November 18, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

Gladstone Land is making a name for itself in the blueberry category, completing its fifth blueberry or blueberry-adjacent deal this year.

The company’s  latest announcement details its acquisition of 230 gross acres of farmland, including 175 acres of blueberry bushes and a fresh packing and shipping facility near Homerville, Georgia, for approximately $2.9 million.

As is standard for the company, Gladstone entered into a 15-year lease agreement with a regional farmer who is associated with a national berry marketing group.

A Berry Good Year

In the early days of January the company announced two deals – one that included 1,390 acres planted in organic and conventional blueberries and a fresh packing and cool facility. 

In mid-March the company went on to announce its acquisition of 108,000 square-feet of cold storage and supporting facilities in Stockton, California, to primarily be used to cool and store fresh organic and conventional blueberries, for which the company entered into a 10-year lease agreement with the seller.

This was followed in June by Gladstone expanding its Mid-Atlantic holdings, 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. 

More recently, in August, Gladstone announced it had closed on a $42.3 million deal for farmland, blueberry plantings, and improvements situated in Kern County, California, and Yamhill County, Oregon. 

Both farms are 100 percent certified USDA organic, and both feature high-density plantings, shade structures to minimize inputs and to ensure the quality of the fruit, and both have advanced irrigation systems in place.

“High-quality farmland with access to plentiful water is becoming increasingly scarce,” said David Gladstone, president and CEO of Gladstone Land, upon announcing the company’s latest acquisition in Georgia. “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.”

Taken as a whole, it is clear Gladstone is positioning to capitalize upon some strong macros. Organic production and organic produce have become key concerns for consumers. 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.

And looking ahead, the global organic food market is expected to grow at a CAGR of 12.6 percent to reach a value of more than $23.5 billion by 2025, according to 360 Research Reports. 

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.

And although this was Gladstone’s first acquisition in the state of Georgia, it likely won’t be the last, according to Bill Frisbie, executive vice president, Gladstone Land, who noted that future expansion into additional crops in the state is a possibility. 

“We are very excited to make our first acquisition in Georgia, which plays an integral role in supplying fresh blueberries across the eastern U.S. in the late spring and summer months,” said Frisbie, adding, “We look forward to expanding in Georgia with additional fruit and vegetable farmland purchases.”

For now, however, Gladstone Land’s portfolio stands at 162 farms totaling 109,000 acres in 15 U.S. states, and 45,000 acre-feet of banked water in California valued at approximately $1.4 billion.

– 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-stone@globalaginvesting.com.