Farmland Partners announces 208MW wind farm lease agreements with Iberdrola Renewable

Publicly traded real estate investment trust Farmland Partners has announced that two of its North Carolina farms will accommodate a portion of the 208MW Amazon Wind Farm US East, which is being built and will own and operate by Iberdola Renewables.

Following construction, the wind far will be located on about 28 acres of farmland owned by the Farmland Partners, which presently 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 under a 25-year lease period.

The company expects that the total rent across the 1,839 acres of leasable farmland including these two farms will grow by approximately 13%.

The wind leases are likely to generate returns beyond the estimated levels based on annual increases under the consumer price index and additional construction activity by the tenant.

Farmland Partners CEO Paul Pittman said: "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.

"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."

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