Farmland Partners Inc. announced that it acquired two tracts of farmland. The corn and soybean farms collectively cover 270 acres in Edgar County, Ill.
The company spent $1.32 million to acquire 82 acres in the first transaction, which will create a contiguous block of farmland spanning more than 1,200 acres when combined with other farms in the portfolio. The company also purchased a 188-acre parcel for $2.04 million. That tract is approximately 7 miles away from the first transaction and is nearby additional FPI properties.
"Buying land that neighbors existing FPI farms is one of our core business strategies because it creates efficiencies for our tenants and the company, and it enables us to secure top rental rates," said Paul Pittman, FPI's chairman and CEO. "Eastern Illinois has some of the most productive, sought-after farmland in the country, and we believe it will be a smart long-term investment for our shareholders."
Both farms are leased and will produce rental income in addition to asset appreciation. Agricultural land in Illinois has averaged 5.7% in annual appreciation since 1970, according to the most recent data from the U.S. Department of Agriculture.
Categories: Illinois, Crops, Corn, Soybeans, General