Headquartered in in Denver, Colorado, Farmland Partners, Inc. owns and works to obtain farmland set in agricultural markets in North America. The Company is a publicly traded REIT (Real Estate Investment Trust). Farmland Partners also makes loans to farmers secured by farm real estate. Farmers founded the Company, and its Management team has practical farm operations experience.
On November 30, 2016, Farmland Partners announced the pricing of its public offering of its common stock. It announced that it priced its underwritten public offering of 3,100,000 shares of its common stock at a public offering price of $11.25 per share, for gross proceeds to Farmland Partners of roughly $33.3 million.
The intention is to use the net proceeds from the offering for future farmland acquisitions in accordance with Farmland Partners’ investment strategy. This includes $3.3 million to finance the cash portion of the purchase price of one farm now under contract, and for general corporate purposes.
As of November 30, 2016, Farmland Partners owns or has under contract 115,657 acres in Arkansas, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, Texas and Virginia. This is excluding properties to be acquired upon completing the pending merger with American Farmland Company.
At present, the acreage is undergoing farming for an assortment of crops. These include corn, soybeans, wheat, rice, cotton, edible beans, milo, green beans, sunflowers and blueberries. Farmland Partners works with its tenant base to decrease their input costs and improve the Company’s farms.
For Q3 2016, the Company announced the acquisition and merger of American Farmland and Company. With this merger, Farmland Partners has established the largest public company in the Farmland arena. The expectation is that this transaction will close in January of 2017.
Farmland Partners will have 850 million of assets, and around 133,000 acres. It will also have approximately 100 separate tenants, and a portfolio that is roughly 75 percent primary row crops and approximately 25 percent specialty crops (permanent trees, citrus, and nuts and vegetables). This merger creates a high-quality diversified portfolio of farmland assets in 16 U.S. States and across 25-plus major crops.
Fundamentally, Farmland Partners’ corporate purpose is to provide investors with public market access to high-quality farmland at a fair and low risk return, which capitalizes on the megatrend of worldwide food demand increases in conjunction with international population increases, land scarcity, and changing eating patterns.
There is a 45.5 percent projected increase in global grain demand by 2050. There is a 4.3 percent projected increase in global cropland supply by 2050. Approximately one percent of U.S. GDP (Gross Domestic Product) is production agriculture. Families run 98 percent of U.S. farms.
The benefit for farmers is they get a long-term equity partner so they can better allocate their capital. They also get a landlord willing to help manage and improve properties. Furthermore, farmers have the option to receive discounts or agricultural inputs by way of volume purchasing.
Farmland Partners’ Initial Public Offering (IPO) was in April of 2014. Since going public, its portfolio has increased from 7,323 acres to around 115,657 acres. In the Corn Belt, the Company has 33,517 acres. In the Plains, it has 27,590 acres. In the Southeast, it has 28,392 acres. Moreover, in the Delta, Farmland Partners has 25,837 acres.