Promised Land Opportunity Zone Farms I, LLC (“Promised Land”) announced today that it purchased 4,528 acres of cropland in eastern North Carolina for $29 million. The investment will stimulate economic activity and labor opportunities in the region.
“We see great potential in farmland Opportunity Zones and increasing interest from social impact investors,” commented John Heneghan, President of Servant Financial, which founded Promised Land. “We are thrilled to add this high-quality North Carolina farm to our existing portfolio of nine farms and 3,800 total acres in Illinois, South Carolina, and Mississippi. Including improvement projects, the portfolio size now approximates $53 million.”
The North Carolina property comprises more than 4,000 tillable acres, which have historically been planted with corn, soybeans, wheat, and potatoes. This large institutional scale asset has high quality soils, reliable water and drainage systems, and center-pivot sprinkler irrigation on approximately half of the tillable acres. Promised Land’s planned capital improvements include drainage, irrigation, and grain storage projects.
Farmland Partners Inc. (NYSE: FPI), a leading farmland REIT, serves as Promised Land’s property manager. Promised Land’s collaboration with Farmland Partners creates a uniquely scalable opportunity zone platform for socially minded investment in an underrated, inflation-protected asset class. Farmland Partners and Promised Land quickly sourced, underwrote, leased, and financed this portfolio centerpiece.
Promised Land was created to acquire, improve, and stimulate economic development associated with farmland located in qualified opportunity zones in the United States (“QOZs”). QOZs are economically distressed communities in which new investments, under certain conditions, may be eligible for preferential tax treatment.