Company: LANDO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001495240-25-000021
Chunk: 162

Company: GLADSTONE LAND Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 162
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 of 3.39% for another 3.3 years.  As a result, our existing debt portfolio has been largely insulated from the rise in interest rates in recent years, and we believe we are well-protected against the potential for prolonged elevated interest rates and future rate increases.

Tariffs and Trade

28

Ongoing trade tensions and the implementation of new tariffs continue to introduce uncertainty into U.S. agricultural exports markets.  Certain crops grown on our farms, including almonds and pistachios, are particularly exposed to these risks, as approximately 60% to 80% of U.S.-produced almonds and pistachios are exported annually.  In contrast, crops with strong domestic demand, such as fresh produce (including berries and vegetables), are generally less affected by trade-related disruptions.  

Although international trade developments have affected sentiment in export-oriented crop markets, pricing for almonds and pistachios continues to be primarily driven by fundamental supply and demand dynamics.  The USDA’s most recent Almond Objective Forecast 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