Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”) today announced that it has finalized several farmland transactions, including the disposition of more than 2,750 acres of farmland in Nebraska and Florida as well as the purchase of a 2,114-acre farm in Muskogee County, Oklahoma.
A total of seven farms were sold for approximately $19.9 million, achieving a gain of more than 26%. The Nebraska properties were auctioned by Murray Wise Associates, a wholly owned subsidiary of FPI.
“The Murray Wise team did an outstanding job during the auctions and was able to bring a qualified pool of interested buyers together to help us maximize property returns,” said Luca Fabbri, FPI’s President and CEO. “The farmland market remains strong and active, and we will continue to seek smart opportunities to add to our portfolio and, when appropriate, capture appreciation returns through farmland sales.”
So far in 2023, FPI has disposed of nearly $52.4 million of farmland, representing a total gain on sale of $12.8 million.
The Company also acquired a farm in Oklahoma for $8.85 million. That property borders the Canadian River and has a sophisticated irrigation system in place that pulls from the waterway. Its 1,840 tillable acres are contiguous and have a strong history of wheat, corn, and soybean production.
“This is high-quality farmland with a good local tenant in place and ample water access,” Fabbri explained. “The farm is our first in the state, and it will make a great addition to our portfolio.”
The farm is expected to generate good rental income for FPI in addition to asset appreciation. Agricultural land in Oklahoma has averaged 5.1% in annual appreciation since 1970, according to the most recent data from the U.S. Department of Agriculture.
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 and/or manages approximately 190,000 acres of farmland in 20 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina, Texas, and Virginia. In addition, FPI owns land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. 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.
This press release includes “forward-looking statements” within the meaning of the federal securities laws, including, without limitation, statements with respect to our outlook and the outlook for the farm economy generally, proposed and pending acquisitions and dispositions, 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: the on-going war in Ukraine and its impact on the world agriculture market, world food supply, the farm economy, and our tenants’ businesses; general volatility of the capital markets and the market price of the Company’s common 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, 2022, 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.