Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”)
today said that the lower corn and soybean yields in the U.S.
Midwest, as reported by Pro Farmer’s Midwest Crop Tour in August,
highlight the importance of enhancing farms’ resilience through
targeted improvement investments.
Pro Farmer collected data from more than 100 crop scouts who
sampled thousands of fields ahead of harvest across seven states,
including Illinois and Nebraska where FPI owns farmland.
“The late start to planting and current dry conditions will
lower overall production forecasts in the Midwest, but we think our
tenants will fare better than many of their peers,” said FPI
Chairman and CEO Paul Pittman. “The Company buys high-quality
farmland and is willing to invest in farm improvements to help
insulate its tenants from adverse conditions as much as
possible.”
FPI closely considers soil quality, water availability, and
climate risk as part of its acquisition evaluation process, and it
often invests in irrigation systems, drainage projects, and grain
storage to improve the resiliency and profitability of the
properties it buys.
Healthy soils, which are supported by rotating crops and farming
techniques like reduced tillage, hold more water, reduce erosion,
and enable farmers to plant earlier, as does proper drainage.
Irrigation helps offset dry periods, and grain storage systems make
harvest timelier and more efficient.
“It’s vital for our farmers to maximize their harvests because
grain supplies are low and food prices are rising in the face of
weather challenges and the conflict in Ukraine.” Pittman added.
“Maximizing our tenants’ production potential not only helps feed
more people, but it is financially beneficial for them, for our
Company, and ultimately for our shareholders.”
Pittman said that countering weather risk is a big reason why
FPI’s portfolio spans coast to coast, rather than being focused on
one single region, and includes dozens of different crop types. He
also said that current commodity prices could benefit the Company
in the long haul.
“Grain prices are strengthening, which is boosting farmland
values and generating optimism about next year’s growing season,”
Pittman explained. “Tight supplies globally also underscore the
importance of fertile farmland and productive farmers.”
Higher commodity prices are improving farmers’ incomes, too. The
U.S. Department of Agriculture ("USDA"), last week, increased its
farm earning forecast for 2022.
“Total crop receipts are expected to increase by $36.4 billion
(15.3 percent) from their 2021 level following higher receipts for
soybeans, corn, and wheat,” according to the USDA. “These increases
would put total cash receipts in 2022 at their highest level on
record, even after adjusting prior years for inflation.”
About Farmland Partners Inc.
Farmland Partners Inc. is an internally managed real estate
company that owns and seeks to acquire high-quality North American
farmland and makes loans to farmers secured by farm real estate. As
of the date of this release, the Company owns and/or manages more
than 185,750 acres in 18 states, including Alabama, Arkansas,
California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa,
Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North
Carolina, South Carolina, and Virginia. We have approximately 26
crop types and more than 100 tenants. The Company elected to be
taxed as a real estate investment trust, or REIT, for U.S. federal
income tax purposes, commencing with the taxable year ended
December 31, 2014. Additional information: www.farmlandpartners.com
or (720) 452-3100.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the federal securities laws, including, without
limitation, statements with respect to expected yields on acquired
farmland, our outlook, proposed and pending acquisitions and
dispositions, the potential impact of trade disputes and recent
extreme weather events on the Company's results, financing
activities, crop yields and prices and anticipated rental rates.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "may," "should," "could,"
"would," "predicts," "potential," "continue," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates" or similar expressions or their negatives, as well as
statements in future tense. Although the Company believes that the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, beliefs and expectations, such
forward-looking statements are not predictions of future events or
guarantees of future performance and our actual results could
differ materially from those set forth in the forward-looking
statements. Some factors that might cause such a difference include
the following: general volatility of the capital markets and the
market price of the Company's common stock, changes in the
Company's business strategy, availability, terms and deployment of
capital, the Company's ability to refinance existing indebtedness
at or prior to maturity on favorable terms, or at all, availability
of qualified personnel, changes in the Company's industry, interest
rates or the general economy, adverse developments related to crop
yields or crop prices, the degree and nature of the Company's
competition, the timing, price or amount of repurchases, if any,
under the Company's share repurchase program, the ability to
consummate acquisitions or dispositions under contract and the
other factors described in the section entitled "Risk Factors" in
the Company's Annual Report on Form 10-K for the year ended
December 31, 2021, and the Company's other filings with the
Securities and Exchange Commission. Any forward-looking information
presented herein is made only as of the date of this press release,
and the Company does not undertake any obligation to update or
revise any forward-looking information to reflect changes in
assumptions, the occurrence of unanticipated events, or
otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220907005172/en/
Phillip Hayes phayes@farmlandpartners.com
Farmland Partners (NYSE:FPI)
Historical Stock Chart
From Apr 2024 to May 2024
Farmland Partners (NYSE:FPI)
Historical Stock Chart
From May 2023 to May 2024