US: Farmland Partners Inc. Announces Wind Farm Lease Agreements with Iberdrola Renewables

The wind farm will deliver power to the electrical grid that supplies both current and future Amazon Web Services, Inc. Cloud data centers.  

The wind farm, after construction, will be situated on approximately 28 acres of farmland owned by the Company.  The Company currently leases the land to a local farmer for approximately $275 per acre, and will lease the 28 acres to Iberdrola Renewables for approximately $2,600 per acre over a 25-year lease term.  As a result, the Company expects that the total rent across the 1,839 acres of leasable farmland comprising these two farms will increase by approximately 13%.  The wind leases may generate returns beyond the forecasted levels based on annual increases under the consumer price index and additional construction activity by the tenant.

"Renewable energy projects have the potential to increase the returns we generate from our farm holdings.  We are highlighting this transaction for investors because it is illustrative of the upside opportunities that our stockholders may derive from our ownership of farmland," said Paul Pittman, CEO of the Company. "This and other renewable energy projects under consideration are examples of how we pursue opportunities to increase rents on our land by finding additional revenue sources beyond traditional farm leases."

The Company has in place or is considering many projects that will provide alternative revenue streams, including revenue generated from solar power leases, power line easements, pipeline easements, wind power easements, recreational leases, flyover rights and road projects.