Gladstone Land Corporation announced that it has acquired two farms, consisting of 2,559 acres of farmland with 2,101 pivot-irrigated farmable acres, in Rock and Holt Counties, Nebraska, for approximately $11.0 million. The company entered into a leaseback agreement with the seller for a 3-year lease that provides for annual rent escalations. In addition, the Company announced the issuance of two $3.3 million, 3-year, interest-only bonds, each with a fixed interest rate of 2.375%. The bonds were issued under the company's $75.0 million facility with Federal Agricultural Mortgage Corporation ("Farmer Mac").
"We are excited to expand into the Midwest with our first acquisitions in Nebraska," said Bill Hughes, Managing Director at the company. "We are looking forward to a long-term relationship with a well-established tenant, and we plan on diversifying our crop portfolio by adding potatoes, edible beans, and alfalfa as complements to a traditional corn-and-soybean rotation on these farms. We now own 38 farms across the U.S. that produce a variety of fruits, vegetables, and grains."
"With our first Midwest acquisitions, we are continuing to diversify our portfolio of farmland properties, as well as the crops being grown on the land we lease to our tenant-farmers," said David Gladstone, President and CEO of the company. "Our objective is to acquire prime farmland and become long-term real estate partners with the farmers on the land. We believe these two farms have excellent soil and plenty of wells for irrigation. We have one additional large farm that we are hoping to close before the end of September."