Alternative Energy Tapped to Generate Supplemental Income, Farmland
Ceres Farms, LLC contracted to purchase eleven farms in the fourth quarter totaling 2,895 acres for $15.5 million or $5,369 per acre. The farmland market remains highly inefficient, allowing our farm asset manager to acquire farms at very attractive prices. The management team evaluated 167 farm properties being auctioned during the quarter, actively bid in 83 auctions, and successfully purchased 8 farms (1-in-10) that met the valuation targets. Additionally, they pursued 36 private sales during the fourth quarter and came to terms on three properties.
The farm asset manager strives to maximize both farm rents and revenue from other sources. In 2016, non-farm revenue from recreational leases, timber, wind turbines, etc. totaled $1.42 million. They have placed additional focus on opportunities for solar projects.
Farmland Investment Overview
Update on January 28, 2016