# Farmland Partners Inc.

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/Farmland Partners Inc.).

## Overview

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.

## Products & services

• Ownership and leasing of high-quality U.S. farmland
• Rental income from fixed and variable farm leases
• FPI Loan Program for farmers and landowners
• Property management, auction, and brokerage services
• Volume purchasing services through FPI Agribusiness
• Direct farming on select acreage in California
• Renewable energy leases on farmland (solar and wind)

- **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.

- Ownership and leasing of high-quality U.S. farmland
- Rental income from fixed and variable farm leases
- FPI Loan Program for farmers and landowners
- Property management, auction, and brokerage services
- Volume purchasing services through FPI Agribusiness
- Direct farming on select acreage in California
- Renewable energy leases on farmland (solar and wind)

## Customers

The company’s main customers are farm operators who lease its land and pay rent to use the acreage for crop production. It also serves landowners and third-party farmers through the FPI Loan Program, and agricultural tenants through volume purchasing and related agribusiness services. A smaller customer base includes renewable energy developers and operators that lease land for solar or wind projects, plus equipment dealership tenants in Ohio.

- **Farm tenant operators** (primary) — Lease farmland to grow corn, soybeans, wheat, rice, cotton, and specialty crops; they buy access to productive acreage and flexibility in lease terms.
- **Agricultural borrowers** (secondary) — Borrow from the FPI Loan Program for acquisitions, working capital, infrastructure, and other farming-related needs.
- **Renewable energy developers** (secondary) — Lease farmland for solar and wind projects, creating incremental land-use revenue and long-duration optionality.
- **Agribusiness service users** (emerging) — Use property management, auction, brokerage, and volume purchasing services through the TRS.
- **Commercial agricultural tenants** (emerging) — Lease dealership and related agricultural real estate, such as the Ohio properties leased under the John Deere brand.

- Tenant farmers leasing land for row crops and specialty crops
- Farm operators paying fixed rent or variable rent tied to crop revenue
- Landowners and farmers seeking secured agricultural financing
- Tenants using volume purchasing, property management, and brokerage services
- Renewable energy operators leasing farmland for solar or wind projects
- Ag Pro Ohio, LLC as tenant for John Deere-branded dealership properties

## Geography

Farmland Partners’ portfolio is concentrated in the United States, with owned farms across Arkansas, California, Colorado, Illinois, Indiana, Louisiana, Missouri, Nebraska, South Carolina, Texas, and West Virginia. Its operating footprint also includes managed acres in additional Midwestern and Southern states, plus four agriculture equipment dealership properties in Ohio. Geography matters because crop mix, water availability, commodity exposure, and land values differ materially by region, especially between the Corn Belt, Delta/South, High Plains, Southeast, and West Coast.

- **Corn Belt** (48%) — Based on acreage concentration in Illinois, Indiana, Iowa, Missouri, eastern Nebraska and Ohio.
- **Delta and South** (11%) — Based on acreage in Arkansas, Louisiana and Mississippi.
- **High Plains** (17%) — Based on acreage in Colorado, Kansas and Texas.
- **Southeast** (10%) — Based on acreage in North Carolina, South Carolina and West Virginia.
- **West Coast** (14%) — Based on California acreage and permanent crop exposure.

- 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

## Strategy

The company’s strategy is to own and manage high-quality farmland that can generate stable rent, asset appreciation, and dividend capacity over time. It also seeks to improve returns through selective acquisitions and dispositions, agricultural lending, renewable-energy leases, and TRS activities that monetize land beyond traditional crop rent. Portfolio diversification across crop types and regions is central to reducing volatility from weather, commodity prices, and tenant performance.

- **Farmland acquisition and portfolio quality** (medium-term) — High-quality acreage supports rent durability, appreciation, and long-term scarcity value.
- **Income diversification** (short-term) — Ancillary revenue streams reduce dependence on crop rent and tenant profitability.
- **Capital recycling** (medium-term) — Selective dispositions can improve portfolio quality and redeploy capital into higher-return assets.
- **Diversification by crop and region** (long-term) — Mixing primary and specialty crops across multiple states helps manage volatility from weather and commodity cycles.

- Acquire high-quality farmland in attractive North American agricultural markets
- Use fixed and variable leases to balance income stability and upside participation
- Recycle capital through selective asset sales when proceeds can be redeployed better
- Expand non-core revenue from loans, services, and renewable energy leases
- Maintain crop and regional diversification to reduce weather and commodity risk
- Use TRS activities to monetize land and support tenant relationships

## Risks

The business is exposed to tenant profitability, commodity prices, weather, water availability, and regional farmland values, all of which can affect rent collection and asset values. It also faces REIT-specific risks such as leverage, refinancing, and distribution capacity, plus execution risk in loans, renewable-energy leases, and direct farming activities. Cybersecurity, environmental liabilities, and geopolitical trade disruptions are additional risks because they can impair operations, tenant demand, or the value of farmland.

- **Tenant profitability deterioration** [high] — If farm operators earn less, they may struggle to pay rent, taxes, and insurance.
- **Commodity price and trade volatility** [high] — Crop prices affect tenant margins and therefore the rent the company can collect.
- **Weather, disease, and water scarcity** [high] — Agricultural output and land productivity can fall sharply in adverse conditions.
- **Geopolitical and tariff exposure** [medium] — Trade disputes, including soybean export pressure to China, can disrupt pricing and demand.
- **Environmental and cybersecurity liability** [medium] — Environmental claims or cyber incidents could create remediation costs and business disruption.

- Tenant farming profitability drives rent collection and lease renewals
- Commodity prices and trade disputes can weaken crop economics and land values
- Weather, crop disease, and water shortages can reduce yields and tenant cash flow
- Variable rent structures add upside but increase revenue volatility
- Cybersecurity and environmental liabilities can create unexpected costs
- Loan and direct-farming activities add credit and operating risk

## Accounting

The most important accounting judgments are farmland acquisition purchase-price allocation, fair value estimation, and revenue recognition on fixed versus variable leases. Variable rent can only be recognized when contractual conditions are met, and the company notes that excess crop-related amounts above insurance minimums are deferred until crop-sale contracts exist. Investors should also watch impairment and valuation assumptions for real estate, equity-method investments, and any estimates tied to environmental or credit exposures.

- **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

- Purchase-price allocation for acquired farmland depends on appraisals and market comparables
- Variable rent recognition depends on crop-sale contracts and crop insurance minimums
- Fair value and impairment judgments affect land and related real estate values
- Equity-method investment accounting affects reported earnings from the OZ Fund
- Loan and credit estimates matter for the FPI Loan Program
- Lease accounting and tenant-related receivables affect recurring revenue visibility

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*Last updated: 2026-04-28T20:07:50.296744+00:00*