The Mormon Church, a massive landholder, just expanded its $2B US farmland portfolio across 8 states

The Mormon Church is expanding its real estate empire with a massive $289 million deal for 46 farms across eight states, further solidifying its place as a major player in the US agricultural industry.

The real estate arm of the Church of Jesus Christ of Latter-day Saints, Utah-based Farmland Reserve Inc., is acquiring the farmland from Denver-based Farmland Partners Inc., a publicly traded real estate investment trust.

The transaction, set to close on Oct. 16, involves 41,554 acres of farmland spread across states including Arkansas, Florida, Nebraska, Mississippi and the Carolinas, according to DTN .

At nearly $7,000 per acre, the sale will hand Farmland Partners a significant windfall. The company expects to pocket a total gain of about $50 million from the sale, or roughly 21% above the book value of the properties.

Farmland Partners plans to use the capital to reduce debt by around $140 million, buy back stock and fund future acquisitions.

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The company is also considering a “significant special distribution” to its shareholders by the end of the year, according to Luca Fabbri, president and CEO of Farmland Partners. Fabbri expressed excitement about the deal and noted that the transaction aligns with the company’s “total return” investment strategy, which focuses on long-term asset appreciation.

“We have consistently advised shareholders that our company is undervalued due to lack of recognition by the market of the appreciation in our asset base,” Fabbri said in the press release . He added that the deal proves the company’s investment thesis, which emphasizes generating returns not just from the farms’ operational income but also from the land’s increasing value.

Farmland Reserve, the Church’s real estate investment company, is already a powerhouse in US agriculture, with more than 1 million acres of farmland under its belt, including 370,000 acres in Nebraska alone.

Though the company remains somewhat mysterious—it does not list how much land it owns or have a contact on its website—it is widely recognized in the agricultural community as a responsible landowner.

“We are pleased to transition our long-standing tenant relationships to a high-quality institutional investor that values relationships as we do,” Fabbri said of Farmland Reserve. He praised the Church-owned company for its ethical management of tenant farmers, noting that its reputation as a “best-in-class” owner made it the right buyer for the portfolio.

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Doug Rose, CEO of Farmland Reserve, echoed Fabbri’s sentiments, expressing gratitude for the opportunity to work with Farmland Partners.

“We’re also gratified they saw us as the right buyer for these properties and the farmer tenant relationships that come with them,” Rose said.

Farmland Reserve, with its long-term investment philosophy, plans to lease the newly acquired farms to local farmers for years to come, maintaining the agricultural productivity of the land, they said in the statement.

The company, which owns 145,000 acres and manages another 45,000 acres across 15 states, has acquired more than 300 farms since its IPO in 2014.

Roughly 90% of its acres grow row crops like corn and soybeans, with orchards in California adding to its diverse portfolio. The company also manages over 100 tenant farmers who help maintain its vast holdings across the country.

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For Farmland Partners, the sale to the Church’s real estate arm is just another step in a long-term strategy to unlock the hidden value in its portfolio.

For Farmland Reserve, it’s a chance to further cement its position as a dominant force in American agriculture. As the dust settles on this landmark deal, one thing is clear: the Mormon Church’s land holdings—and its influence in the farming sector—are growing at a rapid pace.

According to The Flatwater Free Press, earlier this year the Mormon Church faced backlash after purchasing around 370,000 acres of prime ranch land in Nebraska, now owning at least $2 billion worth of agricultural terrain across the nation.

The Church of Jesus Christ of Latter-day Saints has become the largest land buyer in Nebraska over the past five years, holding $134 million in land there and potentially overtaking Ted Turner, founder of CNN, as the state’s top landowner.

The Utah-based church is already Florida’s largest private landowner, with agricultural holdings in the Sunshine State alone valued at $884 million.

Amid growing scrutiny of its finances, including a federal investigation and lawsuits from its own members, a recent analysis reveals the church’s vast real estate empire spans around 859,000 acres across the US, outpacing land holdings by Bill Gates and China combined. However, some estimates suggest the church’s actual agricultural assets could be as high as $12 billion.

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