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LEARN & GROW
INVESTOR QUESTION OF THE MONTH
Q: Are Amber’s leases, the perpetual life REIT, and the option for a farmer to purchase the land unique?
A: Yes, to the best of our knowledge, Amber is the only farmland company that offers farmers leases with evergreen renewals, land that is held by an evergreen REIT (not a fund with a defined term), and an option to purchase the land they are stewarding.
The historical increase in farmland values, which makes farmland an attractive investment, also means most farmers don’t own all of the farmland they farm. Amber's leases provide farmers with the land security that enables commitment to the organic transition, the option to lease and profitably transition more land to organic, and the eventual option to purchase and own land that may not have been affordable when they entered the lease.
The evergreen REIT structure also allows transitioned farmland to remain organic indefinitely, in contrast to the typical model in which farmland is intentionally bought and sold regardless of its organic status. A 2024 University of Illinois farmland values report found that 88% of the cash rent lease agreements only had one-year terms. Additionally, in 2024, 21% of those lease agreements had different rates than in 2023.1 Without long-term access to farmland, the transition to certified organic is close to impossible.
Source: “Navigating Cash Rents in 2025: Insights and Best Practices, Part One.” Farm Focus, Illinois Extension, 18 Oct. 2024, https://extension.illinois.edu/blogs/farm-focus/2024-10-18-navigating-cash-rents-2025-insights-and-best-practices-part-one
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