Farmland Partners said Wednesday it agreed to buy 8,638 acres of row crop farms in Illinois for total consideration of $55.3 million in cash.
The company intends to fund the transaction with proceeds from its recent public offering of common stock and new secured debt to be entered into upon closing of the transaction.
The acquisition is expected to close in the first quarter of 2017, subject to customary closing conditions.
“These two farms of approximately 3,800 and 4,900 acres represent a truly unique investment opportunity in the Midwest,” said Paul Pittman, CEO. “We expect significant long term appreciation on these properties due to their size and the incredibly efficient operating environment we expect to provide to our tenants.”