Farmland Partners Pays $16.6 Million in Cash For Three Farms

Farmland Partners Pays $16.6 Million in Cash For Three Farms

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. 

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Spell Check

Ordway, CO
3/16/2015 08:20 PM

  It's actually a good deal for the seller if you don't have emotional attachment to the land. They pay two times what it's worth, then require you to lease it back for three years at a 5% return, so you're still ahead a huge amount even after the above market rent payment for three years. Then you can can go back to paying a rent where you can make a profit, and leave them stuck with WAY overpaying for the land.

unionville , MO
3/16/2015 05:30 PM

  That is what is wrong in this country the big and corporations buy every thing a small farmer cannot compete the government and elected officials take money to look the other way the rich get bigger and the poor get poorer these big operations will control the food and the only ones to afford to eat sad times for usa

Tim Onnen
Delray Bch, FL
3/16/2015 05:34 PM

  This scenario is similar to the "roll-up" of numerous construction firms under one blanket in the 90's. The efficiencies of scale evaporated, and most firms dissolved, leaving the stockholders w/ little to show for their "equity shares". Everyone should tread cautiously!


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