Company: LANDO
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001495240-25-000012
Chunk: 147

Company: GLADSTONE LAND Corp
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 147
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 basis, these rates are fixed at an effective interest rate of 3.41% for another 3.4 years.  As a result, our existing debt portfolio has been largely insulated from the sharp rise in interest rates over the past couple of years, and we believe we are well-protected against the potential for prolonged elevated interest rates or any future rate increases.

Tariffs

25

Ongoing trade tensions and the recent implementation of new tariffs have introduced added uncertainty for many U.S. agricultural exports, including certain crops grown on some of our farms, including almonds and pistachios.  While fresh produce, including berries and most vegetables, is more insulated due to strong domestic consumption, approximately 60%-70% of U.S.-grown almonds and pistachios are exported annually.  As a result, these crops are more vulnerable to shifting trade dynamics and potential retaliatory tariffs.  While the full impact on crop prices and grower economics remains uncertain, we continue to monitor developments closely, as any sustained disruption to export markets could influence lease structures and participation rent levels on the affected farms.

Another factor influencing export demand is a weakening U.S. dollar.  A weaker dollar makes U.S. exports more price-competitive in the global marketplace, which may help mitigate any negative effects of tariffs.

California Water Outlook

The 2024-2025 water year has aligned with a typical “La Niña” weather pattern, bringing increased precipitation to Northern California and drier conditions in the southern part of the state.  Northern regions experienced significant rainfall and snow from multiple atmospheric river events during the winter, while portions of Southern California remain affected by varying levels of drought conditions.  Overall, this marks the third consecutive year of average or above-average precipitation statewide.

Notably, late-season rain and snow events have led to peak snowpack levels occurring after the April 1 historical average, supporting strong snowmelt runoff through the spring and into early summer.  In addition, statewide reservoir levels remain above historical norms, which is expected to support favorable surface water allocations from both State and Federal water projects.  During periods of abundant surface water flows, water purveyors often have surplus water supplies that can be acquired at lower prices.  We continue to monitor these opportunities to strengthen our long-term water strategy.

The extended wet period has also benefited our permanent crop assets by contributing to groundwater recharge and improving root zone moisture content.  We are currently observing no signs of water stress in our permanent plantings that often occur during drought periods.  As we move