Gladstone Land Corporation announced that it has acquired 939 gross acres of farmland in Maryland’s Eastern Shore and Delaware for approximately $7.4 million. The farmland will be used primarily to grow vegetables and sod. In connection with the acquisition, Gladstone Land also entered into a 10-year lease agreement with a large sod and vegetable grower in the region.
“We are very excited about this opportunity to enter into a new region and partner with a great and diversified local grower,” said Joseph Van Wingerden, Director (Real Estate) at Gladstone Land. “We hope to continue to expand in the mid-Atlantic region and offer local farmers a chance to grow their acreage. The access to major cities and abundant water sources makes farms in this region extremely attractive.”
“With this acquisition, Gladstone Land now owns farms in 12 different states and 25 different growing regions across the U.S.,” said David Gladstone, President and CEO of Gladstone Land. “We are seeing increasing opportunities in this region for high-value farmland growing potatoes, peppers, sod, and other high-value crops. We hope to be able to take advantage of certain of these opportunities to increase the overall diversification within the list of farms owned by the Company.
“Our farms remain 100% occupied, and our farmers continue to take advantage of elevated pricing for fresh produce and certain other foods at grocery stores. The fallout from COVID-19 has not negatively affected the majority of our farmers in any significant way. There is still an oversupply of corn, wheat, and soy, which continues to drive depressed prices for those crops. We only have a few farms growing these types of crops, making up less than 10% of our total revenue, and a significant portion of that is organic.
“In addition, in light of the current wildfires spreading throughout certain parts of California, we are reporting that none of our farms have been damaged by any of the fires, and we do not currently believe that the fires pose a threat to any of our properties. As most of you know, our farms are largely in the valleys and flatlands, while most of the fires are in the mountains. Our thoughts are with those who have been injured or have lost possessions because of the fires.”
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