The Mormon Church, a major landowner, just expanded its $2 billion U.S. farmland portfolio to 8 states

The Mormon Church is expanding its real estate empire with a massive $289 million deal for 46 farms in eight states, further cementing its place as a major player in the American agricultural industry.

The real estate arm of The Church of Jesus Christ of Latter-day Saints, Farmland Reserve Inc. Utah-based, is buying the farmland from Farmland Partners Inc. Denver-based, a publicly traded real estate investment trust.

The transaction, set to close in October. 16, includes 41,554 acres of farmland spread across states including Arkansas, Florida, Nebraska, Mississippi and the Carolinas, according to DTN.

At nearly $7,000 per acre, the sale will give Farmland Partners a big windfall. The company expects to receive a total proceeds of approximately $50 million from the sale, or approximately 21% over the book value of the properties.

Farmland Partners plans to use the capital to reduce debt by about $140 million, buy back stock and fund future acquisitions.

According to Luca Fabbri, president and CEO of Farmland Partners, the company is also considering a “significant special distribution” to its shareholders by the end of the year. Fabbri expressed enthusiasm for the deal and noted that the transaction aligns with the company’s “total return” investment strategy, which focuses on long-term asset appreciation.

“We have repeatedly advised shareholders that our company is undervalued due to the lack of market recognition of our asset base valuation,” Fabbri said in the press release. He added that the deal validates the company’s investment thesis, which emphasizes generating returns not only from operational farm income, but also from increasing land value.

Farmland Reserve, the Church’s real estate investment company, is already a powerhouse in US agriculture, with more than 1 million acres of farmland under its belt, including 370,000 acres in Nebraska alone.

Although the company remains somewhat mysterious — it does not list how much land it owns or have a contact on its website — it is widely recognized in the farming community as a responsible landowner.

“We are pleased to transition our long-standing tenant relationship to a high-quality institutional investor who values ​​relationships as much as we do,” Fabbri told Farmland Reserve. He praised the Church-owned company for its ethical management of tenant farmers, noting that its reputation as a “best-in-class” landlord made it the right buyer for the portfolio.

Doug Rose, CEO of Farmland Reserve, echoed Fabbri’s sentiments, expressing gratitude for the opportunity to work with Farmland Partners.

“We are also pleased that they saw us as the right buyer for these properties and the farmer tenant relationships that come with them,” said Rose.

Farmland Reserve, with its long-term investment philosophy, plans to lease the newly acquired farms to local farmers for years to come, maintaining the agricultural productivity of the land, they said in the statement.

The company, which owns 145,000 acres and manages another 45,000 acres in 15 states, has acquired more than 300 farms since its 2014 IPO.

Approximately 90% of its acres grow row crops such as corn and soybeans, with orchards in California adding to its diverse portfolio. The company also manages over 100 tenant farmers who help maintain its large properties across the country.

For Farmland Partners, the sale of Church’s real estate arm is just another step in a long-term strategy to unlock the hidden value in its portfolio.

For Farmland Reserve, it’s a chance to further cement its position as a dominant force in American agriculture. As the dust settles on this historic deal, one thing is clear: The Mormon Church’s land holdings — and its influence in the agricultural sector — are growing at a rapid pace.

According to The Flatwater Free Press, earlier this year the Mormon Church faced backlash after it bought about 370,000 acres of prime farmland in Nebraska, now owning at least $2 billion in farmland across the country.

The Church of Jesus Christ of Latter-day Saints has become the largest buyer of land in Nebraska over the past five years, holding $134 million in land there and potentially surpassing Ted Turner, the founder of CNN, as the top landowner in state.

The Utah-based church is already Florida’s largest private landowner, with agricultural holdings in the Sunshine State alone valued at $884 million.

Amid growing scrutiny of its finances, including a federal investigation and lawsuits by its own members, a recent analysis reveals that the church’s vast real estate empire spans some 859,000 acres across the U.S., surpassing the land holdings of Bill Gates and China combined. However, some estimates suggest that the church’s current agricultural assets may be as high as $12 billion.