Farmland values across the country climbed this year and hit
record levels despite challenges like rising interest rates and
extreme weather, according to recently released data from the
federal government.
The United States Department of Agriculture (the “USDA”) found
that U.S. farm real estate values, which includes all land and
buildings on farms, increased 7.4% over the past year. Cropland
values have grown 8.1% since 2022, its August 2023 Land Values
report noted.
Nationwide value of farm real estate and cropland also increased
sharply from 2021 to 2022, by 12.4% and 14.3% respectively,
according to the USDA’s previous annual survey.
The Federal Reserve Bank of Chicago reported similar findings in
its August 2023 AgLetter. Farmland values in the Bank’s district,
including key farming areas in Illinois, Indiana, Iowa, Michigan,
and Wisconsin, rose 9% in the second quarter of 2023 from a year
earlier.
Additionally, the Federal Reserve Bank of Kansas City – covering
Colorado, Kansas, Nebraska, Oklahoma, and Wyoming, as well as parts
of Missouri and New Mexico – released a paper last week about
farmland values. “Farm real estate markets remained resilient
despite moderation in the farm economy and higher interest rates,”
it noted. “The value of nonirrigated cropland increased from a year
ago by an average of about 7% in all participating regions.”
Luca Fabbri, President and CEO of Farmland Partners Inc. (NYSE:
FPI) (the “Company” or “FPI”), released the following statement
about the new data:
“These studies and similar reports coming
from farm country show that the farmland market is still strong and
adding value. Appreciation is a key component of farmland
investment returns, and its historical reliability is a big reason
why we remain bullish about the asset class.
“Farmland does not typically see the peaks
and valleys that mark economic changes. Instead, it usually
experiences peaks and plateaus – appreciating at a high rate when
times are good but not necessarily retreating when times are tough.
Why? Because farmland is finite in supply and its value is founded
on worldwide population growth, growing food demand, and
yield-boosting innovation.
“Smooth out the peaks and plateaus, and you
see that farmland grows in value by roughly 6% a year. Recent
dispositions by the Company have concretely demonstrated the power
of farmland appreciation.”
The USDA’s 2023 Land Values report is available at
https://bit.ly/3YzpS8R. The Federal Reserve Bank of Chicago’s
August 2023 AgLetter can be accessed at https://bit.ly/3sgqe8o. The
farmland values paper published by the Federal Reserve Bank of
Kansas City is at https://bit.ly/47yNhvd.
About Farmland Partners Inc.
Farmland Partners Inc. is an internally managed real estate
company that owns and seeks to acquire high-quality North American
farmland and makes loans to farmers secured by farm real estate. As
of the date of this release, the Company owns and/or manages nearly
186,000 acres in 20 states, including Alabama, Arkansas,
California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa,
Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North
Carolina, Oklahoma, South Carolina, Texas, and Virginia. In
addition, the Company owns land and buildings for four agriculture
equipment dealerships in Ohio leased to Ag Pro under the John Deere
brand. The Company has approximately 26 crop types and over 100
tenants. The Company elected to be taxed as a real estate
investment trust, or REIT, for U.S. federal income tax purposes,
commencing with the taxable year ended December 31, 2014.
Additional information: www.farmlandpartners.com or (720)
452-3100.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the federal securities laws, including, without
limitation, statements with respect to our outlook and the outlook
for the farm economy generally, proposed and pending acquisitions
and dispositions, financing activities, crop yields and prices and
anticipated rental rates. Forward-looking statements generally can
be identified by the use of forward-looking terminology such as
“may,” “should,” “could,” “would,” “predicts,” “potential,”
“continue,” “expects,” “anticipates,” “future,” “intends,” “plans,”
“believes,” “estimates” or similar expressions or their negatives,
as well as statements in future tense. Although the Company
believes that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, beliefs and
expectations, such forward-looking statements are not predictions
of future events or guarantees of future performance and our actual
results could differ materially from those set forth in the
forward-looking statements. Some factors that might cause such a
difference include the following: the on-going war in Ukraine and
its impact on the world agriculture market, world food supply, the
farm economy, and our tenants’ businesses; general volatility of
the capital markets and the market price of the Company’s common
stock; changes in the Company’s business strategy, availability,
terms and deployment of capital; the Company’s ability to refinance
existing indebtedness at or prior to maturity on favorable terms,
or at all; availability of qualified personnel; changes in the
Company’s industry, interest rates or the general economy; adverse
developments related to crop yields or crop prices; the degree and
nature of the Company’s competition; the timing, price or amount of
repurchases, if any, under the Company's share repurchase program;
the ability to consummate acquisitions or dispositions under
contract; and the other factors described in the section entitled
“Risk Factors” in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2022, and the Company’s other filings with
the Securities and Exchange Commission. Any forward-looking
information presented herein is made only as of the date of this
press release, and the Company does not undertake any obligation to
update or revise any forward-looking information to reflect changes
in assumptions, the occurrence of unanticipated events, or
otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230821252667/en/
Phillip Hayes phayes@farmlandpartners.com
Farmland Partners (NYSE:FPI)
過去 株価チャート
から 11 2024 まで 12 2024
Farmland Partners (NYSE:FPI)
過去 株価チャート
から 12 2023 まで 12 2024
