Gladstone Land Corp., McLean, Va., acquired approximately 3,850 acres of farmland located in Hayes and Hitchcock Counties, Neb., for approximately $14.7 million.
The farms currently grow corn, soybeans and edible beans, but will be converted into organic farmland by 2021.
“This is an exciting acquisition for us,” says Bill Hughes, managing director. “We are entering a new farming region in the U.S. and beginning a new tenant relationship with Granstrom Farms, one of the leading organic growers in Nebraska. Having a presence in this area will not only give us a great new relationship with one of the top growers in the state, but will also give us exposure to potential new crop types for our farmland portfolio. In addition to the 17 new irrigated circles, we will be constructing a state-of-the-art grain drying and storage facility to safely handle and protect the integrity of the organic grain on the farms. The company is making a concerted effort to acquire or develop more organic crops within its farmland holdings, and it believes these acquisitions demonstrate its commitment to farms growing healthy foods.”
“An interesting aspect of these purchases is that the company will be assisting the farmers in their transition from conventional ground to organic certification of the farm,” says David Gladstone, president and CEO. “The organic certification is expected to result in the farmer receiving premium prices for the crops, which will, in turn, make the farm more valuable to the company. The company seeks to own farms growing healthy foods, and with the demand for organic food continuing to grow, the acquisition of these farms is evidence of its continued focus on this investment strategy.”