Farmland Partners acquires 20,000-plus acres in Illinois

Farmland Partners announced yesterday it has reached an agreement to purchase approximately 22,300 acres of farmland in Illinois for $197 million in cash, common stock of Farmland Partners and common units of limited partnership interest in the company’s operating partnership.

Farmland Partners is expected to close the agreement during the first quarter of 2016, but no lease agreements with the tenants have been made.

"This farmland acquisition, one of the largest ever, will be a landmark transaction for us, increasing our acreage from approximately 74,400 to nearly 100,000," CEO Paul Pittman said. "The seller has accumulated, over decades, a portfolio of some of the best farmland in Illinois. On top of the benefit of scale, the transaction will strengthen our balance sheet from the financing structure that provides us with a low cost, long-term preferred equity. Further demonstrating the efficiency of our business model, this transaction will add $197 million of assets totaling over 22,000 acres, which are expected to generate over $6 million in revenue annually, without adding a single employee."

Farmland Partners expects this acquisition to help the company solidify its position in the crop-growing industry.

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Farmland Partners

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