Company: LANDO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001495240-25-000005
Chunk: 87

Company: GLADSTONE LAND Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 87
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 with limited water access are seeing prices drop to levels not seen in decades, whereas land with reliable water resources continues to command high prices, a trend expected to continue for the next several years.  In Coastal California, land remains in short supply, keeping values stable.  Meanwhile, land values in the Pacific Northwest have remained relatively stable despite challenges in the wine grape and apple industries.

Southeastern U.S.

Values of farmland in the Southeast, particularly those growing fruits and vegetables, continue to rise at a steady pace, driven in part by sustained population growth and migration to the region.  Our land holdings in Florida have benefited significantly from increased residential development, solar projects, and interest from large-scale farmland investors, all contributing to upward pressure on farmland values.  Overall, farmland rents have remained stable, with slight variations depending on crop type.

Despite challenges from hurricanes and rising labor costs, the strawberry industry remains strong, supported by steadily growing retail demand, which has led to increasing rental rates on our farms.  Similarly, vegetable ground has continued to appreciate in value, despite some downward pressure on crop prices due to imports.  Meanwhile, the Florida citrus industry continues to struggle with persistent challenges, including citrus greening disease, severe weather, and economic pressures.  In response, farmers are increasingly adopting alternative methods, such as growing citrus under protective screens, to mitigate the 

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effects of disease.  Local officials and industry leaders are also pursuing funding for further research to fight the disease, but, as of yet, no long-term solution has proven to be effective.

Portfolio Diversification

Our farmland portfolio currently consists of 150 farms leased to 87 different, unrelated third-party tenants who grow over 60 different types of crops on our farms.  Our investment focus is in farmland suitable for growing either fresh produce annual row crops (e.g., certain berries and vegetables) or certain permanent crops (e.g., almonds, blueberries, pistachios, and wine grapes), with an ancillary focus on farmland growing certain commodity crops (e.g., beans and corn).

The following table summarizes the geographic locations (by state) of our farms owned as of and during the years ended December 31, 2024, 2023, and 2022 (dollars in thousands):

 As of and For the Year EndedDecember 31, 2024As of and For the Year EndedDecember 31, 2023As of and For the Year EndedDecember 31,