Gladstone Land Acquires Farmland in Maryland’s Eastern Shore and Delaware
- by Chandler James
MCLEAN, VA - Gladstone Land Corporation is a powerhouse name in the industry that we here at ANUK like to keep an eye on—and it did not disappoint this week. The real estate giant recently announced that it has closed an acquisition for approximately $7.4 million of farmland in Maryland’s Eastern Shore and Delaware.
“With this acquisition, Gladstone Land now owns farms in 12 different states and 25 different growing regions across the U.S.,” said David Gladstone, President and CEO. “We are seeing increasing opportunities in this region for high-value farmland growing potatoes, peppers, sod, and other high-value crops. We hope to be able to take advantage of certain of these opportunities to increase the overall diversification within the list of farms owned by the company.”
Gladstone Land has acquired 939 gross acres of farmland in Maryland’s Eastern Shore and Delaware for approximately $7.4 million. That brings the land to roughly $7,880 per acre. According to the press release, the farmland will be used primarily to grow vegetables and sod.
“We are very excited about this opportunity to enter into a new region and partner with a great and diversified local grower,” said Joseph Van Wingerden, Director of Real Estate. “We hope to continue to expand in the mid-Atlantic region and offer local farmers a chance to grow their acreage. The access to major cities and abundant water sources makes farms in this region extremely attractive.”
In connection with the acquisition, Gladstone Land also entered into a 10-year lease agreement with a large sod and vegetable grower in the region. This new land acquisition will give Gladstone Land the opportunity to diversify crops being grown.
“Our farms remain 100 percent occupied, and our farmers continue to take advantage of elevated pricing for fresh produce and certain other foods at grocery stores. The fallout from COVID-19 has not negatively affected the majority of our farmers in any significant way,” Gladstone continued. “There is still an oversupply of corn, wheat, and soy, which continues to drive depressed prices for those crops. We only have a few farms growing these types of crops, making up less than 10 percent of our total revenue, and a significant portion of that is organic.”
Alongside its acquisition news, Gladstone Land Corporation offered an update to the recent fires in California. As many of us know, industry members here have experienced grave setbacks and exposure throughout the state. Thankfully, Gladstone Land is able to report that its farms and lands have received no damages.
“In addition, in light of the current wildfires spreading throughout certain parts of California, we are reporting that none of our farms have been damaged by any of the fires, and we do not currently believe that the fires pose a threat to any of our properties,” Gladstone expressed. “As most of you know, our farms are largely in the valleys and flatlands, while most of the fires are in the mountains. Our thoughts are with those who have been injured or have lost possessions because of the fires.”
Keep checking back to ANUK as we report more on the latest.