June 8, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

Gladstone Land continues to expand its holdings in the Mid-Atlantic region of the U.S., announcing its acquisition of 116 gross acres of farmland, including 100 acres of blueberry bushes along with a fresh packing and shipping facility in Hammonton, New Jersey, for approximately $2.2 million. 

In accordance with the deal, Gladstone has entered into a 15-year, triple-net lease agreement with Berry Brothers, a family-owned farming company with local blueberry operations in Hammonton, as well as in three other states.

“The 2021 blueberry season is looking strong in the U.S., with both prices and demand well above averages,” said Joseph Van Wingerden, director, Gladstone Land. “We look forward to expanding in the region and our new relationship with Berry Brothers.”

This acquisition is also a strategic fit with Gladstone’s recent growth direction. The company entered the Mid-Atlantic region in September 2020 when it acquired 939 gross acres of vegetable and sod farmland in Maryland’s Eastern Shore and Delaware for approximately $7.4 million. 

“The access to major cities and abundant water sources makes farms in this region extremely attractive,” said Wingerden at the time.

“We are very excited about this opportunity to enter into a new region and partner with a great and diversified local grower,” Wingerden continued,  “We hope to continue to expand in the mid-Atlantic region and offer local farmers a chance to grow their acreage.”

Gladstone also noted that it has marked the mid-Atlantic region for expansion, saying that they are looking at several more farms as potential acquisitions to be either leased to their current tenants or to expand their tenant base.

In early March 2021 this intention came to fruition, the company expanded its holdings in the region with the acquisition of another 228 acres of vegetable and sod farmland in Dorchester County, Maryland for $1.6 million. 

“Expanding on the East Coast, where many farms are close to major cities and have abundant water, is integral to our continued growth and diversification,” said David Gladstone, president and CEO of Gladstone Land, at the time.

Aside from a geographic focus on the U.S. Mid-Atlantic region, Gladstone has also recently focused on blueberries. In the closing days of 2020, Gladstone announced its acquisition of approximately 1,670 acres of farmland and facilities split between San Joaquin County, California, and Whatcom County, Washington, that included 1,390 acres planted in organic and conventional blueberries. And in late March of this year, the company announced it had acquired 108,000 square-feet of cold storage and supporting facilities in Stockton, California, which are primarily used to cool and store fresh organic and conventional blueberries. 

Organic produce sales in the U.S. increased by 14.2 percent in 2020, equalling an increase of $1 billion to sales topping $8.5 billion, according to the 2020 Organic Produce Performance Report.

Broken down, berries (strawberries, blueberries, and raspberries) were counted in the highest categories for growth at 12.2 percent, following only packaged salads which saw growth of 15.4 percent, potatoes at 21 percent, and herbs and spices at 26 percent.

COVID-19 was a driver for this uptick in demand, pushing growth rates well beyond the average 10 percent posted between 2010 and 2016, and giving a fresh kickstart to sales that have moderated in the face of increased consumer saturation.

With this newly-added infrastructure asset in-hand, and several additional farm acquisitions closed at the end of 2020, Gladstone stated that is optimistic that 2021 will be another strong year for the company.

“High-quality fruit and vegetable farmland with access to plentiful water and located near major population centers is becoming increasingly scarce,” said David Gladstone, president and CEO of Gladstone Land.

“We are pleased to continue our mission of securing the most productive farmland for our grower-partners, especially as we see rising inflation beginning to have a significant impact on the price of farmland and produce across the country.”

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan@globalaginvesting.com.