Farmland Partners Inc. (NYSE:FPI) (the "Company" or "FPI") on Friday purchased 369 acres of Illinois farmland for $3 million.
The corn and soybean farm in Rock Island County includes 346 tillable acres, and its three-year, cash-rent lease is expected to yield a 4 percent annual return in addition to asset appreciation.
"Tenants are some of our best sources for acquisition leads, and this deal is a prime example of how effective that referral base can be," Paul Pittman, FPI's Chairman and CEO, said. "We have a long-standing relationship with the tenant who first alerted us to this farm. He will be renting this property and has proven himself to be a top-notch producer who cares for the land."
Sam Woodrow, a farm manager for FPI who oversaw the transaction, said the farm was attractive to the Company because of its location and record of productivity.
"We have a significant presence in the area and own four other farms nearby. Together, these properties represent a large collection of fertile Mississippi River bottom farmland," he explained. "The strong lease terms we negotiated reflect that presence and the local relationships we've built."
The Company has now amassed a nearly contiguous block of land in the area totaling approximately 5,620 acres, which is farmed by a single tenant.
FPI is the nation's largest publicly traded farmland REIT by U.S. acreage.
About Farmland Partners Inc.
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