Gladstone Land Corporation Reviews Permanent Crop Portfolio

Gladstone Land Corporation (Nasdaq:LAND) announced that Bill Reiman, Executive Vice President (West Coast Operations), is steering a strategic review of its permanent cropland portfolio. Reiman, a seasoned farmer and key team member since 2013, is assessing the company's holdings amid a downturn in the prices of key permanent crops.

Prices of crops like almonds, pistachios, and grapes have fallen over the past 12-18 months. This decline, coupled with higher input and borrowing costs, has significantly squeezed farm margins. Permanent crop maintenance costs present additional financial challenges, complicating the company's ability to plan for monthly dividends.

To address these issues, Gladstone Land is considering several options. These include negotiating leases with lower fixed base rental rates, forming joint ventures with growers, or selling certain properties. Proceeds from potential sales could be reinvested in more stable assets or used to pay off debt.