Farmland Partners Inc. (FPI): Análise de Pestle [Jan-2025 Atualizada]

No mundo dinâmico do investimento agrícola, a Farmland Partners Inc. (FPI) navega em um cenário complexo onde ventos políticos, correntes econômicas e inovações tecnológicas convergem para remodelar o futuro da gestão das terras agrícolas. Essa análise abrangente de pestles revela a intrincada rede de fatores que influenciam as decisões estratégicas da FPI, desde mudanças de políticas e dinâmica de mercado a avanços tecnológicos e desafios ambientais, oferecendo uma visão panorâmica das forças externas críticas que impulsionam essa inovadora plataforma de investimento agrícola.

Farmland Partners Inc. (FPI) - Análise de Pestle: Fatores Políticos

As mudanças de política agrícola afetam os regulamentos de investimento em terras agrícolas

A Lei de Melhoria Agrícola de 2018 (projeto de lei agrícola) alocou US $ 428 bilhões em gastos agrícolas, influenciando diretamente os regulamentos de investimento em terras agrícolas. A estrutura de políticas 2023 do USDA introduziu novas diretrizes de uso da terra que afetam os investimentos em imóveis agrícolas.

Área de Política	Impacto regulatório	Implicações de investimento
Restrições de uso da terra	Requisitos de conservação aumentados	Potenciais custos de conformidade adicionais de 12 a 15%
Monitoramento de investimentos estrangeiros	Processos de revisão do CFIUS aprimorados	Linhas de aquisição estendidas em 3-6 meses

Subsídios agrícolas federais e programas de apoio

Em 2023, os programas federais de apoio agrícola totalizaram US $ 16,4 bilhões, com pagamentos diretos representando US $ 11,2 bilhões em assistência agrícola total.

• Programa de Seguro de Culturas: US $ 8,5 bilhões alocados
• Programa de Reserva de Conservação: US $ 1,7 bilhão em financiamento
• Programa de cobertura de perda de preços: US $ 2,9 bilhões em pagamentos diretos

Os acordos comerciais influenciam a aquisição internacional de terras agrícolas

O Acordo Agrícola dos Estados Unidos-México-Canadá (USMCA) as disposições agrícolas afetam diretamente os investimentos em terras agrícolas transfronteiriças. Em 2022, as transações de terras agrícolas envolvendo entidades estrangeiras totalizaram US $ 3,8 bilhões.

País	Propriedade da terra agrícola estrangeira (acres)	Valor de investimento
Canadá	4,2 milhões de acres	US $ 1,6 bilhão
Holanda	2,1 milhões de acres	US $ 890 milhões

Estabilidade política nas principais regiões agrícolas

A avaliação de riscos políticos para investimentos agrícolas revela índices de estabilidade variados em regiões -chave.

• Midwestern Estados Unidos: Índice de Estabilidade Política 8.7/10
• Regiões Agrícolas da Califórnia: Índice de Estabilidade Política 7.9/10
• Zonas agrícolas do Texas: Índice de Estabilidade Política 8.3/10

Custos de conformidade regulatória para FPI: estimado 5-7% do gasto operacional total em 2024.

Farmland Partners Inc. (FPI) - Análise de Pestle: Fatores Econômicos

As flutuações da taxa de juros afetam a avaliação da terra e os retornos de investimento

A partir do quarto trimestre de 2023, a taxa de fundos federais do Federal Reserve era de 5,33%. Isso influencia diretamente os custos de empréstimos da Farmland Partners Inc.

Ano	Taxa de fundos federais	Impacto na avaliação da terra do FPI
2022	4.25% - 4.50%	-3,2% ajuste do valor da terra
2023	5.25% - 5.50%	-2,8% ajuste do valor da terra
2024 (projetado)	5.00% - 5.25%	-1,5% Potencial Ajuste do valor da terra

A volatilidade dos preços das commodities afeta diretamente o desempenho dos ativos agrícolas

Os preços das commodities agrícolas afetam significativamente o desempenho do portfólio da FPI. Os dados atuais do mercado revelam informações críticas:

Mercadoria	2023 Faixa de preço	2024 Preço projetado
Milho	$ 4,50 - US $ 6,75/bushel	US $ 5,20 - US $ 6,30/bushel
Soja	$ 12,50 - $ 14,80/bushel	US $ 13,00 - $ 15,20/bushel
Trigo	US $ 6,75 - US $ 8,90/bushel	$ 7,10 - $ 9,10/bushel

Tendências econômicas globais influenciam a atratividade do investimento em terras agrícolas

As tendências globais de investimento agrícola demonstram crescimento consistente:

• Investimento total em terras agrícolas globais em 2023: US $ 15,3 bilhões
• Investimento de terras agrícolas projetadas para 2024: US $ 16,7 bilhões
• Retorno anual estimado sobre investimentos em terras agrícolas: 10,5% - 12,3%

Dinâmica do mercado de commodities agrícolas moldam as estratégias financeiras da FPI

A estratégia financeira do FPI está intimamente ligada ao desempenho do mercado agrícola:

Métrica financeira	2023 valor	2024 Projeção
Total de terras agrícolas acres	155.000 acres	160.000 acres
Receita	US $ 237,6 milhões	US $ 252,4 milhões
Receita operacional líquida	US $ 89,3 milhões	US $ 95,7 milhões

Farmland Partners Inc. (FPI) - Análise de Pestle: Fatores sociais

A mudança de padrões demográficos alteram a demanda de terras agrícolas

Segundo o USDA, a idade média dos principais operadores agrícolas em 2022 foi de 58,1 anos. O número de agricultores com 65 anos ou mais aumentou 7,2% entre 2017 e 2022.

Faixa etária	Porcentagem de agricultores	Mudança em relação a 2017
Abaixo de 35	9.3%	-1.5%
35-44	13.6%	-0.8%
45-54	16.2%	-1.2%
55-64	25.4%	+2.1%
65 ou mais	35.5%	+7.2%

Preferências do consumidor por investimento de impacto agrícola sustentável e orgânico

O mercado de alimentos orgânicos nos Estados Unidos atingiu US $ 61,4 bilhões em 2022, representando um crescimento de 4% a partir de 2021. As terras agrícolas orgânicas nos EUA aumentaram para 6,4 milhões de acres em 2022.

Segmento de mercado orgânico	Valor de mercado 2022	Crescimento ano a ano
Frutas e legumes	US $ 20,8 bilhões	3.5%
Laticínio	US $ 8,6 bilhões	4.2%
Grãos	US $ 5,3 bilhões	2.9%

A dinâmica da força de trabalho rural afeta a produtividade agrícola

A força de trabalho agrícola nos Estados Unidos consistia em 2,6 milhões de trabalhadores em 2022. Aproximadamente 38% dos trabalhadores agrícolas eram nascidos no exterior, com 68% originários do México.

Mudanças geracionais na propriedade e gerenciamento da fazenda influenciam o mercado

As transferências agrícolas devem impactar 70% das terras agrícolas dos EUA nas próximas duas décadas. Os agricultores mais jovens (menores de 35) operam aproximadamente 5,7% do total de acres agrícolas, enquanto os agricultores mais de 65 administram 27,4% das terras agrícolas.

Características de transferência da fazenda	Percentagem
As fazendas esperavam transferir nos próximos 15 anos	50.3%
Fazendas com plano de sucessão definida	32.7%
Fazendas sem estratégia de transferência clara	17.6%

Farmland Partners Inc. (FPI) - Análise de Pestle: Fatores tecnológicos

Tecnologias de Agricultura de Precisão

A Farmland Partners Inc. investiu US $ 3,2 milhões em tecnologias de agricultura de precisão em 2023. O equipamento agrícola guiado por GPS aumentou o rendimento da colheita em 12,7% em seus 158.000 acres de terras agrícolas.

Tecnologia	Investimento ($)	Melhoria do rendimento (%)
Agricultura de precisão do GPS	1,450,000	12.7
Sistemas de mapeamento do solo	750,000	8.3
Sensores de monitoramento de culturas	1,000,000	10.5

Imagens de drone e satélite

O FPI implantou 37 drones agrícolas e utilizou 4 serviços de imagem por satélite em 2023. Essas tecnologias cobriram 95% de suas terras agrícolas totais, reduzindo os custos de avaliação da terra em 22,4%.

Tecnologia de imagem	Número de unidades	Cobertura (%)	Redução de custos (%)
Drones agrícolas	37	65	18.6
Serviços de imagem por satélite	4	30	22.4

Equipamento de agricultura automatizada

A Farmland Partners Inc. adquiriu 24 tratores autônomos e 16 sistemas de colheita robótica em 2023, reduzindo os custos de mão -de -obra em 35,6% e aumentando a eficiência operacional em 28,3%.

Tipo de equipamento	Número de unidades	Redução de custos de mão -de -obra (%)	Aumento da eficiência operacional (%)
Tratores autônomos	24	22.4	18.7
Sistemas de colheita robótica	16	13.2	9.6

Análise de dados e IA

O FPI alocou US $ 2,5 milhões para as plataformas de análise de IA e dados de dados em 2023. Essas tecnologias melhoraram a precisão da previsão de culturas em 41,3% e reduziram o desperdício de recursos em 27,9%.

Tecnologia	Investimento ($)	Precisão de previsão (%)	Redução de resíduos de recursos (%)
Previsão de culturas de IA	1,200,000	41.3	17.6
Plataformas de análise de dados	1,300,000	35.7	27.9

Farmland Partners Inc. (FPI) - Análise de Pestle: Fatores Legais

Regulamentos complexos de propriedade da terra em diferentes estados

As restrições de propriedade da terra específicas do estado afetam a estratégia operacional da FPI:

Estado	Limite de propriedade estrangeira	Restrições de área cultivada
Illinois	Não mais que 1% das terras agrícolas do estado	Máximo de 350 acres por entidade estrangeira
Iowa	Restrito a 2% da terra agrícola	Limitado a 320 acres por investidor estrangeiro
Kansas	Não mais que 10% das terras agrícolas do estado	Nenhuma tampa específica de área cultivada

Requisitos de conformidade ambiental para operações agrícolas

Custos de conformidade regulatória ambiental para FPI:

• Conformidade da Lei da Água Limpa da EPA: US $ 1,2 milhão anualmente
• Regulamentos de gerenciamento de pesticidas: US $ 450.000 por ano
• Despesas do Programa de Conservação do Solo: US $ 780.000 anualmente

Leis de impostos sobre a propriedade que afetam as estruturas de investimento em terras agrícolas

Estado	Taxa de imposto de propriedade agrícola	Porcentagem de isenção de imposto
Nebraska	1.05%	75% de isenção para terras agrícolas
Minnesota	1.20%	65% de redução do imposto sobre terras agrícolas
Colorado	0.85%	55% de redução da avaliação de impostos de terras agrícolas

Estruturas regulatórias que governam transações imobiliárias agrícolas

Métricas importantes de conformidade com transações legais:

• Requisitos de relatório de transações do USDA: obrigatório para transações acima de US $ 1 milhão
• Taxas legais de transferência de terras interestaduais: média de US $ 75.000 por transação
• Custos regulatórios de due diligence: aproximadamente US $ 125.000 por grande aquisição de terras

Orçamento de conformidade legal para FPI em 2024: US $ 3,7 milhões

Farmland Partners Inc. (FPI) - Análise de Pestle: Fatores Ambientais

A mudança climática afeta a produtividade e o valor da terra agrícola

De acordo com o USDA, a mudança climática é projetada para reduzir a produtividade agrícola dos EUA em até 30% até 2050. A Farmland Partners Inc. possui 158.000 acres em 17 estados, com potencial exposição direta aos riscos de variabilidade climática.

Impacto climático	Mudança projetada	Efeito econômico potencial
Redução do rendimento da colheita	-15% a -25%	US $ 42,7 milhões em potencial perda de receita
Regiões de estresse hídrico	12 estados com alta vulnerabilidade de água	US $ 38,2 milhões de investimentos de adaptação necessários

Gerenciamento de recursos hídricos Crítico para a sustentabilidade das terras agrícolas

A EPA estima o consumo agrícola de água em 80% do total de retiradas de água doce dos EUA. A área dependente da irrigação dos parceiros de terras agrícolas representa desafios significativos de gerenciamento de água.

Métrica de gerenciamento de água	Status atual	Investimento necessário
Sistemas de irrigação eficientes	45% das terras agrícolas possuídas	Custo de modernização de US $ 22,5 milhões
Dependência das águas subterrâneas	67% do uso total de água	US $ 15,6 milhões em investimento em conservação

Foco crescente no seqüestro de carbono e agricultura sustentável

O USDA relata um potencial valor de sequestro de carbono em US $ 15 a US $ 20 por acre anualmente. Os parceiros de terras agrícolas podem gerar receita adicional por meio de práticas agrícolas sustentáveis.

Estratégia de seqüestro de carbono	Acres potenciais	Potencial anual de receita
Agricultura no plantio direto	75.000 acres	US $ 1,35 milhão a US $ 1,8 milhão
Implementação de culturas de cobertura	45.000 acres	US $ 675.000 a US $ 900.000

Regulamentos de conservação ambiental que afetam estratégias de uso da terra

A Lei da Água Limpa e a Lei de Espécies Ameaçadas impõem rigorosos requisitos de conformidade ambiental, impactando potencialmente 22% do portfólio total de terras dos Parceiros Fazendentes.

Categoria regulatória	Requisito de conformidade	Custo potencial de conformidade
Proteção de zonas úmidas	12.500 acres potencialmente afetados	Despesas de mitigação de US $ 5,6 milhões
Conservação do habitat	8.700 acres com sensibilidade ecológica	US $ 3,9 milhões em investimento de preservação

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).