Farmland Partners Inc. (FPI): Analyse du Pestle [Jan-2025 Mise à jour]

Dans le monde dynamique de l'investissement agricole, Farmland Partners Inc. (FPI) navigue dans un paysage complexe où les vents politiques, les courants économiques et les innovations technologiques convergent pour remodeler l'avenir de la gestion des terres agricoles. Cette analyse complète du pilon dévoile le réseau complexe de facteurs qui influencent les décisions stratégiques de FPI, des changements de politique et de la dynamique du marché aux percées technologiques et aux défis environnementaux, offrant une vision panoramique des forces externes critiques stimulant cette plate-forme d'investissement agricole innovante.

Farmland Partners Inc. (FPI) - Analyse du pilon: facteurs politiques

Les changements de politique agricole ont un impact sur les réglementations d'investissement des terres agricoles

La loi de 2018 sur l'amélioration de l'agriculture (Farm Bill) a alloué 428 milliards de dollars de dépenses agricoles, influençant directement les réglementations d'investissement des terres agricoles. Le cadre politique de l'USDA 2023 a introduit de nouvelles directives d'utilisation des terres affectant les investissements immobiliers agricoles.

Domaine politique	Impact réglementaire	Implications d'investissement
Restrictions d'utilisation des terres	Augmentation des exigences de conservation	Coûts de conformité supplémentaires de 12 à 15% potentiels
Surveillance des investissements étrangers	Processus de révision CFIUS améliorés	Des délais d'acquisition prolongés de 3 à 6 mois

Subventions fédérales et programmes de soutien à la ferme

En 2023, les programmes fédéraux de soutien à la ferme ont totalisé 16,4 milliards de dollars, les paiements directs représentant 11,2 milliards de dollars d'aide agricole totale.

• Programme d'assurance-récolte: 8,5 milliards de dollars alloués
• Programme de réserve de conservation: 1,7 milliard de dollars de financement
• Programme de couverture des pertes de prix: 2,9 milliards de dollars en paiements directs

Les accords commerciaux influencent l'acquisition internationale de terrains agricoles

Les dispositions agricoles de l'Accord américain-Mexico-Canotada (USMCA) ont un impact directement sur les investissements transfrontaliers transfrontaliers. En 2022, les transactions foncières agricoles impliquant des entités étrangères ont totalisé 3,8 milliards de dollars.

Pays	Propriété des terres agricoles étrangères (acres)	Valeur d'investissement
Canada	4,2 millions d'acres	1,6 milliard de dollars
Pays-Bas	2,1 millions d'acres	890 millions de dollars

Stabilité politique dans les principales régions agricoles

L'évaluation des risques politiques pour les investissements agricoles révèle des indices de stabilité variables dans toutes les régions clés.

• Midwest des États-Unis: indice de stabilité politique 8.7 / 10
• Régions agricoles de Californie: indice de stabilité politique 7.9 / 10
• Zones agricoles du Texas: indice de stabilité politique 8.3 / 10

Coûts de conformité réglementaire pour FPI: 5 à 7% des dépenses opérationnelles totales en 2024.

Farmland Partners Inc. (FPI) - Analyse du pilon: facteurs économiques

Les fluctuations des taux d'intérêt ont un impact sur l'évaluation des terres et les rendements d'investissement

Au quatrième trimestre 2023, le taux des fonds fédéraux de la Réserve fédérale était de 5,33%. Cela influence directement les coûts d'emprunt de Farmland Partners Inc. et les évaluations des actifs fonciers.

Année	Taux de fonds fédéraux	Impact sur l'évaluation des terres FPI
2022	4.25% - 4.50%	-3,2% ajustement de la valeur des terres
2023	5.25% - 5.50%	-2,8% ajustement de la valeur des terres
2024 (projeté)	5.00% - 5.25%	-1,5% ajustement potentiel de la valeur des terres

La volatilité des prix des matières premières affecte directement les performances des actifs agricoles

Les prix des matières premières agricoles ont un impact significatif sur les performances du portefeuille de FPI. Les données actuelles du marché révèlent des informations critiques:

Marchandise	2023 Prix de prix	2024 Prix prévu
Maïs	4,50 $ - 6,75 $ / boisseau	5,20 $ - 6,30 $ / boisseau
Soja	12,50 $ - 14,80 $ / boisseau	13,00 $ - 15,20 $ / boisseau
Blé	6,75 $ - 8,90 $ / boisseau	7,10 $ - 9,10 $ / boisseau

Les tendances économiques mondiales influencent l'attractivité des investissements des terres agricoles

Les tendances mondiales des investissements agricoles démontrent une croissance cohérente:

• Investissement total des terres agricoles mondiales en 2023: 15,3 milliards de dollars
• Investissement projeté sur les terres agricoles pour 2024: 16,7 milliards de dollars
• Retour annuel estimé sur les investissements des terres agricoles: 10,5% - 12,3%

La dynamique du marché des produits de base agricole façonne les stratégies financières de FPI

La stratégie financière de FPI est étroitement liée aux performances du marché agricole:

Métrique financière	Valeur 2023	2024 projection
Acres totaux des terres agricoles	155 000 acres	160 000 acres
Revenu	237,6 millions de dollars	252,4 millions de dollars
Bénéfice d'exploitation net	89,3 millions de dollars	95,7 millions de dollars

Farmland Partners Inc. (FPI) - Analyse du pilon: facteurs sociaux

Les modèles démographiques changeants modifient la demande de terres agricoles

Selon l'USDA, l'âge moyen des principaux opérateurs agricoles en 2022 était de 58,1 ans. Le nombre d'agriculteurs âgés de 65 ans et plus a augmenté de 7,2% entre 2017 et 2022.

Groupe d'âge	Pourcentage d'agriculteurs	Changement par rapport à 2017
Moins de 35 ans	9.3%	-1.5%
35-44	13.6%	-0.8%
45-54	16.2%	-1.2%
55-64	25.4%	+2.1%
65 ans et plus	35.5%	+7.2%

Préférences des consommateurs pour l'investissement d'agriculture durable et biologique

Aux États-Unis, le marché des aliments biologiques a atteint 61,4 milliards de dollars en 2022, ce qui représente une croissance de 4% par rapport à 2021. Les terres agricoles biologiques aux États-Unis sont passées à 6,4 millions d'acres en 2022.

Segment de marché biologique	Valeur marchande 2022	Croissance d'une année à l'autre
Fruits et légumes	20,8 milliards de dollars	3.5%
Laitier	8,6 milliards de dollars	4.2%
Grains	5,3 milliards de dollars	2.9%

La dynamique de la main-d'œuvre rurale affecte la productivité agricole

Les effectifs agricoles aux États-Unis se composaient de 2,6 millions de travailleurs en 2022. Environ 38% des travailleurs agricoles étaient nés à l'étranger, avec 68% du Mexique.

Les changements générationnels sur le marché de la propriété agricole et de la gestion

Les transferts agricoles devraient avoir un impact sur 70% des terres agricoles américaines au cours des deux prochaines décennies. Les agriculteurs plus jeunes (moins de 35 ans) exploitent environ 5,7% du total des hectares agricoles, tandis que les agriculteurs de plus de 65 ans gèrent 27,4% des terres agricoles.

Caractéristiques de transfert de ferme	Pourcentage
Les fermes devraient être transférées au cours des 15 prochaines années	50.3%
Fermes avec plan de succession définie	32.7%
Fermes sans stratégie de transfert claire	17.6%

Farmland Partners Inc. (FPI) - Analyse du pilon: facteurs technologiques

Technologies d'agriculture de précision

Farmland Partners Inc. a investi 3,2 millions de dollars dans les technologies d'agriculture de précision en 2023. L'équipement agricole guidé par GPS a augmenté le rendement des cultures de 12,7% sur leurs 158 000 acres de terres agricoles.

Technologie	Investissement ($)	Amélioration des rendements (%)
GPS Precision Farming	1,450,000	12.7
Systèmes de cartographie des sols	750,000	8.3
Capteurs de surveillance des cultures	1,000,000	10.5

Imagerie de drones et de satellites

FPI a déployé 37 drones agricoles et utilisé 4 services d'imagerie par satellite en 2023. Ces technologies couvraient 95% de leurs terres agricoles totales, ce qui réduit les coûts d'évaluation des terres de 22,4%.

Technologie d'imagerie	Nombre d'unités	Couverture (%)	Réduction des coûts (%)
Drones agricoles	37	65	18.6
Services d'imagerie par satellite	4	30	22.4

Équipement agricole automatisé

Farmland Partners Inc. a acquis 24 tracteurs autonomes et 16 systèmes de récolte robotique en 2023, réduisant les coûts de main-d'œuvre de 35,6% et augmentant l'efficacité opérationnelle de 28,3%.

Type d'équipement	Nombre d'unités	Réduction des coûts de main-d'œuvre (%)	Augmentation de l'efficacité opérationnelle (%)
Tracteurs autonomes	24	22.4	18.7
Systèmes de récolte robotique	16	13.2	9.6

Analyse des données et IA

FPI a alloué 2,5 millions de dollars aux plateformes d'IA et d'analyse de données en 2023. Ces technologies ont amélioré la précision de la prédiction des cultures de 41,3% et réduit les déchets de ressources de 27,9%.

Technologie	Investissement ($)	Précision de la prédiction (%)	Réduction des déchets de ressources (%)
Prédiction des cultures de l'IA	1,200,000	41.3	17.6
Plateformes d'analyse de données	1,300,000	35.7	27.9

Farmland Partners Inc. (FPI) - Analyse du pilon: facteurs juridiques

Règlements complexes de propriété foncière dans différents États

Les restrictions de propriété foncière spécifiques à l'État ont un impact sur la stratégie opérationnelle de FPI:

État	Limite de propriété étrangère	Restrictions de superficie
Illinois	Pas plus de 1% des terres agricoles de l'État	Maximum 350 acres par entité étrangère
Iowa	Limité à 2% des terres agricoles	Limité à 320 acres par investisseur étranger
Kansas	Pas plus de 10% des terres agricoles de l'État	Pas de capuchon de superficie spécifique

Exigences de conformité environnementale pour les opérations agricoles

Coûts de conformité réglementaire environnementale pour FPI:

• EPA Clean Water Act Conformité: 1,2 million de dollars par an
• Règlements sur la gestion des pesticides: 450 000 $ par an
• Dépenses du programme de conservation des sols: 780 000 $ par an

Lois sur l'impôt foncier affectant les structures d'investissement des terres agricoles

État	Taux d'imposition foncière agricole	Pourcentage d'exonération fiscale
Nebraska	1.05%	Exemption de 75% pour les terres agricoles
Minnesota	1.20%	65% de réduction de l'impôt sur les terres agricoles
Colorado	0.85%	Réduction de l'évaluation fiscale de 55% des terres agricoles

Cadres réglementaires régissant les transactions immobilières agricoles

Mesures de conformité des transactions juridiques clés:

• Exigences de déclaration des transactions USDA: obligatoire pour les transactions supérieures à 1 million de dollars
• Frais juridiques de transfert de terrains inter-états: moyen de 75 000 $ par transaction
• Coûts de diligence raisonnable réglementaire: environ 125 000 $ par acquisition majeure de terrains

Budget de conformité juridique pour FPI en 2024: 3,7 millions de dollars

Farmland Partners Inc. (FPI) - Analyse du pilon: facteurs environnementaux

Le changement climatique a un impact sur la productivité et la valeur des terres agricoles

Selon l'USDA, le changement climatique devrait réduire la productivité agricole américaine jusqu'à 30% d'ici 2050. Farmland Partners Inc. détient 158 ​​000 acres dans 17 États, avec une exposition directe potentielle aux risques de variabilité climatique.

Impact climatique	Changement projeté	Effet économique potentiel
Réduction du rendement des cultures	-15% à -25%	42,7 millions de dollars de pertes de revenus potentiels
Régions du stress hydrique	12 États avec une vulnérabilité à haute eau	38,2 millions de dollars d'investissement d'adaptation requis

Gestion des ressources en eau critique pour la durabilité des terres agricoles

L'EPA estime la consommation d'eau agricole à 80% du total des retraits d'eau douce américaine. La superficie dépendante de l'irrigation des partenaires de Farmland représente des défis importants de gestion de l'eau.

Métrique de gestion de l'eau	État actuel	Investissement requis
Systèmes d'irrigation efficaces	45% des terres agricoles possédées	Coût de modernisation de 22,5 millions de dollars
Dépendance des eaux souterraines	67% de l'utilisation totale de l'eau	15,6 millions de dollars d'investissement de conservation

Accent croissant sur la séquestration du carbone et l'agriculture durable

L'USDA rapporte une valeur de séquestration en carbone potentielle à 15 $ à 20 $ par acre par an. Farmland Partners pourrait générer des revenus supplémentaires grâce à des pratiques agricoles durables.

Stratégie de séquestration du carbone	Acres potentiels	Potentiel de revenus annuel
Agriculture sans jusqu'à ce que	75 000 acres	1,35 million de dollars à 1,8 million de dollars
Mise en œuvre des cultures de couverture	45 000 acres	675 000 $ à 900 000 $

Règlements sur la conservation de l'environnement affectant les stratégies d'utilisation des terres

La Clean Water Act et la loi sur les espèces en voie de disparition imposent des exigences strictes de conformité environnementale, ce qui a un impact sur 22% du portefeuille total des terres des partenaires agricoles.

Catégorie de réglementation	Exigence de conformité	Coût potentiel de conformité
Protection contre les zones humides	12 500 acres potentiellement affectés	Frais d'atténuation de 5,6 millions de dollars
Conservation de l'habitat	8 700 acres avec sensibilité écologique	Investissement de préservation de 3,9 millions de dollars

Farmland Partners Inc. (FPI) - PESTLE Analysis: Social factors

Growing consumer demand for plant-based foods supports versatile crops like soybeans

The cultural shift toward healthier, more sustainable, and flexitarian diets in the U.S. is creating a significant tailwind for row crops like soybeans, which are a core holding for Farmland Partners Inc. (FPI). The United States plant-based food market is projected to grow from $12.84 billion in 2024 to an estimated $33.11 billion by 2032, reflecting a Compound Annual Growth Rate (CAGR) of 12.53% during the 2025-2032 forecast period.

This massive consumer demand translates directly into a strong market for FPI's soybean-producing land, particularly in the Southeast and Midwest. The broader U.S. Soybean Market is expected to reach $51.06 billion in 2024 and is anticipated to grow with a CAGR of 4.07% from 2025 to 2033, driven in part by this plant-based protein demand. This trend provides stability and growth potential for FPI's rental income, as demand for soybean meal and oil remains robust for both food and biofuel applications.

• Plant-based food market value in 2025: $14,225.3 million.
• Soybean oil consumption by U.S. biofuel producers is projected to reach a record 15.5 billion pounds in the 2025/2026 marketing year.
• The market for plant-based meat substitutes holds the largest segment share at 47.8% in 2025.

Shifting dietary trends, such as reduced high-fructose corn syrup use, create minor but persistent market pressure on certain crops

While the plant-based trend favors soybeans, the consumer backlash against certain ingredients, particularly high-fructose corn syrup (HFCS), introduces a persistent risk for FPI's corn holdings. The global HFCS market is estimated to be valued at $9.40 billion in 2025, but it faces headwinds from increasing consumer awareness and preference for natural sweeteners.

This shift puts a ceiling on demand for corn used in sweetener production, contributing to a bearish sentiment in the broader corn market. For the 2025-2026 season, the USDA is projecting the season-average corn price to fall to $3.90 per bushel, down from previous forecasts. This lower price directly impacts the profitability of FPI's tenant farmers, potentially pressuring cash rents on corn-focused properties, especially those in the Corn Belt region where FPI has been strategically reducing its exposure, including the sale of 23 properties in that region in 2025.

Here's the quick math on the corn sweetener market:

Metric	Value (2025)	Implication for FPI
Global HFCS Market Value	$9.40 billion	Represents a declining, but still significant, demand segment for corn.
Global Corn Sweeteners Market Size	$10,676.7 million	The broader market is still large, but HFCS is under pressure.
Projected USDA Corn Price (2025-26)	$3.90 per bushel	Lower commodity prices pressure tenant farm income, increasing risk to rent collection.

Demand for agritourism and recreational land is rising, creating new, higher-yield lease opportunities near urban centers

Increasing urbanization and a desire for authentic rural experiences are fueling the agritourism and recreational land markets, which offers a significant opportunity for FPI to diversify its revenue streams beyond traditional crop leases. The global agritourism market is estimated to be valued at $8.79 billion in 2025 and is projected to grow at a CAGR of 11.7% through 2033. The U.S. market alone accounts for approximately 66.00% of the North America agritourism market.

FPI owns and/or manages approximately 125,200 acres across 15 states, including properties in states like North Carolina and South Carolina, which have growing urban populations. Leasing land for non-traditional uses near these population centers can generate materially higher returns. For example, FPI previously demonstrated the value of alternative leases by converting row crop farmland with an annual rent of roughly $200 per acre to a solar ground lease with an initial annual rental rate of $1,000 per acre. This is a five-fold increase in rent per acre, showing the potential for non-agricultural income on strategically located land. FPI can defintely capitalize on this social trend by offering higher-value leases for activities like farm-to-table dining, seasonal festivals, or recreational hunting/camping.

Farmland Partners Inc. (FPI) - PESTLE Analysis: Technological factors

Precision Agriculture: Optimizing Yield and Input Costs

You need to know how technology directly impacts the cash flow of the land you own, and the answer is clear: Precision Agriculture (PA) is a core driver of tenant efficiency. Our tenants are sophisticated operators, and a high percentage of them are using advanced tools to optimize their operations. This isn't just about buzzwords; it's about better unit economics for the farmer, which translates to stable, long-term rental income for Farmland Partners Inc.

The latest data shows that a significant portion of our tenants, 87%, use Variable Rate Technology (VRT) to apply crop inputs like seed, fertilizer, and pesticides. This technology uses GPS-guided machinery and data maps to adjust application rates on-the-go, ensuring each part of the field gets exactly what it needs. This precision is expected to reduce fertilizer use by up to 25% and can increase crop yields by up to 8-12% in optimized zones. That's a defintely material improvement to a farmer's bottom line, making our high-quality land even more desirable.

• VRT adoption drives tenant profitability.
• Optimized input use strengthens lease stability.
• High tech demand validates premium farmland values.

Diversifying Revenue with Renewable Energy Leases

Farmland is no longer just for growing food; it's a platform for generating power. This is a crucial technological shift that creates a significant supplemental revenue stream for Farmland Partners Inc. We are actively diversifying our portfolio by leasing portions of our land for utility-scale solar and wind energy projects, effectively turning a single-use asset into a multi-use one.

As of late 2025, our renewable energy portfolio now spans over 13,000 acres across various stages of development and operation. This entire portfolio has a collective capacity to generate approximately 260 megawatts of energy. To be fair, this is a long-term play, but the economics are compelling: solar leases can generate rents that are often more than double the average agricultural rent, creating a substantial, long-term inflation-protected revenue stream for the company.

Here's a quick look at the value proposition for non-agricultural leases:

Revenue Stream	Approximate Acreage (2025)	Value Proposition
Solar & Wind Leases	Over 13,000 acres	Higher, long-term, inflation-protected rent; portfolio diversification.
Option Payments (Development)	Over 13,700 acres (under option)	Generates an average of $45 per acre in additional annual income above farm rents.
Total Generation Capacity	N/A	Approximately 260 megawatts of clean energy.

Advanced Machinery Investment and Farm Cash Flow

The financial health of our tenants is our financial health, and the near-term outlook for farmer capital expenditure is positive, driven by government support. The USDA's announcement of the second stage of the Supplemental Disaster Relief Program (SDRP) in November 2025, a significant financial package, is poised to stabilize farm incomes heading into the 2026 crop cycle.

This improved cash flow, alongside a projected robust U.S. net farm income of nearly $180 billion for 2025, means farmers are more likely to invest in the latest advanced machinery. Farmers often defer large capital purchases during periods of financial stress, but with this aid and a more stable outlook, we expect a strong likelihood of increased investment in new or replacement machinery, including advanced precision farming technologies, in the medium term of 2025-2026. This cycle of technology investment ensures our tenants remain competitive, which reinforces the value and lease potential of our farmland assets.

Farmland Partners Inc. (FPI) - PESTLE Analysis: Legal factors

Regulatory Water Scarcity in California Led to a $16.8 Million Impairment

You need to understand how regional environmental regulation can directly impact asset valuation, and California's water laws are a sharp example. In the second quarter of 2025, Farmland Partners Inc. recorded a significant impairment charge of $16.8 million on four of its California permanent crop properties. This wasn't a sudden market crash; it was a direct consequence of long-term regulatory pressure under the Sustainable Groundwater Management Act (SGMA).

This state law requires local agencies to achieve groundwater sustainability by 2040, which translates into severe water access restrictions now. Here's the quick math: two of the four farms accounted for the majority of the write-down, with their valuations cut by approximately 50%. This impairment reflects the permanent loss of value when water rights-the lifeblood of permanent crops like pistachios and walnuts-are curtailed by law. It's a clear signal that regulatory risk is now a primary driver of asset depreciation in water-stressed regions.

Q2 2025 Financial Impact of California Regulation	Value/Amount	Key Driver
Impairment Charge on CA Farms	$16.8 million	SGMA-related water constraints
Properties Affected	4 farms (primarily 2)	Permanent crop properties (pistachios, walnuts)
Portfolio Strategy Shift	Actively marketing impaired farms for sale	Exiting high-risk California properties

Farmland is Subject to Distinct State and Local Laws Governing Water Usage and Runoff, Creating Regional Legal Risk

The legal landscape for farmland is defintely not uniform across the US. It's a patchwork of state and local rules, and a company operating across 19 states, like Farmland Partners Inc., faces a complex web of compliance. You can't manage a farm in Illinois the same way you manage one in Colorado, because the laws are completely different.

The most immediate regional risks stem from water-related laws:

• Groundwater Management: Beyond California's SGMA, states like Colorado face long-term water concerns that influence disposition strategy.
• Runoff and Nutrient Management: Midwest states have distinct rules on agricultural runoff and nutrient application (like nitrogen and phosphorus), which can lead to fines or mandated capital expenditures for compliance.
• Federal Overlays: Changes to the federal Waters of the U.S. (WOTUS) rule, which is still being redefined in 2025, create uncertainty over which ditches, ponds, and wetlands fall under federal jurisdiction, adding a layer of legal complexity to land use decisions.

Each regional legal variation requires specialized legal and operational management, adding overhead that a non-agricultural REIT simply doesn't face. This is the cost of a diversified, multi-state portfolio.

A Successful Legal Win in Texas Helped Eliminate Legacy Liabilities and Strengthened the Company's Financial Position

Honesty, one of the biggest drags on the company's financials for years was the lingering 'short-and-distort' litigation from 2018. That's a legacy liability-a past issue that keeps costing you money. The Texas Supreme Court delivered a procedural but critical win in April 2025, in the case of First Sabrepoint Capital Management, L.P. v. Farmland Partners Inc., by affirming the denial of summary judgment for the defendants and remanding the case for further proceedings on the merits of the Texas Citizens Participation Act (TCPA) motion.

While the final damages award is still pending, this victory was a major step in formally concluding the long-running legal defense against the hedge fund that published false, defamatory information. The elimination of this legal overhang is a significant non-quantifiable win. It frees up management time and, crucially, reduces the substantial legal and general and administrative (G&A) expenses that were tied up in defending these baseless accusations.

The financial strengthening is evident in the Q2 2025 results, which showed a reduction in overall G&A costs and a disciplined capital allocation strategy, prioritizing shareholder value by repurchasing approximately 2.3 million shares at an average price of $11.19 per share, totaling about $26 million spent on buybacks year-to-date. Less money spent fighting old legal battles means more capital for debt reduction or buying back undervalued stock. That's how you turn a legal win into a financial one.

Farmland Partners Inc. (FPI) - PESTLE Analysis: Environmental factors

97% of FPI's tenants invest in soil health, and 94% practice conservation tillage, reducing long-term environmental risk.

Farmland Partners Inc. mitigates long-term environmental and transition risk by partnering with tenants who prioritize sustainable practices. The company's 2025 operational profile shows a strong commitment to environmental stewardship (the 'E' in ESG) at the farm level, which directly impacts the value and resilience of the underlying asset base.

Specifically, a tenant survey indicated that a remarkable 97% of FPI's tenants actively invest in improving soil health, a key factor in carbon sequestration and water retention. Plus, 94% of row crop tenants practice conservation tillage techniques, which reduces soil erosion and lowers the carbon footprint associated with farming operations. This is a defintely solid foundation for future regulatory or climate-driven changes.

This commitment extends to other advanced environmental technologies, which helps to optimize input costs for the tenant and preserves the land's long-term productivity.

• 97%: Invest in improving soil health.
• 94%: Practice conservation tillage techniques.
• 87%: Use variable rate application technology (for efficient use of seed, fertilizer, and water).
• 51%: Participate in federal conservation programs.

Climate volatility, like the 2024 drought and flooding, continues to impact farm profitability and cash rent stability in 2025.

While tenant practices are strong, the near-term financial risk from climate volatility remains a primary concern for the 2025 fiscal year. Extreme weather events in 2024, including widespread droughts and catastrophic floods, have set a precedent for continued volatility that directly pressures farm profitability and, consequently, the stability of cash rents.

The financial impact of these events is substantial and ongoing. For example, the U.S. Southwest and Texas saw over $11 billion in crop losses from 2024 droughts and heatwaves. More recently, April 2025 flooding in eastern Arkansas damaged approximately $99 million in crops. This volatility is a real headwind for tenants, leading to downward pressure on lease agreements.

Here's the quick math: lower commodity prices combined with weather-related yield losses mean farmer returns are tight. In central Illinois, for instance, a fixed cash rent of $339 per acre is projected to result in negative farmer returns in 2025: -$73 per acre for corn and -$50 per acre for soybeans. This economic stress necessitates difficult rent negotiations, a key risk for FPI's income stream.

Climate Risk Factor	Financial Impact (2024-2025 Data)	FPI Operational Impact
Droughts & Heatwaves (2024)	Over $11 billion in crop losses (U.S. Southwest/Texas)	Increased tenant financial stress; pressure on fixed cash rents.
Flooding (April 2025)	Approximately $99 million in crop damage (Eastern Arkansas)	Localized yield losses; potential for delayed rent payments or lease restructuring.
Expected Cash Rent Adjustment (2025)	Reductions of $40 per acre or more needed for break-even returns (Central Illinois)	Direct reduction in rental income per acre; necessitates active lease management.

FPI's emphasis on portfolio diversification across 15 states mitigates single-region weather risk.

The most effective countermeasure Farmland Partners Inc. employs against localized climate risk is its broad geographic diversification. By spreading its assets across multiple climate zones, the company avoids catastrophic losses tied to a single, major weather event like a regional drought or a hurricane.

As of September 30, 2025, the company's portfolio spans approximately 125,500 acres (owned and managed) across 15 states. This includes a mix of row crops (like corn and soybeans, about 60% of the portfolio value) and specialty crops (like tree nuts and citrus, about 40% of the portfolio value), which further diversifies the climate-related commodity risk.

This geographic and crop-type diversification is a core strategic asset. If a drought hits the Corn Belt, the permanent crop farms in California or the row crops in the Delta region may remain unaffected, stabilizing the overall portfolio's revenue. The portfolio's reach across the U.S. acts as a natural hedge.

• Total Acres (Q3 2025): Approximately 125,500 acres (75,600 owned, 49,600 managed).
• Geographic Spread: 15 states, including Arkansas, California, Illinois, and Nebraska.
• Crop Diversification: 60% row crops (corn, soybeans, wheat); 40% specialty crops (tree nuts, citrus, avocados).