality farm to the portfolio and expand our presence in the Delta region," said Paul A. Pittman, the Company's Chairman and CEO.  "Farms of this caliber with important environmental and agriculture production attributes do not come to market every day. It has advanced surface irrigation networks and the ability to grow many different crops."

About Farmland Partners Inc.

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of the date of this release, the Company owns approximately 157,000 acres in 16 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014.  Additional information: www.farmlandpartners.com or (720) 452-3100. 

Owners and brokers with farmland for sale in the Delta region, please contact Thomas Boggs (tboggs@farmlandpartners.com). 

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements with respect to our outlook, proposed and pending acquisitions and dispositions, the potential impact of trade disputes and recent extreme weather events on the Company's results, financing activities, crop yields and prices and anticipated rental rates. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" or similar expressions or their negatives, as well as statements in future tense. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and our actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: general volatility of the capital markets and the market price of the Company's common stock or Series B participating preferred stock, changes in the Company's business strategy, availability, terms and deployment of capital, the Company's ability to refinance existing indebtedness at or prior to maturity on favorable terms, or at all, availability of qualified personnel, changes in the Company's industry, interest rates or the general economy, adverse developments related to crop yields or crop prices, the degree and nature of the Company's competition, the timing, price or amount of repurchases, if any, under the Company's share repurchase program, the ability to consummate acquisitions or dispositions under contract and the other factors described in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, and the Company's other filings with the Securities and Exchange Commission.  Any forward-looking information presented herein is made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

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SOURCE Farmland Partners Inc.

FAQ

What is the significance of Farmland Partners Inc.'s acquisition of 8,349 acres in Louisiana?

The acquisition allows FPI to expand its farmland portfolio and improve its presence in the agricultural sector.

How much did Farmland Partners Inc. pay for the new Louisiana farmland?

FPI acquired the Louisiana farmland for a total of $26.8 million.

What are the expected benefits of the cropland acquired by Farmland Partners Inc.?

The farmland is expected to generate a yield of approximately 4.2% and includes features that support diverse crop production.

What types of crops can be grown on the new Louisiana farmland owned by FPI?

The land has a history of producing rice and soybeans, indicating its suitability for these crops.