October 14, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

It hasn’t been long since we’ve heard from Gladstone Land. Less than two months after the company’s last flurry of acquisitions, Gladstone announced it has acquired 1,284 gross acres of farmland, including more than 1,200 acres of planted (partially organic) pistachio and almond orchards, in Kern County California. 

The company also announced that the deal included 19,670 acre-feet of stored water, equal to 6.4 billion gallons, located within the Semitropic Water Storage District water bank for a total sum of approximately $43 million.

This deal represents the third and final closing on a three-part acquisition representing a total value of $84.2 million. The second phase was announced on August 24, 2021, when Gladstone acquired 479 gross acres of farmland including 460 planted acres of almonds in Kern County, California, along with 5,000 acre-feet of stored water equal to about 1.6 billion gallons, also located in the Semitropic Water Storage District water bank for a total $14.8 million. 

“We are happy to announce the closing of the third and final phase of this transaction in Kern County,” said Bill Reiman, executive vice president, Gladstone Land. “We are looking forward to a successful future with this property and new tenant. From the day we closed the first phase of this deal, we realized benefits to our overall business, and we are excited about where this will lead us in the future.”

As is customary for Gladstone, the company entered into a 10-year, triple-net lease agreement for this latest acquisition.

“We are pleased to be expanding our relationship with a very fine tenant who has a long history of farming in the area,” said David Gladstone, president and CEO, Gladstone Land. “All of our farms continue to have adequate water. We believe the additional water we’re buying in this transaction will help the production on this farm continue at good levels for many years, while also providing additional security to other farms in the area if there is ever a need for additional water.”

The success of a well-constructed farmland portfolio is only as good as its water supply  will allow- and Gladstone taking action to ensure access to adequate supply is definitely prudent – particularly in California.

Jeremy Stroud noted in his article, Agricultural Water Tech Leading The Way For Sustainability: The Importance of Managing Water Before The Point of Use, published by GAI News in July 2021,“We are far removed from the days where agriculture and the food system can be rationally separated from the subject of freshwater management. The overwhelming majority of global freshwater withdrawals are consumed for agri-food purposes, and irrigation is responsible for over 40 percent of the food we eat. Irrigated farmland is vital to the economic prosperity of the global sector, producing higher value and more nutritious crops on average, which are benefits that cascade to provide food security and the drought-resilience for local agricultural communities.”

The close of this deal brings Gladstone’s holdings to 159 farms, comprising 108,000 acres in 14 U.S. states, along with 45,000 acre-feet of banked water in California, carrying a value of approximately $1.4 billion.

These assets are spread across a range of permanent crops such as almonds, apples, cherries, figs, lemons, olives, pistachios, blueberries, and vineyards; fresh produce annual row crops; sod; and farming-related assets such as cooling, processing, and packaging facilities, and distribution centers. 

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.