Company: LANDO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001495240-25-000028
Chunk: 62

Company: GLADSTONE LAND Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 export-oriented crop markets, pricing for almonds and pistachios continues to be primarily driven by underlying supply and demand fundamentals.  With the field harvest now complete, final 2025 almond production is expected to come in below initial industry forecasts, contributing to upward pricing pressure.  As a result, current almond prices are approximately 15% to 25% higher year-over-year.  While post-harvest hulling and processing activities remain underway, preliminary results indicate that production volumes on our farms have exceeded our initial internal expectations.  The crop is currently being marketed and sold, with first payments expected within the next three months and continuing through next fall.

Pistachios continue to experience strong demand, particularly in international markets.  Demand for pistachio-based ingredients is also increasing, supported by broader consumer trends and continued global market growth.  The 2025 U.S. pistachio crop was initially expected to be a record crop; however, current estimates indicate that it will fall short of those expectations and will instead be more in line with 2023 production levels.  We have completed harvest on several of our farms, and thus far, our yields have exceeded our internal projections.  The smaller-than-expected overall crop is contributing to upward pricing pressure, with current pistachio prices (for the 2024 crop) approximately 13% to 18% higher than the prior year (for the 2023 crop).  Prices were initially expected to be lower but have instead strengthened, supporting expectations that final 2025 crop pricing will be comparable to 2024 levels.

We continue to monitor tariff discussions and trade policy developments closely, but the full impact on crop prices and grower economics remains uncertain.  Prolonged disruptions to export markets could impact lease structures and participation rent levels on the affected farms.  Additionally, significant increases in tariffs or unfavorable trade terms for almonds or pistachios could lead to us allocating additional capital to support crop production under certain lease agreements, in exchange for higher participation rents.

Another key factor impacting export demand is the strength of the U.S. dollar.  A weaker dollar enhances the global competitiveness of U.S. agricultural exports, which may help offset any adverse effects of tariffs and trade constraints and potentially drive increased demand for domestically-grown products.

California Water Outlook

The 2025-2026 water year is just getting underway, and yet many farming areas of California have already received above-average rainfall for the month of October.  The UC Berkeley Central Sierra Snow Lab has even reported its