Farmland Partners Inc.

Previous wording

The following analysis of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and the notes included elsewhere in this Quarterly Report, as well as the information contained in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities Exchange Commission (the “SEC”) on February 19, 2026, which is accessible on the SEC’s website at www.sec.gov. References to the “Company,” “we,” “our,” and “us” refer to Farmland Partners Inc. (“FPI”), a Maryland corporation, together with its consolidated subsidiaries, including Farmland Partners Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”), of which FPI is the sole member of the sole general partner.

Current wording

The following analysis of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and the notes included elsewhere in this Quarterly Report, as well as the information contained in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 19, 2026, which is accessible on the SEC’s website at www.sec.gov. References to the “Company,” “we,” “our,” and “us” refer to Farmland Partners Inc. (“FPI”), a Maryland corporation, together with its consolidated subsidiaries, including Farmland Partners Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”), of which FPI is the sole member of the sole general partner.

Previous wording

We make statements in this Quarterly Report on Form 10-Q that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). These forward-looking statements include, without limitation, statements concerning pending acquisitions and dispositions, projections, predictions, expectations, estimates or forecasts as to our business, financial and operational results, future stock repurchases and other transactions affecting our capitalization, our dividend policy, future economic performance, crop yields and prices and future rental rates for our properties, ongoing litigation, as well as statements of management’s goals and objectives and other similar expressions concerning matters that are not historical facts. When we use the words “may,” “should,” “could,” “would,” “predicts,” “potential,” “confident,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” or similar expressions or their negatives, as well as statements in future tense, we intend to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance, and our actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: the ongoing wars in Ukraine and Iran and other geopolitical tensions and their impact on our tenants’ businesses and the farm economy generally, changes in tariffs and trade policies in the United States and other countries that import U.S. agricultural products, including the impact of tariffs on the export of U.S. soybeans to China, high inflation and elevated interest rates, the onset of an economic recession in the United States and other countries that impact the farm economy, extreme weather events, such as droughts, tornadoes, hurricanes, wildfires or floods, the impact of future public health crises on our business and on the economy and capital markets generally, general volatility of the capital markets and the market price of our common stock, changes in our business strategy, availability, terms and deployment of capital, our ability to refinance existing indebtedness at or prior to maturity on favorable terms, or at all, availability of qualified personnel, changes in our industry or the general economy, the degree and nature of our competition, the outcomes of ongoing litigation, our ability to identify new acquisitions or dispositions and close on pending acquisitions or dispositions and the other factors described in the risk factors described in Item 1A, “Risk Factor…

Excerpt shortened here; the source contains the full paragraph.

Current wording

We make statements in this Quarterly Report on Form 10-Q that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). These forward-looking statements include, without limitation, statements concerning pending acquisitions and dispositions, projections, predictions, expectations, estimates or forecasts as to our business, financial and operational results, future stock repurchases and other transactions affecting our capitalization, our dividend policy, future economic performance, crop yields and prices and future rental rates for our properties, ongoing litigation, as well as statements of management’s goals and objectives and other similar expressions concerning matters that are not historical facts. When we use the words “may,” “should,” “could,” “would,” “predicts,” “potential,” “confident,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” or similar expressions or their negatives, as well as statements in future tense, we intend to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance, and our actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: the ongoing wars in Ukraine and Iran and other geopolitical tensions and their impact on our tenants’ businesses and the farm economy generally, changes in tariffs and trade policies in the United States and other countries that import U.S. agricultural products, including the impact of tariffs on the export of U.S. soybeans to China, high inflation and elevated interest rates, the onset of an economic recession in the United States and other countries that impact the farm economy, extreme weather events, such as droughts, tornadoes, hurricanes, wildfires or floods, the impact of future public health crises on our business and on the economy and capital markets generally, changes in legislative, oversight and regulatory priorities affecting the agricultural sector, general volatility of the capital markets and the market price of our common stock, changes in our business strategy, availability, terms and deployment of capital, our ability to refinance existing indebtedness at or prior to maturity on favorable terms, or at all, availability of qualified personnel, changes in our industry or the general economy, the degree and nature of our competition, the outcomes of ongoing litigation, our ability to identify new acquisitions or dispositions and close on pending acquisitions or disp…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Our primary strategic objective is to utilize our position as a leading institutional acquirer, owner and manager of high-quality farmland located in agricultural markets throughout North America to deliver strong risk adjusted returns to investors through a combination of cash dividends and asset appreciation. As of June 30, 2026, we owned farms with an aggregate of approximately 70,100 acres in Arkansas, California, Colorado, Illinois, Indiana, Louisiana, Missouri, Nebraska, South Carolina, Texas and West Virginia. In addition, as of June 30, 2026, we owned land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. As of June 30, 2026, approximately 60% of our portfolio (by value) was used to grow primary crops, such as corn, soybeans, wheat, rice and cotton, and approximately 40% was used to produce specialty crops, such as almonds, pistachios, citrus, avocados, strawberries, and edible beans. We believe our portfolio gives investors the economic benefit of increasing global food demand in the face of growing scarcity of high-quality farmland and will continue to reflect the approximate allocation of

Current wording

Our primary strategic objective is to utilize our position as a leading institutional acquirer, owner and manager of high-quality farmland located in agricultural markets throughout North America to deliver strong risk adjusted returns to investors through a combination of cash dividends and asset appreciation. As of September 30, 2026, we owned farms with an aggregate of approximately 70,000 acres in Arkansas, California, Colorado, Illinois, Indiana, Louisiana, Missouri, Nebraska, South Carolina, Texas and West Virginia. In addition, as of September 30, 2026, we owned land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. As of September 30, 2026, approximately 60% of our portfolio (by value) was used to grow primary crops, such as corn, soybeans, wheat, rice and cotton, and approximately 40% was used to produce specialty crops, such as almonds, pistachios, citrus, avocados, strawberries, and edible beans. We believe our portfolio gives investors the economic benefit of increasing global food

Previous wording

U.S. agricultural output between primary crops and animal protein (whose production relies principally on primary crops as feed), on one hand, and specialty crops, on the other.

Current wording

demand in the face of growing scarcity of high-quality farmland and will continue to reflect the approximate allocation of U.S. agricultural output between primary crops and animal protein (whose production relies principally on primary crops as feed), on one hand, and specialty crops, on the other.

Previous wording

We intend to continue acquiring additional farmland that we believe provides opportunities for risk-adjusted investment returns consistent with our primary strategic objective. We also intend to continue to selectively dispose of assets when we believe we can redeploy the proceeds from such sales in a manner that enhances stockholder returns. We also may acquire, and make loans secured by mortgages on, properties related to farming, such as grain storage facilities, grain elevators, feedlots, processing plants and distribution centers, as well as livestock farms, ranches, and non-agricultural properties. In addition, we engage directly in farming, and provide volume purchasing services to our tenant, through FPI Agribusiness Inc., our taxable REIT subsidiary (the “TRS” or “FPI Agribusiness”). As of June 30, 2026, the TRS directly operated 1,818 acres of farmland located in California.

Current wording

We intend to continue acquiring additional farmland that we believe provides opportunities for risk-adjusted investment returns consistent with our primary strategic objective. We also intend to continue to selectively dispose of assets when we believe we can redeploy the proceeds from such sales in a manner that enhances stockholder returns. We also may acquire, and make loans secured by mortgages on, properties related to farming, such as grain storage facilities, grain elevators, feedlots, processing plants and distribution centers, as well as livestock farms, ranches, and non-agricultural properties. In addition, we engage directly in farming, and provide volume purchasing services to our tenants, through FPI Agribusiness Inc., our taxable REIT subsidiary (the “TRS” or “FPI Agribusiness”). As of September 30, 2026, the TRS directly operated 1,840 acres of farmland located in California.

Previous wording

In addition, for leases that provide for variable rent payments, we may recognize revenue up to the amount of the crop insurance minimum. The excess above crop insurance minimums cannot be recognized as revenue until the tenant enters

Current wording

In addition, for leases that provide for variable rent payments, we may recognize revenue up to the amount of the crop insurance minimum. The excess above crop insurance minimums cannot be recognized as revenue until the tenant enters into a contract to sell their crop. Generally, we expect tenants to enter into contracts to sell their crop following the harvest of the crop.

Previous wording

According to the World Bank Group, arable land per capita has decreased by approximately 50% from 1961 to 2023, the decrease of which has been exacerbated by international conflicts in major agricultural regions, such as the ongoing war in Ukraine and other geopolitical tensions. Typically, additions to cropland are in areas of marginal productivity, while cropland loss, driven by urban development, tends to affect primarily highly productive areas. According to a study published in 2017 in the Proceedings of the National Academy of Sciences, urban expansion is expected to take place on cropland that is 1.77 times more productive than the global average. The global supply of food is also impacted by the productivity per acre of arable land. Historically, productivity gains (measured by average crop yields) have been driven by advances in seed technology, farm equipment, irrigation techniques, and improvements in soil health, chemical nutrients

Current wording

According to the World Bank Group, arable land per capita has decreased by approximately 50% from 1961 to 2023, the decrease of which has been exacerbated by international conflicts in major agricultural regions, such as the ongoing war in Ukraine and other geopolitical tensions. Typically, additions to cropland are in areas of marginal productivity, while cropland loss, driven by urban development, tends to affect primarily highly productive areas. According to a study published in 2017 in the Proceedings of the National Academy of Sciences, urban expansion is expected to take place on cropland that is 1.77 times more productive than the global average. The global supply of food is also impacted by the

Previous wording

and pest control. On the other hand, we expect the shortage of water in many irrigated growing regions in the United States and around the globe, often as a result of new water restrictions imposed by laws or regulations, to lead to decreased productivity on those acres.

Current wording

productivity per acre of arable land. Historically, productivity gains (measured by average crop yields) have been driven by advances in seed technology, farm equipment, irrigation techniques, and improvements in soil health, chemical nutrients and pest control. On the other hand, we expect the shortage of water in many irrigated growing regions in the United States and around the globe, often as a result of new water restrictions imposed by laws or regulations, to lead to decreased productivity on those acres.

Previous wording

Our revenues are primarily generated from renting farmland to operators of farming businesses. Our leases generally have terms ranging from one to three years, with some extending up to 40 years (e.g., renewable energy leases). Although the majority of our leases do not provide the tenant with a contractual right to renew the lease upon its expiration, we believe it is customary to provide the existing tenant with the opportunity to renew the lease, subject to any increase in the rental rate that we may establish. If the tenant elects not to renew the lease at the end of the lease term, the land will be offered to a new tenant. As discussed above, the vacancy rate for quality U.S. farmland is near-zero and there is often competition among prospective tenants for quality farmland; accordingly, we do not believe that re-leasing farmland upon the expiration of existing leases is a significant risk for the Company.

Current wording

Our revenues are primarily generated from renting farmland to operators of farming businesses. Our leases generally have terms ranging from one to three years, with some extending up to 40 years (e.g., renewable energy leases). Although the majority of our leases do not provide the tenant with a contractual right to renew the lease upon its expiration, we believe it is customary to provide the existing tenant with the opportunity to renew the lease, subject to any increase in the rental rate that we may establish. If the tenant elects not to renew the lease at the end of the lease term, the land will be offered to a new tenant. As discussed above, the vacancy rate for quality U.S. farmland is near-zero and there is often

Previous wording

The leases for the majority of the row-crop properties in our portfolio provide that tenants pay us, typically, 50% of their fixed farm rent in advance of each spring planting season. As a result, we collect a significant portion of total annual rents in the first calendar quarter of each year, which we believe mitigates the tenant credit risk associated with the variability of farming operations that could be adversely impacted by poor crop yields, weather conditions, mismanagement, undercapitalization or other factors affecting our tenants. Tenant credit risk is further mitigated by the farming industry practice of purchasing crop insurance in almost every circumstance because it is required by lenders who provide working capital financing to our tenants and due to requirements in our leases. In certain cases, the Company perfects its security interest in the crop insurance proceeds and the underlying growing crops using practices applicable in the state where the farm is located. Prior to acquiring farmland property, we take into consideration the competitiveness of the local farm-operator tenant environment in order to enhance our ability to quickly replace a tenant that is unwilling to renew a lease or is unable to pay a rent payment when it is due. Many of our leases provide for the reimbursement by the tenant of the property’s real estate taxes that we pay in connection with the farms they rent from us.

Current wording

The leases for the majority of the row-crop properties in our portfolio provide that tenants pay us, typically, 50% of their fixed farm rent in advance of each spring planting season. As a result, we collect a significant portion of total annual rents in the first calendar quarter of each year, which we believe mitigates the tenant credit risk associated with the variability of farming operations that could be adversely impacted by poor crop yields, weather conditions, mismanagement, undercapitalization or other factors affecting our tenants. Tenant credit risk is further mitigated by the farming industry practice of purchasing crop insurance in almost every circumstance because it is required by lenders who provide working capital financing to our tenants and due to requirements in our leases. In certain cases, the Company perfects its security interest in the crop insurance proceeds and the underlying growing crops using practices applicable in the state where the farm is located. Prior to acquiring farmland property, we take into consideration the competitiveness of the local farm-operator tenant environment in order to enhance our ability to quickly replace a tenant that is unwilling to renew a lease or is unable to pay a rent payment when it is due. Many of our leases provide for reimbursement by the tenant of the property’s real estate taxes that we pay in connection with the farms they rent from us.

Previous wording

We believe that long-term farmer profitability and revenue per acre, expressed as crop prices multiplied by crop yield, is a much more significant driver of farm value than short-term crop prices. Crop yield trends in corn and soybeans have been steadily increasing over the last thirty years. For instance, after yields for the 2024/2025 marketing year (September 2024 to August 2025) increased slightly for corn and held steady for soybeans compared to the previous year, the USDA projected that yields will increase slightly for the 2025/2026 marketing year (September 2025 to August 2026). Short-term crop price changes have had little effect historically on farmland values. They also have a limited impact on our rental revenue, as most of our leases provide for fixed farm rents, a common approach in agricultural markets, especially with respect to row crops. Fixed farm rent significantly simplifies the administrative requirements for the landlord and the tenant, as farmers benefit from the fundamental revenue hedging that occurs when large crop yields mitigate the effect of lower crop prices. Similarly, lower crop yields have a tendency to trigger higher crop prices and help increase revenue even when confronted by lower crop yields. Such hedging effect also limits the impact of short-term crop price changes on revenues generated by leases with a variable rent component based on farm revenues. Further risk mitigation is available to tenants, and indirectly to us, via crop insurance and hedging programs implemented by tenants. Our TRS also takes advantage of these risk mitigation programs and strategies with respect to the properties it directly operates.

Current wording

We believe that long-term farmer profitability and revenue per acre, expressed as crop prices multiplied by crop yield, is a much more significant driver of farm value than short-term crop prices. Crop yield trends in corn and soybeans have been steadily increasing over the last thirty years. For instance, after yields for the 2025/2026 marketing year (September 2025 to August 2026) increased for corn and decreased for soybeans compared to the previous year, the USDA projected that yields will increase slightly for the 2026/2027 marketing year (September 2026 to August 2027). Short-term crop price changes have had little effect historically on farmland values. They also have a limited impact on our rental revenue, as most of our leases provide for fixed farm rents, a common approach in agricultural markets, especially with respect to row crops. Fixed farm rent significantly simplifies the administrative requirements for the landlord and the tenant, as farmers benefit from the fundamental revenue hedging that occurs when large crop yields mitigate the effect of lower crop prices. Similarly, lower crop yields have a tendency to trigger higher crop prices and help increase revenue even when confronted by lower crop yields. Such hedging effect also limits the impact of short-term crop price changes on revenues generated by leases with a variable rent component based on farm revenues. Further risk mitigation is available to tenants,

Previous wording

Most of our farming leases have lease terms of three years for row crops and up to seven years for permanent crops, pursuant to which each tenant is responsible for substantially all of the operating expenses related to the property, including maintenance, water usage and insurance. As a result, we believe that the effect on us of inflationary increases in operating expenses are borne largely by our tenants under the terms of their leases, and increases in farmer profitability generally lead to increased rents upon lease renewals, as we experienced in the 2023 renewal cycle.

Current wording

Most of our farming leases have lease terms of three years for row crops and up to seven years for permanent crops, pursuant to which each tenant is responsible for substantially all of the operating expenses related to the property, including maintenance, water usage and insurance. As a result, we believe that the effect on us of inflationary increases in operating expenses is borne largely by our tenants under the terms of their leases, and increases in farmer profitability generally lead to increased rents upon lease renewals, as we experienced in the 2023 renewal cycle.

Previous wording

High levels of inflation prompted the Board of Governors of the United States Federal Reserve (the “Federal Reserve”) to increase the federal funds rate eleven times between March 2022 and July 2023, which led to a significant increase in market short- and long-term interest rates beginning in early 2022. This increase in rates significantly increased the cost of our floating rate debt and also significantly increased the cost of certain of our MetLife debt with interest rates that have been reset since the beginning of 2022. The Federal Reserve lowered the federal funds rate in September, November and December 2024 and in September, October and December 2025. Since the beginning of 2026, the Federal Reserve has maintained the target range for the federal funds rate while indicating that future monetary policy decisions will depend on evolving economic conditions, including inflation, labor market conditions and other economic data. Future changes in benchmark interest rates, whether increases or decreases, could affect our borrowing costs, the borrowing costs of our tenants and the value of our farmland. However, interest rates remain elevated relative to the recent past, and the timing and magnitude of any future changes in monetary policy remain uncertain.

Current wording

High levels of inflation prompted the Board of Governors of the United States Federal Reserve (the “Federal Reserve”) to increase the federal funds rate eleven times between March 2022 and July 2023, which led to a significant increase in market short- and long-term interest rates beginning in early 2022. This increase in rates significantly increased the cost of our floating rate debt and also significantly increased the cost of certain of our MetLife debt with interest rates that have been reset since the beginning of 2022. The Federal Reserve lowered the federal funds rate in September, November and December 2024 and in September, October and December 2025. On September 16, 2026, the Federal Reserve raised the target range for the federal funds rate by 25 basis points to 3.75% to 4.00%, its first increase since July 2023, while indicating that future monetary policy decisions will depend on evolving economic conditions, including inflation, labor market conditions and other economic data. Future changes in benchmark interest rates, whether increases or decreases, could affect our borrowing costs, the borrowing costs of our tenants and the value of our farmland. However, interest rates remain elevated relative to the recent past, and the timing and magnitude of any future changes in monetary policy remain uncertain.

Previous wording

At June 30, 2026, $68.1 million, or 30.3%, of our debt had variable interest rates. The Company had an interest rate swap agreement with Rabobank for $4.9 million. The agreement expired on March 1, 2026 (see “Note 10—Hedge Accounting”).

Current wording

At September 30, 2026, $83.1 million, or 34.7%, of our debt had variable interest rates. The Company had an interest rate swap agreement with Rabobank for $4.9 million. The agreement expired on March 1, 2026 (see “Note 10—Hedge Accounting”). Assuming no increase in the level of our variable rate debt spreads, if SOFR increased by 1.0%, our cash flow would decrease by approximately $0.8 million per year, and if SOFR decreased by 1.0%, our cash flow would increase approximately $0.8 million per year.

Previous wording

We expect that future changes in interest rates will impact our overall operating performance by, among other things, affecting our borrowing costs and the borrowing costs of our tenants. While we may seek to manage our exposure to future changes in rates through interest rate swap agreements or interest rate caps, portions of our overall outstanding debt will likely remain at floating rates or subject to interest rates that reset periodically. In addition, if interest rates begin to rise again, farmland prices may decline if the rise in real interest rates (nominal interest rates minus the inflation rate) is not accompanied by rises in the general levels of inflation. However, our business model anticipates that over time the value of our farmland will increase, as it has in the past, at a rate that is equal to or greater than the rate of inflation, which may in part offset the impact of rising interest rates on the value of our farmland, but there can be no guarantee that this appreciation will occur to the extent that we anticipate or at all.

Current wording

We expect that future changes in interest rates will impact our overall operating performance by, among other things, affecting our borrowing costs and the borrowing costs of our tenants. While we may seek to manage our exposure to future changes in rates through interest rate swap agreements or interest rate caps, portions of our overall outstanding debt will likely remain at floating rates or subject to interest rates that reset periodically. In addition, if interest rates continue to rise, farmland prices may decline if the rise in real interest rates (nominal interest rates minus the inflation rate) is not accompanied by rises in the general levels of inflation. However, our business model anticipates that over time the value of our farmland will increase, as it has in the past, at a rate that is equal to or greater than the rate of inflation, which may in part offset the impact of rising interest rates on the value of our farmland, but there can be no guarantee that this appreciation will occur to the extent that we anticipate or at all.

Previous wording

According to the USDA, approximately 10-20% of domestic corn production and 40-60% of domestic soybean production is exported. According to the USDA Outlook for Agricultural Trade, the top three export countries from the United States were China, Mexico, and Canada. Exports to China for fiscal year 2025 (October 2024 to September 2025) were $16.2 billion, down 37% from 2024. Exports to Canada were $28.2 billion, down 3% from 2024. Exports to Mexico were $30.4 billion, up 1% from 2024. The recent imposition by the United States of tariffs on imported goods from these trading partners may strain international trade relations and increase the risk that foreign governments will implement retaliatory tariffs on agricultural and other goods imported from the United States.

Current wording

United States were China, Mexico, and Canada. Exports to China for fiscal year 2025 (October 2024 to September 2025) were $16.2 billion, down 37% from 2024. Exports to Canada were $28.2 billion, down 3% from 2024. Exports to Mexico were $30.4 billion, up 1% from 2024. The recent imposition by the United States of tariffs on imported goods from these trading partners may strain international trade relations and increase the risk that foreign governments will implement retaliatory tariffs on agricultural and other goods imported from the United States.

Previous wording

The reduction in our net income for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 was primarily the result of dispositions that occurred in 2025 and 2026, as well as lower crop sales, partially offset by higher interest income, and lower cost of goods sold, general and administrative expenses and impairment.

Current wording

The change in our net income (loss) for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025 was primarily the result of dispositions that occurred in 2025 and 2026, as well as lower crop sales and higher impairment, legal and accounting expense and provision for credit loss reserve, partially offset by lower cost of goods sold, and general and administrative expenses.

Previous wording

Rental income decreased $0.3 million, or 5.3%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, resulting primarily from dispositions that occurred in 2025 and 2026.

Current wording

Rental income decreased $0.3 million, or 5.8%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, resulting primarily from dispositions that occurred in 2025 and 2026.

Previous wording

Other revenue increased $0.1 million, or 4.6%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This increase was due to additional interest income as a result of a higher average balance on loans under the FPI Loan Program and financing receivables as well as increased oil and gas royalties. These increases were partially offset by lower auction, brokerage and third-party management income due to the sale of MWA in the fourth quarter of 2025.

Current wording

Other revenue increased $0.1 million, or 4.7%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. This increase was due to additional interest income as a result of a higher average balance on loans under the FPI Loan Program and financing receivables as well as increased oil and gas royalties. These increases were partially offset by lower auction, brokerage and third-party management income due to the sale of MWA in the fourth quarter of 2025

Previous wording

Provision for credit loss allowance increased $0.8 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This increase was primarily the result of updated assumptions on the allowance for credit losses and increases in principal balances on loans under the FPI Loan Program. See “Note 6—Loans and Financing Receivables” within the notes to the consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding the provision for credit loss allowance.

Current wording

Provision for credit loss reserve increased $2.4 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. This increase was primarily the result of updated assumptions on the reserve for credit losses and increases in principal balances on loans under the FPI Loan Program. See Part I, Item 1 “Note 6—Loans and Financing Receivables” within the notes to the consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding the provision for credit loss reserve.

Previous wording

General and administrative expenses decreased $0.7 million, or 29.9%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, resulting primarily from lower compensation and travel expense due to the sale of MWA in November 2025.

Current wording

General and administrative expenses decreased $0.6 million, or 27.4%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, resulting primarily from lower compensation and travel expense due to the sale of MWA in November 2025.

Previous wording

Impairment of assets was $0.8 million for the three months ended June 30, 2026 compared to $16.8 million for the three months ended June 30, 2025. Impairment during the three months ended June 30, 2025 related to certain properties on the West Coast while impairment during the three months ended June 30, 2026 relates to one property on the West Coast due to updated market valuations.

Current wording

Impairment of assets was $12.0 million for the three months ended September 30, 2026 compared to $1.0 million for the three months ended September 30, 2025. Impairment during each of the three months ended September 30, 2026 and 2025 related to certain properties on the West Coast in connection with the listing for sale of the properties. Impairment during the three months ended September 30, 2026 also includes impairment of $0.4 million for an asset held for sale as of September 30, 2026.

Previous wording

Other income remained relatively flat at $0.0 million and $0.1 million for the three months ended June 30, 2026 and 2025, respectively.

Current wording

Other income remained relatively flat at $0.2 million and $0.1 million for the three months ended September 30, 2026 and 2025, respectively.

Previous wording

Income from equity method investment was negligible during the three months ended June 30, 2026 and remained relatively consistent compared to the three months ended June 30, 2025.

Current wording

Income from equity method investment decreased $0.2 million, or 99.4%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, as a result of lower income from our 9.97% equity interest in an unconsolidated equity method investment.

Previous wording

Gain on disposition of assets, net decreased $20.7 million, or 85.4%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to the farmland value on properties sold relative to book value during the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. During the three months ended June 30, 2026, we completed the disposition of one property for consideration of approximately $7.0 million and recognized a gain on sale of $3.5 million. We completed dispositions of 32 properties for aggregate consideration of $71.6 million and recognized an aggregate gain on sale of $24.2 million during the three months ended June 30, 2025.

Current wording

Loss on disposition of assets, net decreased $0.5 million, or 97.7%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to the farmland value on properties sold relative to book value during the three months ended September 30, 2026 as compared to the three months ended September 30, 2025. During the three months ended September 30, 2026, we completed the disposition of one property in California for consideration of approximately $1.0 million and recognized a loss on sale of less than $0.1 million. We completed the disposition of one property for consideration of $4.0 million and recognized a loss on sale of $0.5 million during the three months ended September 30, 2025.

Previous wording

Interest expense increased $0.6 million, or 26.5%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was the result of a higher average outstanding balance of debt, partially offset by a lower weighted average interest rate.

Current wording

Interest expense increased $0.9 million, or 39.7%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The increase was the result of a higher average outstanding balance of debt, partially offset by a lower weighted average interest rate.

Previous wording

The reduction in our net income for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 was primarily the result of dispositions that occurred in 2025 and 2026, as well as lower proceeds from a solar lease

Current wording

The reduction in our net income (loss) for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025 was primarily the result of dispositions that occurred in 2025 and 2026, as well as lower proceeds from a solar lease arrangement with a tenant and crop sales and a higher provision for credit loss reserve and legal and accounting expense, partially offset by higher interest income, oil and gas income, and lower cost of goods sold, general and administrative expenses and impairment.

Previous wording

Rental income decreased $1.0 million, or 7.6%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, resulting primarily from dispositions that occurred in 2025 and 2026 and lower proceeds from a solar lease arrangement with a tenant compared to the six months ended June 30, 2025, as the prior-year period included certain non-recurring amounts.

Current wording

Rental income decreased $1.3 million, or 7.0%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, resulting primarily from dispositions that occurred in 2025 and 2026 and lower proceeds from a solar lease arrangement with a tenant compared to the nine months ended September 30, 2025, as the prior-year period included certain non-recurring amounts.

Previous wording

Other revenue increased $1.2 million, or 24.8%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. This increase was due to additional interest income as a result of a higher average balance on loans under the FPI Loan Program and financing receivables as well as amortization of points and increased oil and gas royalties. These increases were partially offset by lower auction, brokerage and third-party management income due to the sale of MWA in the fourth quarter of 2025.

Current wording

Other revenue increased $1.3 million, or 18.1%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. This increase was due to increased oil and gas royalties, additional interest income as a result of a higher average balance on loans under the FPI Loan Program and financing receivables as well as amortization

Previous wording

Depreciation, depletion and amortization decreased $0.5 million, or 21.2%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. This decrease was largely due to asset dispositions in 2025 and 2026 and a lower cost basis on assets impaired during the year ended December 31, 2025.

Current wording

Depreciation, depletion and amortization decreased $0.5 million, or 16.2%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. This decrease was largely due to asset dispositions and a lower cost basis on assets impaired in 2025 and 2026.

Previous wording

Property operating expenses decreased $0.4 million, or 14.4%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, resulting primarily from lower tax, repairs and maintenance, insurance and travel expenses primarily due to dispositions that occurred in 2025 and 2026.

Current wording

Property operating expenses decreased $0.3 million, or 7.5%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, resulting primarily from lower tax, repairs and maintenance, insurance and travel expenses primarily due to dispositions that occurred in 2025 and 2026.

Previous wording

Provision for credit loss allowance increased $2.5 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. This increase was primarily the result of updated assumptions on the allowance for credit losses and increases in principal balances on loans under the FPI Loan Program. See “Note 6—Loans and Financing Receivables” within the notes to the consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding the provision for credit loss allowance.

Current wording

Provision for credit loss reserve increased $4.9 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. This increase was primarily the result of updated assumptions on the reserve for credit losses and increases in principal balances on loans under the FPI Loan Program. See Part I, Item 1 “Note 6—Loans and Financing Receivables” within the notes to the consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding the provision for credit loss reserve.

Previous wording

Acquisition and due diligence costs were negligible during the six months ended June 30, 2026 and remained relatively consistent compared to the six months ended June 30, 2025.

Current wording

Acquisition and due diligence costs were negligible during the nine months ended September 30, 2026 and remained relatively consistent compared to the nine months ended September 30, 2025.

Previous wording

General and administrative expenses decreased $1.3 million, or 27.2%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, resulting primarily from lower compensation and travel expense due to the sale of MWA in November 2025.

Current wording

General and administrative expenses decreased $2.0 million, or 27.2%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, resulting primarily from lower compensation and travel expense due to the sale of MWA in November 2025.

Previous wording

Other operating expenses were negligible during the six months ended June 30, 2026 and remained relatively consistent compared to the six months ended June 30, 2025.

Current wording

Other operating expenses were negligible during the nine months ended September 30, 2026 and remained relatively consistent compared to the nine months ended September 30, 2025.

Previous wording

Other income decreased $0.2 million, or 73.0%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. This decrease was primarily due to lower average cash balances during the six months ended June 30, 2026 that resulted in decreased interest income.

Current wording

Other income decreased $0.1 million, or 33.4%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. This decrease was primarily due to lower average cash balances during the nine months ended September 30, 2026 that resulted in decreased interest income.

Previous wording

Gain on disposition of assets, net decreased $21.7 million, or 86.9%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to the farmland value on properties sold relative to book value during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. During the six months ended June 30, 2026, we completed dispositions of two properties in the Corn Belt and West Coast regions for aggregate consideration of $16.4 million and recognized an aggregate net gain on sale of $3.3 million. We completed dispositions of 34 properties for aggregate consideration of $81.6 million, including $2.1 million in seller financing, and recognized an aggregate gain on sale of $25.0 million during the six months ended June 30, 2025.

Current wording

During the nine months ended September 30, 2026, we completed dispositions of three properties in the Corn Belt and West Coast regions for aggregate consideration of $17.4 million and recognized an aggregate net gain on sale of $3.3 million. We completed dispositions of 35 properties for aggregate consideration of $85.5 million, including $2.1 million in seller financing, and recognized an aggregate gain on sale of $24.5 million during the nine months ended September 30, 2025.

Previous wording

Interest expense increased $0.7 million, or 14.4%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was the result of a higher average outstanding balance of debt.

Current wording

Interest expense increased $1.6 million, or 22.2%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The increase was the result of a higher average outstanding balance of debt.

Previous wording

Income tax expense was negligible during the six months ended June 30, 2026 and remained relatively consistent compared to the six months ended June 30, 2025.

Current wording

Income tax expense was negligible during the nine months ended September 30, 2026 and remained relatively consistent compared to the nine months ended September 30, 2025.

Previous wording

Despite cuts in the federal funds rate by the Federal Reserve in September, November and December 2024 and in September, October and December 2025, interest rates remain high relative to the recent past. We expect to meet our liquidity needs through cash on hand, undrawn availability under our lines of credit ($122.4 million in availability as of June 30, 2026), operating cash flows, borrowings, proceeds from equity issuances and selective asset dispositions where such dispositions are deemed to be in the best interests of the Company. The Company also has an effective shelf-registration statement that it may use to issue equity or debt securities to raise capital from time to time.

Current wording

Despite cuts in the federal funds rate by the Federal Reserve in September, November and December 2024 and in September, October and December 2025 and one increase in the federal funds rate by 25 basis points in September 2026, interest rates remain high relative to the recent past. We expect to meet our liquidity needs through cash on hand, undrawn availability under our lines of credit ($107.4 million in availability as of September 30, 2026), operating cash flows, borrowings, proceeds from equity issuances and selective asset dispositions where such dispositions are deemed to be in the best interests of the Company. The Company also has an effective shelf-registration statement that it may use to issue equity or debt securities to raise capital from time to time.