Real estate investment trust Gladstone Land Corporation said it has acquired two Nebraska farms with a combined 3,850 acres for $14.7 million, and will transition the farms, which currently grow corn, soybeans and edible beans, to organic by 2021.
Based in McLean, Va., Gladstone (Nasdaq:LAND) currently owns over 85,000 acres of farmland in 10 states valued at about $836 million. The two new farms are located in Hayes and Hitchcock Counties, Nebraska.
The company said the acquisition kicks in a 10-year, triple-net lease agreement on each farm as part of a new tenant relationship with Holstein, Neb.-based Granstrom Farms LLC, one of the state’s leading organic growers, producing organic yellow corn, blue corn, soybeans, small grains and aronia berries. Granstrom was certified organic in 2010 by Organic Certifiers, Inc.
“Having a presence in this area will not only give us a great new relationship with one of the top growers in the state but will also give us exposure to potential new crop types for our farmland portfolio,” said Bill Hughes, Gladstone managing director. “In addition to the 17 new irrigated circles, we will be constructing a state-of-the-art grain drying and storage facility to safely handle and protect the integrity of the organic grain on the farms. The company is making a concerted effort to acquire or develop more organic crops within its farmland holdings, and it believes these acquisitions demonstrate its commitment to farms growing healthy foods.”