Tenant profitability deterioration
If farm operators earn less, they may struggle to pay rent, taxes, and insurance.
- Scope
- Fixed and variable farmland leases
- Materiality
- high
Farmland Partners Inc.
Farmland Partners Inc. owns and manages a portfolio of U.S. farmland and related agricultural real estate, structured as a REIT. Its business is built around earning rental income from tenant farmers, while also using selective acquisitions, dispositions, loans, and ancillary services to enhance returns and asset value.
60,5 %
−10,4 %
| % | |
|---|---|
| Farmland leasing | 70% Core rental income from owned farmland leased to farm operators under fixed and variable rent structures. |
| Agricultural lending | 10% Loans secured by farmland, crops, equipment, or other collateral to farmers and landowners. |
| Agribusiness services | 8% Property management, auction, brokerage, and volume purchasing services provided through the TRS. |
| Direct farming operations | 5% Farm operations conducted directly by the taxable REIT subsidiary on select acreage. |
| Renewable energy and ancillary land use | 7% Lease income and optionality from solar and wind development on farmland parcels. |
The company’s main customers are farm operators who lease its land and pay rent to use the acreage for crop production...
- Farm tenant operatorsprimary
Lease farmland to grow corn, soybeans, wheat, rice, cotton, and specialty crops; they buy access to productive acreage and flexibility in lease terms.
- Agricultural borrowerssecondary
Borrow from the FPI Loan Program for acquisitions, working capital, infrastructure, and other farming-related needs.
- Renewable energy developerssecondary
Lease farmland for solar and wind projects, creating incremental land-use revenue and long-duration optionality.
- Agribusiness service usersemerging
Use property management, auction, brokerage, and volume purchasing services through the TRS.
- Commercial agricultural tenantsemerging
Lease dealership and related agricultural real estate, such as the Ohio properties leased under the John Deere brand.
Farmland Partners’ portfolio is concentrated in the United States, with owned farms across Arkansas, California,...
- •Owned farms span 11 U.S. states across the Corn Belt, South, High Plains, Southeast, and West Coast
- •West Coast exposure is concentrated in California permanent-crop acreage
- •Corn Belt holdings include Illinois, Indiana, Iowa, Missouri, eastern Nebraska, and Ohio
- •Managed acres extend the operating footprint into additional states such as Mississippi and North Carolina
- •Ohio dealership real estate adds a non-farm agricultural real estate exposure
- •No meaningful non-U.S. operating footprint was disclosed
The company’s strategy is to own and manage high-quality farmland that can generate stable rent, asset appreciation,...
01
Farmland acquisition and portfolio qualitymedium-term
High-quality acreage supports rent durability, appreciation, and long-term scarcity value.
02
Income diversificationshort-term
Ancillary revenue streams reduce dependence on crop rent and tenant profitability.
03
Capital recyclingmedium-term
Selective dispositions can improve portfolio quality and redeploy capital into higher-return assets.
04
Diversification by crop and regionlong-term
Mixing primary and specialty crops across multiple states helps manage volatility from weather and commodity cycles.
The business is exposed to tenant profitability, commodity prices, weather, water availability, and regional farmland...
Commodity price and trade volatility
Crop prices affect tenant margins and therefore the rent the company can collect.
- Scope
- Soybeans, corn, wheat and other row crops
- Materiality
- high
Weather, disease, and water scarcity
Agricultural output and land productivity can fall sharply in adverse conditions.
- Scope
- Irrigated and specialty-crop acreage, especially in the West
- Materiality
- high
Geopolitical and tariff exposure
Trade disputes, including soybean export pressure to China, can disrupt pricing and demand.
- Scope
- U.S. crop exports
- Materiality
- medium
Environmental and cybersecurity liability
Environmental claims or cyber incidents could create remediation costs and business disruption.
- Scope
- Owned properties, tenant data, and operating systems
- Materiality
- medium
Farmland purchase-price allocation
Affects depreciation, gains/losses on sale, and reported asset values
Variable rent recognition
Can shift revenue between periods and increase quarterly volatility
Fair value and impairment of real estate
Can materially affect balance sheet carrying values and gains/losses
Credit and loan loss estimates
Can affect interest income and allowance/provision levels
Equity-method investment accounting
Can create volatility in non-operating income
: 28.4.2026