DENVER, December 07, 2022--(BUSINESS WIRE)--Farmland Partners Inc. (NYSE: FPI) (the "Company" or "FPI") today announced that it purchased a Texas farm for $12.1 million. The acquisition represents FPI’s first farmland transaction in the state since selling property there in 2020.
The new 3,843-acre site sits in Dallam and Hartley Counties in the northwest corner of Texas. It primarily produces potatoes, in addition to corn and wheat.
"This was an important purchase for the Company," explained FPI Chairman and CEO Paul Pittman. "In addition to expanding our portfolio into a key agricultural state, the farm was attractive because it has a good lease with a well-known tenant."
The land is rented to CSS Farms, which is one of the largest potato growers in the country and a major chip supplier. CSS Farms was founded in 1986 when two farm families teamed up to grow their first field of potatoes. Today, it is a vertically integrated agricultural company with a presence in 10 states, producing potatoes and rotational crops. CSS Farms has been spotlighted for its commitment to sustainable farming.
"Farmland Partners is widely respected within the farming community for its understanding of agriculture and willingness to partner with its tenants to help them succeed," said Steven Gangwish, President and CEO of CSS Farms. "We’re excited to build a lasting relationship with the FPI team."
In addition to producing rental income, the farm should continue to grow in value. Agricultural land in Texas has averaged 5.7% 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 nearly 195,000 acres in 19 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North Carolina, South Carolina, Texas, and Virginia. We have approximately 26 crop types and more than 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 expected yields on acquired farmland, 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, 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, 2021, 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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