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Loans and Financing Receivables | 12 Months Ended
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Dec. 31, 2025
Loans and Financing Receivables |
Loans and Financing Receivables | Note 6—Loans and Financing Receivables ​ The Company offers a loan program pursuant to which the Company makes loans to landowners with whom we have established relationships and third-party farmers (both tenant and non-tenant) to provide financing for business operations, property acquisitions, working capital requirements, operational farming activities, farming infrastructure projects and non-farming business needs. The Company seeks to make loans that are collateralized by farm real estate or growing crops and in principal amounts of $1.0 million or more at fixed interest rates with maturities of up to six years. The Company expects the borrower to repay the loans in accordance with the loan agreements based on farming operations and access to other forms of capital, as permitted. ​ In addition to loans made under the FPI Loan Program, the Company, on certain occasions, makes short-term loans to tenants secured by collateral other than real estate, such as growing crops, equipment or inventory, when the Company believes such loans will ensure the orderly completion of farming operations on a property owned by the Company for a given crop year and other credit is not available to the borrower. ​ On November 18, 2022, the Company acquired land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro (the seller), under the John Deere brand. In accordance with ASC 842, Lease Accounting, control is not considered to have transferred to the Company under GAAP and these transactions are accounted for as financing arrangements under ASC 310, Receivables, rather than as investments in real estate subject to operating leases. The leases mature in November 2037 and contain renewal options for periods up to 20 years from the original maturity date. The discount rate used for the transactions was 6.15%. ​ On December 18, 2024, the Company purchased a property in West Virginia in a sale leaseback transaction containing a repurchase option. The Company determined that the repurchase option is reasonably certain to be exercised and, therefore, the transaction meets the definition of a sales type-lease and is accounted for as a financing arrangement. The lease matures on December 31, 2029. The discount rate used for the transaction was 10.0%. ​ On December 5, 2025 the Company acquired a property in Virginia in a sale leaseback transaction. The transaction meets the definition of a sales type-lease and is accounted for as a financing arrangement under ASC 310, Receivables, as a result of a repurchase obligation. The lease matures in April 2026. The discount rate used for the transaction was 12.0%. ​ As of December 31, 2025 and 2024, the Company held the following loans and financing receivables: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
($ in thousands) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Outstanding as of | ​ | Maturity
Loan | ​ ​ ​ | Terms | ​ ​ ​ | December 31, 2025 | ​ ​ ​ | December 31, 2024 | ​ ​ ​ | Date
Loans under FPI Loan Program: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Mortgage Note (1) | ​ | Principal & interest due at maturity | ​ | ​ | ​ | ​ | ​ | $ | — | ​ | $ | 207 | ​ | 12/7/2028
Mortgage Note (2) | ​ | Principal due at maturity & interest due quarterly | ​ | ​ | ​ | ​ | ​ | ​ | 1,842 | ​ | ​ | 1,842 | ​ | 3/4/2026
Mortgage Note (3) | ​ | Principal due at maturity & interest due quarterly | ​ | ​ | ​ | ​ | ​ | ​ | 1,800 | ​ | ​ | 1,800 | ​ | 11/17/2028
Mortgage Note (4) | ​ | Principal due at maturity & interest due monthly | ​ | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | 500 | ​ | 7/31/2025
Mortgage Note (5) | ​ | Principal due at maturity & interest due monthly | ​ | ​ | ​ | ​ | ​ | ​ | 21,121 | ​ | ​ | 22,000 | ​ | 9/30/2026
Mortgage Note (5) | ​ | Principal due at maturity & interest due monthly | ​ | ​ | ​ | ​ | ​ | ​ | 5,402 | ​ | ​ | 6,380 | ​ | 9/30/2026
Mortgage Note (5) | ​ | Principal due at maturity & interest due monthly | ​ | ​ | ​ | ​ | ​ | ​ | 4,000 | ​ | ​ | — | ​ | 9/30/2026
Mortgage Note (6) | ​ | Principal due at maturity & interest due monthly | ​ | ​ | ​ | ​ | ​ | ​ | 2,100 | ​ | ​ | — | ​ | 6/15/2026
Mortgage Note (7) | ​ | Principal due at maturity & interest due quarterly | ​ | ​ | ​ | ​ | ​ | ​ | 2,716 | ​ | ​ | — | ​ | 4/1/2027
Mortgage Note (8) | ​ | Principal due at maturity & interest due monthly | ​ | ​ | ​ | ​ | ​ | ​ | 3,250 | ​ | ​ | — | ​ | 11/15/2030
Mortgage Note (5) | ​ | Principal & interest due at maturity | ​ | ​ | ​ | ​ | ​ | ​ | 2,350 | ​ | ​ | — | ​ | 9/30/2026
Total outstanding principal | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,581 | ​ | ​ | 32,729 | ​ | ​
Sale-leaseback transactions accounted for as financing arrangements: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Financing Receivable, net (9) | ​ | Monthly payments in accordance with lease agreement | ​ | ​ | ​ | ​ | ​ | ​ | 6,397 | ​ | ​ | 5,947 | ​ | 11/17/2037
Financing Receivable, net (9) | ​ | Monthly payments in accordance with lease agreement | ​ | ​ | ​ | ​ | ​ | ​ | 4,496 | ​ | ​ | 4,497 | ​ | 11/17/2037
Financing Receivable, net (9) | ​ | Monthly payments in accordance with lease agreement | ​ | ​ | ​ | ​ | ​ | ​ | 3,567 | ​ | ​ | 3,565 | ​ | 11/17/2037
Financing Receivable, net (9) | ​ | Monthly payments in accordance with lease agreement | ​ | ​ | ​ | ​ | ​ | ​ | 3,224 | ​ | ​ | 3,231 | ​ | 11/17/2037
Financing Receivable, net (10) | ​ | Monthly payments in accordance with lease agreement | ​ | ​ | ​ | ​ | ​ | ​ | 7,411 | ​ | ​ | 7,826 | ​ | 12/31/2029
Financing Receivable, net (11) | ​ | Monthly payments in accordance with lease agreement | ​ | ​ | ​ | ​ | ​ | ​ | 15,130 | ​ | ​ | — | ​ | 4/4/2026
Total financing receivable | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 40,225 | ​ | ​ | 25,066 | ​ | ​
Interest receivable (net of unamortized points) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,416) | ​ | ​ | (2,209) | ​ | ​
Allowance for credit losses | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,158) | ​ | ​ | (281) | ​ | ​
Provision for interest receivable | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | — | ​ | ​
Total Loans and financing receivables, net | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 80,232 | ​ | $ | 55,305 | ​ | ​
| 1) | The original note was renegotiated and a second note was entered into simultaneously with the borrower during the three months ended March 31, 2017. The note is secured against farmland properties. The note was repaid in full in March 2025.
| 2) | On March 3, 2022, the Company entered into two loans with the same party secured against farmland.
| 3) | On November 17, 2023, the Company entered into a loan agreement secured by farmland in connection with a property disposition.
| 4) | On December 28, 2023, the Company entered into a loan agreement secured by farmland and a feedlot in connection with a property disposition. This loan was repaid in full upon maturity.
| 5) | On October 29, 2024, December 20, 2024, and April 17, 2025, the Company entered into loan agreements with the same party secured against certain properties. On December 5, 2025, the Company amended the existing loans and entered into an additional loan agreement.
| 6) | On February 4, 2025, the Company entered into a loan agreement secured by farmland in connection with a property disposition.
| 7) | On March 28, 2025, the Company entered into a loan agreement secured by farmland.
| 8) | On November 15, 2025, the Company entered into a loan agreement whereby the Company has a security interest in all revenues and other amounts under certain contracts in connection with the disposition of MWA.
| 9) | On November 18, 2022, the Company acquired land and buildings for four agriculture equipment dealerships in Ohio, accounted for as financing transactions. In addition, the Company purchased a parking lot adjacent to one of the dealerships in April 2025. The leases may be extended beyond the stated maturity date, for up to an additional 20 years, at the option of the tenant.
| 10) | On December 18, 2024, the Company entered into a sale leaseback transaction accounted for as a financing transaction, with a lease term of five years.
| 11) | On December 5, 2025 the Company entered into a sale leaseback transaction accounted for as a financing transaction. The lease expires in April 2026.
​ Loans and financing receivables are stated at their unpaid principal balance and include unamortized direct origination costs and accrued interest through the reporting date, less any allowance for losses and unamortized borrower paid points. The Company monitors its receivables based upon historical collection experience, collateral values, current trends, long-term probability of default (“PD”) and estimated loss given default (“LGD”). Accrued interest write-offs are recognized as credit loss expense. The Company has estimated its credit losses on its loan balances in accordance with ASC 326, Financial Instruments—Credit Losses, to be $1.9 million and less than $0.1 million as of December 31, 2025 and 2024, respectively. Additionally, the Company has recorded an allowance for credit losses on its financing receivables of $0.2 million and $0.2 million as of December 31, 2025 and 2024, respectively. The Company recorded credit loss expense related to receivables of $1.9 million and $0.0 million during the years ended December 31, 2025 and 2024, respectively. There were no charge-offs during the years ended December 31, 2025 and 2024 and less than $0.1 million in recoveries during each of the years ended December 31, 2025 and 2024. ​ The following tables detail the allowance for credit losses as of December 31, 2025 and 2024: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2025 | ​
($ in thousands) | ​ | Amortized Cost | ​ | Allowance | ​ | Loans and financing receivables, net | ​ | Allowance as a % of Amortized Cost | ​
Loans under FPI Loan Program | ​ | $ | 42,165 | ​ | $ | (1,926) | ​ | $ | 40,239 | ​ | ​ | 4.57 | %
Financing Receivables | ​ | ​ | 40,225 | ​ | ​ | (232) | ​ | ​ | 39,993 | ​ | ​ | 0.58 | %
Totals | ​ | $ | 82,390 | ​ | $ | (2,158) | ​ | $ | 80,232 | ​ | ​ | 2.62 | %
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2024 | ​
($ in thousands) | ​ | Amortized Cost | ​ | Allowance | ​ | Loans and financing receivables, net | ​ | Allowance as a % of Amortized Cost | ​
Loans under FPI Loan Program | ​ | $ | 30,520 | ​ | $ | (49) | ​ | $ | 30,471 | ​ | ​ | 0.16 | %
Financing Receivables | ​ | ​ | 25,066 | ​ | ​ | (232) | ​ | ​ | 24,834 | ​ | ​ | 0.93 | %
Totals | ​ | $ | 55,586 | ​ | $ | (281) | ​ | $ | 55,305 | ​ | ​ | 0.51 | %
​ The following chart reflects the roll-forward of the allowance for credit losses for our loans and financing receivables for the years ended December 31, 2025 and 2024: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Years ended December 31,
($ in thousands) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2025 | ​ | 2024
Balance at beginning of period | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | (281) | ​ | $ | (168)
Initial allowance for financing receivables | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | (140)
Initial allowance for loan receivables | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926) | ​ | ​ | —
Current period change in credit allowance | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | 10
Charge-offs | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | —
Recoveries | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 49 | ​ | ​ | 17
Balance at end of period | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | (2,158) | ​ | $ | (281)
​ A reconciliation of the gross carrying amount of loans receivable and financing receivables for the years ended December 31, 2025 and 2024 is set out below: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Years ended December 31,
($ in thousands) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2025 | ​ | 2024
Balance at beginning of year | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 57,795 | ​ | $ | 31,128
Additions during year: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Issuance of loans and financing receivables | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 30,309 | ​ | ​ | 35,823
Interest accrued on financing receivables | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 1,959 | ​ | ​ | 1,116
Origination fees included in notes receivable | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,941 | ​ | ​ | 2,595
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 93,004 | ​ | ​ | 70,662
Deductions during year: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Collections of principal on loans | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,976 | ​ | ​ | 11,835
Payments on financing receivables | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,222 | ​ | ​ | 1,032
Balance at end of year | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 84,806 | ​ | $ | 57,795
​ The collateral for the mortgage notes receivable consists of real estate and personal property. ​ The Company estimates the fair value of loans and financing receivables using Level 3 inputs under the hierarchy established by GAAP. Fair value is estimated by discounting cash flows using interest rates based on management’s estimates of market interest rates on loans receivable with comparable terms and credit risk whenever the interest rates on the loans receivable are deemed not to be at market rates. The fair value for financing receivables does not take into consideration any residual value upon the end of the lease term. As of December 31, 2025 and 2024, the estimated fair value of the loans and financing receivables was $76.8 million and $48.7 million, respectively.

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