Gladstone Land Corporation Launches New Program for U.S. Agriculture Businesses
MCLEAN, VA - With the continuous forward movement of our industry, farmers have seen options for growth expand. That list of options just grew longer, as Gladstone Land Corporation has announced a new program, which is kicking off with over $100 million in cash as the company looks to back farmers through strategic transactions.
This new funding source will benefit several different types of agreements between Gladstone and selling farmers. As one option, Gladstone will purchase stock in a farming operation to act as a minority investor. Under this agreement, operators maintain full control of the business while Gladstone funds its growth.
Second, Gladstone will buy stock in a farming operation for those looking for additional funding. The land company states that it can buy out stockholders within the business and act as an investor, or it can purchase stock for operators to put cash in their account so they don’t have all funds placed in the stock of the company.
According to a release sent by David Gladstone, Chairman and Chief Executive Officer, Gladstone can also purchase part of a business in order for the owners to transfer their operations to a new buyer or family member. On the other hand, Gladstone will put equity in the acquisition of a business and act as a partner to those looking to purchase an agriculture operation.
As another way to finance ag businesses, Gladstone will buy assets in a company and then lease them back. Operators can sell assets such as equipment and buildings and have them leased back to them through the program. Lastly, Gladstone can buy part of a business in exchange for its publicly traded stock in what could be a tax-free exchange.
The new program follows Gladstone's initiative to purchase farmland and lease it back to the seller, thereby providing extra capital to the operator. Gladstone has purchased about $1.3 billion in farmland through this program, providing funding to over 100 farmers thus far.
Could some of these options help to bolster your own business? We hope to hear more on this soon.
