Farmland Partners continues to grow its agricultural land portfolio.
The Colorado-based public company on Friday announced it planned to buy three row crop farms in Nebraska and Colorado, adding 2,592 acres to its growing land holdings.
The cost? $16.6 million in cash, $2.7 million of limited partnership interest, and more than 63,000 shares of stock (NYSE: FPI), which closed at $11.21 per share on Friday.
"We are pleased to be able to increase our acreage in Nebraska and Colorado through deals involving cash and equity securities," said Paul Pittman, Farmland Partners’ CEO. "The desire of the sellers, one of whom is an existing tenant, to take a stake in our company is indicative of local farming communities' positive view of our value."
Farmland Partners, which leases land to farmers, is definitely increasing its acreage.
Since its initial public offering in April 2014, it has made 33 acquisitions, including an 11-farm, 12,500-acre deal in Kansas for which it paid $24.5 million in cash.
According to company documents, Farmland Partners now owns more than 48,000 acres and 91 farms in seven states, with five more farms under contract.
But like many agribusiness companies, Farmland Partners is facing some economic headwinds. In 2014, it lost approximately $671,000 on $4.2 million in revenue.
Would you consider selling your land to Farmland Partners? Renting from them? Let us know on the AgWeb discussion boards.