Company: LANDO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001495240-25-000021
Chunk: 125

Company: GLADSTONE LAND Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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 projects a larger-than-expected harvest for 2025, which initially exerted downward pressure on prices.  However, market pricing has since partially rebounded, and almond prices remain above levels observed at this time last year.  As we move into harvest, further clarity is expected regarding the forecast’s accuracy and its impact on overall pricing.

Pistachios continue to experience strong international demand, although limited inventory has constrained current market activity.  Demand for pistachio-based ingredients is also rising, driven by broader consumer trends and international market growth.  The 2025 U.S. pistachio crop is projected to be the largest on record, fueled by an increase in bearing acreage.  While this expansion is expected to continue in the near term as existing plantings mature, the pace of new orchard development has slowed in recent years, a trend we expect will persist.

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 2024-2025 water year has followed a typical “La Niña” weather pattern, bringing above-average precipitation to Northern California and drier conditions in the southern part of the state.  Northern California experienced multiple atmospheric river events during the winter, resulting in substantial rainfall and snowpack accumulation.  In contrast, portions of Southern California continue to experience varying degrees of drought.

This marks the third consecutive year of average or above-average precipitation statewide.  Notably, late-season storms extended peak snowpack accumulation beyond the historical April 1 benchmark, providing strong snowmelt runoff through the spring and into early summer.  Reservoir levels across the state remain above historical norms, contributing to favorable surface water allocations from both State and Federal water systems.  Periods of surplus surface water often result in increased availability of lower-cost water from purveyors, and we continue to monitor such opportunities as part of our long-term water procurement strategy