LARKSPUR, Calif.--(BUSINESS WIRE)--Farmland LP, the leading investment fund specializing in converting conventional farmland to organic and sustainably managed farmland, is pleased to announce that its Vital Farmland III, LLC (“Fund III”) has acquired three properties in Northern California’s Sacramento Delta for a total of $35.6 million. This strategic acquisition will significantly enhance Farmland LP’s Fund III portfolio, reflecting the firm’s commitment to investing in high-quality, sustainable farmland and water rights.
The newly acquired properties total 2,625 acres and are strategically located near Farmland LP's existing farm operations hub in Northern California. One farm is directly across the river from Farmland LP’s 4,200-acre Burns Farm. All three new farms benefit from some of California's oldest and most secure water rights, ensuring a valuable and reliable water supply.
The acquisition exemplifies Farmland LP’s ability to secure high-quality land and water rights in prime growing regions at favorable prices. The farms’ nearly mature almond orchards eliminate the typical 6-7-year waiting period for cash flow generation as crops mature into full production.
"We believe that now is an opportune time to acquire properties like this portfolio," said Craig Wichner, Founder and Managing Partner of Farmland LP. "This strategic acquisition underscores our ability to acquire opportunistically, capitalizing on market conditions to acquire high-quality assets at favorable prices."
Acquired from an almond-only investment fund, the properties became available due to a rise in interest rates and cyclically low almond pricing. Some permanent crops follow a typical 7–10-year pricing cycle and almond pricing is beginning to rebound from the low in 2022. Farmland LP believes in low debt and a diversified farm portfolio, both geographically and by crop type, which enhances the profitability and stability of its Funds. This acquisition adds to our existing diversity, and we expect to add new value-add crops on some of the acquired acres.
Farmland LP closed on two of the three farms in the portfolio and is in contract to close on the third property in Q4/24 after specific infrastructure improvements are complete. Fund III has raised and deployed more than 30% of its $250 million target, including a 1,100-acre farm in Oregon growing organic blueberries, wine grapes, and hazelnuts. Future acquisitions are expected in Oregon and Washington, where Farmland LP manages approximately 12,000 acres.
To learn more and explore investing, contact IR@farmlandlp.com or visit farmlandlp.com.
About Farmland LP
Farmland LP is the leading investment fund that generates returns by converting conventional farmland to organic, sustainably managed farmland. Founded in 2009, Farmland LP owns and manages over 18,500 acres of high-quality farmland in Washington, Oregon, and California, with approximately $300 million in assets over three funds.
