Gladstone Land Announces Acquisition of Two Farms in Nebraska for $11 Million
MCLEAN, VA - Gladstone Land Corporation is entering into a new territory with the purchase of two farms in Nebraska.
The two farms consist of 2,559 acres of farmland with 2,101 pivot-irrigated farmable acres, in Rock and Holt Counties, Nebraska. The total purchase price for these two farms is $11 million. This equates to approximately $4,298 per acre of farmland.
Gladstone entered into a leaseback agreement with the seller for a 3-year lease that provides for annual rent escalations, according to a press release.
“With our first Midwest acquisitions, we are continuing to diversify our portfolio of farmland properties, as well as the crops being grown on the land we lease to our tenant-farmers,” said David Gladstone, President and CEO. “Our objective is to acquire prime farmland and become long-term real estate partners with the farmers on the land. We believe these two farms have excellent soil and plenty of wells for irrigation.”
As a result of this acquisition, Gladstone currently owns 38 farms nationwide that produce a variety of fruits, vegetables, and grains. These 38 farms are comprised of 14,027 acres in six different states across the United States, valued at approximately $242 million. These states include Arizona, California, Florida, Oregon, Michigan, and now Nebraska.
“We are excited to expand into the Midwest with our first acquisitions in Nebraska,” said Bill Hughes, Managing Director. “We are looking forward to a long-term relationship with a well-established tenant, and we plan on diversifying our crop portfolio by adding potatoes, edible beans, and alfalfa as complements to a traditional corn-and-soybean rotation on these farms.”
The company expects to close another deal on an additional farm before the end of September.
Gladstone’s most recent purchase in late June included two farms in Florida for approximately $15.8 million.
For more on Gladstone, where it’s headed, and David Gladstone’s approach to acquiring farmland, check out our interview by clicking here.
