Farmland LP, a leader in transforming conventional farmland into organic and sustainably managed properties, is excited to announce that its Vital Farmland III, LLC (“Fund III”) has acquired three prime properties in Northern California’s Sacramento Delta for a total of $35.6 million. This acquisition marks a significant enhancement to Fund III’s portfolio, reflecting Farmland LP’s dedication to investing in high-quality, sustainable farmland and valuable water rights. The newly acquired properties, spanning 2,625 acres, are strategically located near Farmland LP’s existing operations hub in Northern California, with one farm directly across the river from Farmland LP’s 4,200-acre Burns Farm. Each of the new farms benefits from some of California’s most secure and longstanding water rights, ensuring a dependable water supply.
This acquisition demonstrates Farmland LP’s capability to secure high-quality land and water rights in key agricultural regions at advantageous prices. The properties feature nearly mature almond orchards, which will accelerate cash flow generation by bypassing the usual 6-7 year maturation period.
Craig Wichner, Founder and Managing Partner of Farmland LP, remarked, “We see this as a prime opportunity to acquire such a valuable portfolio. This strategic move highlights our ability to act opportunistically and acquire top-tier assets at favorable prices in the current market.”
The properties were purchased from an almond-focused investment fund, made available due to rising interest rates and a downturn in almond prices. With the almond market beginning to recover from the 2022 low, Farmland LP’s strategy of maintaining low debt and a diversified farm portfolio—both geographically and by crop type—continues to enhance the profitability and stability of its Funds. The new acquisition adds to our existing diversity, and we plan to introduce new value-added crops to some of the acquired land.
Farmland LP has closed on two of the three farms and is scheduled to finalize the purchase of the third property in Q4/24, following necessary infrastructure improvements. Fund III has already raised and invested over 30% of its $250 million target, including the acquisition of a 1,100-acre farm in Oregon that grows organic blueberries, wine grapes, and hazelnuts. Future acquisitions are anticipated in Oregon and Washington, where Farmland LP currently manages around 12,000 acres.
