Farmland LP Expands Fund III with $35.6 Million Acquisition

Author

Slice of Agriculture Team
July 30, 2024

Key Highlights:

  • Acquisition of 2,625 acres in Northern California’s Sacramento Delta for $35.6 million.

  • Strategic location near existing operations, benefiting from California's oldest and most secure water rights.

  • Nearly mature almond orchards, providing immediate cash flow generation.

  • Diversification and low debt strategy enhancing profitability and stability.

  • Future acquisitions planned in Oregon and Washington.

Source (Business Wire)

Notable Quote:

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"This strategic acquisition underscores our ability to acquire opportunistically, capitalizing on market conditions to acquire high-quality assets at favorable prices. We believe that now is an opportune time to acquire properties like this portfolio."

Craig Wichner, Founder and Managing Partner at Farmland LP

Our Take:

This acquisition by Farmland LP’s Fund III is a significant move that strengthens its portfolio and reaffirms its commitment to sustainable farming practices. By acquiring these strategically located properties with mature almond orchards, Farmland LP is poised to generate immediate returns while maintaining a low debt profile. This move not only enhances the diversity of their portfolio but also secures valuable water rights, ensuring long-term sustainability and profitability. The firm's approach to opportunistic acquisitions and its focus on diversification position it well for future growth and stability in the agricultural investment sector.