Farmland Partners Inc. purchased 161 acres of cropland in Benton County, Ind. The corn and soybean farm consists of two contiguous tracts and was acquired for approximately $2.1 million.
"This is the first farm that the Company has bought in Indiana, and we are looking to add more," said FPI Chairman and CEO Paul Pittman. "We're very familiar with the region's soil, climate, and strong tenant base because of its proximity to eastern Illinois, where we own a lot of farmland."
The farm is leased through the end of the year, and Pittman believes that the property will demand strong rental rates for 2023 given its history of productivity and current market conditions. He explained that, in addition to rental income, shareholders should benefit from the asset's continued appreciation.
Agricultural land in Indiana has averaged 5.9% in annual appreciation since 1970, according to the most recent data from the U.S. Department of Agriculture.
Categories: Indiana, Business