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Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2023
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. Below is a summary of certain of those projects for which we have incurred or accrued costs as of December 31, 2023 (dollars in thousands):
Farm
Locations		Farm
Acreage		Total
Commitment
Obligated
Completion
Date(1)
Amount Expended
or Accrued as of
December 31, 2023
Columbia, OR1571,800 
(2)
Q3 20241,146 
St. Lucie, FL549230 Q3 2025185 
Atkinson, GA175175 Q3 202530 
Ventura, CA4021,000 
(2)
Q4 2025448 
Napa, CA2701,635 
(2)
Q4 20291,158 
Wicomico & Caroline, MD, and Sussex, DE833115 Q3 203049 
Franklin & Grant, WA, & Umatilla, OR1,1262,169 
(2)
Q4 20321,997 
(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, 2023 and 2022, we recorded the following as a result of these operating ground leases (dollars in thousands, except for footnotes):
December 31, 2023December 31, 2022
Operating lease right-of-use assets(1)
$574 $623 
Operating lease liabilities(2)
$568 $617 
Weighted-average remaining lease term (years)15.015.3
Weighted-average incremental borrowing rate8.12 %7.93 %
(1)Operating lease right-of-use assets are shown net of prepaid lease payments of approximately $6,000 for each of the years ended December 31, 2023 and 2022 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 revenue for the years ended December 31, 2023, 2022, and 2021 (dollars in thousands, except for footnotes):
For the Years Ended December 31,
202320222021
Fixed lease payments(1)
$83,695 $81,423 $69,998 
Variable lease payments(2)
6,624 7,813 5,320 
Lease revenue, net(3)
$90,319 $89,236 $75,318 
(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, 2023, 2022, and 2021, we recorded participation rents of approximately $5.9 million, $7.7 million, and $5.2 million, respectively, and reimbursements of certain property operating expenses by tenants of approximately $688,000, $110,000, and $101,000, respectively. In addition, during the year ended December 31, 2023, we recorded late fees of approximately $46,000.
(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, 2023, are as follows (dollars in thousands):
Period
Future Lease Payments(1)
For the fiscal years ending December 31:2024$92 
202562 
202662 
202762 
202862 
Thereafter631 
Total undiscounted lease payments971 
Less: imputed interest(403)
Present value of lease payments$568 
(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.