Posted on 09/22/2017 2:00:41 PM PDT by ptsal
Farmland Partners Inc. (NYSE: FPI) ("FPI") announced today that it has entered into agreements to acquire from Olam International Limited ("Olam") approximately 5,100 acres of permanent crop farmland in California for a purchase price of $110 million.
The properties are located in California's Central Valley and are dedicated to the production of almonds, pistachios and walnuts. At closing of the acquisition, FPI will enter into a 25-year triple-net lease agreement with Olam on a revenue share basis. During the term of the agreement, Olam will operate and maintain the properties and improvements. Closing is subject to customary conditions.
(Excerpt) Read more at prnewswire.com ...
Olam is a leading global agribusiness company with operations in 70 countries and nearly 70,000 employees. FPI is the largest publicly-traded farmland real estate investment trust in the U.S. FPI's portfolio is broadly diversified across crops and regions, spanning more than 154,000 acres.
$21,000+ per acre. Insane.
A company named “AgReserve” which is the mormon church is now the largest private landholder in the state of Florida. They purchased almost a half-million acres in the FL Panhandle in 2013. How many here knew that? Many locals were and are very upset. Seems they have plans to remove timber which is what has been farmed there since the beginning and replace with cattle ranches. Now you know.
Growing nuts. I bet they bought the land because it has unlimited water rights. Saudi Arabia bought land because of the water rights for alfalfa.
In Cali all farms who grow nuts get to use as much water as they want. Meanwhile all ratepayers are fined and told to remove their lawns, not wash their cars and rates go up even if they have cut back on water.
I wonder how much Jerry Browns back account has grown since they protect the major farms?
Didn’t they cut of Central Valley water for that fish some years ago? Smelt?
It is an awe-inspiring experience to drive along I-5 Freeway through the Central Valley at 65 MPH and see one. single. grove of pistachio trees for almost 30 minutes straight.
Zero interest rates have literally financialized everything in the USA.
When Wall Street gets close to zero interest loans from the Federal Reserve, everything can become a bond, purchased and packaged for its cash flows.
Great, all you need is to add water and stuff will grow big and fast!!
Don’t worry, they’ll make it back on the soon to be announced massive housing development ...
How is that a insane price? To low?
Zero interest rates have literally financialized everything in the USA.
**************
And money printing. We print prosperity. LOL
But seriously, what would happen to the debt service cost for the massive $20 trillion federal debt if rates increased by just 1 or 2 percent?
OH, Mrs. Brown, please tell us now how creating an artificial drought by withholding water from farmers wasn’t planned so that an agribusiness could come in and buy up the land for pennies on the dollar. Robber baron.
When a “nut” is exported, that is the functional equivalent of mining water to support the food chain in a foreign land.
So of those folks (overseas consumers) are NOT big fans of the USA.
THINK ABOUT IT.
Sounds like a good deal (for somebody).
I suspect we will see a steady erosion of purchasing power and inflation, such that $20 Trillion (or $30 Trillion) won't seem like much in GDP terms. This is a given. I think you'll also see lots more QE when the SHTF again. Also, the FED will never sell the bonds it holds now. It may even write them off some day as a "gift" to the United States.
“A company named “AgReserve” which is the mormon church is now the largest private landholder in the state of Florida. They purchased almost a half-million acres in the FL Panhandle in 2013. How many here knew that? Many locals were and are very upset. Seems they have plans to remove timber which is what has been farmed there since the beginning and replace with cattle ranches. Now you know.”
Is it the cattle or the Mormons, that you have a problem with? You didn’t say.
If it is a free market sale between a willing seller, and a willing buyer, what justifies your involvement whatsoever?
Do you desire a big, all powerful government, to step in a block the sale?
I don’t see how the Fed can unwind its huge bond holdings without disrupting the market. Four trillion dollars worth I believe.
The Fed undertook an experiment that it doesn’t know how to exit from. They can’t sell the bond and they are finding it hard to normalize rates.
Thank you.
You summarized this quite well.
Check out Kern County, hurting from tax loss with oil decline, so they encourage the water-draining pistachios (which will drain limited aquifiers). Your exact scenario.
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