Farmland Partners Inc. (FPI) has finalized its acquisition of 118 farms, totaling more than 22,000 acres near Paris, Illinois.
The closing is for a total consideration of $50 million in cash; 2,608,695 common units of limited partnership interest in the company's operating partnership; and $117 million in preferred operating-partnership units. The common units are worth $11.50 per share, resulting in a total amount of $197 million.
FPI has entered into lease agreements with 18 tenants, 14 of whom farmed under the previous owners. Including the new operators, FPI has 72 tenants spread over 257 farms.
"This transformative transaction makes FPI one of the largest owners of farmland in the midwestern United States," Farmland Partners CEO Paul Pittman said. "The increased scale of our operations will be reflected on our balance sheet and in our revenue, and the substantial number of new operators will add value to our volume purchasing program by increasing the total acreage operated by our tenants."
Farmland Partners is an internally managed real estate company that buys and owns quality North American farmland and makes loans to farmers who are secured by farm real estate.