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Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Operating Lease Obligations
In connection with the execution of certain lease agreements, we have committed to provide capital improvements on certain of our farms, which are summarized in the table below (dollars in thousands):
Farm
Location		Farm
Acreage		Total
Commitment
Obligated
Completion
Date(1)
Amount Expended
or Accrued as of
December 31, 2021
St. Lucie, FL549230 Q3 2022111 
Santa Barbara, CA2714,000 
(2)
Q3 20222,427 
Manatee, FL590280 Q4 2022— 
Manatee, FL271280 Q4 2022— 
Hillsborough, FL552,250 
(2)
Q4 20221,554 
Charlotte, FL9753,000 
(2)
Q4 2022— 
Napa, CA2701,548 
(2)
Q3 20231,019 
Columbia, OR1571,800 
(2)
Q3 20241,146 
Collier & Hendry, FL3,6122,000 
(2)
Q2 2025— 
Wicomico & Caroline, MD, and Sussex, DE833115 Q3 203049 
(1)Our obligation to provide capital to fund these improvements does not extend beyond these respective dates.
(2)Pursuant to contractual agreements, we will earn additional rent on the cost of these capital improvements as the funds are disbursed by us.
Summary of Leasing Activity
As of December 31, 2021 and 2020, we recorded the following as a result of these operating ground leases (dollars in thousands, except for footnotes):
December 31, 2021December 31, 2020
Operating lease right-of-use assets(1)
$671 $136 
Operating lease liabilities(2)
$664 $130 
Weighted-average remaining lease term (years)15.73.8
Weighted-average incremental borrowing rate7.78 %4.20 %
(1)Operating lease right-of-use assets are shown net of prepaid lease payments of approximately $7,000 and $6,000 for the years ended December 31, 2021 and 2020, respectively, and are included within Other assets, net on the accompanying Consolidated Balance Sheets.
(2)Included within Other liabilities, net on the accompanying Consolidated Balance Sheets.
The following table sets forth the components of our lease revenues for the years ended December 31, 2021 and 2020 (dollars in thousands, except for footnotes):
For the Years Ended December 31,
20212020
Fixed lease payments(1)
$69,998 $51,377 
Variable lease payments(2)
5,320 5,654 
Lease revenue, net(3)
$75,318 $57,031 
(1)Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the respective lease terms and includes the amortization of above-market lease values and lease incentives and the accretion of below-market lease values and other deferred revenue.
(2)Variable lease payments include participation rents, which are generally based on a percentage of the gross crop revenues earned on the farm, and reimbursements of certain property operating expenses by tenants. Participation rents are generally recognized when all contingencies have been resolved and when actual results become known or estimable, enabling us to estimate and/or measure our share of such gross revenues. During the years ended December 31, 2021 and 2020, we recorded participation rents of approximately $5.2 million and $2.4 million respectively, and reimbursements of certain property operating expenses by tenants of approximately $101,000 and $456,000, respectively. In addition, during the year ended December 31, 2020, we received a lease termination payment of approximately $3.0 million.
(3)Reflected as a line item on our accompanying Consolidated Statements of Operations and Comprehensive Income.
Schedule of Future Lease Payments
Future minimum lease payments due under the remaining non-cancelable terms of these leases as of December 31, 2021, is as follows (dollars in thousands):
Period
Future Lease Payments(1)
For the fiscal years ending December 31:2022$92 
202392 
202492 
202562 
202662 
Thereafter755 
Total undiscounted lease payments1,155 
Less: imputed interest(491)
Present value of lease payments$664 
(1)Certain annual lease payments are set at the beginning of each year to then-current market rates (as determined by the lessor). The amounts shown above represent estimated amounts based on the lease rates currently in place.