Farmland LP Announces Strategic Acquisition of Three Prime Farms in Northern California
July 24 2024 - 9:10AM
Business Wire
Farmland LP, the leading investment fund specializing in
converting conventional farmland to organic and sustainably managed
farmland, is pleased to announce that its Vital Farmland III, LLC
(“Fund III”) has acquired three properties in Northern California’s
Sacramento Delta for a total of $35.6 million. This strategic
acquisition will significantly enhance Farmland LP’s Fund III
portfolio, reflecting the firm’s commitment to investing in
high-quality, sustainable farmland and water rights.
The newly acquired properties total 2,625 acres and are
strategically located near Farmland LP's existing farm operations
hub in Northern California. One farm is directly across the river
from Farmland LP’s 4,200-acre Burns Farm. All three new farms
benefit from some of California's oldest and most secure water
rights, ensuring a valuable and reliable water supply.
The acquisition exemplifies Farmland LP’s ability to secure
high-quality land and water rights in prime growing regions at
favorable prices. The farms’ nearly mature almond orchards
eliminate the typical 6-7-year waiting period for cash flow
generation as crops mature into full production.
"We believe that now is an opportune time to acquire properties
like this portfolio," said Craig Wichner, Founder and Managing
Partner of Farmland LP. "This strategic acquisition underscores our
ability to acquire opportunistically, capitalizing on market
conditions to acquire high-quality assets at favorable prices."
Acquired from an almond-only investment fund, the properties
became available due to a rise in interest rates and cyclically low
almond pricing. Some permanent crops follow a typical 7–10-year
pricing cycle and almond pricing is beginning to rebound from the
low in 2022. Farmland LP believes in low debt and a diversified
farm portfolio, both geographically and by crop type, which
enhances the profitability and stability of its Funds. This
acquisition adds to our existing diversity, and we expect to add
new value-add crops on some of the acquired acres.
Farmland LP closed on two of the three farms in the portfolio
and is in contract to close on the third property in Q4/24 after
specific infrastructure improvements are complete. Fund III has
raised and deployed more than 30% of its $250 million target,
including a 1,100-acre farm in Oregon growing organic blueberries,
wine grapes, and hazelnuts. Future acquisitions are expected in
Oregon and Washington, where Farmland LP manages approximately
12,000 acres.
To learn more and explore investing, contact IR@farmlandlp.com
or visit farmlandlp.com.
About Farmland LP
Farmland LP is the leading investment fund that generates
returns by converting conventional farmland to organic, sustainably
managed farmland. Founded in 2009, Farmland LP owns and manages
over 18,500 acres of high-quality farmland in Washington, Oregon,
and California, with approximately $300 million in assets over
three funds.
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Media Contact: Ian Murphy (310) 689-6397
ian@exponentialpr.com