Gladstone Land Corporation (LAND): PESTLE Analysis [Nov-2025 Updated]

You're invested in Gladstone Land Corporation (LAND), so you need a clear-eyed view of the macro forces shaping its future, not just last quarter's results. The direct takeaway is that LAND's focus on high-value specialty crops and triple-net leases provides a strong inflation hedge-US farmland values were up over 8% in the last year alone. But honestly, the near-term picture is complicated by two big, defintely interconnected risks: rising interest rates increasing their cost of capital, and the growing threat of regional water scarcity. Let's map out the Political, Economic, Sociological, Technological, Legal, and Environmental forces that will drive your investment decisions in 2025.

Gladstone Land Corporation (LAND) - PESTLE Analysis: Political factors

You're looking for clear signals on how Washington's policy moves directly affect the value of Gladstone Land Corporation's (LAND) specialty crop portfolio. The political landscape in late 2025 is creating a dual effect: it's providing a new, substantial safety net for specialty crop growers while simultaneously introducing a major, favorable shift in farm labor costs. This is an immediate tailwind for your tenants, which ultimately supports LAND's rental income stability and asset value.

Farm Bill legislation impacts crop subsidies and conservation programs.

The core policy framework for US agriculture, the 2018 Farm Bill, was extended until September 30, 2025, but a major budget reconciliation law (P.L. 119-21, the 'One Big Beautiful Bill Act') enacted in FY2025 has already made significant, positive changes for specialty crop producers. This law boosts the safety net for the high-value fruits, nuts, and vegetables that LAND's tenants grow.

Specifically, the reconciliation law increases funding for key programs and enhances risk management tools. This reduces the financial volatility for the farmers leasing LAND properties, making them more resilient tenants.

• Specialty Crop Block Grant Program (SCBGP) mandatory funding is increased to $100 million in FY2026 and each fiscal year thereafter.
• The bill increases premium subsidies for specialty crop crop insurance policies, which are often complex and previously less attractive to growers.
• It mandates increased funding for research on organic and specialty crops, supporting LAND's focus on high-value, sustainable agriculture.

US-China trade policy shifts affect export demand for specialty crops.

The volatile US-China trade relationship saw a significant, though partial, de-escalation in late 2025, which directly affects the export-reliant permanent crops in LAND's portfolio, such as almonds and pistachios. A recent trade truce in November 2025 led to China agreeing to suspend higher tariffs and restart agricultural purchases.

While the overall trade environment remains uncertain, the immediate action was the removal of some retaliatory tariffs of up to 15% on certain U.S. agricultural products after a high-level meeting. This is a relief, but key specialty crops still face hurdles.

Here's the quick math on the export exposure for two of LAND's major crops:

The trade policy is a mixed bag, but the recent tariff reduction is a net positive for export-focused tenants. Honestly, the long-term trade stability is still the biggest question mark.

Government-backed conservation easements can limit development potential.

Federal conservation policy, while beneficial for long-term land stewardship, poses a political risk to the development potential-and thus the maximum capital appreciation-of farmland. The Agricultural Conservation Easement Program (ACEP) is the primary vehicle for this policy.

In FY2025, the program received a massive injection of capital from the Inflation Reduction Act (IRA), substantially increasing the government's ability to acquire easements that permanently restrict non-agricultural use.

• Total funding available through ACEP from the IRA and the Farm Bill is up to $7.7 billion.
• The fiscal year 2025 authorized amount for the ACEP-IRA funding alone is $500 million, specifically for easements that maximize greenhouse gas reduction.
• This policy increases the likelihood that a land parcel's development rights are permanently sold to the government, capping its value as anything other than farmland.

For LAND, which focuses on high-value specialty crop land near urban centers, this policy is a double-edged sword: it limits the upside of future development conversion but also provides a non-tenant-dependent revenue stream (easement sales) and protects the long-term value of agricultural land by reducing supply.

Immigration policy changes influence the availability and cost of farm labor.

Labor cost is the single largest operating expense for specialty crop growers, so recent changes to the H-2A temporary agricultural visa program are defintely a game-changer. In October 2025, the Department of Labor (DOL) issued an Interim Final Rule (IFR) that fundamentally changed the calculation of the Adverse Effect Wage Rate (AEWR), the minimum wage for H-2A workers.

The new rule shifts the wage calculation from the USDA's Farm Labor Survey (FLS) to the Bureau of Labor Statistics' Occupational Employment and Wage Statistics (OEWS), and importantly, it introduces an 'Adverse Compensation Adjustment' (ACA) to offset the cost of required employer-provided housing and transportation.

The impact is a significant reduction in the labor cost floor for farmers, which directly improves tenant profitability and stability:

The DOL estimates these changes will save agricultural employers over $24 billion over the next 10 years. This is a massive, immediate political win for the agricultural sector and a clear positive for LAND's tenants, especially those growing labor-intensive crops like berries and vegetables.

Gladstone Land Corporation (LAND) - PESTLE Analysis: Economic factors

Rising interest rates increase LAND's cost of debt and pressure capitalization rates.

You're seeing the same pressure on capital costs that every real estate investment trust (REIT) faces, but for Gladstone Land Corporation, the impact is magnified by the relatively low capitalization rates (cap rates) in the farmland sector. Higher borrowing costs directly erode the spread between your cost of capital and the return on your assets.

The Total Debt on the balance sheet as of September 2025 stood at approximately $0.48 Billion USD. The trailing twelve months (TTM) Cost of Debt as of June 2025 was calculated at approximately 4.0241%. This is a blended rate, but the cost of new debt is clearly higher: in Q2 2025, the company secured a new $10.6 million loan at a fixed interest rate of 6.31% to repay a maturing loan that bore interest at 3.85%. That's a 246 basis point jump in financing costs for that specific tranche. This upward pressure on interest rates is forcing capitalization rates-the ratio of net operating income to property value-higher, which in turn puts downward pressure on asset valuations if rental income doesn't keep pace. Current regional cap rates for farmland are typically low, often ranging from 2.0% to 2.5%. High interest rates make new acquisitions difficult because the cost of capital is often higher than the initial cap rate, a situation management has cited as a reason to be cautious with new investments.

Farmland values have shown strong appreciation, with average US values up over 4% in the last year.

Farmland remains a powerful hedge against inflation, and its capital appreciation provides a strong backstop to the balance sheet. While growth has slowed from the double-digit surges seen earlier in the decade, values continue to climb, which protects your equity base.

According to the USDA's August 2025 report, the average U.S. farm real estate value reached $4,350 per acre, marking an increase of 4.3% from the previous year. Cropland specifically saw a 4.7% gain, averaging $5,830 per acre. This appreciation is a key driver of long-term total returns for Gladstone Land Corporation. However, the slowing pace of appreciation signals a market cooling, which limits a tenant's ability to leverage land as collateral for loans and can lead to more cautious lending practices.

Here's the quick math on the national average: a 4.7% gain on cropland is a solid return, even if it's not the 8% seen in some prior periods or specific regions. The real strength is in the long-term trend.

Inflation drives up tenant operating costs but is offset by rental escalators in leases.

Inflation is a double-edged sword. On one hand, it drives up the costs for your tenants-everything from fertilizer and fuel to labor wages and insurance premiums. This pressure on farm-level profitability is a key risk because a financially strained tenant is a risk to your rent collection.

But for Gladstone Land Corporation, the lease structure provides a critical offset. The majority of your leases include annual rent escalators, which are either fixed or variable, tied to standard cost of living or inflation indices. This mechanism is designed to protect the real value of your rental income over time. Still, the average rent increase for U.S. cropland in 2025 was only a modest 0.6% to $161 per acre. This low increase suggests that while escalators are in place, the market for cash rents is not keeping pace with the land value appreciation or the high operating cost inflation. If the tenant's cost inflation outpaces the rent escalator, their margin shrinks, increasing the risk of default, even with a long-term lease.

Commodity price volatility for specialty crops directly impacts tenant financial health.

The company's focus on specialty crops (fruits, nuts, and vegetables) is a strategic differentiator, but it also means greater exposure to price volatility compared to row crops like corn and soybeans. This is a crucial near-term risk because management has made a conscious decision to shift a portion of its portfolio to participation-based rents for the 2025 crop year.

This strategic shift on six farms, which temporarily reduced or eliminated fixed base rent in exchange for a significantly higher participation rent component, is expected to result in a year-over-year decline of approximately $17 million in fixed base rents for fiscal year 2025. This defintely ties your near-term revenue directly to the unpredictable harvest outcomes and market prices for crops like almonds and pistachios.

While management reports that market trends for almonds are favorable, with average pricing up approximately 24% year over year, and pistachio prices holding steady, other specialty crops show extreme volatility, such as cocoa prices rising 163% and orange juice prices increasing 36% in the past year. This volatility means that a single weather event or trade policy change can swing a significant portion of your Q4 earnings, which is when the majority of these participation rents are expected to be recognized.

• Monitor the Q4 2025 earnings call for the actual realization of the expected $16.9 million in participation rent revenue.
• Track almond and pistachio export volumes, as the nut sector is vulnerable to trade policy, with about 70% of U.S. almonds and pistachios exported annually.

What this estimate hides is that a good harvest and strong prices in Q4 will validate the lease restructuring, but a poor outcome will mean a significant revenue shortfall for the entire fiscal year.

Gladstone Land Corporation (LAND) - PESTLE Analysis: Social factors

Consumer preference for organic and health-focused foods boosts demand for LAND's specialty crops.

You're seeing the shift in grocery carts every day: consumers are prioritizing what they eat, and that means a huge tailwind for organic and specialty crops. The U.S. organic food market size is estimated to be around $95.4 Billion in 2025. This demand is driven by a focus on health, wellness, and environmental sustainability, and the organic fruits and vegetables segment holds the largest market share.

This trend directly benefits Gladstone Land Corporation because of its strategic focus. As of November 2025, over 30% of the Company's fresh produce acreage is either certified organic or in transition to become organic, and nearly 20% of its permanent crop acreage falls into this category. This high exposure to the premium organic segment allows the Company to command higher rental rates and maintain strong tenant demand, even when conventional crop markets face pressure. It's a clear differentiator in the farmland REIT space.

Here's the quick math on the growth potential:

• U.S. Organic Food Market Size (2025 Est.): $95.4 Billion
• Projected Market Growth (CAGR 2025-2033): 10.35%
• LAND's Organic Fresh Produce Exposure: Over 30% of acreage

Generational transfer of farmland creates opportunities for institutional investors like LAND.

The average age of the American farmer is now over 60, and this aging demographic is triggering one of the largest wealth transfers in U.S. history. The American Farmland Trust (AFT) estimates that approximately 300 million acres of U.S. agricultural land are expected to change hands over the next two decades.

For institutional investors like Gladstone Land Corporation, this creates a steady, multi-decade pipeline of acquisition opportunities. Many retiring farmers or their non-farming heirs prefer a clean, tax-efficient exit via a sale-leaseback transaction, which is a core offering of the Company. The sheer scale of the transfer-approximately $24 trillion in real estate assets slated to transfer over the next 20 years-means competition for high-quality, specialty crop land will remain intense. The U.S. farm real estate value averaged $4,350 per acre for 2025, up 4.3 percent from 2024, so institutional capital is defintely needed to meet this supply.

Labor shortages push tenants toward automation, changing farm operational needs.

The persistent labor shortage in U.S. agriculture is forcing a fundamental shift in farm operations, especially for the specialty crops that Gladstone Land's tenants grow, which are typically labor-intensive. Projections indicate the U.S. agricultural industry may face a deficit of approximately 2.4 million more farmworkers in 2025. This scarcity, coupled with rising wages, has pushed labor costs for some specialty crop and greenhouse growers to nearly 40% of their overall expenses.

This pressure is driving massive investment in agricultural technology (Ag-Tech). U.S. farm technology investments are projected to exceed $18 billion by 2025, with about 62% of farms now using precision agriculture. For Gladstone Land, this means tenants are increasingly demanding farms that are well-suited for automation, such as large, contiguous fields or properties with infrastructure that can support robotic harvesters and AI-driven irrigation systems. The Company's focus on high-value, permanent crops like almonds and pistachios means their tenants are at the forefront of this automation wave.

Increased public scrutiny on food supply chains and ethical sourcing.

Public scrutiny on how food is produced-from labor conditions to environmental impact-is now a permanent feature of the social landscape. Transparency and sustainability are no longer optional; they are key drivers in supplier evaluations, with Environmental, Social, and Governance (ESG) data becoming a critical factor.

The food and beverage sector is inherently high-risk in the 'Social' component of ESG; for instance, 23% of all SMETA (Sedex Members Ethical Trade Audit) audits conducted in the last 12 months were within this sector. Furthermore, audit data shows that sustainability risk is 14% higher in primary production, like farming, than in manufacturing sites. For Gladstone Land, this scrutiny is a risk, but also an opportunity to attract and retain the best tenants.

The Company's tenants must demonstrate clear ethical sourcing practices, especially regarding farm labor, as 24% of all migrant workers across Sedex member sites work in the Food and Beverage sector. Gladstone Land mitigates this risk by owning high-quality land and using a triple-net lease structure, which places the operational and ethical compliance burden directly on its established, corporate and independent farmer tenants, but the Company still benefits from tenants who can prove their responsible sourcing.

Next Step: Management should conduct a formal review of tenant labor practices and ethical sourcing certifications by the end of Q1 2026.

Gladstone Land Corporation (LAND) - PESTLE Analysis: Technological factors

Precision agriculture adoption (GPS, IoT sensors) boosts tenant yields and profitability

The widespread adoption of precision agriculture technologies is a major tailwind for Gladstone Land Corporation's (LAND) tenants, directly improving their ability to pay rent and maintain the value of the underlying farmland. These systems, including Global Positioning System (GPS) guidance and Internet of Things (IoT) sensors, allow for hyper-localized management of inputs.

In 2025, over 60% of U.S. farms are expected to utilize these technologies, a critical mass that is defintely changing the economics of specialty crop farming. This is especially true for the high-value crops LAND's tenants grow. For instance, in the smart specialty crop farming market, which is projected to reach an estimated $15.5 billion by 2025, AI integration is estimated to boost yields for crops like berries by up to 28%. Higher yields mean higher gross revenue for the farmer, which strengthens the triple-net lease foundation.

Here's the quick math on profitability improvements for key specialty crops using precision techniques in 2025:

Drones and data analytics help optimize water and fertilizer use, a critical factor

The use of drones (Unmanned Aerial Vehicles or UAVs) and advanced data analytics is becoming a standard operational practice, helping to mitigate the financial and environmental risks associated with high input costs and water scarcity. This is a crucial factor for LAND, which owns over 55,000 acre-feet of water assets in California alone as of November 2025.

Data-driven farming enables a significant reduction in waste. Smart farming with UAVs can reduce fertilizer consumption by 20% to 25% without sacrificing yield. Furthermore, predictive analytics platforms can cut down the use of water, fertilizers, and pesticides by up to 35%. These savings are essential given that total U.S. production expenses for 2025 are projected to reach a record $467 billion.

• Reduce input costs: Precision spraying targets only trouble spots.
• Improve water management: Custom irrigation schedules prevent over-watering.
• Increase yield quality: Early disease detection minimizes crop loss.

Competition from controlled environment agriculture (CEA) is a long-term threat to open-field farming

Controlled Environment Agriculture (CEA), which includes vertical farms and high-tech greenhouses, represents a long-term, structural threat to open-field farming, particularly for leafy greens and certain vegetables. This technology allows for year-round, hyper-local production independent of weather, which challenges the seasonal and geographic advantages of traditional farmland.

The global CEA market size was valued at approximately $108.48 billion in 2025 and is projected to expand at a Compound Annual Growth Rate (CAGR) of over 14.5% from 2026 to 2035. This growth trajectory is aggressive. North America is a key driver, expected to hold a 40.5% share of the CEA market in 2025. While CEA currently focuses on crops like leafy greens and berries, the technology is rapidly expanding to other specialty crops. This trend could eventually put downward pressure on the lease rates for LAND's open-field properties that grow similar commodities.

LAND uses technology to monitor environmental compliance and lease performance

While Gladstone Land Corporation operates on a triple-net lease model, meaning tenants are responsible for maintenance and technology deployment, the company still uses technology to monitor performance and compliance risks. Their focus is on oversight and risk mitigation, not direct farm operation.

The company's Adviser and Administrator work with an independent third-party Information Technology Service Provider (ISP) to manage their IT strategy and compliance. This technological infrastructure is key to monitoring the financial health of their assets and tenants, specifically by tracking:

• Lease performance: Monitoring for signs of impairment due to near-term lease maturities or vacancy rates.
• Environmental compliance: Monitoring for potential environmental damage or tenant neglect, which could trigger statutory liability for the REIT.

What this estimate hides is the reliance on the tenant's own tech stack. LAND's risk management process is highly dependent on the tenant's successful adoption of precision agriculture to ensure compliance with environmental provisions and maintain high yields, which in turn secures the rental income. Finance: draft a risk-adjusted lease renewal strategy incorporating tenant's demonstrated precision agriculture investment by Friday.

Gladstone Land Corporation (LAND) - PESTLE Analysis: Legal factors

You need to understand that the legal landscape for farmland ownership is a game of shifting sands, especially in specialty crop regions. For Gladstone Land Corporation, the key legal factors in 2025 center on complex water rights, the legal protection of their triple-net lease structure, and the ever-present, granular regulatory burden on food production.

Water rights laws, especially in Western states, are becoming stricter and more complex.

The legal framework governing water is the single most critical risk for farmland in the Western United States, where Gladstone Land Corporation holds a significant portion of its portfolio. The scarcity driven by drought and population growth is translating directly into stricter state-level regulations and more complex legal battles over allocation.

A prime example of this complexity is the ongoing implementation of California's Sustainable Groundwater Management Act (SGMA), which is forcing local agencies to limit pumping. This is not a distant threat; it's a capital cost now. The company is actively managing this risk by acquiring water assets, a necessary legal and financial hedge. In the third quarter of 2025 alone, Gladstone Land Corporation purchased 1,530 gross acre-feet of water in California for approximately $583,000, which breaks down to about $381 per gross acre-foot. This shows a clear, quantifiable cost of compliance and risk mitigation in a legally constrained market.

The company reports holding about 55,000 acre-feet of water assets across its portfolio, a key strategic asset in a tightening legal environment. You can see their legal strategy is to own the right to the water, not just the land.

Zoning and land-use regulations restrict the conversion of agricultural land.

Zoning laws are a double-edged sword for a farmland Real Estate Investment Trust (REIT). While they restrict the conversion of prime agricultural land to residential or commercial use, which helps preserve the value of Gladstone Land Corporation's existing holdings, they also limit the company's ability to sell land for higher-value development, a potential exit strategy.

The legal pressure to preserve farmland is strong in key operating states. For instance, in California, the Williamson Act provides property tax relief to owners who commit their land to agricultural or open-space use for a minimum of 10 years, legally locking in land use but reducing the tax burden. This legal commitment reinforces the long-term agricultural nature of the company's assets, making them less susceptible to speculative development pressures but also less liquid for non-farm sales.

Here's the quick math: The restriction on converting farmland to residential use helps maintain the value of their portfolio, which includes 103,000 acres across 15 states. If zoning were looser, the land value would be more volatile and subject to development cycles, not just agricultural fundamentals.

Triple-net lease structures legally shift operating expenses and maintenance to tenants.

The core of Gladstone Land Corporation's business model is the triple-net lease (NNN) structure. Legally, this structure is a major de-risker for the landlord, as it shifts the responsibility for property taxes, insurance, and maintenance costs directly to the tenant-farmer.

However, recent market pressures, particularly in permanent crops like nuts and grapes, have forced the company to legally amend some leases, moving away from a pure fixed-rent NNN to a hybrid model that includes a higher participation rent component (crop share). This is a legal concession to keep tenants solvent, but it means the company takes on more operational risk.

This legal restructuring is having a significant financial impact in 2025:

• The company executed six amended or new lease agreements in Q1 2025, with one eliminating base rent for a cash allowance and a significantly increased participation rent.
• For the full fiscal year 2025, the shift to participation rent is expected to result in a year-over-year decline of about $17 million in fixed base rents.
• The majority of the resulting crop share proceeds are legally due and expected to be recognized in the fourth quarter of 2025, making earnings heavily weighted toward year-end.

The legal framework of the NNN lease is still the foundation, but the financial terms are being flexed to manage tenant credit risk, a defintely necessary move.

Increased regulatory burden on pesticide use and food safety standards.

The agricultural sector faces a continuous barrage of new and revised regulations from federal agencies like the Environmental Protection Agency (EPA) and the Food and Drug Administration (FDA). This regulatory burden translates to higher compliance costs for the tenant-farmers, which can indirectly affect their ability to pay rent.

While the Trump administration's 'Make America Healthy Again' (MAHA) Commission strategy in September 2025 signaled a desire for regulatory flexibility, avoiding sweeping new pesticide restrictions, the regulatory process remains active and complex.

The table below shows recent, specific regulatory actions in 2025 that impact the day-to-day operations of Gladstone Land Corporation's tenants:

These constant, granular changes in chemical and food standards mean tenant-farmers must invest more in compliance and traceability systems, increasing their operating costs and potentially straining their finances. Finance: Monitor tenant solvency closely, especially in light of the $17 million fixed rent decline, and track regulatory compliance costs in Western and specialty crop regions.

Gladstone Land Corporation (LAND) - PESTLE Analysis: Environmental factors

Climate change increases the frequency of extreme weather events like droughts and floods.

You can't talk about farmland in 2025 without talking about the weather. Climate change is no longer an abstract risk; it's a direct operational cost for Gladstone Land Corporation. Increased frequency of extreme weather-from droughts in the West to floods in the Southeast-directly impacts the crop yields of their tenants, which, in turn, affects the company's rental income. This is why the structure of their leases is so critical right now.

The company has made a strategic shift on several farms for the 2025 crop year, moving from a fixed base rent to a participation rent structure. This means their revenue from these properties is now more exposed to the actual harvest outcomes, a risk partially mitigated by the requirement for strong crop insurance coverage on these specific farms. For the 2025 fiscal year, management expects the majority of their revenue and annual earnings to be recognized in the fourth quarter, heavily dependent on the success of these harvests, particularly for specialty crops like almonds and pistachios. One clean one-liner: Climate risk is now a line item on the income statement.

Water scarcity and irrigation restrictions pose a significant risk to crop yields in key regions.

Water scarcity is the single biggest environmental threat to any agricultural Real Estate Investment Trust (REIT) operating in the US, especially in California, where a significant portion of Gladstone Land Corporation's portfolio is located. The company has proactively managed this by acquiring and holding substantial water assets, which provides a crucial competitive moat against increasingly stringent state-level water regulations.

As of November 5, 2025, Gladstone Land Corporation owns approximately 100,000 total acres across 15 states, but their water assets are concentrated in the high-value, high-risk California market. This focus on water rights is a defintely smart long-term play, but it also means they face higher property operating expenses, evidenced by the additional costs incurred in the second quarter of 2025 to protect water rights on certain California farms. To be fair, this is a necessary expense to defend the long-term value of the land.

Here's the quick math on their water security strategy in 2025:

LAND faces pressure to meet growing Environmental, Social, and Governance (ESG) reporting standards.

The market is demanding transparency on Environmental, Social, and Governance (ESG) factors, and for a farmland REIT, the 'E'-especially water and soil health-is paramount. While Gladstone Land Corporation's operational focus on high-value, specialty crops and its water-asset strategy inherently aligns with sustainability (e.g., permanent crops often use more efficient micro-irrigation), their formal, public reporting is lagging.

Honestly, the lack of a formal, publicly available ESG or Sustainability Report in late 2025 is a risk in itself. Institutional investors and funds are increasingly mandated to screen for these disclosures, and a missing report can be a red flag, regardless of the underlying sustainable practices like organic farming and water conservation that the company's tenants employ. This gap in disclosure could affect their cost of capital or their inclusion in ESG-focused investment vehicles, even as the broader market projects global farmland REIT investments to surpass $50 billion in 2025, driven by sustainable agriculture demand. They need to close this reporting gap, and fast.

Soil health initiatives and carbon sequestration programs offer potential new revenue streams.

Beyond risk mitigation, the environmental landscape offers clear opportunities for new, climate-aligned revenue streams. Regenerative agriculture and soil health initiatives, which boost carbon sequestration (pulling carbon dioxide from the atmosphere into the soil), are becoming monetizable through verified carbon credit markets.

While specific 2025 revenue from carbon sequestration is not yet disclosed, Gladstone Land Corporation has already secured a tangible, non-farming revenue stream by diversifying its land use. This is a smart move that leverages the physical asset in a new way:

• Entered into a renewable energy lease with a wind company on a portion of one farm.
• This lease is expected to provide additional income of approximately $166,000 per year.

This kind of asset diversification, using non-farmable portions of land for clean energy, provides a stable, non-crop-dependent income stream that directly benefits from the 'E' in ESG. It's a concrete example of turning an environmental trend into a financial opportunity, and we should expect to see more of this in 2026.