Gladstone Land Sells Florida Farms for $21.5M, Achieving 36% Premium and 13% IRR

Gladstone Land Corporation sold a Florida farm property for $21.5 million, a 36% premium over its original purchase price 10 years ago, generating a 13% internal rate of return. The sale was part of the company's strategy to explore alternative options with some of its farms due to high interest rates. Gladstone Land owns over 100,000 acres of farmland in the US and has paid 150 consecutive monthly cash distributions since its IPO in 2013.

The US Department of Agriculture (USDA) has announced a significant policy change aimed at protecting agricultural land use and prioritizing food security over renewable energy development. The department will no longer provide funding for solar and wind projects on prime farmland, as announced by Secretary Brooke L. Rollins [1].

The move is framed as a food-security measure, with the USDA stating that subsidies have driven up land prices and reduced farmers' access to acreage. The decision has been supported by various officials, including Tennessee Governor Bill Lee, Senator Marsha Blackburn, and Representative John Rose [1].

The policy change is part of a broader effort to reduce market distortions and costs imposed on taxpayers by energy subsidies. The USDA will no longer fund solar and wind projects on prime farmland, and panels made by "foreign adversaries" will be barred from USDA-funded projects. Effective immediately, wind and solar projects are no longer eligible under the Rural Development Business and Industry Guaranteed Loan Program [1].

Meanwhile, Gladstone Land Corporation recently sold a Florida farm property for $21.5 million, a 36% premium over its original purchase price 10 years ago. The sale generated a 13% internal rate of return and was part of the company's strategy to explore alternative options due to high interest rates. Gladstone Land owns over 100,000 acres of farmland in the US and has paid 150 consecutive monthly cash distributions since its IPO in 2013 [2].

References:
[1] https://www.energetica-india.net/news/usda-to-block-funding-for-solar-panels-on-prime-farmland
[2] https://www.gladstoneland.com/news/gladstone-land-sells-florida-farm-property-for-215-million/