January 14 (SeeNews) - Farmland Partners Inc (NYSE:FPI) on Wednesday said it has signed ground lease agreements for solar power facilities on two of its farms in South Carolina.
Under the agreements, the potential tenant has the right to lease up to 979 acres (396 ha) that may be converted to energy generation. There is a one-year due diligence period during which either of the leases may be terminated.
The agreements are for an initial term of 20 years with rent payments starting upon the launch of construction. They mean Farmland Partners will have a total of three solar and one wind lease, all in North and South Carolina.
"These South Carolina solar leases further demonstrate the additional upside rent potential for non-agriculture uses we have on our farms," said chief executive Paul Pittman.
Farmland Partners currently owns or has under contract 257 farms totalling 107,838 acres in the US.