Farm Value Trends How High Could Prices Go? - Paul Pittman, Chief Executive Officer

Farm Value Trends
                        How High Could Prices Go?

                   Paul Pittman, Chief Executive Officer
                          Farmland Partners Inc.

January 2021
Des Moines, Iowa

Land Value Trends
Disclaimer

      Forward Looking Statements

      Farmland Partners Inc. (the “Company”) is an internally managed real estate company that owns and seeks to acquire
      high-quality North American farmland and makes loans to farmers secured by farm real estate. As of the date of this
      release, the Company owns approximately 154,500 acres in 16 states, including Alabama, Arkansas, California, Colorado,
      Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota,
      and Virginia. We have approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a real
      estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December
      31, 2014.

      This presentation includes "forward-looking statements" within the meaning of the federal securities laws, including,
      without limitation, statements with respect to the return of farmland values, crop prices and crop yields. Forward-looking
      statements generally can be identified by the use of forward-looking terminology such as "may," "should," "could,"
      "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates"
      or similar expressions or their negatives, as well as statements in future tense. Although the Company believes that the
      expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and
      expectations, such forward-looking statements are not predictions of future events or guarantees of future performance.
      Any forward-looking information presented herein is made only as of the date of this presentation, and the Company does
      not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the
      occurrence of unanticipated events, or otherwise.

  2

Land Value Trends
Introduction

  Des Moines, Iowa                                                                                                 January 12th, 2021

                                                                   Paul Pittman
                                                                  Chief Executive Officer

                    30 years experience as an
                    investment banker, farmland
                    investor and operator

      Select Career Highlights Prior to FPI
    Began investing in farmland in the mid-90s

    Built a privately held portfolio of over 30 farms, comprising over 7,000 acres (approximately $100 million)
     o Most of these properties formed FPI’s initial IPO portfolio

    Served as Chief Executive Officer since the initial public offering in April 2014

   Contact: paul@farmlandpartners.com

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Land Value Trends
About Farmland Partners

  Farmland Partners Inc. is an internally managed, publicly traded (NYSE: FPI) real estate
  company that owns and seeks to acquire high-quality farmland throughout North America

             Largest Publicly Traded Farmland REIT in US
               o   Over 150,000 acres between 340 farms across 16 states, over 100 tenants
               o   Approximately $1.1B in assets
               o   Annual revenues of approximately $50M

      Stars indicate FPI offices
      Circles indicate FPI farms and cost basis
  4

Land Value Trends
Land Values are Likely to Increase Substantially

   If trends continue, the best farmland in Illinois and Iowa will return to $12,000 per acre or
   more, exceeding values seen in 2013

      Reasons:                                       Risks:
       Increasing Commodity Prices                   Value of US Dollar, Change in Supply
                                                       and Demand
       Increase in Trendline Yield
       Increase in Farm Operator Productivity
       Reduction & Stabilization of Input Costs      Potential Government Regulation
       Low Interest Rates                            Higher Interest Rates

  5

Land Value Trends
Commodity Prices

  Year-end commodity prices are returning to 2013 levels

                                                        Year End Commodity Prices 2007 - 2020

      $16
                                                                                                                                              $13.12
      $14
                                                                                           $12.97
      $12

      $10

       $8                                                                                                                                       $6.41
                                                                                           $6.05
       $6

       $4
                                                                                           $4.22                                                $4.84
       $2

       $0
              2007        2008       2009        2010        2011       2012        2013           2014    2015   2016   2017   2018   2019   2020

                                                                          Corn             Soybean        Wheat

      Source: “The Long Term Perspective on Markets.” Macrotrends, www.macrotrends.net/.

  6

Land Value Trends
China’s Imports of Key Grains

                                                                   China’s Grain Imports (1000 MT)

100,000
                                                                                                                                                                      100,000
              China’s soybean imports have increased 42% since 2013
 90,000
              China’s corn imports have increased 404% since 2013
 80,000

 70,000
                                                                                                   70,364

 60,000

 50,000

 40,000

 30,000

                                                                                                                                                                       16,500
 20,000

 10,000                                                                                     3,277

     -
             2007         2008         2009          2010         2011         2012         2013            2014      2015         2016          2017   2018   2019   2020

                                                                              Soybean Imports               Corn Imports

    Sources:
    1) Thukral, Naveen, and Hallie Gu. “Exclusive: China Eyes More Corn Imports as Shipments Surge, Set to Become Top Buyer.” Reuters, Thomson
         Reuters, 23 Oct. 2020, www.reuters.com/article/us-china-corn-imports-excusive-idUSKBN2780W8.
    2) “China Soybean Oilseed Imports by Year.” China Soybean Oilseed Imports by Year (1000 MT),
         www.indexmundi.com/agriculture/?country=cn&commodity=soybean-oilseed&graph=imports.
    7

Land Value Trends
Soybean Trendline Yield

                                                           Soybeans Trendline Yield (bushels/acre)

  52

       2013-2021 CAGR = 1.16%

  50
                                                                                                                                           50.0

  48

  46

                                                                                45.6

  44

  42

  40

  38
          2007         2008        2009        2010         2011        2012    2013   2014   2015   2016   2017   2018   2019   2020   2021

       Source: United States Department of Agriculture (2021 is FPI estimate)

  8

Land Value Trends
Corn Trendline Yield

                                                                 Corn Trendline Yield (bushels/acre)

  190

        2013-2021 CAGR = 1.29%

  180

                                                                                                                                              179.3

  170

  160
                                                                                    161.8

  150

  140

  130

  120
             2007        2008        2009        2010         2011        2012   2013       2014   2015   2016   2017   2018   2019   2020   2021

        Source: United States Department of Agriculture (2021 is FPI estimate)

  9

Land Value Trends
Reduction and Stabilization of Input Costs

   Farm operator cost structure and efficiency on a per bushel basis have historically always
   been improving, and that trend is likely to continue

      Variable Rate Technology (VRT)
        o Variable Rate Fertilization
        o Variable Rate Seeding
      Water Use Efficiency Tools
      Speed of Field Operations, Especially Planting and Spraying
      Data Collection and Enhanced Visualization Tools
      Remote Sensing, Aerial Imaging, Better and Faster Scouting

  10

Land Value Trends
10-Year Treasury Yield

                                                                            10 Year Treasury Yield

  5.0%

  4.5%

  4.0%

  3.5%

  3.0%

  2.5%

  2.0%

  1.5%

  1.0%

  0.5%

  0.0%
      2007          2008        2009        2010         2011        2012        2013         2014        2015        2016        2017         2018   2019   2020   2021

         Source: “10 Year Treasury Rate - 54 Year Historical Chart.” MacroTrends, www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart.

  11

Land Value Trends
Effect of Trendline Yield Increase on Land Values

                                                                                              Corn

            The US corn trendline yield has increased from 161 bushels/ac in 2013 to 179 bushels/ac in 2021

            Increase in Yield × Price of Bushel = Extra Revenue/acre ÷ Cap Rate = Value of Extra Revenue/acre
                 18 bu/ac ×          $4.60      =         $82.8      ÷ 3.5% =           $2,366/ac

                                                                                         Soybeans

            The US soybean trendline yield has increased from 46 bushels/ac in 2013 to 50 bushels/ac in 2021

            Increase in Yield × Price of Bushel = Extra Revenue/acre ÷ Cap Rate = Value of Extra Revenue/acre
                  4 bu/ac ×         $12.50      =         $50.0      ÷ 3.5% =            $1,429/ac

   Food for thought: Shouldn’t Illinois and Iowa top quality land prices be $1,500 - $2,000 per
   acre higher than 2013 levels?

       Corn and Soybean prices are estimates of local cash prices that could be achieved by fall of 2021.

  12

Thank You
Contact: paul@farmlandpartners.com