10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

(Mark One)

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM                  TO                

COMMISSION FILE NUMBER: 001-35795

GLADSTONE LAND CORPORATION

(Exact name of registrant as specified in its charter)

MARYLAND	54-1892552
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1521 WESTBRANCH DRIVE, SUITE 100 MCLEAN, VIRGINIA	22102
(Address of principal executive offices)	(Zip Code)

(703) 287-5800

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

(Title of Each Class)	(Name of Each Exchange on which Registered)
Common Stock, $0.001 par value per share	NASDAQ Global Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    YES  ¨    NO  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    YES  ¨    NO  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  x    NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  x    NO  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

(Check one):

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    YES  ¨    NO  x.

The aggregate market value of the voting stock held by non-affiliates of the registrant on June 30, 2014, based on the closing price on that date of $12.99 on the NASDAQ Global Market, was $48,927,147. For the purposes of calculating this amount only, all directors and executive officers of the registrant have been deemed to be affiliates.

The number of shares of the registrant’s Common Stock, $0.001 par value per share, outstanding as of February 23, 2015, was 7,753,717.

Documents Incorporated by Reference: Portions of the Registrant’s Proxy Statement, to be filed no later than April 30, 2015, relating to the Registrant’s 2015 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K.

GLADSTONE LAND CORPORATION

FORM 10-K FOR THE YEAR ENDED

DECEMBER 31, 2014

TABLE OF CONTENTS

			PAGE
PART I	ITEM 1	Business		4
	ITEM 1A	Risk Factors		19
	ITEM 1B	Unresolved Staff Comments		35
	ITEM 2	Properties		36
	ITEM 3	Legal Proceedings		37
	ITEM 4	Mine Safety Disclosures		37
PART II	ITEM 5	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		38
	ITEM 6	Selected Financial Data		40
	ITEM 7	Management’s Discussion and Analysis of Financial Condition and Results of Operations		43
	ITEM 7A	Quantitative and Qualitative Disclosures About Market Risk		69
	ITEM 8	Financial Statements and Supplementary Data		70
	ITEM 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		110
	ITEM 9A	Controls and Procedures		110
	ITEM 9B	Other Information		110
PART III	ITEM 10	Directors, Executive Officers and Corporate Governance		111
	ITEM 11	Executive Compensation		111
	ITEM 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		111
	ITEM 13	Certain Relationships and Related Transactions and Director Independence		111
	ITEM 14	Principal Accountant Fees and Services		111
PART IV	ITEM 15	Exhibits and Financial Statement Schedules		112
SIGNATURES

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FORWARD-LOOKING STATEMENTS

Our disclosure and analysis in this Annual Report on Form 10-K (the “Form 10-K”), and the documents that are incorporated by reference herein, contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends concerning matters that are not historical facts. These forward-looking statements include information about possible or assumed future events, including, among other things, discussion and analysis of our future financial condition, results of operations and funds from operations (“FFO”), our strategic plans and objectives, cost management, occupancy and leasing rates and trends, liquidity and ability to refinance our indebtedness as it matures, anticipated capital expenditures (and access to capital) required to complete projects, amounts of anticipated cash distributions to our stockholders in the future and other matters. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may” and variations of these words and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements contain these words. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Statements regarding the following subjects, among others, are forward-looking by their nature:

• our business strategy;

• our ability to implement our business plan, including our ability to continue to expand both geographically and beyond annual row crops;

• pending transactions;

• our projected operating results;

• our ability to obtain future financing arrangements;

• estimates relating to our future distributions;

• estimates regarding potential rental rate increases;

• our understanding of our competition and our ability to compete effectively;

• market and industry trends;

• estimates of future operating expenses, including payments to our Adviser (as defined herein) under the terms of our Advisory Agreement (as defined herein);

• our compliance with tax laws, including our ability to maintain our qualification as a real estate investment trust (“REIT”) for federal income tax purposes;

• projected capital expenditures; and

• use of proceeds of our line of credit, long-term borrowings, future stock offerings and other future capital resources, if any.

Forward-looking statements involve inherent uncertainty and may ultimately prove to be incorrect or false. You are cautioned to not place undue reliance on forward-looking statements. Except as otherwise may be required by law, we undertake no obligation to update or revise forward-looking statements to reflect changes to our assumptions, the occurrence of unanticipated events or actual operating results. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to:

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• general volatility of the capital markets and the market price of our common stock;

• failure to maintain our qualification as a REIT and risks of changes in laws that affect REITs;

• risks associated with negotiation and consummation of pending and future transactions;

• changes in our business strategy;

• the adequacy of our cash reserves and working capital;

• our failure to successfully integrate and operate acquired properties and operations;

• defaults upon or non-renewal of leases by tenants;

• decreased rental rates or increased vacancy rates;

• the degree and nature of our competition, including other real estate investment companies;

• availability, terms and deployment of capital, including the ability to maintain and borrow under our line of credit, arrange for long-term mortgages on our properties and raise equity capital;

• our Adviser’s ability to identify, hire and retain highly-qualified personnel in the future;

• changes in the environment, our industry, interest rates or the general economy;

• changes in real estate and zoning laws and increases in real property tax rates;

• changes in governmental regulations, tax rates and similar matters;

• environmental liabilities for certain of our properties and uncertainties and risks related to natural disasters or climactic changes impacting the regions in which our tenants operate; and

• the loss of any of our key officers, such as Mr. David Gladstone, our chairman, president and chief executive officer, or Mr. Terry Lee Brubaker, our vice chairman and chief operating officer.

This list of risks and uncertainties, however, is only a summary of some of the most important factors to us and is not intended to be exhaustive. You should carefully review the risks set forth herein under the caption “Item 1A. Risk Factors.” New factors may also emerge from time to time that could materially and adversely affect us.

ITEM 1. BUSINESS

Corporate Overview

Gladstone Land Corporation (the “Company,” “we,” “us” or “our”) is an externally-managed, agricultural REIT that was re-incorporated in Maryland on March 24, 2011, having been originally incorporated in California on June 14, 1997, and having been previously re-incorporated in Delaware on May 25, 2004. We are primarily in the business of owning and leasing farmland. Upon the pricing of our initial public offering (the “IPO”) on January 29, 2013, our shares of common stock began trading on the NASDAQ Global Market under the symbol “LAND.”

Prior to 2004, we were engaged in the owning and leasing of farmland, as well as an agricultural operating business whereby we engaged in the farming, contract growing, packaging, marketing and distribution of fresh berries, including commission selling and contract cooling services to independent berry growers. In 2004, we sold our agricultural operating business, and since 2004, our operations have consisted solely of leasing our farms to medium-sized, independent farming operations and larger, corporate farming operations.

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Including the acquisition of one farm subsequent to December 31, 2014, we currently own 8,370 acres comprised of 33 farms: 15 in California, 9 in Florida, 4 in Michigan, 4 in Oregon and 1 in Arizona. We also own three cooling facilities and one box barn. These properties are currently leased to 30 separate and unrelated tenants that are either corporate or independent farmers. We also lease a small parcel on our 653-acre farm near Oxnard, California (“West Gonzales”), to an oil company. Historically, our farmland has predominantly been concentrated in locations where tenants are able to grow annual row crops, such as certain types of berries and vegetable crops, which are planted and harvested annually or more frequently. However, during 2013, we began to diversify the variety of crops grown on our properties, and we now own several farms with more permanent crops, such as blueberries, as well as a couple of farms that grow grains, such as corn and beans. While our focus remains on annual row crops, in the future, we may acquire additional land with fruit or nut trees, bushes, wine berries and wine grapes, as well as land to grow grains. We may also acquire more property related to farming, such as storage facilities utilized for cooling crops, freezer buildings, facilities used for the storage and assembly of boxes for shipping produce (known as box barns), silos, storage facilities, green houses, processing plants, packaging buildings and distribution centers.

We generally lease our properties on a triple-net basis, an arrangement under which, in addition to rent, the tenant is required to pay the related taxes, insurance costs (including drought insurance if we were to acquire properties that depend upon rainwater for irrigation), maintenance and other operating costs. We may also sell farmland at certain times, such as when the land could be developed by others for urban or suburban uses. We do not currently intend to enter the business of growing, packing or marketing farmed products; however, if we do so in the future, we expect that we would conduct such business through a taxable REIT subsidiary (“TRS”).

To a lesser extent, we may provide senior secured first-lien mortgages to farmers for the purchase of farmland and farm-related properties. We expect that any mortgages we make would be secured by farming properties that have a successful history of crop production and profitable farming operations and that, over time, such mortgages would not exceed 5.0% of the fair value of our total assets. Currently, we do not hold any mortgages, and we have not identified any properties for which to make loans secured by mortgages.

We conduct our business through an Umbrella Partnership Real Estate Investment Trust (“UPREIT”) structure in which our properties and the mortgage loans we make will be held directly or indirectly by Gladstone Land Limited Partnership (our “Operating Partnership”). We are the manager and 100% owner of Gladstone Land Partners, LLC (“Land Partners”), which is the sole general partner of our Operating Partnership, and we currently hold, directly and indirectly through Land Partners, 100% of its outstanding limited partnership units (“OP Units”). In the future, we may offer equity ownership in our Operating Partnership by issuing OP Units to farmland owners from time to time in consideration for acquiring their farms. Holders of OP Units in our Operating Partnership will be entitled to redeem these units for cash or, at our election, shares of our common stock on a one-for-one basis at any time after holding the OP Units for one year. Farmland owners who exchange their farms for OP Units may be able to do so in a tax-deferred exchange under U.S. federal income tax laws.

On September 3, 2014, we filed our 2013 federal income tax return, on which we elected to be taxed as a REIT for federal tax purposes beginning with the year ended December 31, 2013. As a REIT, we generally will not be subject to U.S. federal income tax if we distribute at least 90% of our taxable income to our stockholders. In addition, we have elected for Gladstone Land Advisers, Inc., a wholly-owned subsidiary of our Operating Partnership, to be taxed as a TRS. We may own or manage our assets and engage in other activities through Gladstone Land Advisors or another TRS we form or acquire when we deem it necessary or advisable. The taxable income generated by any TRS will be subject to regular corporate income tax. Currently, we do not conduct any operations through our TRS.

Subject to certain restrictions and limitations, and pursuant to contractual agreements, our business and real estate portfolio investments are managed by Gladstone Management Corporation (our “Adviser”), a Delaware corporation, a registered investment adviser with the Securities and Exchange Commission (the “SEC”) and an affiliate of ours. Administrative services are provided to us by Gladstone Administration, LLC (our “Administrator”), a Delaware limited liability company and an affiliate of ours. Our Adviser and our Administrator are owned and controlled by David Gladstone, our chief executive officer, president, chairman of our Board of Directors and our largest stockholder.

Our Investment Objectives and Our Strategy

Our principal business objective is to maximize stockholder returns through a combination of: (1) monthly cash distributions to our stockholders, which we hope to sustain and increase through long-term growth in cash flows from increased rents; (2) appreciation of our land; and (4) capital gains derived from the sale of our properties. Our primary strategy to achieve our

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business objective is to invest in and diversify our current portfolio of primarily triple-net-leased farmland and properties related to farming operations. This strategy includes the following components:

• Owning Farms and Farm-Related Real Estate for Income. We own and intend to acquire farmland and lease it to corporate and independent farmers, including sellers who desire to continue farming the land after we acquire the property from them. We expect to hold acquired properties for many years and to generate stable and increasing rental income from leasing these properties.

• Owning Farms and Farm-Related Real Estate for Appreciation. We intend to lease acquired properties over the long term. However, from time to time we may sell one or more properties if we believe it to be in the best interests of our stockholders. Potential purchasers may include real estate developers desiring to develop the property or financial purchasers seeking to acquire property for investment purposes. Accordingly, we will seek to acquire properties that we believe have potential for long-term appreciation in value.

• Continue Expanding our Operations Geographically. While our properties are currently located in five states across the U.S., we expect that we will acquire properties in other farming locations in the future. We believe the Southeast and Mid-Atlantic regions of the United States, specifically states such as Georgia, North Carolina and New Jersey, offer attractive locations for expansion. We also expect to seek farmland acquisitions in the Midwest and may also expand into other areas in the United States.

• Continue Expanding our Crop Varieties. Currently, the majority of tenants who farm our properties grow row crops dedicated to produce, such as lettuce and tomatoes, and berries, such as strawberries and raspberries. While we have begun expanding into longer-term crops, such as blueberries, as well as into grains, in the future, we will seek to continue expanding into other crops, such as commodity crops (e.g., wheat, rice and corn) and bush, tree and vine crops (e.g., fruits and nuts).

• Using Leverage. To make more investments than would otherwise be possible, we intend to borrow through loans secured by long-term mortgages on our properties, and we may also borrow funds on a short-term basis or incur other indebtedness.

• Owning Mortgages on Farms and Farm-Related Real Estate. In circumstances where our purchase of farms and farm-related properties is not feasible, we may provide the owner of the property with a mortgage loan secured by the property along with an option to sell the property to us in the future at a predetermined price. We do not expect that, over time, our mortgages held will exceed 5.0% of the fair value of our total assets.

• Joint Ventures. Some of our investments may be made through joint ventures that would permit us to own interests in large properties without restricting the diversity of our portfolio.

We expect that most of our future tenants will be medium-sized independent farming operations or large corporate farming operations that are unrelated to us. We intend to lease the majority of our properties under triple-net leases, an arrangement under which the tenant maintains the property while paying the related taxes, maintenance and insurance costs, as well as rent to us. We are actively seeking and evaluating other farm properties for potential purchase, although we are not currently a party to any binding purchase agreements to acquire any properties. All potential acquisitions will be subject to due diligence investigations, and there can be no assurance that we will be successful in identifying or acquiring any properties in the future.

Our Investment Process

Types of Investments

We expect that substantially all of our investments will be in income-producing agricultural real property and, to a lesser extent, mortgages on agricultural real estate. We expect that the majority of our leases will be structured as triple-net leases. If we make mortgage loans, we expect the ratio of loan amount to value of the real estate to be greater than ratios for conventional mortgage loans on farms and the interest rate to be higher than those for conventional loans. Investments will not be restricted as to geographical areas. Currently, our properties are located across five states in the U.S.

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We anticipate that we will make substantially all of our investments through our Operating Partnership. Our Operating Partnership may acquire interests in real property in exchange for the issuance of common shares, OP Units, cash or through a combination of the three. OP Units issued by our Operating Partnership will be redeemable for cash or, at our election, shares of our common stock on a one-for-one basis at any time after holding the OP Units for one year. However, we currently, and may in the future, hold some or all of our interests in real properties through one or more wholly-owned subsidiaries, each classified as a qualified REIT subsidiary.

Property Acquisitions and Leasing

We anticipate that many of the farms we purchase will be acquired from independent farmers or agricultural companies and that they will simultaneously lease the properties back from us. These transactions will provide the tenants with an alternative to other financing sources, such as borrowing, mortgaging real property or selling securities. We anticipate that some of our transactions will be in conjunction with acquisitions, recapitalizations or other corporate transactions affecting our tenants. We also expect that many of the farms we acquire will be purchased from owners that do not farm the property but rather lease the property to tenant farmers. In situations such as these, we intend to have a lease in place prior to or simultaneously with acquiring the property. For a discussion of the risks associated with leasing property to leveraged tenants, see “Risk Factors — Risks Relating to Our Business and Operations — Some of our tenants may be unable to pay rent, which could adversely affect our cash available to make distributions to our stockholders or otherwise impair the value of your investment.”

We intend to own primarily single-tenant, agricultural real property. Generally, we will lease properties to tenants that our Adviser deems creditworthy under triple-net leases that will be full-recourse obligations of our tenants or their affiliates. Most of our agricultural leases have original terms ranging from 3 to 10 years for properties growing row crops and 5 to 15 years for properties growing permanent crops, often with options to extend the lease further. Rent is generally payable to us on either an annual or semi-annual basis, with one-half due at the beginning of the year and the other half due later in the year. Further, most of our leases contain provisions that provide for annual increases in the rental amounts payable by the tenants, often referred to as escalation clauses. The escalation clauses may specify fixed dollar amount or percentage increases each year, or it may be variable, based on standard cost of living or inflation indices. In addition, some leases that are longer-term in nature may require a regular survey of comparable land rents, with the rent owed per the lease being adjusted to reflect current market rents. We have not entered into any leases that include variable rent based on the success of the harvest each year; however, should we choose to do so, we would generally require the lease to include the guarantee of a minimum amount of rental income that satisfies our investment return criteria. Currently, our 33 farms are leased under original lease terms ranging from 1 to 15 years, with 20 farms leased on a pure triple-net basis, and 13 farms leased on a partial-net basis, with the landlord responsible for all or a portion of the related property taxes. However, due to follow-on leases we have executed on certain of our properties, two of our farms that are currently leased on a partial-net basis will convert to pure triple-net leases in November 2015.

We believe that we can source farmland to purchase that will rent at annual rental rates providing net capitalization rates ranging from 4.5% to 6.5% of the properties’ market values. However, there can be no assurance that we will be able to achieve this level of rental rates. Since rental contracts in the farming business for annual row crops are customarily short-term agreements, rental rates are typically renegotiated regularly to then-current market rates.

Underwriting Criteria and Due Diligence Process

Selecting the Property

We consider selecting the right properties to purchase or finance as the most important aspect of our business. Buying quality farmland that can be used for many different crops and that is located in desirable locations is essential to our success.

Our Adviser works with real estate contacts in agricultural markets throughout the United States to assess available properties and farming areas. We believe that our Adviser is experienced in selecting valuable farmland and will use this expertise to identify promising properties. The following is a list of important factors in our selection of farmland:

• Water availability. Availability of water is essential to farming. We will seek to purchase properties with ample access to water through an operating well on site or rights to use a well or other source that is located nearby. However, we may consider properties that rely on rainfall for water if the tenant on that property mitigates the drought risk by purchasing drought insurance. Typically, the leases on properties that rely on rainfall would be longer-term in nature. We do not currently own any properties that rely on rainfall for water.

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• Soil composition. In addition to water, for farming efforts to be successful, the soil must be suitable for growing crops. We will not buy or finance any real property that does not have soil conditions that we believe are favorable for growing the crops farmed on the property, except to the extent that a portion of an otherwise suitable property, while not favorable for growing the crops farmed on the property, may be utilized to build structures used in the farming business, such as cooling facilities, packinghouses, silos, greenhouses, storage facilities and distribution centers.

• Location. Farming also requires optimal climate and growing seasons. We typically seek to purchase properties in locations that take advantage of climate conditions that are needed to grow fresh produce crops. We intend to continue to expand throughout the United States in locations with productive farmland and financially sound farming tenants.

• Price. We intend to purchase and finance properties that we believe are a good value and that we will be able to profitably rent for farming over the long term. Generally, the closer a property is located to urban developments, the higher the value of the property. As a result, properties that are currently located in close proximity to urban developments are likely to be too expensive to justify farming over an extended period of time, and, therefore, we are unlikely to invest in such properties.

Our Adviser will perform a due diligence review with respect to each potential property acquisition. Such review will include an evaluation of the physical condition of a property and an environmental site assessment to determine potential environmental liabilities associated with a property prior to its acquisition. One of the criteria that we look for is whether mineral rights to such property, which constitute a separate estate from the surface rights to the property, have been sold to a third party. We generally seek to invest in properties where mineral rights have not been sold to third parties; however, in cases where access to mineral rights would not affect the surface farming operations, we may enter into a lease agreement for the extraction of minerals or other subterranean resources, as we have done on West Gonzales. We may seek to acquire mineral rights in connection with the acquisition of future properties to the extent such mineral rights have been sold off and the investment acquisition of such rights is considered to be favorable after our due diligence review. Despite the conduct of these reviews, there can be no assurance that hazardous substances or waste, as determined under present or future federal or state laws or regulations, will not be discovered on the property after we acquire it. See “Risk Factors — Risks Relating to our Business and Operations — Potential liability for environmental matters could adversely affect our financial condition.”

Our Adviser will also physically inspect each property and the real estate surrounding it to estimate its value. Our Adviser’s due diligence will be primarily focused on valuing each property independent of its rental value to particular tenants to whom we plan to rent. The real estate valuations our Adviser performs will consider one or more of the following items:

• The comparable value of similar real property in the same general area of the prospective property. In this regard, comparable property is hard to define since each piece of real estate has its own distinct characteristics. But to the extent possible, comparable property in the area that has sold or is for sale will be used to determine if the price being paid for the property is reasonable.

• The comparable real estate rental rates for similar properties in the same area of the prospective property.

• Alternative uses for the property to determine if there is another use for the property that would give it higher value, including potential future conversion to urban or suburban uses such as commercial or residential development.

• The assessed value as determined by the local real estate taxing authority.

In addition, our Adviser may supplement its valuation estimate with an independent real estate appraisal in connection with each investment that it considers. These appraisals may take into consideration, among other things, the terms and conditions of the particular lease transaction, the quality of the tenant’s credit and the conditions of the credit markets at the time the lease transaction is negotiated. However, the actual purchase price of a property may be greater or less than its appraised value. When appropriate, our Adviser may engage experts to undertake some or all of the due diligence efforts described above.

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Underwriting the Tenant, Due Diligence Process and Negotiating Lease Provisions

In addition to property selection, underwriting the tenant that will lease the property will also be an important aspect of many of our investments. Our Adviser will evaluate the creditworthiness of the tenant and assess its ability to generate sufficient cash flow from its agricultural operations to cover its payment obligations to us pursuant to our lease. Because our tenants are in the farming industry, their cash flows may fluctuate according to season. The following is a list of criteria that our Adviser may consider when evaluating potential tenants for our properties, although not all criteria may be present for each lease:

• Experience. We believe that experience is the most significant characteristic when determining the creditworthiness of a tenant. Therefore, we seek to rent our properties to farmers that have an extensive track record of farming their particular crops successfully.

• Financial Strength. We seek to rent to farmers that have financial resources to invest in planting and harvesting their crops. We generally require annual financial statements of the tenant to evaluate the financial capability of the tenant and its ability to perform its obligations under the lease.

• Adherence to Quality Standards. We seek to lease our properties to those farmers that are committed to farming in a manner that will generate high-quality crops. We intend to identify such commitment through their track records of selling produce into established distribution chains and outlets.

• Lease Provisions that Enhance and Protect Value. When deemed appropriate, our Adviser attempts to include lease provisions that require our consent to specified tenant activity or require the tenant to satisfy specific operating tests. These provisions may include, for example, requiring the tenant to meet operational or financial covenants or to indemnify us against environmental and other contingent liabilities. We believe that these provisions serve to protect our investments from changes in the operating and financial characteristics of a tenant that may impact its ability to satisfy its obligations to us or that could reduce the value of our properties. Our Adviser generally also seeks covenants requiring tenants to receive our consent prior to any change in control of the tenant.

• Credit Enhancement. To mitigate risk and enhance the likelihood of tenants satisfying their lease obligations, our Adviser may also seek cross-default provisions if a tenant has multiple obligations to us or seek a letter of credit or a guaranty of lease obligations from each tenant’s corporate affiliates, if any. We believe that these types of credit enhancements, if obtained, provide us with additional financial security. These same enhancements may apply to mortgage loans.

• Diversification. Our Adviser will seek to diversify our portfolio to avoid dependence on any one particular tenant or geographic location. By diversifying our portfolio, our Adviser intends to reduce the adverse effect on our portfolio of a single underperforming investment or a downturn in any particular geographic region. Many of the areas in which we purchase or finance properties are likely to have their own microclimates and, although they appear to be in close proximity to one another, generally will not be similarly affected by weather or other natural occurrences at the same time. We currently own properties in five different states across the U.S., and over time, we expect to expand our geographic focus to other areas of the Southeast, Midwest and the Mid-Atlantic. We will also attempt to diversify our portfolio of properties by expanding our current operations, which currently consist primarily of owning and leasing farmland that grows row crops dedicated to berries and produce, to owning farmland that grows other crop types, such as commodity crops (e.g., wheat, rice and corn) and bush, tree and vine crops (e.g., nuts and fruits).

While our Adviser seeks tenants it believes to be creditworthy, tenants are not required to meet any minimum rating established by an independent credit rating agency. Our Adviser’s standards for determining whether a particular tenant is creditworthy will vary in accordance with a variety of factors relating to specific prospective tenants. The creditworthiness of a tenant is determined on a tenant-by-tenant and case-by-case basis. Therefore, general standards for creditworthiness cannot be applied. We monitor our tenants’ credit quality on an ongoing basis by, among other things, periodically conducting site

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visits to the properties to ensure farming operations are taking place and to assess the general maintenance of the properties. To date, no changes to credit quality of our tenants have been identified, and all tenants continue to pay pursuant to the terms of their respective leases.

Mortgage Loans

Borrower Selection

Our value-oriented investment philosophy is primarily focused on maximizing yield relative to risk. Upon identifying a potential mortgage opportunity, our Adviser will perform an initial screening to determine whether pursuing intensive due diligence is merited. As part of this process, we have identified several criteria we believe are important in evaluating prospective borrowers. The following criteria provide general guidelines for our investment decisions; however, each prospective borrower may not meet all of these criteria:

• Positive cash flow. Our investment philosophy begins with a credit analysis. We intend to generally focus on borrowers to which we can lend at relatively low multiples of operating cash flow and that have positive operating cash flows when the loan is originated. Although we will obtain liens on the underlying real estate and other collateral, we are primarily focused on the predictability of future cash flow from their operations.

• Seasoned management with significant equity ownership. Strong, committed management teams are important to the success of any farm, and we intend to lend to farm businesses where strong management teams are already in place with a history of successful crop production and profitable farming operations.

• Strong competitive position. We seek to lend to farm businesses that have developed competitive advantages and defensible market positions within their respective markets and are well-positioned to capitalize on growth opportunities.

• Exit strategy. We seek to lend to farm businesses that we believe will generate consistent cash flow to repay our loans and reinvest in their respective businesses. We expect such internally-generated cash flow in these farms to be a key means by which borrowers are able to pay off our loans.

Mortgage Loan Terms

We expect that most of the mortgage loans we make will contain some or all of the following terms and conditions:

• Loan to value. We will consider the appraised value of each property when we consider a mortgage on that property. Our goal is to loan an amount that is no more than 75% of the appraised value of the real estate. However, there may be circumstances in which we may increase the percentage, such as for land that we would like to own or for a borrower that is well-capitalized.

• Cash flow coverage. We expect most borrowers to have a farming operation that has and is expected to continue to have substantial cash flow from its operations. We will seek to loan to businesses that generate operating cash flows of at least 1.2 times the amount of the mortgage payments. However, there may be circumstances in which we may lower that ratio below 1.2, such as for land we would like to own and for borrowers that have cash flow from other operations.

• Term. In general, we expect to make mortgage loans of three to five years that will be interest-only, with the entire principal amount due at the end of the term.

• Guarantees. In general, we do not expect the owner of the property to personally guarantee the mortgage. However, we do expect the owner to pledge any assets or crops planted on the property as collateral for the loan.

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Property Review

We expect to perform a standard review of the property that will be collateral for the mortgage, including many of the following:

• an independent appraisal;

• land record searches for possible restrictions;

• water samples and availability;

• soil samples;

• environmental analysis;

• zoning analysis;

• crop yields;

• possible future uses of the property; and

• government regulation impacting the property, including taxes and other restrictions.

Underwriting the Borrower

We view underwriting a borrower in the same way as underwriting a tenant, with criteria similar to those for tenants described above. We believe that, for assessing credit risk, a borrower and tenant are functionally the same, as they each are operating a farm business and will owe us money, either as rent or as interest and principal on a loan.

Currently, we do not hold any mortgages, and we have not identified any properties for which to make loans secured by mortgages.

Other Investments

From time to time, we may purchase cooling facilities, freezer buildings, packinghouses, silos, storage facilities, greenhouses and similar property improvements to rent to independent farmers. We may also build these types of buildings on property that we purchase if there is sufficient business to make this worthwhile; however, we do not expect these to be a material portion of our assets.

Temporary Investments

Pending investments in real properties or mortgages, we intend to invest significant cash on hand, if any, in permitted temporary investments, which include short-term U.S. Government securities, bank certificates of deposit and other short-term liquid investments. We also may invest in securities that qualify as “real estate assets” and produce qualifying income under the REIT provisions of the Internal Revenue Code of 1986, as amended (the “Code”).

If at any time the character of our investments would cause us to be deemed an “investment company,” as defined in the Investment Company Act of 1940, we will take the necessary action to ensure that we are not deemed to be an “investment company.” Our Adviser will continually review our investment activity and the composition of our portfolio to ensure that we remain outside the purview of the Investment Company Act. Our working capital and other reserves will be invested in permitted temporary investments. Our Adviser will evaluate the relative risks and rates of return, our cash needs and other appropriate considerations when making short-term investments on our behalf. Such temporary investments may have rates of return that are less or greater than we could obtain from real estate investments.

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Joint Ventures

We may enter into joint ventures, partnerships and other mutual arrangements with real estate developers, property owners and others for the purpose of obtaining an equity interest in a property in accordance with our investment policies. Many REITs have used joint ventures as sources of capital during periods where debt or equity capital was either unavailable or not available on favorable terms. Joint venture investments could permit us to own interests in large properties without unduly restricting the diversity of our portfolio. We will not enter into a joint venture to make an investment that we would not otherwise be permitted to make on our own. We expect that in any joint venture the cost of structuring joint investments would be shared ratably by us and the other participating investors.

Use of Leverage

Our strategy is to use borrowings as a financing mechanism in amounts that we believe will maximize the return to our stockholders. We generally expect to enter into borrowing arrangements directly or indirectly through our Operating Partnership. There is no limitation on the amount we may borrow against any single investment property. Neither our charter nor our bylaws impose any limitation on our borrowing.

We believe that, by operating on a leveraged basis, we will have more funds available and, therefore, will be able to make more investments than would otherwise be possible. We believe that this will result in a more diversified portfolio. Our Adviser and Administrator will use its best efforts to obtain financing on the most favorable terms available to us.

We anticipate that our prospective lenders may also seek to include loan provisions whereby the termination or replacement of our Adviser would result in an event of default or an event requiring the immediate repayment of the full outstanding balance of the loan. The replacement or termination of our Adviser may, however, require the prior consent of a lender.

We may refinance properties during the term of a loan when, in the opinion of our Adviser, a decline in interest rates makes it advisable to prepay an existing mortgage loan, when an existing mortgage loan matures or if an attractive investment becomes available and the proceeds from the refinancing can be used to make such investment. The benefits of the refinancing may include an increase in cash flow resulting from reduced debt service requirements, an increase in distributions to stockholders from proceeds of the refinancing, if any, or an increase in property ownership if some refinancing proceeds are reinvested in real estate.

Other Investment Policies

Working Capital Reserves

We may establish a working capital reserve in an amount that we anticipate to be sufficient to satisfy our liquidity requirements. Our liquidity could be adversely affected by unanticipated costs, greater-than-anticipated operating expenses or cash shortfalls in funding our distributions. To the extent that the working capital reserve is insufficient to satisfy our cash requirements, additional funds may be produced from cash generated from operations or through short-term borrowings. In addition, subject to limitations described in this Form 10-K, we may incur indebtedness in connection with:

• the acquisition of any property;

• the refinancing of the debt upon any property; or

• the leveraging of any previously unleveraged property.

For additional information regarding our borrowing strategy, see “Our Investment Process — Use of Leverage.”

Holding Period For and Sale of Investments; Reinvestment of Sale Proceeds

We intend to hold each property we acquire for an extended period until it can be sold for conversion into urban or suburban uses, such as residential or commercial development. However, circumstances might arise which could result in the earlier sale of some properties. We may sell a property before the end of its expected holding period if, in the judgment of our Adviser, the sale of the property is in the best interest of our stockholders. The determination of whether a particular

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property should be sold or otherwise disposed of will be made after consideration of several relevant factors, including prevailing economic conditions, with a view to achieving maximum capital appreciation. No assurance can be given that the foregoing objective will be realized. The selling price of a property which is subject to a net lease will be determined in large part by the amount of rent payable under the lease and the creditworthiness of the tenant. In connection with our sales of properties we may lend the purchaser all or a portion of the purchase price. In these instances, our taxable income may exceed the cash received in the sale, which could cause us to delay required distributions to our stockholders.

The terms of any sale will be dictated by market terms customary in the area in which the property being sold is located and the then-prevailing economic conditions. A decision to provide financing to any purchaser would be made only after an investigation into and consideration of the same factors considered in underwriting tenants, such as creditworthiness and likelihood of future financial stability, as are undertaken when we consider a net lease transaction; see “Our Investment Process — Underwriting Criteria and Due Diligence Process — Underwriting the Tenant, Due Diligence Process and Negotiating Lease Provisions.” We may continually reinvest the proceeds of property sales in investments that either we or our Adviser believe will satisfy our investment policies.

Investment Limitations

There are numerous limitations on the manner in which we may invest our funds. We have adopted a policy that without the permission of our Board of Directors, we will not:

• invest 50% or more of our total assets in a particular property or mortgage at the time of investment;

• invest in real property owned by our Adviser, any of its affiliates or any business in which our Adviser or any of its affiliates have invested;

• invest in commodities or commodity futures contracts, with this limitation not being applicable to futures contracts when used solely for the purpose of hedging in connection with our ordinary business of investing in properties and making mortgage loans;

• invest in contracts for the sale of real estate unless the contract is in recordable form and is appropriately recorded in the chain of title;

• issue equity securities on a deferred payment basis or other similar arrangement;

• grant warrants or options to purchase shares of our stock to our Adviser or its affiliates;

• engage in trading, as compared with investment activities, or engage in the business of underwriting, or the agency distribution of, securities issued by other persons;

• invest more than 5% of the value of our assets in the securities of any one issuer if the investment would cause us to fail to maintain our qualification as a REIT;

• invest in securities representing more than 10% of the outstanding securities (by vote or value) of any one issuer if the investment would cause us to fail to maintain our qualification as a REIT;

• acquire securities in any company holding investments or engaging in activities prohibited in the foregoing clauses; or

• make or invest in mortgage loans that are subordinate to any mortgage or equity interest of any of our affiliates.

Future Revisions in Policies and Strategies

Our independent directors will review our investment policies at least annually to determine whether the policies continue to be in the best interest of our stockholders. The methods of implementing our investment policies also may vary as new investment techniques are developed. The methods of implementing our investment procedures, objectives and policies, except as otherwise provided in our bylaws or articles of incorporation, may be altered by a majority of our directors, including a majority of our independent directors, without the approval of our stockholders, to the extent that our Board of Directors and the independent directors thereon determine that such modification is in the best interest of the stockholders.

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Conflict of Interest Policy

We have adopted policies to reduce potential conflicts of interest. In addition, our directors are subject to certain provisions of Maryland law that are designed to minimize conflicts. However, we cannot assure you that these policies or provisions of law will reduce or eliminate the influence of these conflicts.

We have adopted a policy that, without the approval of a majority of our independent directors, we will not:

• acquire from or sell to any of our officers or directors, the employees of our Adviser or Administrator, or any entity in which any of our officers, directors or such employees has an interest of more than 5%, any assets or other property;

• borrow from any of our directors or officers, the employees of our Adviser or Administrator, or any entity in which any of our officers, directors or such employees has an interest of more than 5%; or

• engage in any other transaction with any of our directors or officers, the employees of our Adviser or Administrator, or any entity in which any of our directors, officers or such employees has an interest of more than 5%.

Consistent with the provisions of the Sarbanes-Oxley Act of 2002, we will not extend credit, or arrange for the extension of credit, to any of our directors and officers. Under the Maryland General Corporation Law, a contract or other transaction between us and one of our directors or officers or any other entity in which one of our directors or officers is also a director or officer or has a material financial interest is not void or voidable solely on the grounds of the common directorship or interest, the fact that the director or officer was present at the meeting at which the contract or transaction was approved or the fact that the director’s vote was counted in favor of the contract or transaction if:

• the material facts relating to the common directorship or interest and as to the transaction are disclosed to our Board of Directors or a committee of our Board, and our Board or the committee in good faith authorizes the contract or transaction by the affirmative vote of a majority of the directors not interested in the contract or transaction, even if the disinterested directors do not constitute a quorum of the Board or committee;

• the fact of the common directorship or interest is disclosed to our stockholders entitled to vote on the contract or transaction, and the contract or transaction is approved or ratified by a majority of the votes cast by the stockholders entitled to vote on the matter, other than shares owned of record or beneficially by the interested director, corporation or entity; or

• the contract or transaction is fair and reasonable to us as of the time authorized, approved or ratified by the Board of Directors, a committee or the stockholders.

Our policy also prohibits us from purchasing any real property from, or co-investing in any real property with, our Adviser, any of its affiliates or any business in which our Adviser or any of its subsidiaries have invested. If we decide to change this policy on co-investments with our Adviser or its affiliates, we will seek approval of our independent directors.

Code of Ethics

The Company and its affiliates, including, but not limited to, Gladstone Capital Corporation (“Gladstone Capital”), Gladstone Investment Corporation (“Gladstone Investment”), Gladstone Commercial Corporation (“Gladstone Commercial”), our Adviser, our Administrator and Gladstone Securities, LLC, have adopted a code of ethics and business conduct applicable to all personnel of such companies that complies with the guidelines set forth in Item 406 of Regulation S-K under the Securities Act. This code, among other things, establishes procedures for personal investments, restricts certain transactions by such personnel and requires the reporting of certain transactions and holdings by such personnel. A copy of this code is

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available for review, free of charge, at our website at www.GladstoneLand.com. We intend to provide any required disclosure of any amendments to or waivers of the provisions of this code by posting information regarding any such amendment or waiver to our website within four days of its effectiveness.

Our Adviser and Administrator

Our business is externally managed by our Adviser, which was incorporated in 2002. The officers, directors and employees of our Adviser have significant experience in making investments in and lending to businesses of all sizes, including investing in real estate and making mortgage loans. We entered into an amended and restated Advisory Agreement with our Adviser (the “Amended Advisory Agreement”), under which our Adviser is responsible for managing our assets and liabilities, for operating our business on a day-to-day basis and for identifying, evaluating, negotiating and consummating investment transactions consistent with our investment policies as determined by our Board of Directors from time to time.

Our Administrator employs our chief financial officer, treasurer, chief compliance officer, general counsel and secretary (who also serves as president of our Administrator) and their respective staffs and provides administrative services to us under the amended and restated Administration Agreement (the “Amended Administration Agreement”).

David Gladstone, our chairman, chief executive officer, president and largest stockholder, is also the chairman, chief executive officer and the controlling stockholder of our Adviser and our Administrator. Terry Lee Brubaker, our vice chairman and chief operating officer and a member of our Board of Directors, also serves in the same capacities for our Adviser and Administrator.

Our Adviser maintains an investment committee that will screen each of our investments. This investment committee is currently comprised of Messrs. Gladstone and Brubaker. We believe that the review process of our Adviser’s investment committee gives us a unique competitive advantage over other agricultural real estate companies because of the substantial experience that the members possess and their unique perspective in evaluating the blend of corporate credit, real estate and lease terms that collectively combine to provide an acceptable risk for our investments.

Our Adviser’s board of directors has empowered the investment committee to authorize and approve our investments, subject to the terms of the Amended Advisory Agreement. Before we acquire any property, the transaction will be reviewed by the investment committee to ensure that, in its view, the proposed transaction satisfies our investment criteria and is within our investment policies. Approval by the investment committee will generally be the final step in the property acquisition approval process, although the separate approval of our Board of Directors is required in certain circumstances described below.

Our Adviser and Administrator are headquartered in McLean, Virginia, a suburb of Washington D.C., and our Adviser also has offices in several other states.

Amended and Restated Advisory and Administration Agreements

Through January 31, 2013, we were managed pursuant to an investment advisory agreement with our Adviser, under which our Adviser directly employed certain of our personnel and paid their payroll, benefits and general expenses directly. Through January 31, 2013, our Administrator provided administrative services to us pursuant to a separate administration agreement. Upon the closing of our IPO, on January 31, 2013, we entered into amended and restated versions of each of the advisory and administration agreements. Summaries of the Amended Advisory and Administration Agreements are below.

Amended Advisory Agreement

Base Management Fee

Under the terms of our Amended Advisory Agreement that went into effect on February 1, 2013, we pay an annual base management fee equal to a percentage of our adjusted stockholders’ equity, which is defined as our total stockholders’ equity at the end of each quarter less the recorded value of any preferred stock we may issue and, for 2013 only, any uninvested cash proceeds from the IPO. For 2013, the base management fee was set at 1.0% of our adjusted stockholders’ equity; however, as of January 2014, we pay a base management fee equal to 2.0% of our adjusted stockholders’ equity, which will no longer exclude uninvested cash proceeds from the IPO.

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Incentive Fee

Pursuant to the Amended Advisory Agreement, we also pay an additional quarterly incentive fee based on our funds from operations (“FFO”). For purposes of calculating the incentive fee, our FFO before giving effect to any incentive fee (our “Pre-Incentive Fee FFO”) will include any realized capital gains or losses, less any distributions paid on any preferred stock we may issue, but will not include any unrealized capital gains or losses. The incentive fee will reward our Adviser if our Pre-Incentive Fee FFO for a particular calendar quarter exceeds a hurdle rate of 1.75%, or 7% annualized, of our total stockholders’ equity at the end of the quarter. We pay our Adviser an incentive fee with respect to our Pre-Incentive Fee FFO quarterly, as follows:

• no incentive fee in any calendar quarter in which our Pre-Incentive fee FFO does not exceed the hurdle rate of 1.75% (7% annualized);

• 100% of the amount of the Pre-Incentive fee FFO that exceeds the hurdle rate, but is less than 2.1875% in any calendar quarter (8.75% annualized); and

• 20% of the amount of our Pre-Incentive fee FFO that exceeds 2.1875% in any calendar quarter (8.75% annualized).

Quarterly Incentive Fee Based on FFO

Pre-Incentive Fee FFO

(expressed as a percentage of adjusted stockholders’ equity)

Percentage of Pre-Incentive Fee FFO allocated to incentive fee

Adviser Duties and Authority under the Amended Advisory Agreement

Under the terms of the Amended Advisory Agreement, our Adviser is required to use its best efforts to present to us investment opportunities consistent with our investment policies and objectives as adopted by our Board of Directors. In performing its duties, our Adviser, either directly or indirectly by engaging an affiliate:

• finds, evaluates, presents and recommends to us a continuing series of real estate investment opportunities consistent with our investment policies and objectives;

• provides advice to us and acts on our behalf with respect to the negotiation, acquisition, financing, refinancing, holding, leasing and disposition of real estate investments;

• enters into contracts to purchase real estate on our behalf in compliance with our investment procedures, objectives and policies, subject to approval of our Board of Directors, where required;

• takes the actions and obtains the services necessary to effect the negotiation, acquisition, financing, refinancing holding, leasing and disposition of real estate investments; and

• provides day-to-day management of our real estate activities and other administrative services.

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Our Board of Directors has authorized our Adviser to make investments in any property on our behalf without the prior approval of our Board if the following conditions are satisfied:

• our Adviser has determined that the total cost of the property does not exceed its determined value; and

• our Adviser has provided us with a representation that the property, in conjunction with our other investments and proposed investments, is reasonably expected to fulfill our investment objectives and policies as established by our Board of Directors then in effect.

The actual terms and conditions of transactions involving investments in properties shall be determined in the sole discretion of our Adviser, subject at all times to compliance with the foregoing requirements. Some types of transactions, however, will require the prior approval of our Board of Directors, including a majority of our independent directors, including, but not limited to, the following:

• any acquisition which at the time of investment would have a cost exceeding 50% of our total assets; and

• transactions that involve conflicts of interest with our Adviser (other than reimbursement of expenses in accordance with the Amended Advisory Agreement).

Amended Administration Agreement

Under the terms of the Amended Administration agreement that went into effect on February 1, 2013, we pay for our allocable portion of the Administrator’s expenses incurred while performing services to us, including, but not limited to, rent and the salaries and benefits expenses of our Administrator’s employees, including our chief financial officer, treasurer, chief compliance officer, general counsel and secretary (who also serves as our Administrator’s president) and their respective staffs. From February 1, 2013, through June 30, 2014, our allocable portion of these expenses was generally derived by multiplying that portion of the Administrator’s expenses allocable to all funds serviced by the Administrator by the percentage of our total assets at the beginning of each quarter in comparison to the total assets of all funds managed by our Adviser.

As approved by our Board of Directors, effective July 1, 2014, our allocable portion of the Administrator’s expenses is now generally derived by multiplying our Administrator’s total expenses by the approximate percentage of time the Administrator’s employees perform services for us in relation to their time spent performing services for all companies serviced by our Administrator under similar contractual agreements. This change in methodology resulted in an increase in the fee we paid to our Administrator of approximately 137% for the six months ended December 31, 2014, as compared to the first six months of the fiscal year. Management believes that the new methodology of allocating the Administrator’s total expenses by approximate percentages of time services were performed more accurately approximates the fees incurred for the actual services performed. While this change in methodology resulted in an increase in the fee paid to our Administrator for the six months ended December 31, 2014, we are not currently able to determine whether the change in methodology will result in an increase or decrease for the upcoming fiscal year.

Our Adviser and Administrator also engage in other business ventures and, as a result, their resources are not dedicated exclusively to our business. For example, our Adviser and Administrator also serve as the external adviser and administrator, respectively, to Gladstone Capital and Gladstone Investment, both publicly-traded business development companies affiliated with us, and Gladstone Commercial, a publicly-traded REIT, also affiliated with us. However, under the Amended Advisory Agreement, our Adviser is required to devote sufficient resources to the administration of our affairs to discharge its obligations under the agreement. The Amended Advisory Agreement is not assignable or transferable by either us or our Adviser without the consent of the other party, except that our Adviser may assign the Amended Advisory Agreement to an affiliate for whom our Adviser agrees to guarantee its obligations to us. Either we or our Adviser may assign or transfer the Amended Advisory Agreement to a successor entity.

Employees

We do not currently have any employees and do not expect to have any employees in the foreseeable future. Currently, services necessary for our business are provided by individuals who are employees of our Adviser and our Administrator

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pursuant to the terms of the Amended Advisory Agreement and the Amended Administration Agreement, respectively. Each of our executive officers is an executive officer of each our Adviser and our Administrator. We expect that approximately 15% to 20% of the full-time employees of our Adviser and our Administrator will spend substantial time on our matters during the 2015 calendar year. To the extent that we acquire more investments, we anticipate that the number of employees of our Adviser and our Administrator who devote time to our matters will increase and the number of our Adviser’s employees working out of local offices, if any, where we buy land will also increase.

As of December 31, 2014, our Adviser and our Administrator, collectively, had 61 full-time employees. A breakdown thereof is summarized by functional area in the table below:

Number of Individuals	Functional Area
11	Executive Management
36	Investment Management, Portfolio Management and Due Diligence
14	Administration, Accounting, Compliance, Human Resources, Legal and Treasury

Competition

Competition to our efforts to acquire farmland can come from many different entities. Developers, municipalities, individual farmers, agriculture corporations, institutional investors and others compete for farmland acreage. Investment firms that we might compete directly against could include agricultural investment firms, such as Hancock Agricultural Investment Group, Prudential Agricultural Investments and UBS Agrivest, LLC. These firms engage in the acquisition, asset management, valuation and disposition of farmland properties. In addition to competition for direct investment in farmland we also expect to compete for mortgages with many local and national banks, such as Rabobank, N.A., Bank of America, N.A., Wells Fargo Foothill, Inc., and others.

Environmental Matters

As an owner of real estate, we are subject to various federal, state and local environmental laws, regulations and ordinances and also could be liable to third parties resulting from environmental contamination or noncompliance at our properties. Environmental laws often impose liability without regard to whether the owner or operator knew of or was responsible for the presence of the contaminants. The costs of any required investigation or cleanup of these substances could be substantial. The liability is generally not limited under such laws and could exceed the property’s value and the aggregate assets of the liable party. The presence of contamination or the failure to remediate contamination at our properties also may expose us to third-party liability for personal injury or property damage or adversely affect our ability to lease the real property or to borrow using the real estate as collateral. These and other risks related to environmental matters are described in more detail in “Item 1A. Risk Factors.”

Tenants

We rent our properties to both independent and corporate farmers. 2 of our 29 leases currently in place are with Dole Food Company (“Dole”) and expire in 2020. These two leases represented approximately 40.4% of our rental revenue for the year ended December 31, 2014, down from 66.2% for the prior-year period. We expect that our tenant base will become more diversified in the future as we acquire more farmland.

Available Information

Copies of our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements and amendments, if any, to those reports filed or furnished with the Securities and Exchange Commission, or the SEC, pursuant to Section 13(a) or 15(d) of the Exchange Act are available free of charge through our website at www.GladstoneLand.com. A request for any of these reports may also be submitted to us by sending a written request addressed to Investor Relations, Gladstone Land Corporation, 1521 Westbranch Drive, Suite 100, McLean, VA 22102, or by calling our toll-free investor relations line at 1-866-366-5745. The public may read and copy materials that we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. The SEC also maintains a website that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at www.SEC.gov.

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ITEM 1A. RISK FACTORS

An investment in our securities involves a number of significant risks and other factors relating to our structure and investment objectives. As a result, we cannot assure you that we will achieve our investment objectives. You should consider carefully the following information before making an investment in our securities.

Risks Relating to Our Business and Operations

Two of our current properties are leased to the same tenant, Dole, and if Dole is no longer able to make rental payments or chooses to terminate its leases prior to or upon their expiration, it could have a material adverse effect on our financial performance and our ability to make distributions to our stockholders.

2 of our 29 current leases, representing approximately 40.5% of our rental revenue for the year ended December 31, 2014, are with Dole and expire in 2020. If Dole fails to make rental payments, elects to terminate its leases prior to or upon their expiration or does not renew its lease, and we cannot re-lease the land on satisfactory terms, or if Dole were to experience financial problems or declare bankruptcy, it could have a material adverse effect on our financial performance and our ability to make dividend payments to our stockholders.

Our real estate portfolio is concentrated in a limited number of properties and states, which subjects us to an increased risk of significant loss if any property declines in value, if we are unable to lease a property or adverse weather, economic or regulatory changes or developments in the markets in which our properties are located.

We currently own 33 farms located in 5 different states across the U.S. that are leased to 30 separate independent and corporate farmers. One consequence of a limited number of investments is that the aggregate returns we realize may be substantially adversely affected by the unfavorable performance of a small number of leases or a significant decline in the value of any single property. In addition, while we do not intend to invest more than 25% of our total assets in a particular property at the time of investment, it is possible that, as the values of our properties change, one property may comprise up to half the value of our total assets. Lack of diversification and investment concentration will increase the potential that a single underperforming investment could have a material adverse effect on our cash flows and the price we could realize from the sale of our properties. Since our current real estate profile is concentrated across only five states, we are also currently subject to the any adverse change in the political or regulatory climate in those states or specific counties where our properties are located that could adversely affect our real estate portfolio and our ability to lease properties. Finally, the geographic concentration of our portfolio could cause us to be more susceptible to adverse weather, economic or regulatory changes or developments in the markets in which our properties are located than if we owned a more geographically-diverse portfolio, which could materially and adversely affect the value of our farms and our ability to lease our farms on favorable terms or at all.

We may not be successful in identifying and consummating additional suitable acquisitions that meet our investment criteria, which may impede our growth and negatively affect our results of operations.

We continue to actively seek and evaluate other farm properties for potential purchase, but there is no guarantee that we will be able to continue to find and acquire properties that meet our investment criteria. We expect that many of our future tenants will be independent farming operations, about which there is generally little or no publicly available operating and financial information. As a result, we will rely on our Adviser to perform due diligence investigations of these tenants, their operations and their prospects. We may not learn all of the material information we need to know regarding these businesses through our investigations. As a result, it is possible that we could lease properties to tenants or make mortgage loans to borrowers that ultimately are unable to pay rent or interest to us, which could adversely impact the amount available for distributions.

We currently lease many of our properties to medium-sized, independent farming operations and agricultural businesses, which may have limited financial and personnel resources and, therefore, may be less stable than larger companies, which could impact our ability to generate rental revenue.

We expect to lease many of our properties to medium-sized farming operations and related agricultural businesses, which will expose us to a number of unique risks related to these entities. For example, medium-sized agricultural businesses may be more likely than larger farming operations to have difficulty making lease payments when they experience adverse events.

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They also tend to experience significant fluctuations in their operating results and to be more vulnerable to competitors’ actions and market conditions, as well as general economic downturns. In addition, our target tenants may face intense competition, including competition from companies with greater financial resources, which could lead to price pressure on crops that could lower our tenants’ income.

Furthermore, the success of a medium-sized business may also depend on the management talents and efforts of one or a small group of persons. The death, disability or resignation of one or more of these persons could have a material adverse impact on our tenant and, in turn, on us.

Our Adviser has broad authority to make acquisitions and dispositions of properties, and there can be no assurance that, in the future, we will be able to continue to enter into definitive agreements to purchase properties, complete acquisitions or dispose of properties on favorable terms. Our stockholders are unable to evaluate the economic merits of our investments or the terms of any dispositions of properties.

Our Adviser has broad authority to make acquisitions of properties and dispositions of properties. There can be no assurance that our Adviser will be able to continue to identify or negotiate acceptable terms for the acquisition or dispositions of properties or that we will be able to continue to acquire or dispose of such properties on favorable terms. Factors that could cause us not to purchase one or more properties that initially meet our investment criteria include our potential inability to agree to definitive purchase terms with the prospective sellers, and our discovery of problems with the properties in our due diligence investigations. Factors that could cause us to be unable to dispose of a property on favorable terms include market conditions and competition. Any significant impediment to continue to identify and make investments that fit into our investment criteria or dispose of investments during suitable market conditions would have a material adverse effect on our ability to continue to generate cash flow and make distributions to our stockholders.

Our cash available for distribution to stockholders may not be sufficient to pay anticipated distributions, nor can we assure you of our ability to make distributions in the future, and we may need to borrow to make such distributions or may not be able to make such distributions at all.

To remain competitive with alternative investments, our distribution rate may exceed our cash available for distribution, including cash generated from operations. In the event this happens, we intend to fund the difference out of any excess cash on hand or from borrowings under our revolving credit facility. If we do not have sufficient cash available for distribution generated by our assets to pay the annual distribution set by our Board of Directors, or if cash available for distribution decreases in future periods, the market price of our common stock could decrease.

All distributions will be made at the discretion of our Board of Directors and will depend on our earnings, our financial condition, whether we are able to maintain our qualification as a REIT and other factors as our Board of Directors may deem relevant from time to time. We may not be able to make distributions in the future. In addition, some of our distributions may include a return of capital. To the extent that our Board of Directors approves distributions in excess of our then current and accumulated earnings and profits, these excess distributions would generally be considered a return of capital for federal income tax purposes to the extent of your adjusted tax basis in your shares. A return of capital is not taxable, but it has the effect of reducing your adjusted tax basis in your investment. To the extent that distributions exceed the adjusted tax basis of your shares, such excess will be treated for tax purposes as a gain from the sale or exchange of your shares. If we borrow to fund distributions, our future interest costs would increase, thereby reducing our earnings and cash available for distribution from what they otherwise would have been.

Some of our tenants may be unable to pay rent, which could adversely affect our cash available to make distributions to our stockholders or otherwise impair the value of your investment.

We expect that single tenants will continue to occupy most of our farms, and, therefore, the success of our investments will continue to be materially dependent on the financial stability of these tenants. Some of our tenants may have been recently restructured using leverage acquired in a leveraged transaction or may otherwise be subject to significant debt obligations. Tenants that are subject to significant debt obligations may be unable to make their rent payments if there are adverse changes in their businesses or in general economic conditions. Tenants that have experienced leveraged restructurings or acquisitions will generally have substantially greater debt and substantially lower net worth than they had prior to the leveraged transaction. In addition, the payment of rent and debt service may reduce the working capital available to leveraged entities and prevent them from devoting the resources necessary to remain competitive in their industries. In

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situations where management of the tenant will change after a transaction, it may be difficult for our Adviser to determine with certainty the likelihood of the tenant’s business success and of it being able to pay rent throughout the lease term. These companies are more vulnerable to adverse conditions in their businesses or industries and economic conditions generally, as well as to increases in interest rates. In addition, these companies’ revenues and expenses may fluctuate according to the growing season, which may impact their ability to make regular lease payments.

Any lease payment defaults by a tenant could adversely affect our cash flows and cause us to reduce the amount of distributions to stockholders. In the event of a default by a tenant, we may also experience delays in enforcing our rights as landlord and may incur substantial costs in protecting our investment and re-leasing our property.

Some of our tenants could be susceptible to bankruptcy, which would affect our ability to generate rents from them and therefore negatively affect our results of operations.

In addition to the risk of tenants being unable to make regular rent payments, certain of our tenants who may depend on debt and leverage could be especially susceptible to bankruptcy in the event that their cash flows are insufficient to satisfy their debt. Any bankruptcy of one of our tenants would result in a loss of lease payments to us, as well as an increase in our costs to carry the property.

Additionally, under bankruptcy law, a tenant who is the subject of bankruptcy proceedings has the option of continuing or terminating any unexpired lease. If a bankrupt tenant terminates a lease with us, any claim we might have for breach of the lease, excluding a claim against collateral securing the lease, would be treated as a general unsecured claim. Our claim would likely be capped at the amount the tenant owed us for unpaid rent prior to the bankruptcy unrelated to the termination, plus the greater of one year of lease payments or 15% of the remaining lease payments payable under the lease, but in no case more than three years of lease payments. In addition, a bankruptcy court could re-characterize a net lease transaction as a secured lending transaction. If that were to occur, we would not be treated as the owner of the property, but might have additional rights as a secured creditor. This would mean our claim in bankruptcy court would only be for the amount we paid for the property, which could adversely impact our financial condition.

Because we expect to continue to enter into some short-term leases, we may continue to be more susceptible to any decreases in prevailing market rental rates than would be the case with long-term leases, which could have a material adverse effect on our results of operations.

For our properties that are farmed for annual row crops, we intend to primarily enter into leases with independent farmers having terms ranging from 3 to 10 years. As a result, we will be required to frequently re-lease our properties upon the expiration of our leases. This will subject our business to near term fluctuations in market rental rates, and we will be more susceptible to declines in market rental rates than we would be if we were to enter into longer term leases. As a result, any decreases in the prevailing market rental rates in the geographic areas in which we own properties could have a material adverse effect on our results of operations and cash available for distribution to stockholders.

Our investments in land with long-term leases, such as properties farmed for permanent crops, could expose us to various risks, including interest rate risk and the risk of being unable to take advantage of prevailing market rates, which could have a material adverse effect on our results of operations and cash available for distribution to stockholders.

Currently, 12 of our 29 leases have original lease terms in excess of five years. In the future, we may continue to enter into long-term leases in which the rental rate is generally fixed, subject to annual rent escalations or market reset periods. Annual rent escalations may be a fixed amount each year or be variable based on standard cost of living or inflation indices. In addition, some long-term leases may require a regular survey of comparable land rents, with the rent owed per the lease being adjusted to reflect current market rents. We do not expect to enter into many leases that include variable rent based on the success of the harvest each year. If, in the future, we receive a significant portion of our revenues under long-term leases in which the rental rate is generally fixed, subject to annual rent escalations, we would be subject to interest rate risk in the event interest rates rise at a greater rate than any potential annual rent escalations. In addition, by entering into long-term leases, we would be subject to the risk that we would not be able to increase our rental rates if prevailing land values or rental rates have increased. Any inability to take advantage of increases in prevailing land values or rental rates could have a material adverse effect on our results of operations and cash available for distribution to stockholders.

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Our investments in farmland used for permanent crops have a higher risk profile than farmland used for annual row crops.

Currently, 8 of our 33 farms are used for permanent crops, and, in the future, we may add to our investments in farmland used for permanent crops, as opposed to annual row crops. Permanent crops have plant structures (such as trees, vines or bushes) that produce yearly crops without being replanted. Examples include oranges, apples, almonds and grapes. Permanent crops involve more risk than annual row crops because permanent crops require more time and capital to plant. As a result, permanent crops are more expensive to replace and more susceptible to disease and poor weather. If a farmer loses a permanent crop to drought, flooding, fire or disease, there would generally be significant time and capital needed to return the land to production because a tree or vine may take years to grow before bearing fruit.

Permanent crop farmland also prevents the farmer from being able to rotate crop types to keep up with changing market conditions or changes to the weather or soil. If demand for one type of permanent crop decreases, the permanent crop farmer cannot easily convert the farm to another type of crop because permanent crop farmland is dedicated to one crop during the lifespan of the trees or vines and therefore cannot easily be rotated to adapt to changing environmental or market conditions.

In addition, permanent crops, which can generally endure long periods of time from harvest to consumption, allow for global shipment and trade. As a result, permanent crops are usually less insulated from the global market volatility than annual row crops. This will generally provide for less price stability of the harvested crop and therefore less stability of the underlying land value for cropland producing permanent crops. As a result, permanent crop farms have a higher risk profile than annual row crop farms.

Our real estate investments will consist of agricultural properties that may be difficult to sell or re-lease upon tenant defaults or early lease terminations, either of which would adversely affect returns to stockholders.

We intend to focus our investments on agricultural properties. These types of properties are relatively illiquid compared to other types of real estate and financial assets. This illiquidity could limit our ability to quickly dispose of properties in response to changes in economic or other conditions. With these kinds of properties, if the current lease is terminated or not renewed, we may be required to renovate the property to the extent we have buildings on the property, or to make rent concessions to lease the property to another tenant or sell the property. In addition, in the event we are forced to sell the property, we may have difficulty finding qualified purchasers who are willing to buy the property. These and other limitations may affect our ability to sell or re-lease properties without adversely affecting returns to our stockholders.

If our properties do not have access to adequate water supplies, it could harm our ability to lease the properties for farming, thereby adversely affecting our ability to generate returns on our properties.

In order to lease the cropland that we intend to acquire, these properties will require access to sufficient water to make them suitable for farming. Additionally, the ability of our current tenants to be able to make their rental payments is also dependent upon sufficient access to water. Although we expect to acquire properties with sufficient water access, should the need arise for additional wells from which to obtain water, we would be required to obtain permits prior to drilling such wells. Permits for drilling water wells are required by state and county regulations, and such permits may be difficult to obtain due to the limited supply of water in areas where we expect to acquire properties, such as the farming regions of California. Similarly, our properties may be subject to governmental regulations relating to the quality and disposition of rainwater runoff or other water to be used for irrigation. In such case, we could incur costs necessary to retain this water. If we are unable to obtain or maintain sufficient water supply for our properties, our ability to lease them for farming would be seriously impaired, which would have a material adverse impact on the value of our assets and our results of operations. If in the future we invest in farmland that depends upon rain water rather than local water access, our tenants on that farmland may be susceptible to extended droughts, and any failure on the part of such tenants to procure adequate drought insurance would impact the ability of such tenants to make rental payments, which would have a material adverse impact on our ability to generate returns on our properties.

Our agricultural properties are subject to adverse weather conditions, seasonal variability, crop disease and other contaminants, which may affect our tenants’ ability to pay rent and thereby have an adverse effect on our results of operations and our ability to make distributions to stockholders.

Fresh produce, including produce used in canning and other packaged food operations, is vulnerable to adverse weather conditions, including windstorms, floods, drought and temperature extremes, which are quite common but difficult to predict. Because fresh produce is highly perishable and generally must be brought to market and sold soon after harvest, unfavorable

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growing conditions can reduce both crop size and crop quality. Seasonal factors, including supply and consumer demand, may also have an effect on the crops grown by our tenants. In extreme cases, entire harvests may be lost in some geographic areas.

The current drought in California, while affecting a majority of the state, has yet to adversely impact the regions where our properties are located. Further, all of our properties are reliant upon groundwater, as they are not located in any state or federal water districts and, thus, are not limited by any government-regulated restrictions. However, if the severity of the drought were to continue, it could have a materially adverse impact on our farming operations on our properties in these regions.

Fresh produce is also vulnerable to crop disease, pests and other contaminants. Damages to tenants’ crops from crop disease and pests may vary in severity and effect, depending on the stage of production at the time of infection or infestation, the type of treatment applied and climatic conditions. The costs to control these infestations vary depending on the severity of the damage and the extent of the plantings affected. These infestations can increase costs and decrease revenues of our tenants. Tenants may also incur losses from product recalls due to other contaminants that may cause food borne illness. It is difficult to predict the occurrence or severity of such product recalls as well as the impact of these upon our tenants. Although we do not expect that our rental payments will be based on the quality of our tenants’ harvests, any of these factors could have a material adverse effect on our tenants’ ability to pay rent to us, which in turn could have a material adverse effect on our ability to make distributions to our stockholders.

As permanent crops produce yearly crops without being replanted, they are more expensive to replace and more susceptible to disease and poor weather than annual row crops. If a farmer loses a permanent crop to drought, flooding, fire or disease, there would generally be significant time and capital needed to return the land to production because a tree or vine may take years to grow before bearing fruit. Permanent crop farmland also prevents the farmer from being able to rotate crop types to keep up with changing market conditions or changes to the weather or soil. If demand for one type of permanent crop decreases, the permanent crop farmer cannot easily convert the farm to another type of crop because permanent crop farmland is dedicated to one crop during the lifespan of the trees or vines and therefore cannot easily be rotated to adapt to changing environmental or market conditions. As a result, the risks associated with weather conditions, seasonal variability, crop disease and other contaminants are magnified in the case of permanent crops.

Our operating results and the value of our properties may be impacted by future climate changes, adversely impacting the value of our properties and our ability to generate rental revenue.

In addition to the general risks that adverse weather conditions will pose for the tenants of our properties and their subsequent ability to comply with the terms of their leases, the value of our properties will potentially be subject to risks associated with long-term effects of climate change. Many climatologists predict increases in average temperatures, more extreme temperatures and increases in volatile weather over time. The effects of climate change may be more significant along coastlines, such as in the California coastal areas where we intend to partially focus our initial acquisition efforts, due to rising sea levels resulting from melting of polar ice caps, which could result in increased risk of coastal erosion, flooding, degradation in the quality of groundwater aquifers and expanding agricultural weed and pest populations. As a result, the effects of climate change could make our properties less suitable for farming or other alternative uses, which could adversely impact the value of our properties, our ability to generate rental revenue from leasing our properties and our cash available for distribution to stockholders.

Because we must distribute a substantial portion of our net income to maintain our qualification as a REIT, we will be largely dependent on third-party sources of capital to fund our future capital needs.

To maintain our qualification as a REIT, we generally must distribute to our stockholders at least 90% of our taxable income each year, excluding capital gains. Because of this distribution requirement, it is not likely that we will be able to fund a significant portion of our future capital needs, including property acquisitions, from retained earnings. Therefore, we will likely rely on public and private debt and equity capital to fund our business. This capital may not be available on favorable terms or at all. Our access to additional capital depends on a number of things, including the market’s perception of our growth potential and our current and potential future earnings.

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We may not be able to borrow money in sufficient amounts or on sufficiently favorable terms necessary to attain the optimal degree of leverage to operate our business, which may have an adverse effect on our operations and ability to pay distributions.

Our business and acquisition strategies rely heavily on borrowing funds, so that we may make more investments than would otherwise be possible to maximize potential returns to stockholders. We may borrow on a secured or unsecured basis. Our articles of incorporation and bylaws do not impose any limitation on our borrowing. Our ability to achieve our investment objectives will be affected by our ability to borrow money in sufficient amounts and on favorable terms. We expect that we will borrow money that will be secured by our properties and that these financing arrangements will contain customary covenants such as those that limit our ability, without the prior consent of the lender, to further mortgage the applicable property or to discontinue insurance coverage. In addition, any credit facility we might enter into is likely to contain certain customary restrictions, requirements and other limitations on our ability to incur indebtedness, and will specify debt ratios that we will be required to maintain. Accordingly, we may be unable to obtain the degree of leverage that we believe to be optimal, which may cause us to have less cash for distributions to stockholders. Our use of leverage could also make us more vulnerable to a downturn in our business or the economy generally and a significant increase in the ratio of our indebtedness to our assets may have an adverse effect on the market price of our common stock.

Our income from operations may not be enough to cover our debt service obligations, which may affect distributions to stockholders or cause us to incur losses.

If the income generated by our properties and other assets fails to cover our debt service, we could be forced to reduce or eliminate distributions to our stockholders and may experience losses. Some of our debt financing arrangements may require us to make lump-sum, or balloon, payments at maturity. If our income from operations does not cover a balloon payment, our ability to make the balloon payment at maturity could depend upon our ability to obtain additional financing or to sell the financed property. At the time the balloon payment is due, we may not be able to refinance the balloon payment on terms as favorable as the original loan or sell the property at a price sufficient to make the balloon payment, which would likely have a material adverse effect on our financial condition.

We have secured borrowings, which would have a risk of loss of the property securing such loan upon foreclosure.

We currently have various borrowing facilities in place that are secured by certain of our farms. As of December 31, 2014, our total borrowings of $86.4 million, which had a blended annual interest rate of 3.5%, were secured by 27 of our 32 farms. If we are unable to make our debt payments as required, either under our current credit facilities or any future facilities, a lender could foreclose on certain of the properties securing its loan. This could cause us to lose part or all of our investment in the property, which in turn could cause the value of our common stock or the distributions to our stockholders to be reduced.

We face a risk from the fact that certain of our properties are cross-collateralized.

As of December 31, 2014, the mortgages on certain of our properties were cross-collateralized. To the extent that any of the properties in which we have an interest are cross-collateralized, any default by the property owner subsidiary under the mortgage note relating to the one property will result in a default under the financing arrangements relating to any other property that also provides security for that mortgage note or is cross-collateralized with such mortgage note. Such a default may adversely affect our financial condition, results of operations and ability to pay distributions to our stockholders.

Competition for the acquisition of agricultural real estate may impede our ability to make acquisitions or increase the cost of these acquisitions.

We will compete for the acquisition of properties with many other entities engaged in agricultural and real estate investment activities, including corporate agriculture companies, financial institutions, institutional pension funds, real estate companies, private equity funds and private real estate investors. These competitors may prevent us from acquiring desirable properties or may cause an increase in the price we must pay for real estate. Our competitors may have greater resources than we do and may be willing to pay more for certain assets or may have a more compatible operating philosophy with our acquisition targets. In particular, larger institutions may enjoy significant competitive advantages that result from, among other things, a lower cost of capital and enhanced operating efficiencies. Our competitors may also adopt transaction structures similar to ours, which would decrease our competitive advantage in offering flexible transaction terms. In addition, the number of

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entities and the amount of funds competing for suitable investment properties may increase, resulting in increased demand and increased prices paid for these properties. If we pay higher prices for properties, our profitability may decrease, and you may experience a lower return on your investment. Increased competition for properties may also preclude us from acquiring those properties that would generate attractive returns to us, as well as prevent us from achieving diversification by geography and crop type, having a material adverse effect on our results of operations and available cash for distributions to stockholders.

We operate as a holding company dependent upon the assets and operations of our subsidiaries, and because of our structure, we may not be able to generate the funds necessary to make distributions on our common stock.

We generally operate as a holding company that conducts its businesses primarily through our operating partnership, which in turn is a holding company conducting its business through its subsidiaries. These subsidiaries conduct all of our operations and are our only source of income. Accordingly, we are dependent on cash flows and payments of funds to us by our subsidiaries as distributions, loans, advances, leases or other payments from our subsidiaries to generate the funds necessary to make distributions on our common stock. Our subsidiaries’ ability to pay such distributions and/or make such loans, advances, leases or other payments may be restricted by, among other things, applicable laws and regulations, current and future debt agreements and management agreements into which our subsidiaries may enter, which may impair our ability to make cash payments on our common stock. In addition, such agreements may prohibit or limit the ability of our subsidiaries to transfer any of their property or assets to us, any of our other subsidiaries or to third parties. Our future indebtedness or our subsidiaries’ future indebtedness may also include restrictions with similar effects.

In addition, because we are a holding company, stockholders’ claims will be structurally subordinated to all existing and future liabilities and obligations (whether or not for borrowed money) of our operating partnership and its subsidiaries. Therefore, in the event of our bankruptcy, liquidation or reorganization, claims of our stockholders will be satisfied only after all of our and our operating partnership’s and its subsidiaries’ liabilities and obligations have been paid in full.

Some state laws prohibit or restrict the ownership of agricultural land by business entities, which could impede the growth of our portfolio and our ability to diversify geographically.

Certain states, including Iowa, North Dakota, South Dakota, Minnesota, Oklahoma, Wisconsin, Missouri and Kansas have laws that prohibit or restrict to varying degrees the ownership of agricultural land by corporations or business entities like us. Additional states may, in the future, pass similar or more restrictive laws, and we may not be legally permitted, or it may become overly burdensome or expensive, to acquire properties in these states, which could impede the growth of our portfolio and our ability to diversify geographically in states that might otherwise have attractive investment opportunities.

Failure to succeed in new markets may have adverse consequences.

As we expand and diversify our geographic portfolio, we may acquire properties located in new markets, exposing us to risks associated with a lack of market knowledge or understanding of the local market. This includes the availability and identity of quality tenant farmers, forging new business relationships in the area and unfamiliarity with local government requirements and procedures. Furthermore, the negotiation of a potential expansion into new markets would divert management time and other resources. As a result, we may have difficulties executing our business strategy in these new markets, which could have a negative impact on our results of operations and ability to make distributions to stockholders.

We may not ultimately be able to sell our agricultural real estate to developers in connection with the conversion of such properties to urban or suburban uses, especially in light of the current uncertain market for real estate development.

Our business plan in part contemplates purchasing agricultural real property that we believe is located in the path of urban and suburban growth and ultimately will increase in value over the long term as a result. Pending the sale of such real property to developers for conversion to urban, suburban and other more intensive uses, such as residential or commercial development, we intend to lease the property for agricultural uses, particularly farming. Urban and suburban development is subject to a number of uncertainties, including land zoning and environmental issues, infrastructure development and demand. These uncertainties are particularly pronounced in light of the current economic environment, in which the pace of future development is unclear. Although the current development market contains uncertainties, these uncertainties may be more acute over time, since we do not intend to acquire properties that are expected to be converted to urban or suburban uses in the near term. As a result, there can be no guarantee that increased development will actually occur and that we will be

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able to sell any of the properties that we own or acquire in the future for such conversion. Our inability to sell these properties in the future at an appreciated value for conversion to urban or suburban uses could result in a reduced return on your investment.

Liability for uninsured or underinsured losses could adversely affect our financial condition.

Losses from disaster-type occurrences, such as wars, earthquakes and weather-related disasters, may be either uninsurable or not insurable on economically viable terms. Should an uninsured loss occur, we could lose our capital investment or anticipated profits and cash flows from one or more properties. If any such loss is insured, we may be required to pay a significant deductible on any claim for recovery of such a loss prior to our insurer being obligated to issue reimbursement. Further, the amount of losses may exceed our coverage, which could have an adverse effect on our cash flow.

Potential liability for environmental matters could adversely affect our financial condition.

We intend to purchase agricultural properties and will be subject to the risk of liabilities under federal, state and local environmental laws. Some of these laws could subject us to:

• responsibility and liability for the cost of removal or remediation of hazardous substances released on our properties, which may include herbicides and pesticides, generally without regard to our knowledge of or responsibility for the presence of the contaminants;

• liability for the costs of removal or remediation of hazardous substances at disposal facilities for persons who arrange for the disposal or treatment of these substances; and

• potential liability for claims by third parties for damages resulting from environmental contaminants.

We will generally include provisions in our leases making tenants responsible for all environmental liabilities and for compliance with environmental regulations, and we will seek to require tenants to reimburse us for damages or costs for which we have been found liable. However, these provisions will not eliminate our statutory liability or preclude third-party claims against us. Even if we were to have a legal claim against a tenant to enable us to recover any amounts we are required to pay, there are no assurances that we would be able to collect any money from the tenant. Our costs of investigation, remediation or removal of hazardous substances may be substantial. In addition, the presence of hazardous substances on one of our properties, or the failure to properly remediate a contaminated property, could adversely affect our ability to sell or lease the property or to borrow using the property as collateral. Additionally, we could become subject to new, stricter environmental regulations, which could diminish the utility of our properties and have a material adverse impact on our results of operations.

If our tenants fail to comply with applicable labor regulations, it could have an adverse effect on our ability to make distributions to our stockholders.

State, county and federal governments have also implemented a number of regulations governing labor practices used in connection with farming operations. For example, these regulations seek to provide for minimum wages and minimum and maximum work hours, as well as to restrict the hiring of illegal immigrants. If one of our tenants is accused of violating, or found to have violated such regulations, it could have a material adverse effect on the tenant’s operating results, which could adversely affect its ability to make its rental payments to us and, in turn, our ability to make distributions to our stockholders.

The presence of endangered or threatened species on or near our acquired farmland could restrict the activities of our agricultural tenants, which could in turn have a material adverse impact on the value of our assets and our results of operations.

Federal, state and local laws and regulations intended to protect threatened or endangered species could restrict certain activities on our farmland. The size of any area subject to restriction would vary depending on the protected species at issue, the time of year and other factors, and there can be no assurance that such federal, state and local laws will not become more restrictive over time. If portions of our farmland are deemed to be part of or bordering habitats for such endangered or threatened species that could be disturbed by the agricultural activities of our tenants, it could impair the ability of the land to be used for farming, which in turn could have a material adverse impact on the value of our assets and our results of operations.

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We may be required to permit the owners of the mineral rights to our properties to enter and occupy parts of the properties for the purposes of drilling and operating oil or gas wells, which could adversely impact the rental value of our properties.

Although we will own the surface rights to the properties that we acquire, other persons may own the rights to any minerals, such as oil and natural gas, that may be located under the surfaces of these properties. Under agreements with any such mineral rights owners, we expect that we would be required to permit third parties to enter our properties for the purpose of drilling and operating oil or gas wells on the premises. We will also be required to set aside a reasonable portion of the surface area of our properties to accommodate these oil and gas operations. The devotion of a portion of our properties to these oil and gas operations would reduce the amount of the surface available for farming or farm-related uses, which could adversely impact the rents that we receive from leasing these properties.

Failure to hedge effectively against interest rate changes may adversely affect our results of operations.

We may experience interest rate volatility in connection with mortgage loans on our properties or other variable-rate debt that we may obtain from time to time. The interest rate on our existing line of credit is variable, and, although we seek to mitigate this risk by structuring such provisions to contain a minimum interest rate or escalation rate, as applicable, these features do not eliminate this risk. We are also exposed to the effects of interest rate changes as a result of holding cash and cash equivalents in short-term, interest-bearing investments. We have not entered into any derivative contracts to attempt to further manage our exposure to interest rate fluctuations. A significant change in interest rates could have an adverse impact on our results of operations.

Joint venture investments could be adversely affected by our lack of sole decision making authority, our reliance on co-venturers’ financial condition and disputes between our co-venturers and us.

We may invest with third parties through partnerships, joint ventures or other entities, acquiring non-controlling interests in or sharing responsibility for managing the affairs of a property, partnership, joint venture or other entity. In such event, we will not have sole decision-making authority regarding the property, partnership, joint venture or other entity. Investments in partnerships, joint ventures or other entities may, under certain circumstances, involve risks not present were a third party not involved, including the possibility that partners or co-venturers may become bankrupt or fail to fund their share of required capital contributions. Partners or co-venturers also may have economic or other business interests or goals that are inconsistent with our business interests or goals and may be in a position to take actions contrary to our preferences, policies or objectives. Such investments also will have the potential risk of our reaching impasses with our partners or co-venturers on key decisions, such as a sale, because neither we nor the partner or co-venturer would have full control over the partnership or joint venture. Disputes between us and partners or co-venturers may result in litigation or arbitration that would increase our expenses and prevent our management team from focusing its time and effort exclusively on our business. In addition, we may in some circumstances be liable for the actions of our third-party partners or co-venturers.

Continued disruptions in the U.S. financial markets could affect our ability to obtain debt financing on reasonable terms or have other adverse effects on us.

Over the last several years, the U.S. capital markets have experienced significant price volatility, which have caused market prices of many stocks and debt securities to fluctuate substantially and the spreads on prospective debt financings to widen considerably. These circumstances have materially impacted liquidity in the financial markets, making terms for certain financings less attractive, and in certain cases have resulted in the lack of availability of certain types of financing. Continued uncertainty in the stock and credit markets may negatively impact our ability to access additional financing at reasonable terms, which may negatively affect our ability to make acquisitions. These disruptions in the financial markets also may have a material adverse effect on the market value of our common stock and the lease rates we can charge for our properties, as well as other unknown adverse effects on us or the economy in general. In addition, credit market constraints may increase the operating expenses of our tenants and decrease their ability to make lease payments and may adversely affect our liquidity, financial condition, results of operations and ability to pay distributions to our stockholders.

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Risks Associated With Our Use of an Adviser to Manage Our Business

We are dependent upon our key management personnel for our future success, particularly David Gladstone and Terry Lee Brubaker.

We are dependent on our senior management and other key management members to carry out our business and investment strategies. Our future success depends to a significant extent on the continued service and coordination of our senior management team, particularly David Gladstone, our chairman, chief executive officer and president, and Terry Lee Brubaker, our vice chairman and chief operating officer. Mr. Gladstone also serves as the chief executive officer of our Adviser and our Administrator, and Mr. Brubaker is also an executive officer of our Adviser and our Administrator. The departure of any of our executive officers or key personnel of our Adviser could have a material adverse effect on our ability to implement our business strategy and to achieve our investment objectives.

Our success will continue to depend on the performance of our Adviser and if our Adviser makes inadvisable investment or management decisions, our operations could be materially adversely impacted.

Our ability to achieve our investment objectives and to pay distributions to our stockholders is substantially dependent upon the performance of our Adviser in evaluating potential investments, selecting and negotiating property purchases and dispositions on our behalf, selecting tenants and borrowers, setting lease terms and determining financing arrangements. You will have no opportunity to evaluate the terms of transactions or other economic or financial data concerning our investments. You must rely entirely on the analytical and management abilities of our Adviser and the oversight of our Board of Directors. If our Adviser or our Board of Directors makes inadvisable investment or management decisions, our operations could be materially adversely impacted.

We may have conflicts of interest with our Adviser and other affiliates, which could result in investment decisions that are not in the best interests of our stockholders.

Our Adviser manages our real estate portfolio and locates, evaluates, recommends and negotiates the acquisition of our real estate investments and mortgage loans. At the same time, our Amended Advisory Agreement permits our Adviser to conduct other commercial activities and to provide management and advisory services to other entities, including, but not limited to, Gladstone Capital, Gladstone Commercial and Gladstone Investment, each of which is affiliated with us. Each of our executive officers, other than Mr. Parrish, and each of our directors are also executive officers and directors, as applicable, of Gladstone Commercial, which actively makes real estate investments. Each of our executive officers, other than Messrs. Beckhorn and Parrish, and each of our directors are also executive officers and directors, as applicable, of Gladstone Capital and Gladstone Investment, which actively make loans to and invest in small- and medium-sized companies. As a result, we may from time to time have conflicts of interest with our Adviser in its management of our business and that of Gladstone Commercial, Gladstone Investment or Gladstone Capital, which may arise primarily from the involvement of our Adviser, Gladstone Capital, Gladstone Commercial, Gladstone Investment and their affiliates in other activities that may conflict with our business. Examples of these potential conflicts include:

• our Adviser may realize substantial compensation on account of its activities on our behalf and may be motivated to approve acquisitions solely on the basis of increasing its compensation from us;

• our agreements with our Adviser are not arm’s-length agreements, which could result in terms in those agreements that are less favorable than we could obtain from independent third parties;

• we may experience competition with our affiliates for potential financing transactions; and

• our Adviser and other affiliates, such as Gladstone Capital, Gladstone Commercial and Gladstone Investment, could compete for the time and services of our officers and directors and reduce the amount of time they are able to devote to management of our business.

These and other conflicts of interest between us and our Adviser could have a material adverse effect on the operation of our business and the selection or management of our real estate investments.

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Our financial condition and results of operations will depend on our Adviser’s ability to effectively manage our future growth.

Our ability to achieve our investment objectives will depend on our ability to sustain continued growth, which will, in turn, depend on our Adviser’s ability to find, select and negotiate property purchases and net leases that meet our investment criteria. Accomplishing this result on a cost-effective basis is largely a function of our Adviser’s marketing capabilities, management of the investment process, ability to provide competent, attentive and efficient services and our access to financing sources on acceptable terms. As we grow, our Adviser may be required to hire, train, supervise and manage new employees. Our Adviser’s failure to effectively manage our future growth could have a material adverse effect on our business, financial condition and results of operations.

Our Adviser is not obligated to provide a waiver of the incentive fee, which could negatively impact our earnings and our ability to maintain our current level of, or increase, distributions to our stockholders.

The Amended Advisory Agreement contemplates a quarterly incentive fee based on our FFO. Our Adviser has the ability to issue a full or partial waiver of the incentive fee for current and future periods; however, our Adviser is not required to issue any waiver. Any waiver issued by our Adviser is an unconditional and irrevocable waiver. If our Adviser does not issue this waiver in future quarters, it could negatively impact our earnings and may compromise our ability to maintain our current level of, or increase, distributions to our stockholders.

We may be obligated to pay our Adviser quarterly incentive compensation even if we incur a net loss during a particular quarter.

The Amended Advisory Agreement entitles our Adviser to incentive compensation based on our FFO, which rewards our Adviser if our quarterly pre-incentive fee FFO exceeds 1.75% (7.0% annualized) of our adjusted stockholders’ equity. Our pre-incentive fee FFO for a particular quarter for incentive compensation purposes excludes the effect of any unrealized gains, losses or other items during that quarter that do not affect realized net income, even if these adjustments result in a net loss on our statement of operations for that quarter. Thus, we may be required to pay our Adviser incentive compensation for a fiscal quarter even if we incur a net loss for that quarter as determined in accordance with GAAP.

Risks Associated With Ownership of Our Common Stock and Our Tax Status

Certain provisions contained in our articles of incorporation and bylaws and under Maryland law may prohibit or restrict attempts by our stockholders to change our management and hinder efforts to effect a change of control of us, and the market price of our common stock may be lower as a result.

There are provisions in our articles of incorporation and bylaws that may make it difficult for a third party to acquire, or attempt to acquire, control of our company, even if a change in control was considered favorable by you and other stockholders. For example:

• Our articles of incorporation prohibit ownership of more than 3.3% of the outstanding shares of our capital stock by one person, except for certain qualified institutional investors, which are limited to holding 9.8% of our common stock. Currently, our chairman, chief executive officer and president, David Gladstone, owns approximately 24.1% of our common stock, and the Gladstone Future Trust, for the benefit of Mr. Gladstone’s children, owns approximately 8.6% of our common stock, in each case pursuant to an exception approved by our Board of Directors and in compliance with our articles of incorporation. In addition, the David and Lorna Gladstone Foundation, of which David Gladstone is the CEO and Chairman, owns 2.8% of our common stock. The ownership restriction may discourage a change of control and may deter individuals or entities from making tender offers for our capital stock, which offers might otherwise be financially attractive to our stockholders or which might cause a change in our management.

• Our Board is divided into three classes, with the term of the directors in each class expiring every third year. At each annual meeting of stockholders, the successors to the class of directors whose term expires at such meeting will be elected to hold office for a term expiring at the annual meeting of stockholders held in the third year following the year of their election. After election, a director may only be removed by our stockholders for cause. Election of directors for staggered terms with limited rights to remove directors makes it more difficult

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for a hostile bidder to acquire control of us. The existence of this provision may negatively impact the price of our securities and may discourage third-party bids to acquire our securities. This provision may reduce any premiums paid to stockholders in a change in control transaction.

• The Control Share Acquisition Act provides that “control shares” of a Maryland corporation acquired in a “control share acquisition” have no voting rights except to the extent approved by the corporation’s disinterested stockholders by a vote of two-thirds of the votes entitled to be cast on the matter. Shares of stock owned by interested stockholders, that is, by the acquirer, by officers or by directors who are employees of the corporation, are excluded from shares entitled to vote on the matter. “Control shares” are voting shares of stock that would entitle the acquirer to exercise voting power in electing directors within one of three increasing ranges of voting power. The control share acquisition statute does not apply (a) to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or (b) to acquisitions approved or exempted by the articles of incorporation or bylaws of the corporation. Our bylaws contain a provision exempting from the Control Share Acquisition Act any and all acquisitions of our common stock by David Gladstone or any of his affiliates. This statute could have the effect of discouraging offers from third parties to acquire us and increasing the difficulty of successfully completing this type of offer by anyone other than Mr. Gladstone or any of his affiliates.

• Certain provisions of Maryland law applicable to us prohibit business combinations with:

• any person who beneficially owns 10% or more of the voting power of our common stock, referred to as an “interested stockholder;”

• an affiliate of ours who, at any time within the two-year period prior to the date in question, was an interested stockholder; or

• an affiliate of an interested stockholder.

These prohibitions last for five years after the most recent date on which the interested stockholder became an interested stockholder. Thereafter, any business combination with the interested stockholder must be recommended by our Board and approved by the affirmative vote of at least 80% of the votes entitled to be cast by holders of our outstanding shares of common stock and two-thirds of the votes entitled to be cast by holders of our common stock other than shares held by the interested stockholder. These requirements could have the effect of inhibiting a change in control even if a change in control were in our stockholders’ interest. These provisions of Maryland law do not apply, however, to business combinations that are approved or exempted by our Board of Directors prior to the time that someone becomes an interested stockholder.

Our rights and the rights of our stockholders to take action against our directors and officers are limited.

Maryland law provides that a director or officer has no liability in that capacity if he or she performs his or her duties in good faith, in a manner he or she reasonably believes to be advisable and in our best interests and with the care that an ordinarily prudent person in a like position would use under similar circumstances. In addition, our charter (i) eliminates our directors’ and officers’ liability to us and our stockholders for money damages except for liability resulting from actual receipt of an improper benefit in money, property or services or active and deliberate dishonesty established by a final judgment and that is material to the cause of action and (ii) requires us to indemnify directors and officers for liability resulting from actions taken by them in those capacities to the maximum extent permitted by Maryland law. As a result, our stockholders and we may have more limited rights against our directors and officers than might otherwise exist under common law. In addition, we may be obligated to fund the defense costs incurred by our directors and officers.

We may not be able to maintain our qualification as a REIT for federal income tax purposes, which would subject us to federal income tax on our taxable income at regular corporate rates, thereby reducing the amount of funds available for paying distributions to stockholders.

On September 3, 2014, we filed our 2013 federal income tax return, on which we elected to be taxed as a REIT for federal income tax purposes beginning with our tax year ended December 31, 2013. Our ability to maintain our qualification as a REIT depends on our ability to satisfy requirements set forth in the Code, concerning, among other things, the ownership of our outstanding common stock, the nature of our assets, the sources of our income and the amount of our distributions to our

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stockholders. The REIT qualification requirements are extremely complex, and interpretations of the federal income tax laws governing qualification as a REIT are limited. Accordingly, we cannot be certain that we will be successful in continuing to operate so as to qualify as a REIT. At any time, new laws, interpretations or court decisions may change the federal tax laws relating to, or the federal income tax consequences of, qualification as a REIT. It is possible that future economic, market, legal, tax or other considerations may cause our Board of Directors to revoke our REIT election, which it may do without stockholder approval.

If we lose our REIT status or if it was revoked, we would face serious tax consequences that would substantially reduce the funds available for distribution to our stockholders because:

• we would not be allowed a deduction for distributions to stockholders in computing our taxable income;

• we would be subject to federal income tax at regular corporate rates and might need to borrow money or sell assets to pay any such tax;

• we also could be subject to the federal alternative minimum tax and possibly increased state and local taxes; and

• unless we are entitled to relief under statutory provisions, we would be disqualified from taxation as a REIT for the four taxable years following the year during which we ceased to qualify.

If we fail to maintain our qualification as a REIT, domestic stockholders will be subject to tax as “qualified dividends” to the extent of our current and accumulated earnings and profits. The maximum U.S. federal income tax rate on such “qualified dividends” is 20%. If we fail to maintain our qualification as a REIT, we would not be required to make distributions to stockholders, and any distributions to stockholders that are U.S. corporations might be eligible for the dividends received deduction.

As a result of all these factors, our failure to maintain our qualification as a REIT could impair our ability to expand our business and raise capital and could adversely affect the value of our capital stock.

Complying with REIT requirements may cause us to forego or liquidate otherwise attractive investments.

To maintain our qualification as a REIT for federal income tax purposes, we must continually satisfy various tests regarding the sources of our income, the nature and diversification of our assets, the amounts we distribute to our stockholders and the ownership of our stock. In order to meet these tests, we may be required to forego investments we might otherwise make.

In particular, we must ensure that at the end of each calendar quarter at least 75% of the value of our assets consists of cash, cash items, government securities and qualified REIT real estate assets. The remainder of our investment in securities other than government securities, securities of TRSs and qualified real estate assets generally cannot include more than 10% of the outstanding voting securities of any one issuer or more than 10% of the total value of the outstanding securities of any one issuer. In addition, in general, no more than 5% of the value of our assets other than government securities, securities of TRSs and qualified real estate assets can consist of the securities of any one issuer, and no more than 25% of the value of our total assets can be represented by securities of one or more TRSs.

If we fail to comply with these requirements, we must correct the failure within 30 days after the end of the calendar quarter or qualify for certain statutory relief provisions to avoid losing our REIT qualification and suffering adverse tax consequences. As a result, we may be required to dispose of otherwise attractive investments to satisfy REIT requirements. These actions could have the effect of reducing our income and amounts available for distribution to our stockholders.

We may have corporate income tax liabilities for taxes attributable to taxable years prior to our REIT election, which taxes will reduce our cash available for distribution to stockholders.

We were subject to regular corporate income taxation up to and for our taxable year ended December 31, 2012. If we were determined, as the result of a tax audit or otherwise, to have an unpaid corporate income tax liability for any taxable years during which we were classified as a C corporation for U.S. federal income tax purposes, we would be responsible for paying such tax liability, notwithstanding our subsequent qualification as a REIT. In such a case, the payment of taxes would cause us to have less cash on hand to make distributions to stockholders.

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Failure to make required distributions, both prior to and following our REIT election, would jeopardize our REIT status, which could require us to pay taxes and negatively impact our cash available for future distribution.

To qualify as a REIT, we were required to distribute our non-REIT earnings and profits accumulated before the effective date of our REIT election. As of December 31, 2013, we estimated that our non-REIT accumulated earnings and profits were approximately $9.6 million, which included approximately $4.0 million of net earnings and profits associated with a deferred intercompany gain resulting from land transfers in prior years. We believe that we distributed all non-REIT earnings and profits, including the profits associated with the deferred intercompany gain, to stockholders prior to December 31, 2013; however, we can provide no assurances that our determination of our non-REIT earnings and profits at that time was accurate. If we did not distribute all of our non-REIT earnings and profits prior to December 31, 2013, then we would not have qualified to be taxed as a REIT for our taxable year ended December 31, 2013, and may not qualify to be taxed as a REIT for our taxable year ended December 31, 2014, or subsequent taxable years.

In addition, to qualify and to maintain our qualification as a REIT, each year we must distribute to our stockholders at least 90% of our taxable income, other than any net capital gains. To the extent that we satisfy the distribution requirement but distribute less than 100% of our taxable income, we will be subject to federal corporate income tax on our undistributed income. In addition, we will incur a 4% nondeductible excise tax on the amount, if any, by which our distributions in any year are less than the sum of:

• 85% of our ordinary income for that year;

• 95% of our capital gain net income for that year; and

• 100% of our undistributed taxable income from prior years.

We intend to pay out our income to our stockholders in a manner intended to satisfy the distribution requirement applicable to REITs and to avoid corporate income tax and the 4% excise tax. Differences in timing between the recognition of income and the related cash receipts or the effect of required debt amortization payments could require us to borrow money or sell assets to pay out enough of our taxable income to satisfy the distribution requirement and to avoid corporate income tax and the 4% excise tax in a particular year.

Dividends payable by REITs do not qualify for the reduced tax rates available for some dividends.

The maximum federal income tax rate applicable to individuals with respect to income from “qualified dividends” is 20%. Dividends payable by REITs, however, generally are not eligible for the reduced rates. More favorable rates applicable to regular corporate qualified dividends may cause investors who are taxed at individual rates to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends.

If we fail to meet stock ownership diversification requirements, we would fail to maintain our qualification as a REIT, which could require us to pay taxes and negatively impact our cash available for future distribution.

In order to maintain our qualification as a REIT, no more than 50% of the value of our outstanding stock may be owned, directly or indirectly, by five or fewer individuals during the last half of a taxable year, beginning with the second year after our election to be treated as a REIT. In order to facilitate compliance with this requirement, our articles of incorporation prohibit any individual from owning more than 3.3% in value of our outstanding stock. Pursuant to an exception from this limit approved by our Board of Directors, David Gladstone currently owns approximately 24.1% of our outstanding common stock, and the Gladstone Future Trust, for the benefit of Mr. Gladstone’s children, owns approximately 8.6% of our outstanding common stock. For purposes of the REIT stock ownership diversification requirements, the shares owned by Gladstone Future Trust are attributed to Mr. Gladstone, resulting in Mr. Gladstone having an aggregate beneficial ownership of 32.7% of our outstanding common stock. Our Board of Directors may also reduce the 3.3% ownership limitation if it determines that doing so is necessary in order for us to maintain our qualification for REIT treatment. However, such a reduction would not be effective for any stockholder who beneficially owns more than the reduced ownership limit.

We believe that we have satisfied the ownership diversification requirements during the last half of our taxable year ended December 31, 2014. However, if, at any point in time during the last half of a future taxable year, we are unable to comply with this requirement, we could fail to maintain our qualification as a REIT, which could require us to pay taxes and negatively impact our cash available for future distribution.

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We will not seek to obtain a ruling from the Internal Revenue Service (the “IRS”), that we qualify as a REIT for federal income tax purposes.

We have not requested, and do not expect to request, a ruling from the Internal Revenue Service (the “IRS”) that we qualify as a REIT. An IRS determination that we do not qualify as a REIT would deprive our stockholders of the tax benefits of our REIT status only if the IRS determination is upheld in court or otherwise becomes final. To the extent that we challenge an IRS determination that we do not qualify as a REIT, we may incur legal expenses that would reduce our funds available for distribution to stockholders.

The IRS may treat sale-leaseback transactions as loans, which could jeopardize our REIT status.

The IRS may take the position that transactions in which we acquire a property and lease it back to the seller do not qualify as leases for federal income tax purposes but are, instead, financing arrangements or loans. If a sale-leaseback transaction were so re-characterized, we might fail to satisfy the asset or income tests required for REIT qualification and consequently could lose our REIT status. Alternatively, the amount of our REIT taxable income could be recalculated, which could cause us to fail the distribution test for REIT qualification.

Investments in our common stock may not be suitable for pension or profit-sharing trusts, Keogh Plans or individual retirement accounts, or IRAs.

If you are investing the assets of a pension, profit sharing, 401(k), Keogh or other retirement plan, IRA or benefit plan in us, you should consider:

• whether your investment is consistent with the applicable provisions of the Employee Retirement Income Security Act (“ERISA”), or the Code;

• whether your investment will produce unrelated business taxable income to the benefit plan; and

• your need to value the assets of the benefit plan annually.

We do not believe that under current ERISA law and regulations that our assets would be treated as “plan assets” for purposes of ERISA. However, if our assets were considered to be plan assets, our assets would be subject to ERISA and/or Section 4975 of the Code, and some of the transactions we have entered into with our Adviser and its affiliates could be considered “prohibited transactions” which could cause us, our Adviser and its affiliates to be subject to liabilities and excise taxes. In addition, our officers and directors, our Adviser and its affiliates could be deemed to be fiduciaries under ERISA and subject to other conditions, restrictions and prohibitions under Part 4 of Title I of ERISA. Even if our assets are not considered to be plan assets, a prohibited transaction could occur if we or any of our affiliates is a fiduciary within the meaning of ERISA with respect to a purchase by a benefit plan.

If our Operating Partnership fails to maintain its status as a disregarded entity or partnership for federal income tax purposes, its income may be subject to taxation.

We intend to maintain the status of the Operating Partnership as a disregarded entity or a partnership for federal income tax purposes. However, if the IRS were to successfully challenge the status of the Operating Partnership as a disregarded entity or a partnership, it would be taxable as a corporation. In such event, this would reduce the amount of distributions that the Operating Partnership could make to us. This would also result in our losing REIT status and becoming subject to a corporate level tax on our own income. This would substantially reduce our cash available to pay distributions and the return on your investment. In addition, if any of the entities through which the Operating Partnership owns its properties, in whole or in part, loses its characterization as a disregarded entity or a partnership for federal income tax purposes, it would be subject to taxation as a corporation, thereby reducing distributions to the Operating Partnership. Such a re-characterization of an underlying property owner could also threaten our ability to maintain REIT status.

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Our ownership of, and relationship with, TRSs will be limited, and our failure to comply with the limits would jeopardize our REIT status and could result in the application of a 100% excise tax.

We have elected to treat Gladstone Land Advisers, Inc., a wholly-owned subsidiary of our Operating Partnership, as a TRS. We may also form other TRSs as part of our overall business strategy. A TRS may earn income that would not be qualifying income if earned directly by the parent REIT. Both the subsidiary and the REIT must jointly elect to treat the subsidiary as a TRS. A corporation of which a TRS directly or indirectly owns more than 35% of the voting power or value of the stock will automatically be treated as a TRS. Overall, no more than 25% of the value of a REIT’s assets may consist of stock or securities of one or more TRSs. A TRS will pay federal, state and local income tax at regular corporate rates on any income that it earns. In addition, the TRS rules limit the deductibility of interest paid or accrued by a TRS to its parent REIT to ensure that the TRS is subject to an appropriate level of corporate taxation. The rules also impose a 100% excise tax on certain transactions between a TRS and its parent REIT that are not conducted on an arm’s-length basis.

Our TRSs will pay federal, state and local income tax on their taxable income, and their after-tax net income will be available for distribution to us but is not required to be distributed to us. We anticipate that the aggregate value of any TRS stock and securities owned by us will be less than 25% of the value of our total assets, including the TRS stock and securities. We will evaluate all of our transactions with TRSs to ensure that they are entered into on arm’s-length terms to avoid incurring the 100% excise tax. There can be no assurance, however, that we will be able to comply with the 25% limitation or to avoid application of the 100% excise tax.

We may be subject to adverse legislative or regulatory tax changes that could reduce the market price of our securities.

At any time, the federal income tax laws or regulations governing REITs or the administrative interpretations of those laws or regulations may be amended. We cannot predict when or if any new federal income tax law, regulation or administrative interpretation, or any amendment to any existing federal income tax law, regulation or administrative interpretation, will be adopted, promulgated or become effective and any such law, regulation or interpretation may take effect retroactively. We and our security holders could be adversely affected by any such change in, or any new, federal income tax law, regulation or administrative interpretation.

Risks Relating to the Market for our Common Stock

Future issuances and sales of shares of our common stock, or the perception that such issuances will occur, may have adverse effects on our share price.

We cannot predict the effect, if any, of future issuances and sales of common stock, or the availability of shares for future sales, on the market price of our common stock. Sales of substantial amounts of common stock, including shares of common stock issuable upon the conversion of units of our Operating Partnership that we may issue from time to time or the perception that these sales could occur, may adversely affect prevailing market prices for our common stock.

An increase in market interest rates may have an adverse effect on the market price of our common stock.

One of the factors that investors may consider in deciding whether to buy or sell our common stock is our distribution yield, which is our distribution rate as a percentage of our share price, relative to market interest rates. If market interest rates increase, prospective investors may desire a higher distribution yield on our common stock or may seek securities paying higher dividends or interest. The market price of our common stock likely will be based primarily on the earnings that we derive from rental income with respect to our properties and our related distributions to stockholders, and not from the underlying appraised value of the properties themselves. As a result, interest rate fluctuations and capital market conditions are likely to affect the market price of our common stock, and such effects could be significant. For instance, if interest rates rise without an increase in our distribution rate, the market price of our common stock could decrease because potential investors may require a higher distribution yield on our common stock as market rates on interest-bearing securities, such as bonds, rise.

We are an “emerging growth company” and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our common stock less attractive to investors. We elected to take advantage of the option to delay adoption of new or revised accounting standards until they are required to be adopted by private companies; consequently, our current and prior financial statements may not be comparable to those of other public companies.

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We are an “emerging growth company,” as defined in the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies” including, but not limited to, not being required to comply with the auditor attestation requirements of section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. We will remain an “emerging growth company” through the year ending December 31, 2018, unless the market value of our common stock that is held by non-affiliates exceeds $700.0 million as of any June 30 before that time. We cannot predict if investors will find our common stock less attractive because we may rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards, meaning that the company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have chosen to take advantage of this extended transition period and, as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for private companies for as long as we maintain our emerging company status and do not revoke this election. Accordingly, the accounting standards that we apply while we remain an emerging growth company may differ materially from the accounting standards applied by other similar public companies, including emerging growth companies that have elected to opt out of this extended transition period. This election could have a material impact on our financial statements and the comparability of our financial statements to the financial statements of similar public companies. This potential lack of comparability could make it more difficult for investors to value our securities, which could have a material impact on the price of our common stock.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

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ITEM 2. PROPERTIES

All of our properties are wholly-owned on a fee-simple basis. The following table provides certain summary information about our 32 farms as of December 31, 2014.

Property Name	Location	Date Acquired	Number of Farms		Total Acres		Farm Acres		Lease Expiration Date	Net Cost Basis(1)		Encumbrances
San Andreas	Watsonville, CA	6/16/1997		1		307		238	12/31/2020	$	4,826,248	$	4,220,586
West Gonzales	Oxnard, CA	9/15/1998		1		653		502	6/30/2020		12,406,298		21,473,134
West Beach	Watsonville, CA	1/3/2011		3		196		195	12/31/2023		8,979,337		4,111,433
Dalton Lane	Watsonville, CA	7/7/2011		1		72		70	11/1/2015		2,700,026		1,362,231
Keysville Road	Plant City, FL	10/26/2011		2		59		50	7/1/2016		1,232,260		—
Colding Loop	Wimauma, FL	8/9/2012		1		219		181	6/14/2018		3,925,704		—
Trapnell Road	Plant City, FL	9/12/2012		3		124		110	6/30/2017		4,106,218		2,655,000
38th Avenue	Covert, MI	4/5/2013		1		119		89	4/4/2020		1,449,670		650,552
Sequoia Street	Brooks, OR	5/31/2013		1		218		206	5/31/2028		3,521,564		1,503,888
Natividad Road	Salinas, CA	10/21/2013		1		166		166	10/31/2024		7,398,003		3,395,874
20th Avenue	South Haven, MI	11/5/2013		3		151		94	11/4/2018		1,884,981		970,250
Broadway Road	Moorpark, CA	12/16/2013		1		60		60	12/15/2023		2,935,348		1,455,375
Oregon Trail	Echo, OR	12/27/2013		1		1,895		1,640	12/31/2023		13,993,009		6,791,748
East Shelton	Willcox, AZ	12/27/2013		1		1,761		1,320	2/29/2024		7,760,059		3,250,336
Collins Road	Clatskanie, OR	5/30/2014		2		200		157	9/30/2024		2,532,950		—
Spring Valley	Watsonville, CA	6/13/2014		1		145		110	9/30/2016		5,882,738		2,862,237
McIntosh Road	Dover, FL	6/20/2014		2		94		78	6/30/2017		2,553,874		1,599,600
Naumann Road	Oxnard, CA	7/23/2014		1		68		64	7/31/2017		6,859,860		3,342,510
Sycamore Road	Arvin, CA	7/25/2014		1		326		322	10/31/2024		5,939,523		2,813,724
Wauchula Road	Duette, FL	9/29/2014		1		808		590	9/30/2024		13,772,371		8,155,762
Santa Clara Avenue	Oxnard, CA	10/29/2014		2		333		331	7/31/2015		24,497,797		12,128,121
Dufau Road	Oxnard, CA	11/4/2014		1		65		64	11/3/2017		6,099,925		3,675,000
				32		8,039		6,637			$145,257,763		$86,417,361

⁽¹⁾  Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets), plus subsequent improvements and other capitalized costs associated with the properties, and adjusted for depreciation and amortization accumulated through December 31, 2014.

The following table summarizes the lease expirations by year for our properties with leases in place as of December 31, 2014:

Year	Number of Expiring Leases		Expiring Leased Acreage		% of Total Acreage			Rental Revenue for the Year Ended December 31, 2014		% of Total Revntal Revenue
2015(1)		4		405		5.0	%	$	386,642		5.4	%
2016		2		204		2.5	%		217,331		3.0	%
2017		7		351		4.4	%		424,737		5.9	%
2018		3		370		4.6	%		364,803		5.1	%
2019		0		0		0.0	%		—		0.0	%
Thereafter		12		6,709		83.5	%		5,776,805		80.6	%
Totals		28		8,039		100.0	%	$	7,170,318		100.0	%

⁽¹⁾  Includes a surface area lease on a portion of one property leased to an oil company that is renewed on a year-to-year basis.

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The following table summarizes the geographic locations of our properties with leases in place as of December 31, 2014:

	As of and For the Year Ended December 31, 2014
State	Number of Farms		Total Acres		% of Total Acres			Rental Revenue		% of Total Rental Revenue
California		14		2,391		29.7	%	$	4,778,579		66.6	%
Oregon		4		2,313		28.8	%		1,080,105		15.1	%
Florida		9		1,304		16.2	%		759,398		10.6	%
Arizona		1		1,761		21.9	%		299,785		4.2	%
Michigan		4		270		3.4	%		252,451		3.5	%
		32		8,039		100.0	%	$	7,170,318		100.0	%

ITEM 3. LEGAL PROCEEDINGS

We are not currently subject to any material legal proceedings, nor, to our knowledge, are any material legal proceedings threatened against us.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock began being traded on the NASDAQ Global Market (“NASDAQ”) under the symbol “LAND” on January 29, 2013. Prior to that date, there was no public trading market for our common stock. Our initial public offering was priced at $15.00 per share on January 28, 2013. The following table reflects the range of the high and low sale prices of our common stock on NASDAQ and the distributions per common share for the periods indicated. Distributions to common stockholders are declared quarterly and paid monthly. Amounts presented represent the cumulative amount of the monthly common stock distributions declared during the respective quarters.

	Price Range				Distributions per Common Share
Period	Low		High
2014:    Q1	$	11.75	$	16.17	$	0.09
Q2		10.78		14.50		0.09
Q3		11.56		13.87		0.09
Q4		8.89		12.27		0.09
2013:    Q1(1)	$	14.00	$	15.83	$	0.08
Q2		15.00		18.74		0.36
Q3		14.99		17.45		0.36
Q4		15.48		17.40		0.69	(2)

⁽¹⁾  From January 29, 2013, through March 31, 2013.

⁽²⁾  Includes a one-time distribution of $0.33 per share representing the final distribution of our remaining accumulated earnings and profits from prior years.

Our Board of Directors regularly evaluates our per-share distribution payments as they monitor the capital markets and the impact that the economy has on the Company. The decision as to whether to authorize and pay distributions on shares of our common stock in the future, as well as the timing, amount and composition thereof, will be at the sole and absolute discretion of our Board of Directors in light of conditions then existing, including our earnings, taxable income, FFO, adjusted FFO, financial condition, liquidity, capital requirements, debt maturities, the availability of capital, contractual prohibitions or other restrictions and legal requirements (including applicable requirements that we must satisfy to qualify and to maintain our qualification to be taxed as a REIT) and general overall economic conditions and other factors. While the statements above concerning our distribution policy represent our current expectations, any actual distribution payable will be determined by our Board of Directors based upon the circumstances at the time of declaration and the actual number of common shares then outstanding, and any common distribution payable may vary from such expected amounts.

To maintain our qualification as a REIT, we are required to make ordinary dividend distributions to our common stockholders. The amount of these distributions must equal at least:

• the sum of (A) 90% of our “REIT taxable income” (computed without regard to the dividends paid deduction and capital gain) and (B) 90% of the net income (after tax), if any, from foreclosure property, less

• the sum of certain non-cash items.

For federal income tax purposes, distributions to our stockholders generally consist of ordinary income, capital gains, nontaxable return of capital or a combination of those items. Distributions that exceed our current and accumulated earnings and profits (calculated for tax purposes) constitute a non-taxable return of capital rather than a distribution and will not be taxable to the extent of the stockholder’s basis in its shares of our stock, which basis will be reduced by an amount equal to

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such non-taxable distribution. To the extent a distribution exceeds the stockholder’s share of both our current and accumulated earnings and profits and the stockholder’s basis in its shares of our stock, that distribution will be treated as a gain from the sale or exchange of that stockholder’s shares of our stock. Every year, we notify stockholders of the taxability of distributions paid to stockholders during the preceding year.

As of February 3, 2015, there were 3,596 beneficial owners of our common stock.

Use of Proceeds from Recent Sales of Registered Securities

On September 24, 2014, we priced a follow-on public offering (the “Follow-on Offering”) of 1,150,000 shares of our common stock at a public offering price of $12.28 per share, which closed on September 29, 2014. In addition, on October 24, 2014, the underwriters exercised a portion of their over-allotment option. The exercise of the underwriters’ over-allotment option closed on October 29, 2014, and resulted in us issuing an additional 73,453 shares. In connection with these transactions, we issued an aggregate of 1,223,453 new shares for gross proceeds of approximately $15.0 million and net proceeds, after deducting underwriting discounts and offering expenses borne by us, of approximately $14.0 million. $11.1 million of these proceeds were used to repay existing debt, with the remainder invested into new property acquisitions or used for other general corporate purposes. As of December 31, 2014, there were no uninvested proceeds remaining from these transactions.

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ITEM 6. SELECTED FINANCIAL DATA

The following selected financial data as of and for the fiscal years ended December 31, 2014, 2013, 2012, 2011 and 2010 is derived from our audited and, where noted, unaudited consolidated financial statements and from internal records. The data should be read in conjunction with, and is qualified in its entirety by reference to, our consolidated financial statements and notes thereto, included elsewhere in this report, and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in Item 7 of this report.

	As of and For the Years Ended December 31,
	2014			2013			2012			2011			2010
Operating Data:
Total operating revenues	$	7,184,922		$	4,038,138		$	3,390,594		$	2,964,082		$	2,418,111
Operating income	$	1,599,972		$	1,357,453		$	1,901,615		$	1,282,828		$	1,564,581
Net (loss) income before income taxes	$	(98,631	)	$	295,047		$	900,692		$	13,730		$	877,127
Net (loss) income	$	(125,133	)	$	(1,224,683	)	$	600,373		$	6,219		$	560,523
Funds from operations(1)	$	1,610,511		$	(502,228	)	$	1,074,853		$	511,787		$	877,767
Adjusted funds from operations(2)	$	3,126,433		$	1,193,931		$	1,291,337		$	1,050,694		$	1,204,545
Share and Per-Share Data:
Weighted average common shares outstanding — basic and diluted		6,852,917			6,214,557			2,750,000			2,750,000			2,750,000
(Loss) earnings per weighted average common share — basic and diluted	$	(0.02	)	$	(0.20	)	$	0.22		$	0.00		$	0.20
Funds from operations — basic and diluted(1)	$	0.24		$	(0.08	)	$	0.39		$	0.19		$	0.32
Adjusted funds from operations — basic and diluted(2)	$	0.46		$	0.19		$	0.47		$	0.38		$	0.44
Distributions per common share	$	0.36		$	1.49		$	—		$	0.37		$	—
Balance Sheet Data:
Real estate and lease intangibles, net(3)	$	145,257,763		$	75,622,247		$	37,351,944		$	30,326,780		$	17,760,574
Total assets	$	151,702,624		$	93,673,464		$	40,985,848		$	32,768,277		$	29,034,484
Aggregate borrowings(4)	$	86,417,361		$	43,154,165		$	30,817,880		$	24,133,000		$	19,755,621
Total stockholders’ equity	$	59,969,328		$	48,511,992		$	8,136,726		$	7,536,353		$	8,547,633
Total common shares outstanding		7,753,717			6,530,264			2,750,000			2,750,000			2,750,000
Supplemental Data:
Cash flows from operations	$	3,543,622		$	(460,353	)	$	1,137,777		$	1,898,093		$	665,261
Number of farms owned(6)		32			21			12			8			2
Gross acreage owned(6)		8,039			6,000			1,630			1,287			960
Occupancy rate(6)		100	%		100	%		100	%		100	%		100	%
Fair value of farmland portfolio(5)(6)	$	192,952,933		$	115,977,120		$	75,459,000		$	53,600,000		$	53,600,000
Net asset value per share(5)(6)	$	13.94		$	13.51		$	16.82		$	11.20		$	15.99

⁽¹⁾  Funds from operations is a term developed by the National Association of Real Estate Investment Trusts and is defined below.

⁽²⁾  Adjusted funds from operations is defined below.

⁽³⁾  Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets), plus subsequent improvements and other capitalized costs associated with the properties, and adjusted for depreciation and amortization accumulated through December 31, 2014.

⁽⁴⁾  Representative of all borrowings of the Company, including mortgage notes payable, bonds payable and borrowings under lines of credit.

⁽⁵⁾  As presented in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Net Asset Value.”

⁽⁶⁾  Unaudited.

The National Association of Real Estate Investment Trusts (“NAREIT”) developed funds from operations (“FFO”) as a relative non-GAAP supplemental measure of operating performance of an equity REIT to recognize that income-producing real estate historically has not depreciated on the same basis determined under GAAP. FFO, as defined by NAREIT, is net income (computed in accordance with GAAP), excluding gains or losses from sales of property and impairment losses on property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. We further present adjusted fund from operations (“AFFO”) as an additional non-GAAP financial measure, as we believe AFFO to be a more useful supplemental metric for investors to use in assessing our operational performance on a more sustainable basis than FFO.

We calculate AFFO by adjusting FFO for the following items:

• A net adjustment for the straight-lining of rents. This adjustment removes the straight-lining of rental income and also includes the removal of amortization related to above- and below-market lease values and to leasehold improvements, resulting in rental income reflected on a cash basis.

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• Plus acquisition-related expenses. Acquisition-related expenses are incurred for investment purposes and do not correlate with the operations of our existing portfolio. Further, due to the inconsistency in which these costs are incurred and how they are treated for accounting purposes, we believe the exclusion of these expenses improves comparability of our results on a period-to-period basis.

• Plus income tax provision. We have elected to be treated as a REIT for federal tax purposes beginning with our taxable year ended December 31, 2013. As a REIT, we generally will not be subject to federal income taxes on amounts distributed to our stockholders, provided we meet certain conditions. As such, we believe it is beneficial for investors to view our results of operations excluding the impact of income taxes.

• Plus amortization of deferred financing costs. The amortization of costs incurred to obtain financing is excluded from AFFO, as it is a non-cash expense item.

• Adjustments for other one-time charges. We will adjust for certain non-recurring charges and receipts and will explain such adjustments accordingly.

FFO and AFFO do not represent cash flows from operating activities in accordance with GAAP, which, unlike FFO and AFFO, generally reflects all cash effects of transactions and other events in the determination of net income, and should not be considered an alternative to net income as an indication of our performance or to cash flows from operations as a measure of liquidity or ability to make distributions. Comparisons of FFO and AFFO, using the NAREIT definition for FFO and the definition above for AFFO, to similarly-titled measures for other REITs may not necessarily be meaningful due to possible differences in the definitions used by such REITs.

AFFO available to common stockholders is AFFO, adjusted to subtract distributions made to holders of preferred stock, if applicable. We believe that net income available to common stockholders is the most directly comparable GAAP measure to AFFO available to common stockholders.

Basic adjusted funds from operations (“Basic AFFO”) per share and diluted adjusted funds from operations (“Diluted AFFO”) per share are AFFO available to common stockholders divided by the number of weighted average shares of common stock outstanding and AFFO available to common stockholders divided by the number of weighted average shares of common stock outstanding on a diluted basis, respectively, during a period. We believe that AFFO available to common stockholders, Basic AFFO per share and Diluted AFFO per share are useful to investors because they provide investors with a further context for evaluating our AFFO results in the same manner that investors use net income and earnings per share (“EPS”) in evaluating net income available to common stockholders. In addition, because many REITs provide AFFO available to common stockholders, Basic AFFO and Diluted AFFO per share information to the investment community, we believe these are useful supplemental measures when comparing us to other REITs. We believe that net income is the most directly-comparable GAAP measure to AFFO, basic EPS is the most directly-comparable GAAP measure to Basic AFFO per share, and diluted EPS is the most directly-comparable GAAP measure to Diluted AFFO per share.

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The following table provides a reconciliation of our FFO and AFFO for the fiscal years ended December 31, 2014, 2013, 2012, 2011 and 2010 to the most directly-comparable GAAP measure, net income, and a computation of basic and diluted AFFO per weighted average share of common stock:

	For the Years Ended
	2014			2013			2012			2011		2010
Net (loss) income available to common stockholders	$	(125,133	)	$	(1,224,683	)	$	600,373		$	6,219	$	560,523
Plus: Real estate and intangible depreciation and amortization		1,735,644			722,455			474,480			505,568		317,244
FFO available to common stockholders		1,610,511			(502,228	)		1,074,853			511,787		877,767
Net adjustment for straight-lining of rents		1,089,057			(7,320	)		(296,801	)		441,539		—
Plus: Acquisition-related expenses		520,352			153,725			153,494			63,489		—
Plus: Income tax provision		26,502			1,519,730			300,319			7,511		316,604
Plus: Amortization of deferred financing costs		53,286			30,024			59,472			26,368		10,174
(Minus) plus: Other one-time (receipts) charges, net(1)		(173,275	)		—			—			—		—
AFFO available to common stockholders	$	3,126,433		$	1,193,931		$	1,291,337		$	1,050,694	$	1,204,545
Weighted average common shares outstanding — basic & diluted		6,852,917			6,214,557			2,750,000			2,750,000		2,750,000
FFO per weighted average common share — basic and diluted	$	0.24		$	(0.08	)	$	0.39		$	0.19	$	0.32
AFFO per weighted average common share — basic and diluted	$	0.46		$	0.19		$	0.47		$	0.38	$	0.44

⁽¹⁾  Includes the addition of $89,688 of repairs incurred as a result of the fire on the cooler on West Gonzales that were expensed during the year ended December 31, 2014, netted against the property and casualty recovery, net, of $262,963 recorded during the year ended December 31, 2014.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the notes thereto contained elsewhere in this Form 10-K.

OVERVIEW

General

We are an externally-managed real estate investment trust (“REIT”) that is engaged primarily in the business of owning and leasing farmland; we are not a grower, nor do we farm the properties we own. Including the acquisition of one 333-acre farm in California subsequent to December 31, 2014, we currently own 8,370 acres, comprised of 33 farms (15 in California, 9 in Florida, 4 in Michigan, 4 in Oregon and 1 in Arizona) that are leased to 30 separate tenants. Our tenants consist of both independent and corporate farming operations, all of which are unrelated to us. We intend to acquire more farmland in these and other states in our regions of focus that is or will be leased to farmers, and we expect that most of our future tenants will be independent or corporate farming operations that are unrelated to us. We may also acquire property related to farming, such as cooling facilities, freezer buildings, packinghouses, box barns, silos, storage facilities, greenhouses, processing plants and distribution centers. We generally lease our properties on a triple-net basis, an arrangement under which, in addition to rent, the tenant is required to pay the related taxes, insurance costs (including drought insurance if we were to acquire properties that depend upon rainwater for irrigation), maintenance and other operating costs. We may also elect to sell farmland at certain times, such as when the land could be developed by others for urban or suburban uses.

To a lesser extent, we may provide senior secured first-lien mortgages to farmers for the purchase of farmland and farm-related properties. We expect that any mortgages we make would be secured by farming properties that have been in operation for over five years with a history of crop production and profitable farming operations. To date, we have not identified any properties for which to make loans secured by properties.

We were incorporated in 1997, primarily for the purpose of operating strawberry farms through our former subsidiary, Coastal Berry Company, LLC (“Coastal Berry”), an entity that provided growing, packaging, marketing and distribution of fresh berries and other agricultural products. We operated Coastal Berry as our primary business until 2004, when it was sold to Dole Food Company (“Dole”).

Since 2004, our operations have consisted solely of leasing our farms to third-party tenants. We also lease a small parcel on our 653-acre farm near Oxnard, California (“West Gonzales”), to an oil company. We do not currently intend to enter into the business of growing, packing or marketing farmed products; however, if we do so in the future, we expect that it would be through a taxable REIT subsidiary (“TRS”).

We conduct substantially all of our investment activities through, and all of our properties are held, directly or indirectly, by, Gladstone Land Limited Partnership (the “Operating Partnership”). We control our Operating Partnership as its sole general partner, and we also currently own, directly or indirectly, all limited partnership units (“OP Units”) of our Operating Partnership. We have the ability and, in the future, we expect to offer equity ownership in our Operating Partnership by issuing OP Units from time to time, in whole or in part, in exchange for agricultural real property. By structuring our acquisitions in this manner, the sellers of the real estate will generally be able to defer the realization of gains until they redeem the OP Units or sell the OP Units for cash. Persons who receive OP Units in our Operating Partnership in exchange for real estate or interests in entities that own real estate will be entitled to redeem these OP Units for cash or, at our election, shares of our common stock on a one-for-one basis at any time after holding the OP Units for one year. To date, no properties have been acquired through issuance of OP Units.

We intend to continue to lease our farm properties to corporate farmers or independent farmers that sell their products through national corporate marketers-distributors. We currently have no plans to make mortgage loans on farms, but we may make mortgage loans on farms and farm-related properties in the future. We expect to continue to earn rental and interest income from our investments.

Gladstone Management Corporation (our “Adviser”) manages our real estate portfolio pursuant to an advisory agreement, and Gladstone Administration, LLC (our “Administrator”) provides administrative services to us pursuant to an administration agreement. Our Adviser and our Administrator collectively employ all of our personnel and pay directly their salaries, benefits and general expenses.

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On September 3, 2014, we filed our 2013 federal income tax return, on which we elected to be taxed as a REIT for federal tax purposes beginning with our tax year ended December 31, 2013. As a REIT, we generally will not be required to pay federal and state income taxes on the distributions we make to our stockholders. Any TRS through which we may conduct operations will be required to pay federal and state income taxes on its taxable income, if any, at the then-applicable corporate rates. To the extent we do not maintain our qualification to be taxed as a REIT or revoke our REIT status for federal income tax purposes, we will be subject to regular corporate income tax on our taxable income.

As described further below, we have used all of the proceeds received from our initial public offering in January 2013 (the “IPO”) and from our follow-on offering in September 2014 (the “Follow-on Offering”) for new property acquisitions, improvements on existing properties, distributions to stockholders, repayment of existing indebtedness and other general corporate purposes.

Objectives and Strategies

Our principal business objective is to maximize stockholder returns through a combination of: (1) monthly cash distributions to our stockholders, which we hope to sustain and increase through long-term growth in cash flows from increased rents; (2) appreciation of our land; and (3) capital gains derived from the sale of our properties. Our primary strategy to achieve our business objective is to invest in a diversified portfolio of triple-net leased farmland and properties related to farming operations.

We expect that most of our future tenants will be independent or corporate farming operations that are unrelated to us. We intend to continue to lease our properties under triple-net leases, an arrangement under which the tenant maintains the property while paying the related taxes, maintenance and insurance costs, as well as rent to us. We are actively seeking and evaluating other farm properties for potential purchase. All potential acquisitions will be subject to due diligence procedures, and there can be no assurance that we will be successful in identifying or acquiring additional properties in the future.

Leases

Most of our agricultural leases are on a triple-net basis and have original terms ranging from 3 to 10 years for properties growing row crops and 5 to 15 years for properties growing permanent crops, often with options to extend the lease further. Rent is generally payable to us on either an annual or semi-annual basis, with one-half due at the beginning of the year and the other half due later in the year. Further, most of our leases contain provisions that provide for annual increases in the rental amounts payable by the tenants, often referred to as escalation clauses. The escalation clauses may specify fixed dollar amount or percentage increases each year, or it may be variable, based on standard cost of living or inflation indices. In addition, some leases that are longer-term in nature may require a regular survey of comparable land rents, with the rent owed per the lease being adjusted to reflect current market rents. We have not entered into any leases that include variable rent based on the success of the harvest each year; however, should we choose to do so, we would generally require the lease to include the guarantee of a minimum amount of rental income that satisfies our investment return criteria. Currently, our 33 farms are leased under original lease terms ranging from 1 to 15 years, with 20 farms leased on a pure triple-net basis, and 13 farms leased on a partial-net basis, with the landlord responsible for all or a portion of the related property taxes. However, due to follow-on leases we have executed on certain of our properties, two of our farms that are currently leased on a partial-net basis will convert to pure triple-net leases in November 2015.

We monitor our tenants’ credit quality on an ongoing basis by, among other things, periodically conducting site visits of the properties to ensure farming operations are taking place and to assess the general maintenance of the properties. To date, no changes to credit quality of our tenants have been identified, and all tenants continue to pay pursuant to the terms of their respective leases.

Lease Expirations

Farm leases are often short-term in nature, so in any given year, we may have multiple leases up for renewal or extension. We had two agricultural leases that were originally due to expire in 2014, one on 196 acres of farmland (“West Beach”) and one on 307 acres of farmland (“San Andreas”), both near Watsonville, California. However, during the first half of 2014, we

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were able to re-lease both properties prior to their expirations and without any downtime. The two properties were re-leased for periods of nine and six years, respectively, at rental rates representing an average increase in minimum annualized straight-lined rental income of 26.0% over the previous leases. In aggregate, these properties accounted for approximately 6.3% of the total acreage owned as of December 31, 2014, and 13.4% of the total rental income recorded for the year ended December 31, 2014.

We have three agricultural leases due to expire in 2015: one on 72 acres of farmland near Watsonville, California (“Dalton Lane”), and two on 333 acres of farmland near Oxnard, California (“Santa Clara Avenue”). We have begun negotiations regarding lease renewals on both of these properties, and we anticipate being able to renew the leases prior to their respective expirations. In addition, given the current market conditions in the respective regions where these properties are located, we expect to be able to renew the leases at higher rental rates, compared to those of the existing leases. However, there can be no assurance that we will be able to renew the leases at a rate favorable to us, if at all, or be able to find a replacement tenant, if necessary.

In addition, we also have a surface area lease with an oil company on eight acres of West Gonzales that is renewed on an annual basis and continues for so long as the tenant continues to use its oil rights. We have received confirmation that the tenant intends to continue its lease for 2015. Under the terms of the lease, the amount of rent owed increases on an annual basis commensurate with the rental increases per the agricultural lease in place on West Gonzales. This lease accounted for approximately 0.4% of the rental income recorded during the year ended December 31, 2014.

Mortgages

We may also make loans to farmers for the purchase of farmland and other properties related to farming, not to exceed 5.0% of the fair value of our total assets, over time. These loans would be secured by mortgages on the property. In the event that we make any such loans, we expect that the typical mortgage would carry a fixed interest rate over a term of three to five years and would require interest-only payments with no amortization of the principal until maturity. We expect that the mortgage would be set up to have the senior claim on the property but would not require the owner to guarantee the mortgage personally. If we make mortgage loans, we intend to provide borrowers with a conditional put option giving them the right to sell the property to us at a predetermined fair market value, and we also may have a call option to buy the property from the borrower. To date, we have not identified any properties for which to make loans secured by properties.

Business Environment

The United States (the “U.S.”) continues to see signs of an overall improving economy; however, uncertainty continues to exist on many levels. A rapidly-improving labor market, a fairly healthy housing market and a strengthening U.S. dollar has led to an increase in recent U.S. consumer sentiment. However, geopolitical concerns abroad and a weak global outlook serve to intensify the broader economic uncertainties here in the U.S. Further, since the Federal Reserve (the “Fed”) ended its bond-buying program in October 2014, questions have arisen as to when it will raise interest rates. While some expect this increase in interest rates to occur as early as this summer, certain indicators currently exist that would argue against a move towards such an increase. For example, impeded by a plunge in energy prices, inflation has slowed and remains below the Fed’s annual target of 2%. A rise in interest rates could cause the U.S. dollar to increase even more, pulling inflation away from that target. In the meantime, interest rates remain near zero, which has led to increased competition for new acquisitions and compressed capitalization rates. The risk of rising interest rates could cause our borrowing costs to rise, which may negatively impact our ability to access both the debt and equity markets on favorable terms. Unfavorable economic conditions and uncertainty of legislation related to agriculture could also have a material adverse effect on one or more of our tenants, as well as on our business, financial condition and results of operations.

Increasing global demand for food has led to both steady and significant increases in farmland values across the majority of the U.S. over the past decade. According to the U.S. Department of Agriculture (the “USDA”), average per-acre values of U.S. farmland have more than doubled since 2009. Moreover, according to the National Council of Real Estate Investment Fiduciaries (“NCREIF”), the values of U.S. farmland have averaged returns of 12.6% over the past year and 14.1% annually since 1990. These value increases are even higher for high-quality U.S. cropland, which is where we invest, partially in response to lifestyle shifts away from processed and frozen foods towards fresh produce. While farmland values in parts of the Midwest declined for the first time in decades during 2014, driven by sharply lower grain prices, according to NCREIF, annual cropland in the regions where our properties are located continued to experience steady increases in value, as they have each year since 1990. We expect this trend to become even stronger as per-capita income rises and a higher percentage of household income is dedicated towards food.

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Domestic and global population growth is a major driver behind the overall increased value and demand for farmland. According to the Food and Agriculture Organization of the United Nations, global population is expected to grow by 34% between 2009 and 2050. In contrast, over the same period, the area of arable land is projected to expand by only 5%, with the ongoing trend of rapid urbanization and conversion of farmland continuing at an accelerating pace. Quality farmland in the U.S. currently has a near-zero vacancy rate, compared to vacancy rates of over 14% for office space, according to a recent quarterly report released by CBRE Group, Inc. Further, according to the USDA, approximately 40% of all U.S. farm acreage is operated by non-owners, and we expect that several factors, including steadily-increasing land prices, the increasing average age of farmers in the U.S. and expanding government crop insurance programs that encourage farmers to invest more in expanding their operations than in owning more farmland, exist that will influence growers towards renting versus owning their own farmland. Given the trends currently driving increased demand for farmland, we do not believe vacancy rates for U.S. farmland will increase over the short- or long-terms.

We believe that population growth and the rising demand for food and U.S. farmland, which is drastically mismatched with the shrinking supply of farmland, will result in a strong increase in demand for our farms over the long-term, enabling us to consistently increase the rental rates on our farms. We also expect that the values of our farmland will increase at rates greater than that of inflation, helping to offset the impact of expected rising interest rates. However, while increased development and changing patterns of use are likely to increase the land values and rents in our portfolio, it could also result in upward pressure on prices for farms that we seek to acquire. We intend to mitigate this risk by continuing to seek out superior and diversified cropland across the U.S. and including annual escalations and market-rate adjustments to the rental rates in our leases.

Concerns over water rights and the overall availability of water have been a major cause in the slowing of acreage increases of U.S. croplands. In California, the recent drought has driven prices for farmland located in highly-desirable regions with water accessibility upwards and has forced many producers to either cut back on acres in production or move to less-desirable regions. Fortunately, the drought has had little impact on our farms, since all of our properties have their own water sources via wells which undergo thorough testing to ensure adequate depth, flow and crop coverage. In addition, despite the impact of last year’s drought, the weather in California over the past year has been favorable for fresh produce, particularly strawberries, as quality and yields have remained high. In Florida, fruit and vegetable production is experiencing its strongest season in over four years, as a result of ideal weather, excellent quality and inconsistent production out of Mexico. Blueberry production conditions have also been excellent this year in the Pacific Northwest, where four of our farms are located. However, in the unlikely event that our tenants begin to experience significant losses due to the drought, a major mitigating factor is the recently-enacted U.S. farm bill, the Agricultural Act of 2014 (the “Farm Bill”). In addition to increasing government subsidy amounts and improving existing crop insurance program for farmers, the Farm Bill has also expanded the emergency programs to provide significantly better coverage to such events as disaster and drought relief.

Recent Developments

REIT Conversion

On September 3, 2014, we filed our 2013 federal income tax return, on which we elected to be taxed as a REIT for federal income tax purposes beginning with our tax year ended December 31, 2013. As a REIT, we generally will not be subject to federal income taxes on amounts that we distribute to our stockholders (except income from any foreclosure property), provided that, on an annual basis, we distribute at least 90% of our REIT taxable income (determined without regard to the deduction for dividends paid and excluding net capital gains) to our stockholders and meet certain other conditions.

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Investment and Leasing Activity

Property Acquisitions

During the year ended December 31, 2014, we acquired 11 farms in 8 separate transactions, which are summarized in the table below:

Property Name	Property Location	Acquisition Date	Total Acreage		Number of Farms		Primary Crop(s)	Lease Term	Renewal Options	Total Purchase Price		Acquisition Costs			Annualized Straight- line Rent(1)
Collins Road	Clatskanie, OR	5/30/2014		200		2	Blueberries	10.3 years	3 (5 years each)	$	2,591,333	$	60,869	(4)	$	181,172
Spring Valley	Watsonville, CA	6/13/2014		145		1	Strawberries, Misc. Vegetables and Lilies	2.3 years	None		5,900,000		49,582	(4)		270,901
McIntosh Road	Dover, FL	6/20/2014		94		2	Strawberries	3.0 years	1 (3 years) /None(2)		2,666,000		60,939	(4)		133,154
Naumann Road	Oxnard, CA	7/23/2014		68		1	Strawberries and Raspberries	3.0 years	1 (3 years)		6,888,500		91,103	(4)		329,667
Sycamore Road	Arvin, CA	7/25/2014		326		1	Misc. Vegetables and Grain	1.3 years	None(3)		5,800,000		44,434	(4)		184,304
Wauchula Road	Duette, FL	9/29/2014		808		1	Strawberries, Misc. Vegetables, and Melons	10.0 years	2 (5 years each)		13,765,000		132,555	(5)		888,439
Santa Clara Avenue	Oxnard, CA	10/29/2014		333		2	Strawberries and Misc. Vegetables	0.8 years	1 (2 years)		24,592,000		100,603	(4)		1,231,422
Dufau Road	Oxnard, CA	11/4/2014		65		1	Strawberries and Misc. Vegetables	3.0 years	1 (3 years)		6,125,600		61,474	(4)		304,607
				2,039		11				$	68,328,433	$	601,559		$	3,523,666

⁽¹⁾  Annualized straight-line amount is based on the minimum rental payments required per the lease and includes the amortization of any above-market and below-market lease values recorded.

⁽²⁾  This property has a separate tenant leasing each of the property’s two farms. One lease provides for one 3-year renewal option, while the other does not include a renewal option.

⁽³⁾  Upon acquisition of this property, we assumed the in-place lease, which expires October 31, 2015. In addition, we executed a 9-year, follow-on lease with a new tenant that commences November 1, 2015. Under the terms of the follow-on lease, the tenant has one 3-year renewal option, and annualized, straight-line rents will be $311,760.

⁽⁴⁾  Acquisition accounted for as a business combination under ASC 805. As such, all acquisition-related costs were expensed as incurred, other than direct leasing costs, which were capitalized. In aggregate, we incurred $21,409 of direct leasing costs in connection with these acquisitions.

⁽⁵⁾  Acquisition accounted for as an asset acquisition under ASC 360. As such, all acquisition-related costs were capitalized and allocated among the identifiable assets acquired.

In addition, on January 5, 2015, we acquired one farm comprised of 331 acres of farmland near Salinas, California (“Espinosa Road”), for an aggregate purchase price of approximately $17.0 million. The property is irrigated cropland that is primarily farmed for strawberries and miscellaneous vegetables, such as lettuce. At closing, we were assigned the existing triple-net lease, which has approximately 22 months remaining on the term and provides for annualized, straight-line cash rents of approximately $778,000.

Existing Properties

The following significant events occurred with regard to our already-existing properties during the year ended December 31, 2014:

• Trapnell Road: On January 20, 2014 we completed the work for the expansion and upgrade of the cooling facility on 124 acres of farmland near Plant City, Florida, for which we agreed to incur the costs, up to a maximum of $450,000. We expended a total of $446,108 in connection with this project, and, in accordance with the lease amendment executed on October 21 2013, we earn additional rental income on the costs incurred related to this project at an initial annual rate of 8.5% upon completion of the project, with prescribed rental escalations provided for in the lease.

• West Beach: On March 27, 2014, we executed a lease with a new tenant to occupy 196 acres of farmland near Watsonville, California, that commences on November 1, 2014, as the lease term with the current tenants on the property was set to expire on October 31, 2014. The new lease term is for nine years, through December 31, 2023, and provides for prescribed rent escalations over its life, with minimum annualized GAAP straight-line rental income of $540,469, representing a 20.7% increase over that of the current lease.

• San Andreas: On June 17, 2014, we extended the lease with the tenant occupying 307 acres of farmland near Watsonville, California, which was originally set to expire in December 2014. The lease was extended for an additional six years, through December 31, 2020, and provides for rent escalations over its life, with annualized, GAAP straight-line rental income of $566,592, representing a 31.3% increase over that of the previous lease.

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• East Shelton: In July 2014, we completed an irrigation upgrade project on 1,761 acres of farmland near Willcox, Arizona, for which we rehabilitated several of the 13 existing wells on the property, in addition to adding two new wells. The total cost of this project was approximately $1.2 million, of which $336,000 was expected at acquisition and accounted for in the rental stream included in the original lease. To account for the additional costs incurred, on October 22, 2014, we executed a lease amendment with the current tenant on the property to provide for an additional $37,791 of annualized, straight-line rent.

Involuntary Conversions and Property and Casualty Recovery

In April 2014, two separate fires occurred on two of our properties, partially damaging a structure on each property. One occurred on 20^th Avenue, on which the majority of a residential house was destroyed by a fire. We determined the carrying value of the portion of the residential house damaged by the fire to be $94,243. The second fire occurred on West Gonzales and damaged a portion of the cooling facility on the property. We determined the carrying value of the portion of the cooling facility damaged by the fire to be approximately $138,494. Thus, we wrote down the carrying value of these properties on the accompanying Consolidated Balance Sheets by these respective amounts, and, in accordance with Accounting Standards Codification (“ASC”) 605, “Revenue Recognition – Gains and Losses,” we also recorded a corresponding property and casualty loss, which is included in Property and casualty recovery, net on the accompanying Consolidated Statements of Operations.

Both of the assets were insured, either by us or the tenant, at the time of the fires. As a result of the fire on 20^th Avenue, insurance proceeds of $61,500 were recovered during the year ended December 31, 2014. Thus, in accordance with ASC 450, “Contingencies,” during the year ended December 31, 2014, we recorded this recovery as an offset to the property and casualty loss we recorded earlier in the year, and such recovery is included as part of Property and casualty recovery, net on the accompanying Consolidated Statements of Operations. In connection with the fire on West Gonzales, insurance proceeds of $434,200 were recovered during the year ended December 31, 2014; thus, we recorded this amount as an offset to the property and casualty loss we recorded earlier in the year, and such recovery is included as part of Property and casualty recovery, net on the accompanying Consolidated Statements of Operations. We expect to recover at least an additional $35,648 for these repairs, and we have received confirmation from the insurer regarding payment of at least this amount. Thus, we have recorded this expected recovery as a receivable and a corresponding liability, included in Other assets and Other liabilities, respectively, on the accompanying Consolidated Balance Sheets. We will recognize this amount and any other insurance recoveries as a gain upon receipt. We continue to assess the total amount expected to be recovered for each of these events, as well as the collectability of such amounts; thus, no further offsets to the property and casualty loss we recorded earlier in the year have been recorded at this time.

Repairs are still ongoing on West Gonzales, and, during the year ended December 31, 2014, we expended $496,784 in repairs and upgrades to the cooler as a result of the fire. Of this amount, $407,096 was capitalized as a real estate addition, and $89,688 was recorded as repairs and maintenance expense, included in Property operating expense on the accompanying Consolidated Statements of Operations. Repairs on 20^th Avenue are expected to begin in 2015.

Financing Activity

New MetLife Credit Facility

On May 9, 2014, we closed on a new mortgage loan facility and a new revolving line of credit with Metropolitan Life Insurance Company (“MetLife”), for an aggregate amount of up to $125.0 million (the “New MetLife Credit Facility”). The New MetLife Credit Facility consists of a $100.0 million long-term note payable (the “New MetLife Note Payable”) and a $25.0 million revolving equity line of credit (the “New MetLife Line of Credit”). Under the New MetLife Credit Facility, we may borrow up to 58% of the aggregate of the lower of cost or the appraised value of the real property pledged as collateral.

The New MetLife Note Payable is scheduled to mature on January 5, 2029. Initial advances bear interest at a fixed rate of 3.50% per annum, plus an unused fee of 0.20% on undrawn amounts, and interest rates for subsequent disbursements are based on prevailing market rates at the time of such disbursements. As of December 31, 2014, our borrowings outstanding under the New MetLife Note Payable bore interest at a blended rate of 3.61% per annum. The New MetLife Line of Credit is scheduled to mature on April 5, 2024, and advances will initially bear interest at a variable rate equal to the three-month LIBOR plus a spread of 2.50%, with a minimum annualized rate of 2.75%, plus an unused fee of 0.20% on undrawn amounts.

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The New MetLife Credit Facility replaces the prior mortgage note payable and prior revolving line of credit with MetLife (the “Prior MetLife Credit Facility”), and a portion of the proceeds from the New MetLife Credit Facility was used to repay amounts owed under the Prior MetLife Credit Facility. We intend to utilize the remaining availability under the New MetLife Credit Facility to acquire additional farmland in the U.S.

Among other changes from our Prior MetLife Credit Facility, under the New MetLife Credit Facility:

• the aggregate borrowing capacity increased by $75.0 million, or 150%;

• the maturity date of our prior mortgage note payable was extended by three years, to January 2029, while the initial interest rate on the mortgage remained at 3.5%;

• the maturity date of our prior revolving line of credit was extended by seven years, to April 2024; and

• the initial interest rate on our prior revolving line of credit was reduced by 50 bps, to 2.75%.

Farm Credit Notes Payable

On September 19, 2014, we closed on two loans from Farm Credit of Central Florida, FLCA (“Farm Credit”), in the aggregate amount of approximately $4.2 million. In addition, on September 29, 2014, we obtained an additional loan for approximately $8.3 million. As of December 31, 2014, aggregate borrowings from Farm Credit were approximately $12.4 million (collectively, the “Farm Credit Notes Payable”).

The Farm Credit Notes Payable are scheduled to mature on August 1, 2034, and will bear interest (before interest repatriation) at a blended fixed rate of 3.53% per annum through July 31, 2017; thereafter, the interest rate will be equal to the one-month LIBOR, plus 2.875%. The original principal amounts borrowed from Farm Credit equaled approximately 60% of the aggregate appraised value of the real properties pledged as collateral under the Farm Credit Notes Payable.

Farmer Mac Facility

On December 5, 2014, we entered into a bond purchase agreement with Federal Agricultural Mortgage Corporation (“Farmer Mac”) and Farmer Mac Mortgage Securities Corporation, for a secured note purchase facility that provides for bond issuances up to an aggregate amount of $75.0 million (the “Farmer Mac Facility”). The interest rate for each bond issuance will be based on prevailing market rates at the time of such issuance, and the bonds issued will have a maximum aggregate, effective loan-to-value ratio of 60% of the underlying agricultural real estate.

On December 11, 2014, we completed an initial issuance under the Farmer Mac Facility, for which we received proceeds of approximately $3.7 million. On January 5, 2015, we issued an additional bond under the Farmer Mac Facility, for which we received proceeds of approximately $10.2 million. These issuances are scheduled to mature on December 11, 2019, and January 5, 2020, respectively. Each of these issuances, which are both non-amortizing over their respective five-year terms, will bear interest at a fixed rate of 3.25% per annum throughout their terms.

We are continuing discussions with additional lenders; however, there is no guaranty that we will be able to complete agreements on terms favorable to us, or at all.

Executive Officers

On July 14, 2014, our Board of Directors appointed Lewis Parrish, our then-current chief accounting officer, as chief financial officer. Danielle Jones, our prior chief financial officer, remained as our treasurer until January 13, 2015, when our Board of Directors appointed Jay Beckhorn as our Treasurer. Mr. Beckhorn is also the Treasurer of Gladstone Commercial Corporation (“Gladstone Commercial”), an affiliate of ours. These transitions had been planned for some time and were made to allow Ms. Jones to focus on her position as chief financial officer for Gladstone Commercial.

Portfolio Diversity

Since our IPO in January 2013, we have expanded our portfolio of 12 farms leased to 7 different, third-party tenants to a current portfolio of 33 farms leased to 30 different, unrelated tenants. While our focus remains in farmland growing fresh produce row crops, we have also begun to diversify our portfolio into farmland suitable for other crop types, including permanent crops, consisting primarily of blueberries, and certain commodity crops, consisting primarily of corn and beans.

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The following table summarizes the different sources of revenues for our properties with leases in place as of and for the years ended December 31, 2014 and 2013:

	As of and For the Year Ended December 31, 2014										As of and For the Year Ended December 31, 2013										Annualized Straight- line Rental Income as of December 31, 2014(1)
Revenue Source	Total Farmable Acres		% of Total Farmable Acres			Rental Revenue		% of Total Revenue			Total Farmable Acres		% of Total Farmable Acres			Rental Revenue		% of Total Revenue			Total Rental Revenue		% of Total Revenue
Annual row crops—fresh produce(2)		4,711		71.0	%	$	5,333,526		74.4	%		3,152		64.1	%	$	3,219,780		79.9	%	$	7,645,856		77.8	%
Annual row crops—commodity crops(3)		1,469		22.1	%		423,978		5.9	%		1,526		31.0	%		103,876		2.6	%		451,737		4.6	%
Subtotal —Total annual row crops		6,180		93.1	%		5,757,504		80.3	%		4,678		95.1	%		3,323,656		82.5	%		8,097,593		82.4	%
Permanent crops(4)		457		6.9	%		502,898		7.0	%		243		4.9	%		92,075		2.3	%		549,280		5.6	%
Subtotal —Total crops		6,637		100.0	%		6,260,402		87.3	%		4,921		100.0	%		3,415,731		84.8	%		8,646,873		88.0	%
Facilities and other(5)		—		0.0	%		909,916		12.7	%		—		0.0	%		611,956		15.2	%		1,182,471		12.0	%
Total		6,637		100.0	%	$	7,170,318		100.0	%		4,921		100.0	%	$	4,027,687		100.0	%	$	9,829,344		100.0	%

⁽¹⁾  Annualized straight-line rent amount is based on the minimum rental payments required per the leases in place as of December 31, 2014, and includes the amortization of any above-/below-markiet lease values and leasehold improvements recorded.

⁽²⁾  Includes berries and other fruits, such as strawberries, raspberries and melons, and vegetables, such as cabbage, carrots, celery, cucumbers, lettuce, mint, onions, peas, peppers, potatoes, radicchio, spinach and tomatoes.

⁽³⁾ Includes beans, corn, grass and wheat.

⁽⁴⁾ Includes blueberries, avocados and lemons.

⁽⁵⁾  Consists primarily of rental revenue from: (i) farm-related facilities, such as coolers, packinghouses, distribution centers, residential houses for tenant farmers and other minor farm-related buildings; (ii) a surface area lease with an oil company on a small parcel of one of our properties; and (iii) unused areas on certain of our farms.

The acquisition of 21 farms since our IPO has also allowed us to further diversify our portfolio geographically. The following table summarizes the different geographic locations of our properties with leases in place as of and for the years ended December 31, 2014 and 2013:

	As of and For the Year Ended December 31, 2014										As of and For the Year Ended December 31, 2013										Annualized Straight- line Rental Income as of December 31, 2014(1)
State	Total Acres		% of Total Acres			Rental Revenue		% of Total Rental Revenue			Total Acres		% of Total Acres			Rental Revenue		% of Total Rental Revenue			Total Rental Revenue		% of Total Rental Revenue
California		2,391		29.7	%	$	4,778,579		66.6	%		1,454		24.2	%	$	3,362,020		83.5	%	$	6,595,752		67.1	%
Florida		1,304		16.2	%		759,398		10.6	%		402		6.7	%		454,135		11.3	%		1,498,147		15.3	%
Oregon		2,313		28.8	%		1,080,105		15.1	%		2,113		35.2	%		123,138		3.0	%		1,161,187		11.8	%
Arizona		1,761		21.9	%		299,785		4.2	%		1,761		29.4	%		3,715		0.1	%		327,544		3.3	%
Michigan		270		3.4	%		252,451		3.5	%		270		4.5	%		84,679		2.1	%		246,714		2.5	%
		8,039		100.0	%	$	7,170,318		100.0	%		6,000		100.0	%	$	4,027,687		100.0	%	$	9,829,344		100.0	%

⁽¹⁾ Annualized straight-line rent amount is based on the minimum rental payments required per the leases in place as of December 31, 2014, and includes the amortization of any above-/below-markiet lease values and leasehold improvements recorded.

Our Adviser and Administrator

Advisory and Administration Agreements

Since 2004, we have been externally managed pursuant to a contractual investment advisory arrangement with our Adviser, under which our Adviser has directly employed certain of our personnel and paid their payroll, benefits and general expenses directly. Prior to January 1, 2010, the advisory agreement also covered the administrative services we received from our Administrator, which, until January 1, 2010, was a wholly-owned subsidiary of our Adviser. Since January 1, 2010, our Administrator has provided administrative services to us pursuant to a separate administration agreement with our Administrator. Upon the closing of our IPO, on January 31, 2013, we entered into amended and restated versions of each of the advisory and administration agreements.

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Prior Advisory and Administration Agreements

Prior Advisory Agreement

Under the terms of our advisory agreement in effect until January 31, 2013 (the “Prior Advisory Agreement”), we were required to reimburse our Adviser for our pro-rata share of our Adviser’s payroll and benefits expenses on an employee-by-employee basis, based on the percentage of each employee’s time devoted to our matters in relation to the time such employees devoted to all of our affiliated funds advised by the Adviser.

Pursuant to the Prior Advisory Agreement, we were also required to reimburse our Adviser for our pro-rata portion of all other expenses of our Adviser not reimbursed under the arrangements described above, which we refer to as overhead expenses, equal to the total overhead expenses of our Adviser multiplied by the ratio of hours worked by our Adviser’s (and until January 1, 2010, our Administrator’s) employees on our projects to the total hours worked by our Adviser’s (and until January 1, 2010, our Administrator’s) employees. However, we were only required to reimburse our Adviser for our portion of its overhead expenses if the amount of payroll and benefits we reimbursed to our Adviser was less than 2.0% of our average invested assets for the year. Additionally, we were only required to reimburse our Adviser for overhead expenses up to the point that reimbursed overhead expenses and payroll and benefits expenses, on a combined basis, equaled 2.0% of our average invested assets for the year. Our Adviser was required to reimburse us annually for the amount by which amounts billed to and paid by us exceed this 2.0% limit during a given year. These amounts never exceeded the 2.0% limit, and, therefore, we never received or qualified for any such reimbursement.

Prior Administration Agreement

Under the terms of our administration agreement in effect until January 31, 2013 (the “Prior Administration Agreement”), we were required to reimburse our Administrator for our pro-rata portion of its payroll and benefits expenses on an employee-by-employee basis, based on the percentage of each employee’s time devoted to our matters. We were also required to reimburse our Administrator for our pro-rata portion of its overhead expenses, equal to the total overhead expenses of our Administrator multiplied by the ratio of hours worked by our Administrator’s employees on our projects to the total hours worked by our Administrator’s employees.

Amended and Restated Advisory and Administration Agreements

Amended Advisory Agreement

Under the terms of our amended and restated advisory agreement that went into effect on February 1, 2013 (the “Amended Advisory Agreement”), we pay an annual base management fee equal to a percentage of our adjusted stockholders’ equity, which is defined as our total stockholders’ equity at the end of each quarter less the recorded value of any preferred stock we may issue and, for 2013 only, any uninvested cash proceeds from the IPO. For 2013, the base management fee was set at 1.0% of our adjusted stockholders’ equity; however, beginning January 1, 2014, we pay a base management fee equal to 2.0% of our adjusted stockholders’ equity, which no longer excludes uninvested cash proceeds from the IPO.

Pursuant to the Amended Advisory Agreement, we also pay an additional quarterly incentive fee based on our funds from operations (“FFO”). For purposes of calculating the incentive fee, our FFO before giving effect to any incentive fee (our “Pre-Incentive Fee FFO”) will include any realized capital gains or losses, less any distributions paid on any preferred stock we may issue, but will not include any unrealized capital gains or losses. The incentive fee will reward our Adviser if our Pre-Incentive Fee FFO for a particular calendar quarter exceeds a hurdle rate of 1.75%, or 7% annualized, of our total stockholders’ equity at the end of the quarter. We pay our Adviser an incentive fee with respect to our Pre-Incentive Fee FFO quarterly, as follows:

• no incentive fee in any calendar quarter in which our pre-incentive fee FFO does not exceed the hurdle rate of 1.75% (7% annualized);

• 100% of the amount of the pre-incentive fee FFO that exceeds the hurdle rate, but is less than 2.1875% in any calendar quarter (8.75% annualized); and

• 20% of the amount of our pre-incentive fee FFO that exceeds 2.1875% in any calendar quarter (8.75% annualized).

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Quarterly Incentive Fee Based on FFO

Pre-Incentive Fee FFO

(expressed as a percentage of total stockholders’ equity)

Percentage of pre-incentive fee FFO allocated to the incentive fee

Amended Administration Agreement

Under the terms of the amended and restated administration agreement that went into effect on February 1, 2013 (the “Amended Administration Agreement”), we pay for our allocable portion of the Administrator’s expenses incurred while performing services to us, including, but not limited to, rent and the salaries and benefits expenses of our Administrator’s employees, including our chief financial officer, treasurer, chief compliance officer, general counsel and secretary (who also serves as our Administrator’s president) and their respective staffs. From February 1, 2013, through June 30, 2014, our allocable portion of these expenses was generally derived by multiplying that portion of the Administrator’s expenses allocable to all funds serviced by the Administrator by the percentage of our total assets at the beginning of each quarter in comparison to the total assets of all funds managed by our Adviser.

As approved by our Board of Directors, effective July 1, 2014, our allocable portion of the Administrator’s expenses is now generally derived by multiplying our Administrator’s total expenses by the approximate percentage of time the Administrator’s employees perform services for us in relation to their time spent performing services for all companies serviced by our Administrator under similar contractual agreements. This change in methodology resulted in an increase in the fee we paid to our Administrator of approximately 137% for the six months ended December 31, 2014, as compared to the first six months of the fiscal year. Management believes that the new methodology of allocating the Administrator’s total expenses by approximate percentages of time services were performed more accurately approximates the fees incurred for the actual services performed. While this change in methodology resulted in an increase in the fee paid to our Administrator for the six months ended December 31, 2014, we are not currently able to determine whether the change in methodology will result in an increase or decrease for the upcoming fiscal year.

Emerging Growth Company

We are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act (the “JOBS Act”), and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. In particular, Section 107 of the JOBS Act provides that an emerging growth company may choose to take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards, meaning that the company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. Additionally, we are eligible to take advantage of certain other exemptions from various reporting requirements that are applicable to public companies that are not emerging growth companies, including, but not limited to, an exemption from the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002. We have elected to take advantage of this extended transition period, and, as a result, we will comply with new or revised accounting standards on the dates on which adoption of such standards is required for private companies for as long as we maintain our emerging company status. Accordingly, the accounting standards that we apply while we remain an emerging growth company may differ materially from the accounting standards applied by other similar public companies, including emerging growth companies that have not elected to opt into this extended transition period. This election could have a material impact on our financial statements and the comparability of our financial statements to the financial statements of similar public companies.

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Critical Accounting Policies

The preparation of our financial statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”) requires management to make judgments that are subjective in nature to make certain estimates and assumptions. Application of these accounting policies involves the exercise of judgment regarding the use of assumptions as to future uncertainties, and, as a result, actual results could materially differ from these estimates. A summary of our critical accounting policies is below. We consider these policies to be critical because they involve estimates and assumptions that require complex, subjective or significant judgments in their application and that materially affect our results of operations.

Purchase Price Allocation

When we acquire real estate, we allocate the purchase price to: (i) the tangible assets acquired and liabilities assumed, consisting of land, buildings, tenant improvements, horticulture and long-term debt, and (ii) if the acquisition is a business combination, the identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, in-place leases, unamortized lease origination costs, tenant relationships and capital lease obligations, based, in each case, on their fair values.

Certain of our acquisitions involve sale-leaseback transactions with newly-originated leases, which we account for as asset acquisitions under ASC 360, “Property, Plant and Equipment.” Other of our acquisitions involve the acquisition of farmland that is already being operated as rental property and has a lease in place that we assume at the time of acquisition, which we will generally consider to be a business combination under ASC 805, “Business Combinations.” In the case of an asset acquisition, we will capitalize the transaction costs incurred in connection with the acquisition, whereas in the case of a business combination, we will expense these transaction costs as incurred. When we account for an acquisition as a business combination, we may also record above-market and below-market in-place lease values based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between the contractual amounts to be paid pursuant to the in-place leases and management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining, non-cancelable term of the lease. When present, we will amortize the capitalized above-market lease values, included in Other assets on the accompanying Consolidated Balance Sheets, as a reduction of rental income over the remaining, non-cancelable terms of the respective leases, and we will amortize the capitalized below-market lease values, included in Other liabilities on the accompanying Consolidated Balance Sheets, as an increase to rental income over the remaining, non-cancelable terms of the respective leases. Since the majority of our transactions include either sale-leaseback transactions with newly-originated leases at market rates or the assumption of short-term leases upon acquisition, we do not expect that the above-market and below-market in-place lease values will be significant for the majority of our transactions.

We will measure the aggregate value of other intangible assets acquired based on the difference between the property valued with existing in-place leases adjusted to market rental rates and the property valued as if vacant. Our Adviser will estimate values using methods similar to those used by independent appraisers, such as a sales comparison approach, a cost approach and either an income capitalization approach or discounted cash flow analysis. Factors to be considered by management in its analysis will include an estimate of carrying costs during hypothetical, expected lease-up periods, considering current market conditions and costs to execute similar leases. Our Adviser will also consider information obtained about each property as a result of our pre-acquisition due diligence and marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired. In estimating carrying costs, management will also include lost reimbursement of real estate taxes, insurance and other operating expenses, as well as estimates of lost rental income at market rates during the hypothetical, expected lease-up periods, which we expect will typically range from 1 to 24 months, depending on specific local market conditions.

Our Adviser will also estimate costs to execute similar leases, including leasing commissions, legal and other related expenses, to the extent such costs are not already incurred in connection with a new lease origination as part of the transaction. The total amount of other intangible assets acquired will be further allocated to in-place lease values and customer relationship intangible values based on our Adviser’s evaluation of the specific characteristics of each tenant’s lease and our overall relationship with that respective tenant. Characteristics to be considered by our Adviser in allocating these values include the nature and extent of our existing business relationship with the tenant, prospects for developing additional business with the tenant, the tenant’s credit quality and management’s expectations of lease renewals, including those existing under the terms of the current lease agreement, among other factors. We will amortize the value of in-place leases to expense over the initial term of the respective leases, including that of any fixed-price or below-market renewal options. We

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primarily expect the initial terms of our leases to range from 3 to 10 years for properties growing row crops, with longer terms for properties growing long-term plants such as trees, bushes and vines. The value of customer relationship intangibles will be amortized to expense over the initial term and any renewal periods in the respective leases. Should a tenant terminate its lease, the unamortized portion of the in-place lease value and customer relationship intangibles would be charged to expense.

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Results of Operations

Comparison of the Fiscal Year Ended December 31, 2014, to the Fiscal Year Ended December 31, 2013

	For the Years Ended December 31,
	2014			2013			$ Change			% Change
Operating revenues:
Rental revenues	$	7,170,318		$	4,027,687		$	3,142,631			78.0	%
Tenant recovery revenue		14,604			10,451			4,153			39.7	%
Total operating revenues		7,184,922			4,038,138			3,146,784			77.9	%
Operating expenses:
Depreciation and amortization		1,735,644			722,455			1,013,189			140.2	%
Management fee		1,079,534			195,609			883,925			451.9	%
Incentive fee, net of credits		—			—			—			N/A
Administration fee		442,584			194,464			248,120			127.6	%
Professional fees		595,163			615,879			(20,716	)		-3.4	%
Acquisition-related expenses		520,352			153,725			366,627			238.5	%
Property operating expense		434,514			119,463			315,051			263.7	%
General and administrative		777,159			679,090			98,069			14.4	%
Total operating expenses, net of credits to fees		5,584,950			2,680,685			2,904,265			108.3	%
Operating income		1,599,972			1,357,453			242,519			17.9	%
Other income (expense)
Interest and other income		47,520			56,234			(8,714	)		-15.5	%
Interest expense		(2,009,086	)		(1,118,640	)		(890,446	)		-79.6	%
Property and casualty recovery, net		262,963			—			262,963			N/A
Total other expense		(1,698,603	)		(1,062,406	)		(636,197	)		-59.9	%
Net (loss) income before income taxes		(98,631	)		295,047			(393,678	)		-133.4	%
Income tax provision		(26,502	)		(1,519,730	)		1,493,228			98.3	%
Net loss	$	(125,133	)	$	(1,224,683	)	$	1,099,550			89.8	%

N/A = Not Applicable

Operating Revenues

Rental revenues increased for the year ended December 31, 2014, as compared to the prior year, primarily as a result of the rental income attributable to 11 additional farms that we acquired since December 31, 2013. For the year ended December 31, 2014, we recorded additional rental income of approximately $1,027,000, as a result of the farms we acquired since December 31, 2013, and approximately $2,116,000 on farms held as of December 31, 2013, primarily as a result of a significant number of 2013 acquisitions occurring during the last quarter of the year, as well as our ability to renew existing leases at higher rates and earning additional revenue on capital improvements constructed on certain properties. On a same-property basis, which only includes properties owned for the entirety of both periods presented, rental income increased by approximately $284,000, or 7.6%, for the year ended December 31, 2014, due to renewals of existing leases or new leases being put in place at higher rental rates.

Tenant recovery revenue represents real estate taxes and insurance premiums paid on certain of our properties that, per the lease, are required to be reimbursed by the tenant. The increase during the year ended December 31, 2014, was due to additional premiums we paid for certain insurance policies on one of our properties in accordance with the lease. A corresponding amount was also recorded as property operating expenses during each period.

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Operating Expenses

Depreciation and amortization expenses increased for the year ended December 31, 2014, as compared to the prior year, as a result of the additional farms we acquired, as mentioned above, and additional site improvements made on existing properties since December 31, 2013. For the year ended December 31, 2014, we recorded additional depreciation and amortization expense of approximately $499,000 as a result of the 11 farms we acquired since December 31, 2013, and approximately $514,000 on farms held as of December 31, 2013, primarily as a result of a significant number of 2013 acquisitions occurring during the last quarter of the year, as well as capital improvements made on certain of those properties. On a same-property portfolio basis, depreciation and amortization expense decreased by approximately $800, or 0.1%, for the year ended December 31, 2014.

The management fee paid to our Adviser increased for the year ended December 31, 2014, as compared to the prior year, primarily as a result of change in the calculation for 2014, as stipulated in the Amended Advisory Agreement. Per the agreement, for 2013, the base management fee was set at 1.0% of our adjusted stockholders’ equity, which was reduced by any uninvested cash proceeds from the IPO. For 2014, the base management fee is calculated at 2.0% of our adjusted stockholders’ equity, inclusive of any uninvested cash proceeds from the IPO.

For the month of January 2013, the management fee consisted of the reimbursement of expenses, including direct allocation of employee salaries and benefits, as well as general overhead expense, to our Adviser in accordance with the terms of the Prior Advisory Agreement. Beginning February 1, 2013, the management fee was calculated pursuant to the terms of the Amended Advisory Agreement. For the year ended December 31, 2013, our management advisory fee under the Prior Advisory Agreement, which was terminated on January 31, 2013, was $46,206, while the base management fee under the Amended Advisory Agreement, which became effective on February 1, 2013, was $149,403 for the year ended December 31, 2013. The calculation of the management fees is described in further detail above, under “Our Adviser and Administrator.”

The administration fee paid to our Administrator increased for the year ended December 31, 2014, as compared to the prior year, primarily due to an increase in the amount of time spent by employees of our Administrator on matters related to us, as well as an increase in the ratio of our total assets in relation to the total assets of other affiliated funds managed by our Adviser. Beginning July 1, 2014, the allocation of the administration fee was revised such that the fee is now based upon the percentage of time employees of the Administrator spend on our matters in relation to other companies serviced by our Administrator, versus the old methodology whereby the fee was allocated based upon our total assets in relation to other companies managed by our Adviser.

For the month of January 2013, the administration fee consisted of the reimbursement of expenses, including direct allocation of employee salaries and benefits, as well as general overhead expense, to our Administrator in accordance with the terms of the Prior Administration Agreement. Beginning February 1, 2013, the administration fee was calculated pursuant to the terms of the Amended Administration Agreement. For the year ended December 31, 2013, our administration fee under the Prior Administration Agreement, which was terminated on January 31, 2013, was $18,532, while the administration fee under the Amended Administration Agreement, which became effective on February 1, 2013, was $175,932 for the year ended December 31, 2013. The administration fee is described in further detail above, under “Our Adviser and Administrator.”

Professional fees, consisting primarily of legal and accounting fees, decreased for the year ended December 31, 2014, as compared to the prior year, primarily as a result of additional fees incurred during the year ended December 31, 2013, for tax research and other preparatory work related to our REIT conversion.

Acquisition-related expenses generally consist of legal fees and fees incurred for third-party reports prepared in connection with potential acquisitions and the related due diligence analyses. Acquisition-related expenses increased for the year ended December 31, 2014, as compared to the prior year, primarily as a result of acquiring more properties during the year ended December 31, 2014, as compared to the prior year, and how such acquisitions were classified for accounting purposes. In connection with the 11 farms acquired during the year ended December 31, 2014, we incurred $601,559 of aggregate acquisition-related costs. Of this amount, during the year ended December 31, 2014, $447,596 was expensed as incurred, while $153,963 was capitalized and allocated among the assets acquired during the period. In connection with the nine farms

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acquired during the year ended December 31, 2013, we incurred $520,417 of aggregate acquisition-related costs. Of this amount, during the year ended December 31, 2013, $42,936 was expensed as incurred, while $477,481 was capitalized and allocated among the assets acquired during the period. In general, we incurred more acquisition-related expenses during 2014 than we incurred during 2013 due to a larger pipeline of investments, in part because we curtailed our acquisition activity leading up to our IPO in January 2013 to focus on completing the IPO process, stalling our investment activity in the months following the IPO.

Property operating expenses consist primarily of real estate taxes, franchise taxes, insurance expense and other overhead expenses paid for certain of our properties. Property operating expenses increased for the year ended December 31, 2014, as compared to the prior year, primarily due to additional property taxes incurred related to certain properties acquired during the last 12 months, as well as repairs and maintenance performed on certain of our properties. For the year ended December 31, 2014, the amount of property taxes we expensed was approximately $181,000 more than that of the prior year. Further, as a result of the fire that damaged a portion of the cooler on West Gonzales, approximately $90,000 of the total cost of the repairs was expensed as repairs and maintenance. In addition, during the year ended December 31, 2014, we also incurred additional expenses related to maintenance performed on wells on one of our properties.

General and administrative expenses increased for the year ended December 31, 2014, as compared to the prior year, primarily as a result of increases in stockholder-related expenses related to our first annual shareholders meeting and overhead insurance premiums due to our status as a public company for the full period during the year ended December 31, 2014.

Other Income (Expense)

Interest and other income decreased for the year ended December 31, 2014, as compared to the prior year, primarily due to the interest earned on the net proceeds from our IPO during 2013, a portion of which was invested in short-term U.S. Treasuries during the year ended December 31, 2013. These U.S. Treasuries matured on June 27, 2013. Other income during the year ended December 31, 2014, related primarily to federal and state income tax refunds from prior years that were received during the year.

Interest expense increased for the year ended December 31, 2014, as compared to the prior year, primarily due to increased overall borrowings. The weighted-average balance of our aggregate borrowings for the year ended December 31, 2014, was $53.9 million, as compared to $30.1 million for the prior year. The overall effective interest rate charged on our aggregate borrowings, excluding the impact of deferred financing costs and before any interest repatriation, was 3.6% for both years ended December 31, 2014 and 2013.

The property and casualty recovery we incurred during the year ended December 31, 2014, related to two separate fires in April 2014 that partially damaged structures on two separate properties. We estimated the aggregate carrying value of the portions of the structures damaged by the fires to be approximately $233,000, and we recognized the write-down in the carrying value of the assets as a property and casualty loss. However, during the year ended December 31, 2014, aggregate insurance reimbursement proceeds of approximately $496,000 were received by us and recorded as an offset to the previously-recorded property and casualty loss, resulting in a net property and casualty recovery. We expect to recover at least an additional $36,000 from the insurer, which amount will be recorded as an additional property and casualty recovery upon receipt.

Income Tax Provision

Net (loss) income before income taxes decreased for the year ended December 31, 2014, as compared to the prior year, as a result of the reasons discussed above. In addition, both our income tax provision and our effective tax rate decreased for the year ended December 31, 2014, when compared to the prior year. During the year ended December 31, 2014, we filed our 2013 federal income tax return, on which we elected to be taxed as a REIT for federal income tax purposes beginning with our tax year ended December 31, 2013. As such, the impact of this conversion has been reflected in the accompanying Consolidated Financial Statements beginning with the year ended December 31, 2013. This impact included recognizing $2.1 million of income taxes that became due upon our REIT conversion. Partially offsetting this amount was the reversal of $743,676 of deferred tax liabilities and the recognition of this amount against the income tax provision as a benefit of REIT conversion. While we were able to reverse the portion of our income tax provision that related to federal income taxes, as well as certain state taxes, certain other state tax amounts due to California continued to be owed through 2014. We made the

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last of these state tax payments to California during the three months ended December 31, 2014. As long as we maintain our qualification as a REIT, we do not expect to incur any federal or state income taxes beyond 2014. For additional information, see Note 2, “Summary of Significant Accounting Policies — Income Taxes.”

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Comparison of the Fiscal Year Ended December 31, 2013, to the Fiscal Year Ended December 31, 2012

	For the Years Ended December 31,
	2013			2012			$ Change			% Change
Operating revenues:
Rental revenues	$	4,027,687		$	3,390,594		$	637,093			18.8	%
Tenant recovery revenue		10,451			—			10,451			N/A
Total operating revenues		4,038,138			3,390,594			647,544			19.1	%
Operating expenses:
Depreciation and amortization		722,455			474,480			247,975			52.3	%
Management fee		195,609			267,280			(71,671	)		-26.8	%
Incentive fee, net of credits		—			—			—			N/A
Administration fee		194,464			180,398			14,066			7.8	%
Professional fees		615,879			245,414			370,465			151.0	%
Acquisition-related expenses		153,725			153,494			231			0.2	%
Property operating expense		119,463			117,569			1,894			1.6	%
General and administrative		679,090			50,344			628,746			1248.9	%
Total operating expenses,net of credits to fees		2,680,685			1,488,979			1,191,706			80.0	%
Operating income		1,357,453			1,901,615			(544,162	)		-28.6	%
Other income (expense)
Interest and other income		56,234			6,063			50,171			827.5	%
Interest expense		(1,118,640	)		(1,006,986	)		(111,654	)		-11.1	%
Total other expense		(1,062,406	)		(1,000,923	)		(61,483	)		-6.1	%
Net income before income taxes		295,047			900,692			(605,645	)		-67.2	%
Income tax provision		(1,519,730	)		(300,319	)		(1,219,411	)		-406.0	%
Net (loss) income	$	(1,224,683	)	$	600,373		$	(1,825,056	)		-304.0	%

Operating Revenues

Rental revenues increased for the year ended December 31, 2013, as compared to the prior-year period, primarily as a result of the rental income attributable to 13 additional farms acquired since August 2012. For the year ended December 31, 2013, we recorded approximately $305,000 of additional rental income as a result of the nine farms acquired during 2013, and $332,000 of additional rental income was recorded relating to farms held as of December 31, 2012, either as a result of renewing the leases at higher rates or from holding the properties for a full 12 months during the year ended December 31, 2013.

Operating Expenses

Depreciation and amortization expenses increased for the year ended December 31, 2013, as compared to the prior-year period, as a result of the additional farms acquired, as mentioned above, and additional site improvements made on existing properties during 2013. For the year ended December 31, 2013, we recorded approximately $84,000 of additional depreciation and amortization expense as a result of the nine farms acquired during 2013, and $164,000 of additional depreciation and amortization expense was recorded relating to properties held as of December 31, 2012, either as a result of additional site improvements made on those properties or from holding the properties for a full 12 months during the year ended December 31, 2013.

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The management fee decreased for the year ended December 31, 2013, as compared to the prior-year period, primarily as a result of efforts expended by our Adviser’s employees during 2012 in connection with the preparation and filing of a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) for our IPO in January 2013, as well as due to the Amended Advisory Agreement with our Adviser that went into effect on February 1, 2013.

For the year ended December 31, 2012, and for the month of January 2013, the management fee consisted of the reimbursement of expenses, including direct allocation of employee salaries and benefits, as well as general overhead expense, to our Adviser in accordance with the terms of the Prior Advisory Agreement. For the period from February 1, 2013, through December 31, 2013, the management fee was calculated pursuant to the terms of the Amended Advisory Agreement. For the year ended December 31, 2013, our management advisory fee under the Prior Advisory Agreement, which was terminated on January 31, 2013, was $46,206, while the base management fee under the Amended Advisory Agreement, which became effective on February 1, 2013, was $149,403. The calculation of the management fees is described in further detail above, under “—Our Adviser and Administrator.”

The administration fee increased for the year ended December 31, 2013, as compared to the prior-year period, due to the increased number of hours our Administrator’s employees spent on our matters, which were higher during the month of January 2013 as a result of efforts expended in connection with the preparation and filing of the registration statement with the SEC for our IPO. This increase was partially offset as a result of the new agreement with our Administrator, which agreement allocates expenses based on the ratio of our total assets in relation to the total assets of other affiliated funds managed by our Adviser.

For the year ended December 31, 2012, and for the month of January 2013, the administration fee consisted of the reimbursement of expenses, including direct allocation of employee salaries and benefits, as well as general overhead expense, to our Administrator in accordance with the terms of the Prior Administration Agreement. For the period from February 1, 2013, through December 31, 2013, the administration fee was calculated pursuant to the terms of the Amended Administration Agreement. For the year ended December 31, 2013, our administration fee under the Prior Administration Agreement, which was terminated on January 31, 2013, was $18,532, while the administration fee under the Amended Administration Agreement, which became effective on February 1, 2013, was $175,932. The administration fee is described in further detail above, under “—Our Adviser and Administrator.”

Professional fees, consisting primarily of legal and accounting fees, increased for the year ended December 31, 2013, as compared to the prior-year period, primarily as a result of additional legal and accounting costs associated with the quarterly reporting requirements of being a public company. Additional fees were also incurred during the year ended December 31, 2013, for tax research and preparatory work related to the steps necessary to qualify as a REIT.

Acquisition-related expenses generally consist of legal fees and fees incurred for third-party reports prepared in connection with potential acquisitions and the related due diligence analyses. While acquisition-related expenses remained flat for the year ended December 31, 2013, as compared to the prior-year period, the 2013 expense does not include approximately $468,000 of acquisition-related expenses that were capitalized during 2013 as part of the purchase price of certain properties that were accounted for as asset acquisitions, as opposed to business combinations.

Property operating expenses consist primarily of real estate taxes, franchise taxes, insurance expense and other overhead expenses paid for certain of our properties. Property operating expenses remained relatively flat for the year ended December 31, 2013, as compared to the prior-year period. While we incurred miscellaneous filing fees during the year ended December 31, 2013, in connection with additional farm acquisitions during the year, these expenses were largely offset by additional real estate taxes on certain of our properties and limited liability company fees to the State of California incurred during the prior-year period.

General and administrative expenses increased for the year ended December 31, 2013, as compared to the prior-year period, primarily due to increases in stockholder-related expenses and overhead insurance premiums related to becoming a public company in January 2013, as well as the payment of directors’ fees, which were not incurred during 2012 as a private company.

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Other Income (Expense)

Interest and other income increased for the year ended December 31, 2013, as compared to the respective prior-year periods, primarily due to the interest earned on the net proceeds from our IPO, a portion of which was invested in short-term U.S. Treasuries during the year ended December 31, 2013. These U.S. Treasuries matured on June 27, 2013.

Interest expense increased for the year ended December 31, 2013, as compared to the prior-year period, primarily due to increased borrowings under our mortgage note payable with Metropolitan Life Insurance Company (“MetLife”). The weighted-average balance of our aggregate borrowings for the year ended December 31, 2013, was $30.1 million, as compared to $25.9 million for the prior-year period. The overall, effective interest rate charged on our aggregate borrowings, excluding the impact of deferred financing costs, was 3.6% for the year ended December 31, 2013, as compared to 3.7% for the prior-year period.

Income Tax Provision

While net income before income taxes decreased for the year ended December 31, 2013, as compared to the prior-year period, due to the reasons discussed above, both our income tax provision and our effective tax rate increased for the year ended December 31, 2013, when compared to the prior-year period. As of December 31, 2013, we believe we have completed all significant actions necessary to qualify as and convert to a REIT; therefore, the impact of this conversion has been reflected in the accompanying Consolidated Financial Statements as of and for the year ended December 31, 2013. This impact included recognizing $2.1 million of income taxes on a deferred intercompany gain related to land transfers in prior years that will be triggered and become due upon our REIT conversion. Partially offsetting this amount was the reversal of the $743,676 Deferred tax liability reflected on the Consolidated Balance Sheet as of December 31, 2012, and the recognition of this amount against the income tax provision as a benefit of REIT conversion. In addition, while we were able to reverse the portion of our income tax provision that related to federal income taxes, as well as certain state taxes, certain other state tax amounts are still owed, primarily to California as a result of the deferred intercompany gain mentioned above. For additional information, see Note 2, “Summary of Significant Accounting Policies — Income Taxes.

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LIQUIDITY AND CAPITAL RESOURCES

Overview and Future Capital Needs

Since our IPO in January 2013, we have invested $123.5 million into 21 new farms, and an additional $3.9 million has been expended or accrued for capital improvements on existing properties. All of the proceeds received in connection with our IPO and our Follow-on Offering have been expended, with the majority being invested into new property acquisitions. A significant portion of the proceeds from the IPO and Follow-on Offering was also used to pay distributions to our stockholders, to repay existing indebtedness, for improvements on existing properties and for other general corporate purposes. Our current available liquidity is approximately $10.3 million, consisting of $3.0 million in cash and, based on the current level of collateral pledged, $7.3 million of availability under the New MetLife Credit Facility, subject to compliance with covenants. We also currently have properties appraised at an aggregate value of approximately $5.8 million that have yet to be pledged under any facility.

We intend to use our available liquidity to purchase additional farms and farm-related properties, as well as for other general corporate purposes. Currently, our maximum buying power, assuming all properties were pledged to a borrowing facility, is

approximately $29.5 million. We are actively seeking and evaluating acquisitions of additional farm properties that satisfy our investment criteria, and our pipeline of potential acquisitions remains healthy. We have many properties that are in various stages of our due diligence process; however, all potential acquisitions will be subject to our due diligence investigation of such properties, and there can be no assurance that we will be successful in identifying or acquiring any properties in the future.

Our short- and long-term liquidity requirements consist primarily of funding farmland acquisitions and other investments consistent with our investment strategy, as well as making principal and interest payments on outstanding borrowings. Further short-term liquidity needs include making distributions to maintain our qualification as a REIT and funding our operations. Our current sources of funds are primarily operating cash flows and borrowings, including the undrawn commitments available under the New MetLife Credit Facility and the Farmer Mac Facility. We believe that these cash resources will be sufficient to fund our distributions to stockholders, service our debt and fund our current operating costs in the near term. We expect to meet our long-term liquidity requirements through various sources of capital, including future equity issuances (including OP Units through our Operating Partnership as consideration for future acquisitions), long-term mortgage indebtedness and other secured and unsecured borrowings.

As of December 31, 2014, our total-debt-to-total-capitalization ratio, at book value, was 59.0%, which is up from 47.1% as of December 31, 2013. We are currently exploring other options available to provide us with additional capital, including negotiations with several other lenders. In addition, we currently have the ability to raise up to $285.0 million of additional equity capital through the sale and issuance of securities that are registered under our universal registration statement on Form S-3 (File No. 333-194539) in one or more future offerings. However, because the current market value of our common stock held by non-affiliates is less than $75.0 million, we are currently limited in the amount of securities we may sell on Form S-3 to an aggregate market value of securities of no more than one-third of the aggregate market value of common stock held by non-affiliates of ours in any 12-month period. With the aforementioned calculation, our current availability under our Form S-3 is approximately $3.3 million, but is subject to change based on the market value of our common stock and the percentage of common stock held by affiliates of ours. In addition, we filed a registration statement on Form S-11 (File No. 333-199896) with the SEC on November 5, 2014, which the SEC has not yet declared effective. Once effective, this registration statement will permit us to issue up to $35.0 million of common stock. Regardless of the status of these aforementioned registration statements, there is no guaranty that we will be able to obtain additional capital financing on terms favorable to us, if at all.

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The following table summarizes total cash flows for operating, investing and financing activities for the years ended December 31, 2014 and 2013:

	2014			2013			Change ($)			Change (%)
Net cash provided by (used in) operating activities	$	3,543,622		$	(460,353	)	$	4,003,975			869.8	%
Net cash used in investing activities		(71,334,240	)		(38,728,605	)		(32,605,635	)		-84.2	%
Net cash provided by financing activities		54,138,678			54,586,766			(448,088	)		-0.8	%
Change in Cash and Cash Equivalents	$	(13,651,940	)	$	15,397,808		$	(29,049,748	)		-188.7	%

Operating Activities

The majority of cash from operating activities is generated from the rental payments we receive from our tenants, which is utilized to fund our property-level operating expenses, with any excess cash being primarily used for principal and interest payments on our borrowings, management fees to our Adviser, administrative fees to our Administrator and other corporate-level expenses. The increase in cash provided by operating activities during the year ended December 31, 2014, as compared to the prior year, was primarily a result of a $2.1 million tax prepayment that was paid to the Internal Revenue Service in the form of a cash bond during 2013 in anticipation of taxes that became due upon our election to be taxed as a REIT. In addition, the amount of prepaid rents we received during the year ended December 31, 2014, increased by approximately $1.5 million when compared to the prior year, primarily as a result of our 2014 property acquisitions.

Investing Activities

The increase in cash used in investing activities during the year ended December 31, 2014, as compared to the prior year, was primarily due to the acquisition of additional farms and capital improvements made on existing farms during the year ended December 31, 2014, which exceeded that of the prior year by approximately $32.6 million.

Financing Activities

The decrease in cash provided by financing activities during the year ended December 31, 2014, as compared to the prior year, was primarily due to the net proceeds we received in the prior year from our IPO in January 2013, largely offset by an increase in our net borrowings during the year ended December 31, 2014, and the net proceeds we received in connection with our Follow-on Offering in September and October of 2014.

Borrowings

New MetLife Credit Facility

On May 9, 2014, we closed on a new facility with MetLife that consists of a $100.0 million long-term note payable that is scheduled to mature on January 5, 2029, and a $25.0 million revolving equity line of credit that is scheduled to mature on April 5, 2024. Initial advances under the New MetLife Note Payable bear interest at a fixed rate of 3.50% per annum, plus an unused line fee of 0.20% on undrawn amounts, and interest rates for subsequent disbursements are based on prevailing market rates at the time of such disbursements. The interest rates on the initial advance and any subsequent disbursements will be subject to adjustment every three years. Currently, there is approximately $66.3 million outstanding under the New MetLife Note Payable that bears interest at a blended rate of 3.61% per annum. Advances under the New MetLife Line of Credit initially bear interest at a variable rate equal to the three-month LIBOR plus a spread of 2.50%, with a minimum annualized rate of 2.75%, plus an unused fee of 0.20% on undrawn amounts. The interest rate spread on borrowings under the New MetLife Line of Credit will be subject to adjustment in April 2017. Currently, there is $12.0 million outstanding under the New MetLife Line of Credit that bears interest at a rate of 2.76% per annum. While $46.7 million of the full commitment amount remains undrawn, based on the current level of collateral pledged, we currently have approximately $7.3 million of availability under the New MetLife Credit Facility.

Farm Credit Notes Payable

On September 19, 2014, we closed on two loans from Farm Credit of Central Florida, FLCA (“Farm Credit”), in the aggregate amount of approximately $4.2 million. In addition, on September 29, 2014, we obtained an additional loan for

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approximately $8.3 million. The Farm Credit Notes Payable are scheduled to mature on August 1, 2034, and will bear interest (before interest repatriation) at a blended fixed rate of 3.53% per annum through July 31, 2017; thereafter, the interest rate will be equal to the one-month LIBOR, plus 2.875%. Currently, there is approximately $12.3 million outstanding on the Farm Credit Notes Payable that bears interest (before interest repatriation) at a blended rate of 3.53%.

Farmer Mac Facility

On December 5, 2014, we entered into an agreement with Farmer Mac that provides for bond issuances up to an aggregate amount of $75.0 million. The interest rate for each bond issuance is based on prevailing market rates at the time of such issuances. On December 11, 2014, we completed an initial issuance under the Farmer Mac Facility, for which we received proceeds of approximately $3.7 million. On January 5, 2015, we issued an additional bond under the Farmer Mac Facility, for which we received proceeds of approximately $10.2 million. These issuances are scheduled to mature on December 11, 2019, and January 5, 2020, respectively. Each of these issuances, which are both non-amortizing over their respective five-year terms, will bear interest at a fixed rate of 3.25% per annum throughout their terms. Currently, there is approximately $13.9 million outstanding under the Farmer Mac Facility that bears interest at 3.25%. While $61.1 million of the full commitment balance remains undrawn, based on the current level of collateral pledged, we currently have no availability under the Farmer Mac Facility.

Contractual Obligations and Off-Balance Sheet Arrangements

Contractual Obligations

The following table presents a summary of our material contractual obligations as of December 31, 2014:

			Payments Due During the Fiscal Years Ending December 31,
Contractual Obligations	Total		2015		2016 – 2017		2018 – 2019		2020+
Debt obligations(1)	$	86,417,361	$	625,680	$	5,813,343	$	9,174,593	$	70,803,745
Interest on debt obligations(2)		34,426,318		2,889,364		6,062,831		5,557,176		19,916,947
Operating obligations(3)		2,941,187		2,941,187		—		—		—
Total	$	123,784,866	$	6,456,231	$	11,876,174	$	14,731,769	$	90,720,692

⁽¹⁾  Debt obligations represent all borrowings outstanding as of December 31, 2014. Maturity dates of these borrowings range from December 2019 to August 2034.

⁽²⁾  Interest on debt obligations includes estimated interest on our borrowings under our New MetLife Line of Credit. The balance and interest rate on our New MetLife Line of Credit are variable, thus the amount of interest calculated for purposes of this table was based upon the balance and interest rate as of December 31, 2014.

⁽³⁾  Operating obligations represent commitments outstanding as of December 31, 2014, including $2,484,228 related to capital improvements on certain of our properties and $456,959 of property taxes that will be owed by us on certain of our properties due to the structure of the respective leases on those properties. Estimates for property taxes owed by us beyond 2015 are not readily determinable; however, due to changes in the lease structures on certain of our properties, on a same-property basis, we expect the amount of property taxes to be owed by us in 2016 to be approximately $100,000 less than that of 2015.

Off-Balance Sheet Arrangements

We did not have any off-balance sheet arrangements as of December 31, 2014.

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NET ASSET VALUE

The following table provides certain summary information about our 32 farm properties held as of December 31, 2014.

Property Name	Location	Date Acquired	No. of Farms		Total Acres		Farmable Acres		Net Cost Basis(1)		Prior Fair Value(2)		Current Fair Value
San Andreas	Watsonville, CA	6/16/1997		1		307		238	$	4,826,248	$	10,700,000	$	11,344,000	(4)
West Gonzales	Oxnard, CA	9/15/1998		1		653		502		12,406,298		49,900,000		49,900,000	(5)
West Beach	Watsonville, CA	1/3/2011		3		196		195		8,979,337		9,150,000		9,980,000	(4)
Dalton Lane	Watsonville, CA	7/7/2011		1		72		70		2,700,026		2,959,000		2,959,000	(4)
Keysville Road	Plant City, FL	10/26/2011		2		59		50		1,232,260		1,498,000		1,498,000	(4)
Colding Loop	Wimauma, FL	8/9/2012		1		219		181		3,925,704		4,300,000		4,300,000	(5)
Trapnell Road	Plant City, FL	9/12/2012		3		124		110		4,106,218		4,806,500		4,806,500	(5)
38th Avenue	Covert, MI	4/5/2013		1		119		89		1,449,670		1,411,000		1,411,000	(4)
Sequoia Street	Brooks, OR	5/31/2013		1		218		206		3,521,564		3,135,000		3,135,000	(4)
Natividad Road	Salinas, CA	10/21/2013		1		166		166		7,398,003		7,607,000		7,607,000	(4)
20th Avenue	South Haven, MI	11/5/2013		3		151		94		1,884,981		1,985,000		2,080,000	(4)
Broadway Road	Moorpark, CA	12/16/2013		1		60		60		2,935,348		3,000,000		3,403,000	(4)
Oregon Trail	Echo, OR	12/27/2013		1		1,895		1,640		13,993,009		13,855,000		14,301,000	(4)
East Shelton	Willcox, AZ	12/27/2013		1		1,761		1,320		7,760,059		7,900,000		7,900,000	(5)
Collins Road	Clatskanie, OR	5/30/2014		2		200		157		2,532,950		2,591,333		2,591,333	(3)
Spring Valley	Watsonville, CA	6/13/2014		1		145		110		5,882,738		5,900,000		5,900,000	(3)
McIntosh Road	Dover, FL	6/20/2014		2		94		78		2,553,874		2,666,000		2,666,000	(3)
Naumann Road	Oxnard, CA	7/23/2014		1		68		64		6,859,860		6,888,500		6,888,500	(3)
Sycamore Road	Arvin, CA	7/25/2014		1		326		322		5,939,523		5,800,000		5,800,000	(3)
Wauchula Road	Duette, FL	9/29/2014		1		808		590		13,772,371		13,765,000		13,765,000	(3)
Santa Clara Avenue	Oxnard, CA	10/29/2014		2		333		331		24,497,797		—		24,592,000	(3)
Dufau Road	Oxnard, CA	11/4/2014		1		65		64		6,099,925		—		6,125,600	(3)
				32		8,039		6,637	$	145,257,763	$	159,817,333	$	192,952,933

⁽¹⁾  Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets), plus subsequent improvements and other capitalized costs associated with the properties, and adjusted for depreciation and amortization accumulated through December 31, 2014.

⁽²⁾  As reported in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2014.

⁽³⁾  Valued at the purchase price paid.

⁽⁴⁾  Represents values as determined by our internal valuation process, as described below.

⁽⁵⁾  Represents values as determined by third-party appraisals performed between January 2014 and October 2014.

Real estate companies are required to record real estate using the historical cost basis of the real estate, and, as a result, the carrying value of the real estate does not change as the fair value of the assets change. Thus, a difficulty in owning shares of an asset-based company is determining the fair value of the assets so that stockholders can see the value of the assets increase or decrease over time. For this reason, we believe determining the fair value of our real estate assets is useful to our investors.

Determination of Fair Value

We have adopted a valuation policy (the “Valuation Policy”) approved by our Board of Directors, which reviews and approves valuation recommendations that are provided by professionals of the Adviser and Administrator, with oversight and direction from the Valuation Officer, who is also employed by the Administrator (collectively, the “Valuation Team”). In determining the fair value of our properties, the Valuation Team, led by the Valuation Officer, uses the Valuation Policy, which has been approved by our Board of Directors, and each quarter, our Board of Directors reviews the Valuation Policy to determine if changes thereto are advisable and also reviews whether the Valuation Team has applied the Valuation Policy consistently.

For properties acquired within 12 months prior to the date of valuation, the purchase price of the property generally is used as the current fair value. For real estate we acquired more than one year prior to the date of valuation, we have determined the fair value either by relying on estimates provided by independent, third-party appraisers or through an internal valuation process. We intend to have each property valued by an independent, third-party appraiser at least once every three years, with interim values generally being determined by our internal valuation process.

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Various methodologies were used, both by the appraisers and in our internal valuations, to determine the fair value of our real estate on an “As Is” basis, including the sales comparison, income capitalization (or a discounted cash flow analysis) and cost approaches of valuation. In performing their analyses, the appraisers (i) performed site visits to the properties, (ii) discussed each property with our Adviser and reviewed property-level information, including, but not limited to, property operating data, prior appraisals (as available), existing lease agreements, farm acreage, location, access to water and water rights, potential for future development and other property-level information, and (iii) reviewed information from a variety of sources about regional market conditions applicable to each of our properties, including, but not limited to, recent sale prices of comparable farmland, market rents for similar farmland, estimated marketing and exposure time, market capitalization rates and the current economic environment, among others. In performing our internal valuations, we will consider the most recent appraisal available and use similar methodologies in determining an updated fair value. We will also obtain updated market data related to the property, such as updated sales and market rent comparisons and market capitalization rates, and perform an updated assessment of the tenants’ credit risk profiles, among others. Sources of this data may come from market inputs from recent acquisitions of our own portfolio of real estate, recent appraisals of properties we own that are similar in nature and in the same region (as applicable) as the property being valued, market conditions and trends we observe in our due diligence process and conversations with appraisers, brokers and farmers.

A breakdown of the methodologies used to value our properties and the aggregate value as of December 31, 2014, determined by each method is shown in the table below:

Valuation Method	Value			% of Total Value
Purchase Price	$	68,328,433			35.4	%
Third-party Appraisal		66,906,500			34.7	%
Internal Valuation		57,718,000	(1)		29.9	%
Total	$	192,952,933			100.0	%

⁽¹⁾  95.1% of this valuation, or approximately $54.9 million, is supported by values as determined by third-party appraisals performed between January 2013 and January 2014. The difference of $2.8 million represents the net appreciation of those properties since the time of the respective appraisals, as determined according to our internal valuation process.

Some of the significant assumptions used by appraisers and the Valuation Team in valuing our portfolio as of December 31, 2014, include land values per farmable acre, market rental rates per farmable acre and capitalization rates, among others. These assumptions were applied on a farm-by-farm basis and were selected based on several factors, including comparable land sales, surveys of both existing and current market rates, discussions with other brokers and farmers, soil quality, size, location and other factors deemed appropriate. A summary of these significant assumptions is provided in the following tables:

	Appraisal Assumptions					Internal Valuation Assumptions
	Range (Low - High)		Weighted Average			Range (Low - High)		Weighted Average
Land Value (per farmable acre)	$	4,500 - $85,000	$	67,767		$	8,896 - $56,528	$	35,035
Market Rent (per farmable acre)	$	193 - $3,894	$	3,117		$	443 - $2,573	$	1,663
Market Capitalization Rate		3.12% - 5.00%		4.30	%		4.43% - 6.50%		4.80	%

The tables above apply only to the farmland portion of our portfolio and exclude assumptions made relating to farm-related property, such as cooling facilities and box barns, and other structures on our properties, including residential housing and horticulture, as their aggregate value was deemed to be immaterial in relation to that of the farmland.

Our Valuation Team reviews the appraisals, including the significant assumptions and inputs used in determining the appraised values, and considers any developments that may have occurred since the time the appraisals were performed. Developments considered that may have an impact on the fair value of our real estate include, but are not limited to, changes in tenant credit profiles; changes in lease terms, such as expirations and notices of non-renewals or to vacate; and potential asset sales, particularly those at prices different from the appraised values of our properties.

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Management believes that the purchase prices of the farms acquired during the previous 12 months, the most recent appraisals available for the farms acquired prior to the previous 12 months that were not valued internally, which appraisals were performed between the periods of January 2014 and October 2014, and the farms that were valued internally during the year ended December 31, 2014, fairly represent the current market values of the properties as of December 31, 2014, and, accordingly, did not make any adjustment to these values. Further, no adjustment was made to the fair values of the two properties that had fires partially damage a structure on each of the properties, as the revenue streams associated with each of the properties remain uninterrupted, and management believes the values of the properties to be fully recoverable. In addition, the claims process is still ongoing with the insurance companies, and full recovery of the assets is expected.

Further, using a discounted cash flow analysis, management determined that the fair value of all encumbrances on our properties as of December 31, 2014, was $86.0 million, as compared to a carrying value of $86.4 million.

A rollforward of the change in our portfolio value for the three months ended December 31, 2014, from the prior value basis as of September 30, 2014, is provided in the table below:

Total portfolio fair value as of September 30, 2014			$	159,817,333
Plus Acquisitions:
Santa Clara Avenue	$	24,592,000
Dufau Road		6,125,600
Total acquisitions for the three months ended December 31, 2014				30,717,600
Plus Value Appreciation:
San Andreas	$	644,000
West Beach		830,000
20th Avenue		95,000
Broadway Road		403,000
Oregon Trail		446,000
Total appreciation for the three months ended December 31, 2014				2,418,000
Total portfolio fair value as of December 31, 2014			$	192,952,933

Calculation of Net Asset Value

To provide our stockholders with an estimate of the fair value of our real estate assets, we intend to estimate the fair value of our farm properties, expressed in terms of net asset value (“NAV”) per share, and provide that to our stockholders on a quarterly basis. NAV is a non-GAAP, supplemental measure of financial position of an equity REIT. NAV is calculated as total stockholders’ equity, adjusted for the increase or decrease in fair value of our real estate assets and encumbrances relative to their respective costs bases (“Estimated Net Worth”). Estimated Net Worth is then divided by our total common shares outstanding to calculate the NAV per share.

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As of December 31, 2014, we estimate the NAV per share to be $13.94, as detailed below:

Total assets	$	151,702,624
Less: net cost basis of tangible and intangible real estate assets		(145,257,763	)
Plus: estimated fair value of property portfolio(1)		192,952,933
Estimated fair value of total assets				$	199,397,794
Total liabilities		91,733,296
Less: book value of aggregate borrowings		(86,417,361	)
Plus: fair value of aggregate borrowings(2)		85,961,031
Estimated fair value of total liabilities					91,276,966
Estimated Net Worth				$	108,120,828
Shares outstanding					7,753,717
Estimated NAV per share				$	13.94

⁽¹⁾ Per current value basis presented in the table above.

⁽²⁾ Valued using a discounted cash flow model.

A rollforward in the estimated NAV per share for the three months ended December 31, 2014, is provided below:

Estimated NAV per share as of September 30, 2014			$	13.77
Plus net loss				(0.02	)
Plus Change in Valuations:
Net change in unrealized appreciation of farmland portfolio(1)	$	0.24
Net change in unrealized fair value of borrowings		0.04
Net change in valuations				0.28
Less Distributions				(0.09	)
Less Dilutive effect of offering				—
Estimated NAV per share as of December 31, 2014			$	13.94

⁽¹⁾  The net change in unrealized appreciation of farmland portfolio consists of three components: (i) an increase of $0.31 due to the appreciation in value of nine farms that were valued internally during the three months ended December 31, 2014, (ii) an increase of $0.09 due to the aggregate depreciation and amortization expense recorded during the three months ended December 31, 2014, and (iii) a decrease of $0.16 due to capital improvements made on certain properties that have not yet been included as a corresponding increase to the respective properties’ fair values.

Comparison of NAV, using the above definition, to similarly-titled measures for other REITs, may not necessarily be meaningful, due to possible differences in the calculation or application of the definition of NAV used by such REITs. In addition, please note that the trading price of our common shares may differ from our most recent estimated NAV per share calculation. For example, while we estimated the NAV per share as of December 31, 2014, to be $13.94 per the calculation above, the closing price of our common stock on December 31, 2014, was $10.70, and it has subsequently traded between $9.95 and $11.17 per share.

While management believes the values presented reflect current market conditions, the ultimate amount realized on any asset will be based on the timing of such dispositions and the then-current market conditions. There can be no assurance that the ultimate realized value upon disposition of an asset will approximate the fair value above.

We intend to report any adjustments to the NAV, as well as to the values of our properties, in this section on a quarterly basis, but in no case less than annually. However, the determination of NAV is subjective and involves a number of assumptions, judgments and estimates, and minor inaccuracies in our assumptions may have a material impact on our overall portfolio valuation. In addition, many of the assumptions used are sensitive to market conditions and can change frequently. Changes in the market environment and other events that may occur during our ownership of these properties may cause the values reported above to vary from the actual fair value that may be obtained in the open market.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk includes risks that arise from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market-sensitive instruments. The primary market risk that we believe we are and will be exposed to is interest rate risk. While none of our existing leases contain escalations based on market interest rates, certain of our existing borrowings are subject to variable interest rates. Further, the interest rates on certain of our fixed-rate borrowings are either fixed for a finite period before converting to variable rate or are subject to adjustment every three years. Although we seek to mitigate this risk by structuring certain provisions into many of our leases, such as escalation clauses or adjusting the rent to prevailing market rents at two- to three-year intervals, these features do not eliminate this risk. To date, we have not entered into any derivative contracts to attempt to manage our exposure to interest rate fluctuations.

To illustrate the potential impact of changes in interest rates on our net income for the year ended December 31, 2014, we have performed the following analysis, which summarizes the approximate impact that a 1%, 2% and 3% increase in the three-month LIBOR would have on our earnings for the year ended December 31, 2014. For purposes of this analysis, we used the actual balances outstanding on our borrowings during the year and assumed that no further actions were taken to adjust our leases than what actually occurred during the year ended December 31, 2014, to alter our existing interest rate sensitivity.

Interest Rate Changes(1)	Increase to Interest Expense		Net Increase to Net Loss
1% Increase to three-month LIBOR	$	45,994	$	(45,994	)
2% Increase to three-month LIBOR		91,989		(91,989	)
3% Increase to three-month LIBOR		137,983		(137,983	)

⁽¹⁾ For the year ended December 31, 2014, our effective LIBOR was never greater than 0.25%; therefore, a 1%, 2% or 3% decrease could not occur.

As of December 31, 2014, the fair value of our fixed-rate borrowings outstanding, which includes our mortgage notes and bonds payable, was approximately $82.0 million. However, interest rate fluctuations may affect the fair value of our fixed-rate borrowings. If market interest rates had been one percentage point higher or lower than those rates in place as of December 31, 2014, the fair value of our fixed-rate borrowings would have decreased or increased, respectively, by approximately $1.9 million.

In the future, we may be exposed to additional effects of interest rate changes, primarily as a result of long-term debt used to maintain liquidity and fund expansion of our real estate investment portfolio and operations. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. To achieve these objectives, we will borrow primarily at fixed rates or variable rates with the lowest margins available and, in some cases, with the ability to convert variable rates to fixed rates. We may also enter into derivative financial instruments, such as interest rate swaps and caps, to mitigate the interest rate risk on a related financial instrument. We will not enter into derivative or interest rate transactions for speculative purposes.

In addition to changes in interest rates, the fair value of our real estate is subject to fluctuations based on changes in local and regional economic conditions and changes in the creditworthiness of our tenants. Materially adverse changes in the fair value of our real estate may affect our ability to refinance our debt, if necessary.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to Consolidated Financial Statements

	PAGE
Report of Management on Internal Controls over Financial Reporting		71
Report of Independent Registered Public Accounting Firm		72
Consolidated Balance Sheets as of December 31, 2014 and 2013		73
Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012		74
Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2014, 2013 and 2012		75
Consolidated Statements of Cash Flows for the years ended December 31, 2014, 2013 and 2012		76
Notes to Consolidated Financial Statements		77
Schedule III — Real Estate and Accumulated Depreciation		108

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Report of Management on Internal Controls over Financial Reporting

To the Stockholders and Board of Directors of Gladstone Land Corporation:

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and include those policies and procedures that pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and the dispositions of our assets, provide reasonable assurance that our transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with appropriate authorizations; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Under the supervision and with the participation of our management, we assessed the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations (COSO). Based on our assessment, management concluded that our internal control over financial reporting was effective as of December 31, 2014.

February 24, 2015

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Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors of Gladstone Land Corporation:

In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, of stockholders’ equity, and of cash flows present fairly, in all material respects, the financial position of Gladstone Land Corporation and its subsidiaries at December 31, 2014 and December 31, 2013, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2014 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in the accompanying index presents fairly, in all material respects, the information set forth herein when read in conjunction with the related consolidated financial statements. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

McLean, VA

February 24, 2015

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GLADSTONE LAND CORPORATION

CONSOLIDATED BALANCE SHEETS

	As of December 31,
	2014			2013
ASSETS
Real estate, at cost	$	148,371,478		$	78,478,053
Less: accumulated depreciation		(4,431,290	)		(3,166,870	)
Total real estate, net		143,940,188			75,311,183
Lease intangibles, net		1,317,575			311,064
Cash and cash equivalents		2,619,342			16,271,282
Restricted cash		132,741			41
Short-term investments		681,124			680,443
Deferred financing costs, net		1,039,714			309,933
Deferred offering costs		248,731			—
Other assets		1,723,209			789,518
TOTAL ASSETS	$	151,702,624		$	93,673,464
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Mortgage notes and bonds payable	$	82,417,361		$	43,054,165
Borrowings under line of credit		4,000,000			100,000
Accounts payable and accrued expenses		1,925,251			1,097,270
Due to related parties(1)		471,101			160,719
Other liabilities		2,919,583			749,318
TOTAL LIABILITIES		91,733,296			45,161,472
Commitments and contingencies(2)
STOCKHOLDERS’ EQUITY
Common stock, $0.001 par value; 20,000,000 shares authorized; 7,753,717 and 6,530,264 shares issued and outstanding as of December 31, 2014, and December 31, 2013, respectively		7,754			6,530
Additional paid in capital		65,366,309			51,326,262
Distributions in excess of earnings		(5,404,735	)		(2,820,800	)
TOTAL STOCKHOLDERS’ EQUITY		59,969,328			48,511,992
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	151,702,624		$	93,673,464

⁽¹⁾ Refer to Note 4, “Related-Party Transactions,” for additional information

⁽²⁾ Refer to Note 7, “Commitments and Contingencies,” for additional information

The accompanying notes are an integral part of these consolidated financial statements.

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GLADSTONE LAND CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

	For the Years Ended December 31,
	2014			2013			2012
OPERATING REVENUES:
Rental revenue	$	7,170,318		$	4,027,687		$	3,390,594
Tenant recovery revenue		14,604			10,451			—
Total operating revenues		7,184,922			4,038,138			3,390,594
OPERATING EXPENSES:
Depreciation and amortization		1,735,644			722,455			474,480
Management fee(1)		1,079,534			195,609			267,280
Incentive fee(1)		—			41,037			—
Administration fee(1)		442,584			194,464			180,398
Professional fees		595,163			615,879			245,414
Acquisition-related expenses		520,352			153,725			153,494
Property operating expenses		434,514			119,463			117,569
General and administrative expenses		777,159			679,090			50,344
Operating expenses before credits from Adviser		5,584,950			2,721,722			1,488,979
Credits to fees from Adviser(1)		—			(41,037	)		—
Total operating expenses, net of credits to fees		5,584,950			2,680,685			1,488,979
OPERATING INCOME		1,599,972			1,357,453			1,901,615
OTHER INCOME (EXPENSE):
Interest income		12,031			56,234			1,830
Other income		35,489			—			4,233
Interest expense		(2,009,086	)		(1,118,640	)		(1,006,986	)
Property and casualty recovery, net		262,963			—			—
Total other expense		(1,698,603	)		(1,062,406	)		(1,000,923	)
Net (loss) income before income taxes		(98,631	)		295,047			900,692
Income tax provision		(26,502	)		(1,519,730	)		(300,319	)
NET (LOSS) INCOME	$	(125,133	)	$	(1,224,683	)	$	600,373
(LOSS) EARNINGS PER COMMON SHARE:
Basic and diluted	$	(0.02	)	$	(0.20	)	$	0.22
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING — basic and diluted		6,852,917			6,214,557			2,750,000

⁽¹⁾ Refer to Note 4, “Related-Party Transactions,” for additional information

The accompanying notes are an integral part of these consolidated financial statements.

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GLADSTONE LAND CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

	Common Stock				Additional		Retained Earnings (Distributions			Total
	Number of Shares		Par Value		Paid-in Capital		in Excess of Earnings)			Stockholders’ Equity
Balance at December 31, 2011		2,750,000	$	2,750	$	—	$	7,533,603		$	7,536,353
Net income		—		—		—		600,373			600,373
Balance at December 31, 2012		2,750,000	$	2,750	$	—	$	8,133,976		$	8,136,726
Net loss		—		—		—		(1,224,683	)		(1,224,683	)
Proceeds from issuance of common stock, net		3,780,264		3,780		51,326,262		—			51,330,042
Distributions		—		—		—		(9,730,093	)		(9,730,093	)
Balance at December 31, 2013		6,530,264	$	6,530	$	51,326,262	$	(2,820,800	)	$	48,511,992
Net loss		—		—		—		(125,133	)		(125,133	)
Proceeds from issuance of common stock, net		1,223,453		1,224		14,040,047		—			14,041,271
Distributions		—		—		—		(2,458,802	)		(2,458,802	)
Balance at December 31, 2014		7,753,717	$	7,754	$	65,366,309	$	(5,404,735	)	$	59,969,328

The accompanying notes are an integral part of these consolidated financial statements.

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GLADSTONE LAND CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the Years Ended December 31,
	2014			2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(125,133	)	$	(1,224,683	)	$	600,373
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization		1,735,644			722,455			474,480
Amortization of deferred financing costs		53,286			30,024			59,472
Amortization of deferred rent assets and liabilities, net		(194,267	)		(68,617	)		(45,852	)
Property and casualty recovery, net		(262,963	)		—			—
Insurance proceeds received utilized for repairs to real estate assets		89,688			—			—
Deferred income taxes		—			(743,676	)		568,675
Changes in operating assets and liabilities:
Other assets		(684,782	)		25,205			(609,131	)
Accounts payable, accrued expenses, and due to related parties		1,180,185			250,139			235,090
Other liabilities		1,751,964			548,800			(145,330	)
Net cash provided by (used in) operating activities		3,543,622			(460,353	)		1,137,777
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of new real estate		(68,626,968	)		(37,871,978	)		(7,499,644	)
Capital expenditures on existing real estate		(2,619,084	)		(811,605	)		—
Increase in restricted cash		(132,700	)		(41	)		—
Purchase of certificate of deposit		—			—			(679,717	)
Purchase of U.S. Treasuries		—			(19,994,981	)		—
Maturity of U.S. Treasuries		—			20,000,000			—
Deposits on future acquisitions		(350,000	)		(200,000	)		(150,000	)
Deposits refunded		50,000			150,000			200,000
Insurance proceeds received capitalized as real estate asset additions		344,512			—			—
Net cash used in investing activities		(71,334,240	)		(38,728,605	)		(8,129,361	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of equity		15,024,003			56,703,960			—
Offering costs		(950,965	)		(4,687,579	)		(686,339	)
Borrowings from mortgage notes payable		41,188,600			13,565,000			8,707,000
Repayments on mortgage note payable		(1,825,404	)		(1,228,715	)		(917,120	)
Borrowings from line of credit		25,500,000			1,600,000			3,100,000
Repayments on line of credit		(21,600,000	)		(1,600,000	)		(4,205,000	)
Financing fees		(738,754	)		(35,807	)		(137,337	)
Distributions paid		(2,458,802	)		(9,730,093	)		—
Net cash provided by financing activities		54,138,678			54,586,766			5,861,204
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(13,651,940	)		15,397,808			(1,130,380	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		16,271,282			873,474			2,003,854
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	2,619,342		$	16,271,282		$	873,474
Cash paid during the year for interest	$	1,431,214		$	1,055,333		$	854,876
Cash paid during the year for income taxes(1)		27,000			2,274,727			464,772
NON-CASH INVESTING AND FINANCING INFORMATION:
Non-cash additions to real estate(2)	$	667,019		$	309,174		$	—
Offering costs included in accounts payable and accrued expenses(3)		141,967			—			319,756
Financing fees included in accounts payable and accrued expenses		44,313			—			—
Insurance proceeds included in Other assets(4)		61,500			—			—

⁽¹⁾ Cash paid during 2013 for income taxes includes a $2.1 million tax prepayment made related to a deferred intercompany gain on prior-year land transfers.

⁽²⁾ 2014 real estate additions include $81,072 of additions included in accounts payable and accrued expenses and $585,947 of leasehold improvements recorded during the year. 2013 real estate additions were all included in accounts payable and accrued expenses.

⁽³⁾ 2014 non-cash offering costs consist of $110,200 included in “Other assets” and $31,767 included in “Additional paid in capital” on the Consolidated Balance Sheet.

⁽⁴⁾ Insurance proceeds of $61,500 related to a fire-damaged structure on one of our properties were paid directly to the tenant in advance of construction.

The accompanying notes are an integral part of these consolidated financial statements.

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GLADSTONE LAND CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

All references to the number of properties and acreage are unaudited.

NOTE 1. BUSINESS AND ORGANIZATION

Business

Gladstone Land Corporation (the “Company) was re-incorporated in Maryland on March 24, 2011, having been previously re-incorporated in Delaware on May 25, 2004, and having been originally incorporated in California on June 14, 1997. We are primarily in the business of owning and leasing farmland. Subject to certain restrictions and limitations, and pursuant to contractual agreements, our business is managed by Gladstone Management Corporation (the “Adviser”), a Delaware corporation, and administrative services are provided to us by Gladstone Administration, LLC (the “Administrator”), a Delaware limited liability company. Both the Adviser and the Administrator are affiliates of ours; see Note 4, “Related-Party Transactions.”

Organization

We conduct substantially all of our operations through a subsidiary, Gladstone Land Limited Partnership (the “Operating Partnership”), a Delaware limited partnership. As we currently own, directly or indirectly, all of the general and limited partnership interests of the Operating Partnership, the financial position and results of operations of the Operating Partnership are consolidated within our financial statements.

Gladstone Land Partners, LLC (“Land Partners”), a Delaware limited liability company and a subsidiary of ours, was organized to engage in any lawful act or activity for which a limited liability company may be organized in Delaware. Land Partners is the general partner of the Operating Partnership and has the power to make and perform all contracts and to engage in all activities necessary in carrying out the purposes of the Company, as well as all other powers available to it as a limited liability company. As we currently own all of the membership interests of Land Partners, the financial position and results of operations of Land Partners are consolidated within our financial statements.

Gladstone Land Advisers, Inc. (“Land Advisers”), a Delaware corporation and a subsidiary of ours, was created to collect any non-qualifying income related to our real estate portfolio. We have elected for Land Advisers to be taxed as a taxable REIT subsidiary (“TRS”). It is currently anticipated that this income will predominately consist of fees we receive related to the leasing of real estate, though we may also provide ancillary services to farmers through this subsidiary. There have been no fees related to the leasing of real estate or for ancillary services earned by Land Advisers to date. Since we currently own 100% of the voting securities of Land Advisers, the financial position and results of operations of Land Advisers are consolidated within our financial statements.

All subsequent references in this report to the “Company,” “we,” “us” and “our” refer, collectively, to Gladstone Land Corporation, the Operating Partnership and the Company’s and the Operating Partnership’s subsidiaries, unless the context otherwise requires or where otherwise indicated.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Out-of-Period Adjustment

During the year ended December 31, 2013, we recorded adjustments to our income tax provision and to other assets that were related to our 2011 and 2012 provision reconciliation. As a result of the correction of these errors, we understated net income by $40,438 for the year ended December 31, 2013. We concluded that these adjustments were not material to the 2011, 2012 or 2013 results of operations; as such, these adjustments were recorded during 2013.

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates.

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Real Estate and Lease Intangibles

Our investments in real estate consist of farmland and improvements made to the farmland, consisting of buildings; irrigation and drain systems; coolers, which are storage facilities used for cooling crops; warehouses used for storing, assembling and packing boxes; and horticulture acquired in connection with the land purchase, which currently consists of blueberry bushes and avocado and lemon trees. We record investments in real estate at cost and capitalize improvements and replacements when they extend the useful life or improve the efficiency of the asset. We expense costs of repairs and maintenance as such costs are incurred. We compute depreciation using the straight-line method over the shorter of the estimated useful life or 39 years for buildings and improvements, the shorter of the estimated useful life or 25 years for horticulture acquired in connection with the purchase of farmland, 5 to 7 years for equipment and fixtures and the shorter of the useful life or the remaining lease term for leasehold improvements.

Certain of our acquisitions involve sale-leaseback transactions with newly-originated leases, which we account for as asset acquisitions under ASC 360, “Property, Plant and Equipment.” In the case of an asset acquisition, we will capitalize the transaction costs incurred in connection with the acquisition. Other of our acquisitions involve the acquisition of farmland that is already being operated as rental property and has a lease in place that we assume at the time of acquisition, which we will generally consider to be a business combination under ASC 805, “Business Combinations.” When an acquisition is considered a business combination, ASC 805 requires that the purchase price of real estate be allocated to the tangible assets acquired and liabilities assumed, consisting of land, buildings, improvements, horticulture and long-term debt; and identifiable intangible assets and liabilities, typically the value of above-market and below-market leases, in-place leases, unamortized lease origination costs and tenant relationships, based in each case on their fair values. ASC 805 also requires that all expenses related to the acquisition be expensed as incurred, rather than capitalized into the cost of the acquisition.

Whether our acquisitions are treated as an asset acquisition under ASC 360 or a business combination under ASC 805, the fair value of the purchase price is allocated among the assets acquired and any liabilities assumed. Management’s estimates of fair value are made using methods similar to those used by independent appraisers, such as a sales comparison approach, a cost approach and either an income capitalization approach or discounted cash flow analysis. Factors considered by management in its analysis include an estimate of carrying costs during hypothetical, expected lease-up periods, taking into consideration current market conditions and costs to execute similar leases. We also consider information obtained about each property as a result of our pre-acquisition due diligence and marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired and liabilities assumed. In estimating carrying costs, management also includes lost reimbursement of real estate taxes, insurance and other operating expenses, as well as estimates of lost rental income at market rates during the hypothetical, expected lease-up periods, which typically range from 1 to 24 months, depending on specific local market conditions. Management also estimates costs to execute similar leases, including leasing commissions, legal and other related expenses, to the extent that such costs are not already incurred in connection with a new lease origination as part of the transaction. While management believes these estimates to be reasonable based on the information available at the time of acquisition, the preliminary purchase price allocation may be adjusted if management obtains more information regarding the valuations of the assets acquired or liabilities assumed.

We allocate purchase price to the fair value of the tangible assets and liabilities of an acquired property by valuing the property as if it were vacant. The “as-if-vacant” value is allocated to land, buildings, improvements and horticulture, based on management’s determination of the fair values of such assets. Real estate depreciation expense on these tangible assets was $1,384,960, $631,786 and $412,267 for the years ended December 31, 2014, 2013 and 2012, respectively.

We record above-market and below-market in-place lease values for acquired properties based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining, non-cancelable term of the lease. When determining the non-cancelable term of the lease, we evaluate whether fixed-rate renewal options, if any, should be included.

The fair value of capitalized above-market leases, included as part of Other assets in the accompanying Consolidated Balance Sheets, is amortized as a reduction of rental income on a straight-line basis over the remaining, non-cancelable terms of the respective leases, including that of any fixed-price or below-market renewal options. As of December 31, 2014, the

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aggregate gross amount of above-market lease values was $65,203, and the total accumulated amortization related to these values was $9,027. Total amortization related to above-market lease values was $9,027 for the year ended December 31, 2014. There were no above-market lease values recorded prior to 2014. The fair value of capitalized below-market leases, included as part of Other liabilities in the accompanying Consolidated Balance Sheets, is amortized as an increase to rental income on a straight-line basis over the remaining, non-cancelable terms of the respective leases, including that of any fixed-price or below-market renewal options. As of December 31, 2014, 2013 and 2012, the aggregate gross amount of below-market lease values was $371,707, $260,356 and $98,808, respectively, and the total accumulated amortization related to these values was $162,194, $114,469 and $45,852, respectively. Total amortization related to below-market lease values was $146,534, $68,617 and $45,852 for the years ended December 31, 2014, 2013 and 2012, respectively.

The total amount of the remaining intangible assets acquired, which consists of in-place lease values, unamortized lease origination costs and tenant relationship intangible values, are allocated based on management’s evaluation of the specific characteristics of each tenant’s lease and our overall relationship with that respective tenant. Characteristics to be considered by management in allocating these values include the nature and extent of our existing business relationships with the tenant, prospects for developing additional business with the tenant, the tenant’s credit quality and our expectations of lease renewals (including those existing under the terms of the lease agreement), among other factors.

The value of in-place leases and unamortized lease origination costs are amortized to amortization expense on a straight-line basis over the remaining, non-cancelable terms of the respective leases, which currently range from 1 to 10 years. The value of tenant relationship intangibles, which is the benefit to us resulting from the likelihood of an existing tenant renewing its lease at the existing property or entering into a lease at a different property we own, is amortized to amortization expense over the remaining lease term and any anticipated renewal periods in the respective leases.

Should a tenant terminate its lease, the unamortized portion of the above-market and below-market lease values, in-place lease values, lease origination costs and tenant relationship intangibles will be immediately charged to the appropriate income or expense account.

The total amount recorded as amortization expense related to these intangible assets was $350,684, $90,669 and $62,213 for the years ended December 31, 2014, 2013 and 2012, respectively. In addition, in September 2014, we wrote off $46,526 of intangible assets due to the termination of a lease that was assumed in connection with a farm acquired in June 2014, and the unamortized balance of these assets, which was $43,328, was immediately charged to amortization expense.

Impairment of Real Estate Assets

We account for the impairment of our tangible and identifiable intangible real estate assets in accordance with ASC 360, which requires us to periodically review the carrying value of each property to determine whether indicators of impairment exist. Such indicators may include, but are not limited to, declines in a property’s operating performance, deteriorating market conditions and environmental or legal concerns. If circumstances support the possibility of impairment, we prepare a projection of the total undiscounted future cash flows of the specific property, including proceeds from disposition without interest charges, and compare them to the net book value of the property to determine whether the carrying value of the property is recoverable. In performing the analysis, we consider such factors as the tenants’ payment history and financial condition, the likelihood of lease renewal, agricultural and business conditions in the regions in which our farms are located and whether there are indications that the fair value of the real estate has decreased. If the carrying amount is more than the aggregate undiscounted future cash flows, we would recognize an impairment loss to the extent the carrying value exceeds the estimated fair value of the property.

We evaluate our entire property portfolio each quarter for any impairment indicators and perform an impairment analysis on those select properties that have an indication of impairment. During the three months ended June 30, 2014, we had two separate fires that partially damaged structures on two separate properties, which constituted an indicator of impairment. However, in accordance with ASC 360, we assessed the recoverability of the two properties and determined that the net carrying value of each property was fully recoverable. Therefore, no impairment loss was recorded; however, we recorded property and casualty losses for each event. See “—Involuntary Conversions and Property and Casualty Recovery” below for further detail. We further concluded that none of our properties were impaired as of December 31, 2014, and we will continue to monitor our portfolio for any indicators of impairment. There have been no impairments recognized on real estate assets since our inception.

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Leasehold Improvements

From time to time, our tenants may pay for improvements on certain of our properties with the ownership of the improvements remaining with us, in which case we will record the cost of such improvements as an asset, leasehold improvements, along with a corresponding liability, deferred rent liability, on our balance sheet. Leasehold improvements will be depreciated, and the deferred rent liability will be amortized as an addition to rental income, each over the shorter of the useful life of the respective improvement or the remaining term of the existing lease in place. In determining whether the tenant or the Company is the owner (for accounting purposes) of such improvements, several factors will be considered, including, but not limited to: (i) whether the tenant or landlord retains legal title to the improvements upon expiration of the lease; (ii) whether the lease stipulates how such improvements should be treated; (iii) the uniqueness of the improvements (i.e., whether the improvements were made to meet the specific needs or for the benefit of the tenant leasing the property, or if the improvements generally increased the value or extended the useful life of the asset improved upon); (iv) the expected useful life of the improvements relative to the remaining length of the lease; and (v) whether the tenant or the Company constructs or directs construction of the improvements. The determination of who owns the improvements (for accounting purposes) is subject to significant judgment. As of December 31, 2014, we recorded aggregate gross leasehold improvements of $585,947, and accumulated depreciation related to these improvements was $56,760. During the year ended December 31, 2014, approximately $56,760 was recorded as both depreciation expense and an addition to rental income. No leasehold improvements were recorded prior to 2014.

When improvements on properties are paid for and determined to be owned by us, we record such costs as site improvements and depreciate the costs over the estimated useful life of the improvement.

Cash and Cash Equivalents

We consider cash equivalents to be all short-term, highly-liquid investments that are both readily convertible to cash and have a maturity of three months or less at the time of purchase, except that any such investments purchased with funds held in escrow or similar accounts are classified as restricted cash. Items classified as cash equivalents include money-market deposit accounts. Our cash and cash equivalents at December 31, 2014 and 2013 were held in the custody of one financial institution, and our balance at times may exceed federally-insurable limits.

Restricted Cash

As of December 31, 2014 and 2013, restricted cash consisted of accrued interest owed on funds held in escrow related to the acquisition of a property in December 2013. During the years ended December 31, 2014 and 2013, we accrued $3,000 and $41, respectively, of accrued interest on these funds held in escrow. In addition, restricted cash as of December 31, 2014, consists of $129,700 that was earmarked for the purchase of a water permit on one of our farms. This water permit was approved on January 27, 2015, and these funds were released on February 12, 2015.

Short-term Investments

We consider short-term investments to consist of any highly-liquid securities that have an original maturity of less than one year but greater than three months at the time of purchase. As of December 31, 2014 and 2013, short-term investments consisted of approximately $0.7 million held in a certificate of deposit (“CD”). The CD originally matured on September 6, 2013; however, upon maturity, the balance was rolled into a new, 12-month CD that matured on September 6, 2014, at which time the balance was again rolled into a new, 12-month CD with a maturity date of September 6, 2015. Due to the short-term nature of the CD, the amortized cost of the security was deemed to approximate its fair value as of both December 31, 2014 and 2013. During the year ended December 31, 2013, we also held $20.0 million of short-term U.S. Treasury Bills that matured on June 27, 2013, and were subsequently invested in a money-market deposit account. As of both December 31, 2014 and 2013, our short-term investments were classified as held-to-maturity and were recorded at their amortized cost on the Consolidated Balance Sheets.

Total income earned on these short-term investments is included in Interest income on the accompanying Consolidated Statements of Operations and totaled $681, $5,746 and $168 for the years ended December 31, 2014, 2013 and 2012, respectively.

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Deferred Financing Costs

Deferred financing costs consist of costs incurred to obtain financing, including legal fees, origination fees and administrative fees. Costs associated with our borrowings are deferred and amortized over the terms of the respective financings using the straight-line method. In the case of our line of credit, the straight-line method is used due to the revolving nature of the financing instrument; in the case of our mortgage notes payable, the straight-line method approximates the effective interest method. Upon early extinguishment of any borrowings, the unamortized portion of the related deferred financing costs will be immediately charged to expense. As such, during 2012, we wrote off $35,511 of unamortized deferred financing costs associated with a line of credit that was terminated on May 31, 2012.

In addition, in accordance with ASC 470, “Debt,” when a financing arrangement is amended so that the borrowing capacity increases, the unamortized deferred financing costs from the prior arrangement should be amortized over the term of the new arrangement. As such, $298,614 of unamortized deferred financing costs associated with our Prior MetLife Credit Facility (as defined in Note 5, “Borrowings—MetLife Credit Facility”) were deferred and amortized over the term of our New MetLife Credit Facility (as defined in Note 5, “Borrowings—MetLife Credit Facility”).

Accumulated amortization of deferred financing costs was $117,433 and $64,148 as of December 31, 2014 and 2013, respectively. Total amortization expense related to deferred financing costs is included in Interest expense on the accompanying Consolidated Statements of Operations. See Note 5, “Borrowings,” for further discussion on these related financings.

Deferred Offering Costs

We account for deferred offering costs in accordance with SEC Staff Accounting Bulletin (“SAB”), Topic 5.A, which states that incremental costs directly attributable to a proposed or actual offering of securities may properly be deferred and charged against the gross proceeds of the offering. Accordingly, we record costs incurred related to public offerings of equity securities on our Condensed Consolidated Balance Sheets and pro-ratably apply these amounts to the proceeds of equity as stock is issued. We incurred $140,822 related to the filing and preparation of a registration statement on Form S-3, which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on April 2, 2014, and $7,052 of such costs were pro-ratably applied to the use of proceeds of our Follow-on Offering (as defined in Note 6, “Stockholders’ Equity—2014 Follow-on Offering”). In addition, we incurred $114,961 related to the filing and preparation of a registration statement on Form S-11, which has not yet been declared effective by the SEC.

Other Assets and Other Liabilities

Other assets consist of deferred rent assets, income taxes receivable, deposits on potential real estate acquisitions, prepaid expenses, above-market lease values, and other miscellaneous receivables. Other liabilities consist of rents received in advance, deferred rent liabilities, below-market lease values and funds held in escrow.

Revenue Recognition

Rental revenue includes rents that each tenant pays in accordance with the terms of its respective lease, reported evenly over the non-cancelable term of the lease. Most of our leases contain rental increases at specified intervals; we recognize such revenues on a straight-line basis. Deferred rent receivable, included in Other assets on the accompanying Consolidated Balance Sheets, includes the cumulative difference between rental revenue, as recorded on a straight-line basis, and rents received from the tenants in accordance with the lease terms. Capitalized above-market and below-market lease values are included in Other assets and Other liabilities, respectively, on the accompanying Consolidated Balance Sheets, which are amortized against or into rental income over the life of the respective leases. In addition, we determine, in our judgment, to what extent the deferred rent receivable applicable to each specific tenant is collectable. We perform a quarterly review on deferred rent receivable as it relates to straight-line rents and take into consideration the tenant’s payment history, the financial condition of the tenant, business conditions of the industry in which the tenant operates and economic and agricultural conditions in the geographic area in which the property is located. In the event that the collectability of deferred rent with respect to any given tenant is in doubt, we record an allowance for uncollectable accounts or record a direct write-off of the specific rent receivable. No such reserves or direct write-offs have been recorded to date.

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Tenant reimbursement revenue includes payments received from tenants as reimbursements for certain operating expenses, such as property taxes and insurance premiums. These expenses and their subsequent reimbursements are recognized under property operating expenses as incurred and tenant reimbursement revenue as earned, respectively, and are recorded in the same periods.

Other Income

We record non-operating and unusual or infrequent income as Other income on our Consolidated Statements of Operations. Other income recorded for the years ended December 31, 2014 and 2012 was primarily from additional interest earned on income tax refunds from the State of California. See “ —Income taxes” below for more information on the income tax refunds. There was no Other income recognized during the year ended December 31, 2013.

Involuntary Conversions and Property and Casualty Recovery

We account for involuntary conversions, for example, when a nonmonetary asset, such as property or equipment, is involuntarily converted to a monetary asset, such as insurance proceeds, in accordance with ASC 605, “Revenue Recognition – Gains and Losses,” which requires us to recognize a gain or a loss equal to the difference between the carrying amount of the nonmonetary asset and the amount of monetary assets received. Further, in accordance with ASC 450, “Contingencies,” if recovery of the loss is considered to be probable, we will recognize a receivable for the amount expected to be covered by insurance proceeds, not to exceed the related loss recognized, unless such amounts have been realized.

Income taxes

We have operated and intend to continue to operate in a manner that will allow us to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended. On September 3, 2014, we filed our 2013 federal income tax return, on which we elected to be taxed as a REIT for federal income tax purposes beginning with our tax year ended December 31, 2013. As a REIT, we generally are not subject to federal income taxes on amounts that we distribute to our stockholders (except income from any foreclosure property), provided that, on an annual basis, we distribute at least 90% of our REIT taxable income (determined without regard to the deduction for dividends paid and excluding net capital gains) to our stockholders and meet certain other conditions. To the extent that we satisfy the annual distribution requirement but distribute less than 100% of our taxable income, we will be subject to an excise tax on our undistributed taxable income.

Beginning January 1, 2013, Land Advisers has been treated as a wholly-owned TRS that is subject to federal and state income taxes. Though Land Advisers has had no activity to date, we would account for any future income taxes in accordance with the provisions of ASC 740, “Income Taxes.”

Under ASC 740-10-25, we account for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. In estimating future tax consequences, we consider all future events, other than changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period of enactment. In addition, ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, we may recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not (defined as a likelihood of more than 50%) that the tax position, based on the technical merits of the position, will be sustained upon examination by taxing authorities, including resolutions of any related appeals or litigation processes. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater-than-fifty-percent likelihood of being realized upon ultimate settlement. If a tax position does not meet the more-likely-than-not recognition threshold, despite our belief that the filing position is supportable, the benefit of that tax position is not recognized in the Consolidated Statements of Operations. ASC 740 also provides guidance on derecognition, classification, interest and penalties on income taxes, as well as accounting in interim periods, and requires increased disclosures. We recognize interest and penalties, as applicable, related to unrecognized tax benefits as General and administrative expense on the Consolidated Statements of Operations. We recognize unrecognized tax benefits in the period that the uncertainty is eliminated by either affirmative agreement of the uncertain tax position by the applicable taxing authority or by expiration of the applicable statute of limitation.

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For all tax years prior to 2013, our pre-tax net income was taxed at regular corporate tax rates for both federal and state purposes, and we accounted for such income taxes in accordance with the provisions of ASC 740.

We have performed a review of our tax positions and determined that, as of December 31, 2014 and 2013, we had no material provisions for uncertain tax positions.

A reconciliation between the U.S. statutory federal income tax rate and our effective income tax rate for the years ended December 31, 2014, 2013 and 2012 is provided in the following table:

	For the Years Ended December 31,
	2014			2013			2012
U.S. statutory federal income tax rate(1)		0.0	%		0.0	%		34.0	%
State taxes, net of U.S. federal income tax benefit(2)		26.9	%		41.7	%		4.0	%
Other adjustments(3)		0.0	%		473.4	%		-4.7	%
Effective tax rate		26.9	%		515.1	%		33.3	%

⁽¹⁾ Beginning with our tax year ended December 31, 2013, we qualified to be taxed as a REIT for federal income tax purposes.

⁽²⁾ In 2012, California state tax returns were filed on a unitary basis with our Adviser. State tax adjustments made to the 2013 and 2014 income tax provision relate to taxes owed to the state of California as a result of prior-year land transfers.

⁽³⁾ Adjustments made to the 2013 income tax provision related primarily to the recognition of $2.1 million of income taxes on a deferred intercompany gain relating to land transfers from prior years. This tax become due upon our election to be taxed as a REIT for the tax year ended December 31, 2013. This was partially offset by the reversal of our deferred tax liability, which resulted in a net benefit of REIT conversion of $743,676.

The provision for income taxes included in our Consolidated Financial Statements for both 2014 and 2013 was all current, while prior years included both a current portion and a deferred portion. The following table shows the breakdown between the current and deferred income taxes for the year ended December 31, 2012:

	2012
Current portion	$	(268,356	)
Deferred portion		568,675
Total income taxes	$	300,319

Prior to 2013, we carried a deferred tax liability on our balance sheet that represented the basis difference in our real estate as it relates to depreciation, as well as differences relating to rents received in advance, straight-line rents and other temporary differences. As of and for the year ended December 31, 2013, this deferred tax liability was reversed through our income tax provision, as we qualified and elected to be treated as a REIT for federal income tax purposes for our tax year ended December 31, 2013. Our permanent differences related to federal and state income taxes.

Segment Reporting

We do not evaluate performance on a property-specific or transactional basis, nor do we distinguish our principal business or group our operations on a geographical basis for purposes of measuring performance. Thus, we believe we have a single operating segment for reporting purposes in accordance with GAAP, that segment being farmland and farm-related properties.

Comprehensive (Loss) Income

For the years ended December 31, 2014, 2013 and 2012, net (loss) income equaled comprehensive (loss) income; therefore, a separate statement of comprehensive income is not included in the accompanying Consolidated Financial Statements.

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Distributions

We operate in a manner intended to enable us to continue to qualify as a REIT under Sections 856-860 of the Code. Under those sections, a REIT that distributes at least 90% of its REIT taxable income to its stockholders each year and meets certain other conditions will not be subject to federal income tax on that portion of its taxable income that is distributed to stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate rates (including any alternative minimum tax) and may not be able to qualify as a REIT for the four immediately-subsequent taxable years. Even as a REIT, we may be subject to certain state and local income and property taxes and to federal income and excise taxes on undistributed taxable income. In general, however, as long as we qualify as a REIT, no provision for federal income taxes will be necessary, except for taxes on undistributed REIT taxable income and taxes on the income generated by a TRS, if any.

Recently-Issued Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” Under this revised guidance, only disposals representing a strategic shift in operations, such as a disposal of a major geographic area, a major line of business or a major equity method investment, will be presented as discontinued operations. As an emerging growth company, the standard is effective for us with respect to (a) all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015, and (b) all activities that, upon acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015. We currently anticipate that this standard will result in most of our disposals (if any) not qualifying for discontinued operations presentation.

In May 2014, the FASB issued ASC 606, “Revenue from Contracts with Customers.” This revenue standard contains principles that an entity should apply to determine the measurement of revenue and timing of when it should be recognized. This standard is effective for our fiscal year beginning January 1, 2017, and we are currently evaluating any impact from adoption.

In August 2014, the FASB issued Accounting Standards Update 2014–15 (“ASU 2014-15), “Presentation of Financial Statements — Going Concern (Subtopic 205 – 40): Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 requires management to evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, and to provide certain disclosures when it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. Since this guidance is primarily centered around certain disclosures to the financial statements, we anticipate no impact on our financial position, results of operations or cash flows from adopting this standard. We are currently assessing the additional disclosure requirements, if any, of ASU 2014-15. ASU 2014-15 is effective for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter, with early adoption permitted. We do not intend to opt for early adoption as an Emerging Growth Company.

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NOTE 3. REAL ESTATE AND LEASE INTANGIBLES

All of our properties are wholly-owned on a fee-simple basis. The following table provides certain summary information about our 32 farms as of December 31, 2014:

Property Name	Location	Date Acquired	Number of Farms		Total Acres		Farm Acres		Lease Expiration Date	Net Cost Basis(1)		Encumbrances
San Andreas	Watsonville, CA	6/16/1997		1		307		238	12/31/2020	$	4,826,248	$	4,220,586
West Gonzales	Oxnard, CA	9/15/1998		1		653		502	6/30/2020		12,406,298		21,473,134
West Beach	Watsonville, CA	1/3/2011		3		196		195	12/31/2023		8,979,337		4,111,433
Dalton Lane	Watsonville, CA	7/7/2011		1		72		70	11/1/2015		2,700,026		1,362,231
Keysville Road	Plant City, FL	10/26/2011		2		59		50	7/1/2016		1,232,260		—
Colding Loop	Wimauma, FL	8/9/2012		1		219		181	6/14/2018		3,925,704		—
Trapnell Road	Plant City, FL	9/12/2012		3		124		110	6/30/2017		4,106,218		2,655,000
38th Avenue	Covert, MI	4/5/2013		1		119		89	4/4/2020		1,449,670		650,552
Sequoia Street	Brooks, OR	5/31/2013		1		218		206	5/31/2028		3,521,564		1,503,888
Natividad Road	Salinas, CA	10/21/2013		1		166		166	10/31/2024		7,398,003		3,395,874
20th Avenue	South Haven, MI	11/5/2013		3		151		94	11/4/2018		1,884,981		970,250
Broadway Road	Moorpark, CA	12/16/2013		1		60		60	12/15/2023		2,935,348		1,455,375
Oregon Trail	Echo, OR	12/27/2013		1		1,895		1,640	12/31/2023		13,993,009		6,791,748
East Shelton	Willcox, AZ	12/27/2013		1		1,761		1,320	2/29/2024		7,760,059		3,250,336
Collins Road	Clatskanie, OR	5/30/2014		2		200		157	9/30/2024		2,532,950		—
Spring Valley	Watsonville, CA	6/13/2014		1		145		110	9/30/2016		5,882,738		2,862,237
McIntosh Road	Dover, FL	6/20/2014		2		94		78	6/30/2017		2,553,874		1,599,600
Naumann Road	Oxnard, CA	7/23/2014		1		68		64	7/31/2017		6,859,860		3,342,510
Sycamore Road	Arvin, CA	7/25/2014		1		326		322	10/31/2024		5,939,523		2,813,724
Wauchula Road	Duette, FL	9/29/2014		1		808		590	9/30/2024		13,772,371		8,155,762
Santa Clara Avenue	Oxnard, CA	10/29/2014		2		333		331	7/31/2015		24,497,797		12,128,121
Dufau Road	Oxnard, CA	11/4/2014		1		65		64	11/3/2017		6,099,925		3,675,000
				32		8,039		6,637		$	145,257,763	$	86,417,361

⁽¹⁾ Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets, excluding those allocated to above- and below-market lease values), plus subsequent improvements and other capitalized costs associated with the properties, and adjusted for depreciation and amortization accumulated through December 31, 2014.

Real Estate

The following table sets forth the components of our investments in tangible real estate assets as of December 31, 2014 and 2013:

	2014			2013
Real estate:
Land and land improvements	$	122,999,316		$	63,944,307
Irrigation system		12,365,514			6,007,845
Buildings and improvements		11,447,308			7,487,051
Horticulture		1,559,340			1,038,850
Real estate, gross		148,371,478			78,478,053
Accumulated depreciation		(4,431,290	)		(3,166,870	)
Real estate, net	$	143,940,188		$	75,311,183

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New Real Estate Activity

2014 New Real Estate Activity

During the year ended December 31, 2014, we acquired 11 new farms in 8 separate transactions, which are summarized in the table below.

Property Name	Property Location	Acquisition Date		Total Acreage		Number of Farms		Primary Crop(s)	Lease Term	Renewal Options	Total Purchase Price		Acquisition Costs			Annualized Straight- line Rent(1)		Debt Issued / Encumbrances
Collins Road	Clatskanie, OR		5/30/2014		200		2	Blueberries	10.3 years	3 (5 years each)	$	2,591,333	$	60,869	(4)	$	181,172	$	—
Spring Valley	Watsonville, CA		6/13/2014		145		1	Strawberries, Misc. Vegetables and Lilies	2.3 years	None		5,900,000		49,582	(4)		270,901		2,862,237	(6)
McIntosh Road	Dover, FL		6/20/2014		94		2	Strawberries	3.0 years	1 (3 years) /None(2)		2,666,000		60,939	(4)		133,154		1,599,600	(7)
Naumann Road	Oxnard, CA		7/23/2014		68		1	Strawberries and Raspberries	3.0 years	1 (3 years)		6,888,500		91,103	(4)		329,667		3,342,510	(6)
Sycamore Road	Arvin, CA		7/25/2014		326		1	Misc. Vegetables and Grain	1.3 years	None(3)		5,800,000		44,434	(4)		184,304		2,813,724	(6)
Wauchula Road	Duette, FL		9/29/2014		808		1	Strawberries, Misc. Vegetables, and Melons	10.0 years	2 (5 years each)		13,765,000		132,555	(5)		888,439		8,259,000	(7)
Santa Clara Avenue	Oxnard, CA		10/29/2014		333		2	Strawberries and Misc. Vegetables	0.8 years	1 (2 years)		24,592,000		100,603	(4)		1,231,422		12,128,121	(6)
Dufau Road	Oxnard, CA		11/4/2014		65		1	Strawberries and Misc. Vegetables	3.0 years	1 (3 years)		6,125,600		61,474	(4)		304,607		3,675,000	(7)
					2,039		11				$	68,328,433	$	601,559		$	3,523,666	$	34,680,192

⁽¹⁾ Annualized straight-line amount is based on the minimum rental payments required per the lease and includes the amortization of any above-market and below-market lease values recorded.

⁽²⁾ This property has a separate tenant leasing each of the property’s two farms. One lease provides for one 3-year renewal option, while the other does not include a renewal option.

⁽³⁾ Upon acquisition of this property, we assumed the in-place lease, which expires October 31, 2015. In addition, we executed a 9-year, follow-on lease with a new tenant that commences November 1, 2015. Under the terms of the follow-on lease, the tenant has one 3-year renewal option, and annualized, straight-line rents will be $311,760.

⁽⁴⁾ Acquisition accounted for as a business combination under ASC 805. As such, all acquisition-related costs were expensed as incurred, other than direct leasing costs, which were capitalized. In aggregate, we incurred $21,409 of direct leasing costs in connection with these acquisitions.

⁽⁵⁾ Acquisition accounted for as an asset acquisition under ASC 360. As such, all acquisition-related costs were capitalized and allocated among the identifiable assets acquired.

⁽⁶⁾ Acquisition funded through a draw on our New MetLife Credit Facility. Amount represents property’s proportionate share of the total borrowings outstanding under the New MetLife Credit Facility as of December 31, 2014, in relation to all properties pledged as collateral under the facility.

⁽⁷⁾ Represents new debt issued under various facilities; see Note 5, “Borrowings.”

As noted in the table above, certain acquisitions during the year ended December 31, 2014, were accounted for as business combinations in accordance with ASC 805, as there was a leasing history on the property or a lease in place that we assumed upon acquisition. As such, the fair value of all assets acquired and liabilities assumed were determined in accordance with ASC 805, and all acquisition-related costs were expensed as incurred, other than those costs that directly related to reviewing or assigning leases we assumed upon acquisition, which were capitalized as part of leasing costs. For acquisitions accounted for as asset acquisitions under ASC 360, the acquisition-related costs were capitalized and included as part of the fair value allocation of the identifiable tangible assets acquired. Further, for those transactions treated as asset acquisitions, none of the purchase price was allocated to intangible assets or liabilities; however, direct costs we incurred in connection with originating the new leases on the properties were capitalized.

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We determined the fair value of acquired assets and liabilities assumed related to the properties acquired during the year ended December 31, 2014, to be as follows:

Property Name	Land and Land Improvements		Buildings and Improvements		Irrigation System		Horticulture(1)		In-place Leases		Leasing Costs(2)		Customer Relationships		Above- (Below)- Market Leases			Total Acquisition Cost
Collins Road	$	1,252,388	$	682,385	$	—	$	520,993	$	45,086	$	71,085	$	24,796	$	—		$	2,596,733
Spring Valley		5,576,138		5,781		200,855		—		83,487		17,998		66,217		(49,976	)		5,900,500
McIntosh Road		1,970,074		33,592		537,254		—		34,674		18,041		27,966		45,674			2,667,275
Naumann Road		6,219,293		433,087		71,586		—		75,520		41,012		54,786		—			6,895,284
Sycamore Road		5,840,750		—		67,000		—		48,670		7,364		—		(160,184	)		5,803,600
Wauchula Road		8,466,185		1,904,941		3,521,229		—		—		5,200		—		—			13,897,555
Santa Clara Avenue		23,672,902		163,140		187,314		—		310,119		30,353		229,372		—			24,593,200
Dufau Road		5,859,721		3,021		88,827		—		71,654		32,778		52,720		19,529			6,128,250
	$	58,857,451	$	3,225,947	$	4,674,065	$	520,993	$	669,210	$	223,831	$	455,857	$	(144,957	)	$	68,482,397

⁽¹⁾  Horticulture acquired on Collins Road consists of various types of blueberry bushes.

⁽²⁾  Leasing commissions represent the allocable portion of the purchase price, as well as direct costs that were incurred related to reviewing and assigning leases we assumed upon acquisition. Direct leasing costs incurred in connection with properties acquired during the year ended December 31, 2014, that were accounted for as business combinations under ASC 805 totaled $21,409.

Below is a summary of the total operating revenues and earnings recognized on the properties acquired during the year December 31, 2014:

Property Name	Acquisition Date	Operating Revenues(1)		Earnings(2)
Collins Road	5/30/2014	$	106,658	$	33,303
Spring Valley	6/13/2014		148,996		81,073
McIntosh Road	6/20/2014		58,021		(22,902	)(3)
Naumann Road	7/23/2014		145,337		104,726
Sycamore Road	7/25/2014		80,328		39,574
Wauchula Road	9/29/2014		226,978		101,794
Santa Clara Avenue	10/29/2014		212,078		73,833
Dufau Road	11/4/2014		48,229		32,807
		$	1,026,625	$	444,208

⁽¹⁾  Includes the amortization of any above—and below—market lease values recorded.

⁽²⁾  Earnings are calculated as net income less interest expense (if debt was issued to acquire the property), income taxes and any acquisition—related costs that are required to be expensed if the acquisition is treated as a business combination under ASC 805.

⁽³⁾ Includes $43,328 of lease intangibles that were written off during the three months ended September 30, 2014, related to the termination of a lease in September 2014 that we had assumed upon acquisition. The property was immediately re—leased to a new tenant at similar rental rates.

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2013 New Real Estate Activity

During the year ended December 31, 2013, we acquired nine new farms in seven separate transactions, which are summarized in the table below.

Property Name	Property Location	Acquisition Date		Total Acreage		Number of Farms		Primary Crop(s)	Lease Term	Renewal Options	Total Purchase Price		Acquisition Costs			Annualized Straight- line Rent(1)
38th Avenue	Covert, MI		4/5/2013		119		1	Blueberries	7 years	1 (7 years)	$	1,341,000	$	38,200	(4)	$	87,286
Sequoia Street	Brooks, OR		5/31/2013		218		1	Blueberries	15 years	3 (5 years each)		3,100,000		108,211	(4)		193,617
Natividad Road	Salinas, CA		10/21/2013		166		1	Strawberries & Raspberries	2 years(3)	None(3)		7,325,120		47,850	(5)		439,575
20th Avenue	South Haven, MI		11/5/2013		151		3	Blueberries	5 years	1 (5 years)		1,985,000		34,479	(4)		129,755
Broadway Road	Moorpark, CA		12/16/2013		60		1	Lemons(2)	10 years	1 (10 years)		3,000,000		27,528	(4)		171,958
Oregon Trail	Echo, OR		12/27/2013		1,895		1	Corn, Onions & Potatoes	10 years	3 (5 years each)		13,855,000		213,458	(4)		758,480
East Shelton	Willcox, AZ		12/27/2013		1,761		1	Corn & Dry edible beans	10 years	None		6,700,000		50,691	(4)		290,284
					4,370		9				$	37,306,120	$	520,417		$	2,070,955

⁽¹⁾ Annualized straight-line amount is based on the minimum rental payments required per the lease and includes the amortization of any above-market and below-market lease values recorded.

⁽²⁾ Beginning in 2015, this property will be farmed for blueberries and avocados.

⁽³⁾ Upon acquisition of the property, we assumed a lease with two years remaining on it. T his lease originally provided for one, three-year extension option; however, the right to this option was waived by the tenant. In connection with assuming this lease, we recorded a below-market lease liability of $161,547. In addition, the Company executed a nine-year, follow-on lease with a separate tenant to commence at the expiration of the assumed lease. T he follow-on lease includes one, five-year renewal option and provides for prescribed rent escalations over the term of the lease, with annualized, straight-line rents of $413,476.

⁽⁴⁾ Acquisition accounted for as an asset acquisition under ASC 360. As such, all acquisition-related costs were capitalized and allocated among the identifiable assets acquired.

⁽⁵⁾ Acquisition accounted for as a business combination under ASC 805. As such, all acquisition-related costs were expensed as incurred, other than direct leasing costs, which were capitalized. We incurred $4,915 of direct leasing costs in connection with this acquisition.

All of the acquisitions in the table above were purchased using proceeds from the January 2013 IPO (as defined in Note 6, “Stockholders’ Equity—2013 Initial Public Offering”); thus, no additional debt was issued to finance either transaction.

As noted in the table above, certain acquisitions during the year ended December 31, 2013, were accounted for as business combinations in accordance with ASC 805, as there was a leasing history on the property or a lease in place that we assumed upon acquisition. As such, the fair value of all assets acquired and liabilities assumed were determined in accordance with ASC 805, and all acquisition-related costs were expensed as incurred, other than those costs that directly related to reviewing or assigning leases we assumed upon acquisition, which were capitalized as part of leasing costs. For acquisitions accounted for as asset acquisitions under ASC 360, the acquisition-related costs were capitalized and included as part of the fair value allocation of the identifiable tangible assets acquired. Further, for those transactions treated as asset acquisitions, none of the purchase price was allocated to intangible assets; however, direct costs we incurred in connection with originating the new leases on the properties were capitalized.

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We determined the fair value of acquired assets and liabilities assumed related to the properties acquired during the year ended December 31, 2013, to be as follows:

Property Name	Land and Land Improvements		Buildings and Irrigation Improvements		System		Horticulture(1)		In-place Leasing		Leases Costs(2)		Below- Market Leases			Total Acquisition Cost
38th Avenue	$	646,522	$	42,660	$	239,768$		446,408	$	—	$	3,842	$	—		$	1,379,200
Sequoia Street		2,494,911		279,496		424,268		—		—		9,535		—			3,208,210
Natividad Road		7,186,774		19,199		144,915		—		110,753		29,941		(161,547	)		7,330,035
20th Avenue		805,677		281,160		441,415		488,604		—		2,623		—			2,019,479
Broadway Road		2,851,353		50,114		22,727		103,334		—		—		—			3,027,528
Oregon Trail		12,941,092		—		1,118,640		—		—		8,726		—			14,068,458
East Shelton		6,175,702		131,434		441,573		—		—		1,982		—			6,750,691
	$	33,102,031	$	804,063	$	2,833,306	$	1,038,346	$	110,753	$	56,649	$	(161,547	)	$	37,783,601

⁽¹⁾  Horticulture acquired on 38th Avenue and 20th Avenue consists of various types of high-bush variety blueberry bushes. Horticulture acquired on Broadway Road consits of an orchard of lemon trees.

⁽²⁾ Leasing commissions represent the allocable portion of the purchase price, as well as direct costs that were incurred related to reviewing and assigning leases we assumed upon acquisition. Direct leasing costs incurred in connection with properties acquired during the year ended December 31, 2014, that were accounted for as business combinations under ASC 805 totaled $21,408.

Below is a summary of the total operating revenues and earnings recognized on the properties acquired during the year December 31, 2013:

Property Name	Acquisition Date	Revenues Operating(1)		Earnings(2)
38th Avenue	4/5/2013	$	64,494	$	35,996
Sequoia Street	5/31/2013		112,944		83,262
Natividad Road	10/21/2013		86,510		63,133
20th Avenue	11/5/2013		20,184		6,919
Broadway Road	12/16/2013		7,396		3,713
Oregon Trail	12/27/2013		10,195		10,154
East Shelton	12/27/2013		3,715		3,283
		$	305,438	$	206,460

⁽¹⁾ Includes the amortization of any below-market lease values recorded.

⁽²⁾ Earnings are calculated as net income less interest expense (if debt was issued to acquire the property), income taxes and any acquisition-related costs that are required to be expensed if the acquisition is treated as a business combination under ASC 805.

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Acquired Intangibles and Liabilities

For acquisitions treated as business combinations, the purchase price was allocated to the identifiable intangible assets and liabilities in accordance with ASC 805. No purchase price was allocated to any intangible assets or liabilities related to acquisitions treated as asset acquisitions under ASC 360; however, the direct costs we incurred in connection with originating new leases or reviewing existing leases were capitalized over the lives of the respective leases. The following table shows the weighted-average amortization period, in years, for the intangible assets acquired and liabilities assumed in connection with the new properties acquired during the years ended December 31, 2014 and 2013:

Intangible Assets and Liabilities	2014		2013
In-place leases		2.2		2.0
Leasing commissions		5.1		7.0
Tenant relationships		4.7		—
Above-market lease values		3.0		—
Below-market lease values		1.5		2.0
All intangible assets and liabilities		3.3		2.9

Pro-Forma Information

We acquired 11 farms during the year ended December 31, 2014, and 9 farms during the year ended December 31, 2013. The following table reflects pro-forma consolidated financial information as if the properties were acquired at the beginning of the previous period. The table below reflects pro-forma financials for all farms acquired, regardless of whether they were treated as asset acquisitions or business combinations.

	For the Years Ended December 31,
	2014			2013
	(Unaudited)			(Unaudited)
Operating Data:
Total operating revenue	$	8,547,496		$	9,113,902
Total operating expenses		(6,287,653	)		(5,183,279	)
Other expenses		(2,902,815	)		(2,760,914	)
Net income before income taxes		(642,972	)		1,169,708
Provision for income taxes		(26,502	)		(1,519,730	)
Net income	$	(669,474	)	$	(350,022	)
Share and Per-share Data:
Earnings per share of common stock - basic and diluted	$	(0.09	)	$	(0.05	)
Weighted average common shares outstanding - basic and diluted		7,563,060			7,443,197

The pro-forma consolidated results are prepared for informational purposes only. They are not necessarily indicative of what our consolidated financial condition or results of operations actually would have been assuming the acquisitions had occurred at the beginning of the respective previous periods, nor do they purport to represent our consolidated financial position or results of operations for future periods.

Significant Existing Real Estate Activity

On January 20, 2014, we completed the work for the expansion and upgrade of the cooling facility on Trapnell Road, for which we agreed to incur the costs, up to a maximum of $450,000. We expended a total of $446,108 in connection with this project, and, in accordance with the lease amendment executed on October 21, 2013, we will earn additional rental income on the costs incurred related to this project at an initial annual rate of 8.5% of the total cost, with prescribed rental escalations provided for in the lease.

On March 27, 2014, we executed a lease with a new tenant to occupy West Beach that commenced on November 1, 2014, as the lease term with the current tenants on the property expired on October 31, 2014. The new lease term is for 9 years, through December 31, 2023, and provides for prescribed rent escalations over its life, with minimum annualized straight-line rental income of $540,469, representing a 20.7% increase over that of the current lease.

On June 17, 2014, we extended the lease with the tenant occupying San Andreas, which was originally set to expire in December 2014. The lease was extended for an additional 6 years, through December 2020, and provides for rent escalations over its life, with minimum annualized, straight-line rental income of $566,592, representing a 31.3% increase over that of the previous lease.

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In July 2014, we completed an irrigation upgrade project on 1,761 acres of farmland near Willcox, Arizona, for which we rehabilitated several of the 13 existing wells on the property, in addition to adding two new wells. The total cost of this project was approximately $1.2 million, of which $336,000 was expected at acquisition and accounted for in the rental stream included in the original lease. To account for the additional costs incurred, on October 22, 2014, we executed a lease amendment with the current tenant on the property to provide for an additional $37,791 of annualized, straight-line rent.

Involuntary Conversions and Property and Casualty Recovery

In April 2014, two separate fires occurred on two of our properties, partially damaging a structure on each property. One occurred on 20^th Avenue, on which the majority of a residential house was destroyed by a fire. We determined the carrying value of the portion of the residential house damaged by the fire to be $94,243. The second fire occurred on West Gonzales and damaged a portion of the cooling facility on the property. We determined the carrying value of the portion of the cooling facility damaged by the fire to be approximately $138,494. Thus, we wrote down the carrying value of these properties on the accompanying Consolidated Balance Sheets by these respective amounts, and, in accordance with ASC 605, we also recorded a corresponding property and casualty loss, which is included in Property and casualty recovery, net on the accompanying Consolidated Statements of Operations.

Both of the assets were insured, either by us or the tenant, at the time of the fires. As a result of the fire on 20^th Avenue, insurance proceeds of $61,500 were recovered during the year ended December 31, 2014. Thus, in accordance with ASC 450, during the year ended December 31, 2014, we recorded this recovery as an offset to the property and casualty loss we recorded earlier in the year, and such recovery is included as part of Property and casualty recovery, net on the accompanying Consolidated Statements of Operations. In connection with the fire on West Gonzales, insurance proceeds of $434,200 were recovered during the year ended December 31, 2014; thus, we recorded this amount as an offset to the property and casualty loss we recorded earlier in the year, and such recovery is included as part of Property and casualty recovery, net on the accompanying Consolidated Statements of Operations. We expect to recover at least an additional $35,648 for these repairs, and we have received confirmation from the insurer regarding payment of at least this amount. Thus, we have recorded this expected recovery as a receivable and a corresponding liability, included in Other assets and Other liabilities, respectively, on the accompanying Consolidated Balance Sheets. We will recognize this amount and any other insurance recoveries as a gain upon receipt. We continue to assess the total amount expected to be recovered for each of these events, as well as the collectability of such amounts; thus, no further offsets to the property and casualty loss we recorded earlier in the year have been recorded at this time.

Repairs are still ongoing on West Gonzales, and, during the year ended December 31, 2014, we expended $496,784 in repairs and upgrades to the cooler as a result of the fire. Of this amount, $407,096 was capitalized as a real estate addition, and $89,688 was recorded as repairs and maintenance expense, included in Property operating expense on the accompanying Consolidated Statements of Operations. Repairs on 20^th Avenue are expected to begin in 2015.

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Intangible Assets and Liabilities

The following table summarizes the carrying value of lease intangibles and the accumulated amortization for each intangible asset or liability class as of December 31, 2014 and 2013:

	2014						2013
	Lease Intangibles			Accumulated Amortization			Lease Intangibles			Accumulated Amortization
In-place leases	$	869,207		$	(263,428	)	$	397,728		$	(241,697	)
Leasing costs		357,210			(80,617	)		146,558			(34,727	)
Tenant relationships		501,670			(66,467	)		93,187			(49,985	)
	$	1,728,087		$	(410,512	)	$	637,473		$	(326,409	)
	Deferred Rent Asset (Liability)			Accumulated (Amortization) Accretion			Deferred Rent Liability			Accumulated Accretion
Above-market lease values	$	65,203		$	(9,027	)	$	—		$	—
Below-market lease values		(371,707	)		162,194			(260,356	)		114,469
	$	(306,504	)	$	153,167		$	(260,356	)	$	114,469

The estimated aggregate amortization expense to be recorded related to in-place leases, leasing costs and tenant relationships and the estimated net impact on rental income from the amortization of above- and below-market lease values for each of the five succeeding fiscal years and thereafter is as follows:

Period	Estimated Amortization Expense		Estimated Net Increase (Decrease) in Rental Revenue
For the fiscal years ending December 31:     2015	$	676,448	$	171,636
2016		289,465		(5,284	)
2017		161,781		(13,015	)
2018		41,254		—
2019		38,542		—
Thereafter		110,085		—
	$	1,317,575	$	153,337

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Lease Expirations

The following table summarizes the lease expirations by year for our properties with leases in place as of December 31, 2014:

Year	Number of Expiring Leases		Expiring Leased Acreage		% of Total Acreage			Rental Revenue for the Year Ended December 31, 2014		% of Total Rental Revenue
2015(1)		4		405		5.0	%	$	386,642		5.4	%
2016		2		204		2.5	%		217,331		3.0	%
2017		7		351		4.4	%		424,737		5.9	%
2018		3		370		4.6	%		364,803		5.1	%
2019		0		0		0.0	%		—		0.0	%
Thereafter		12		6,709		83.5	%		5,776,805		80.6	%
Totals		28		8,039		100.0	%	$	7,170,318		100.0	%

⁽¹⁾  Includes a surface area lease on a portion of one property leased to an oil company that is renewed on a year-to-year basis.

Future Lease Payments

Future operating lease payments from tenants under all non-cancelable leases, excluding tenant reimbursement of expenses, for each of the five succeeding fiscal years and thereafter as of December 31, 2014, are as follows:

Period	Tenant Lease Payments
For the fiscal years ending December 31:     2015	$	7,735,500
2016		8,205,815
2017		7,494,621
2018		6,882,291
2019		6,919,095
Thereafter		19,581,336
	$	56,818,658

In accordance with the lease terms, substantially all operating expenses are required to be paid by the tenant; however, we would be required to pay real estate property taxes on the respective parcels of land in the event the tenants fail to pay them. The aggregate annual real estate property taxes for all parcels of land owned by us as of December 31, 2014, are approximately $997,000. As of December 31, 2014, due to the terms of certain of our leases, we are responsible for approximately $457,000 of this annual amount.

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Portfolio Diversification and Concentrations

Diversification

The following table summarizes the geographic locations of our properties with leases in place as of December 31, 2014 and 2013:

	As of and For the Year Ended December 31, 2014												As of and For the Year Ended December 31, 2013
State	Number of Farms		Total Acres		% of Total Acres			Rental Revenue		% of Total Rental Revenue			Number of Farms		Total Acres		% of Total Acres			Rental Revenue		% of Total Rental Revenue
California		14		2,391		29.7	%	$	4,778,579		66.6	%		8		1,454		24.2	%	$	3,362,020		83.5	%
Oregon		4		2,313		28.8	%		1,080,105		15.1	%		2		2,113		35.2	%		123,138		3.0	%
Florida		9		1,304		16.2	%		759,398		10.6	%		6		402		6.7	%		454,135		11.3	%
Arizona		1		1,761		21.9	%		299,785		4.2	%		1		1,761		29.4	%		3,715		0.1	%
Michigan		4		270		3.4	%		252,451		3.5	%		4		270		4.5	%		84,679		2.1	%
		32		8,039		100.0	%	$	7,170,318		100.0	%		21		6,000		100.0	%	$	4,027,687		100.0	%

Concentrations

Credit Risk

All of our farms are leased to unrelated, third-party tenants. Two of our farms are leased to the same tenant, Dole Food Company (“Dole”). As of December 31, 2014, 960 acres were leased to Dole, representing 11.9% of the total acreage we owned. Furthermore, aggregate rental income attributable to Dole accounted for approximately $2.9 million, or 40.4%, of the rental revenue recorded during the year ended December 31, 2014. Rental income from Dole accounted for 66.2% of the total rental revenue recorded during the year ended December 31, 2013. In addition, a separate tenant accounted for approximately 10.6% of the total rental revenue recorded during the year ended December 31, 2014. If either of these tenants fails to make rental payments or elects to terminate either of their leases, and the land cannot be re-leased on satisfactory terms, there would be a material adverse effect on our financial performance and ability to continue operations. No other individual tenant represented greater than 10.0% of the total rental revenue recorded during the years ended December 31, 2014 or 2013.

Geographic Risk

14 of our 32 farms owned as of December 31, 2014, are located in California. As of December 31, 2014, our farmland in California accounted for 2,391 acres, or 29.7% of the total acreage we owned. Furthermore, these farms accounted for approximately $4.8 million, or 66.6%, of the rental revenue recorded during the year ended December 31, 2014. Rental revenue from our farms in California accounted for 83.5% of the total rental income recorded by us during the year ended December 31, 2013. However, our farms are spread across 3 of the many different growing regions within California. In addition, our farms in Oregon accounted for approximately 15.1% of the rental revenue recorded during the year ended December 31, 2014, and our farms in Florida accounted for approximately 10.6% and 11.3% of the rental revenue recorded during the years ended December 31, 2014 and 2013, respectively. Though we seek to continue to further diversify geographically, as may be desirable or feasible, should an unexpected natural disaster occur where our properties are located, there could be a material adverse effect on our financial performance and ability to continue operations. No other single state accounted for more than 10.0% of the total rental revenue recorded during the years ended December 31, 2014 or 2013.

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Active Purchase and Sale Agreements

As of December 31, 2014, we were entered into the following purchase agreements:

Date Entered Into	Gross Acres		State		Primary Crop(s)		Purchase Price
9/29/2014		63		CA		Strawberries	$	3,800,000	(1)
12/17/2015		331		CA		Strawberries		16,964,021	(2)
		394					$	20,764,021

⁽¹⁾  Agreement was terminated on January 20, 2015, and the related deposit of $100,000, which deposit is included in Other Assets on our Consolidated Balance Sheet as of December 31, 2014, was returned to us.

⁽²⁾  Acquisition was completed on January 5, 2015. See Note 10, “Subsequent Events,” for further discussion on the acquisition of this property.

NOTE 4. RELATED-PARTY TRANSACTIONS

We are externally managed pursuant to contractual arrangements with our Adviser and our Administrator, which collectively employ all of our personnel and pay their salaries, benefits and general expenses directly. We had an advisory agreement with our Adviser that was in effect through January 31, 2013 (the “Prior Advisory Agreement”), which we and our Adviser amended, effective February 1, 2013 (the “Amended Advisory Agreement”). We also had an administration agreement with our Administrator that was in effect through January 31, 2013 (the “Prior Administration Agreement”), which we and our Administrator amended, effective February 1, 2013 (the “Amended Administration Agreement”). The management and administrative services and fees under both of these agreements are described below.

Prior Advisory and Administration Agreements

Prior Advisory Agreement

We entered into the Prior Advisory Agreement with our Adviser in 2004, pursuant to which the Adviser was responsible for managing us on a day-to-day basis and for identifying, evaluating, negotiating and consummating investment transactions consistent with our criteria. In exchange for such services, we paid the Adviser a management advisory fee, which consisted of the reimbursement of certain expenses of the Adviser. We reimbursed our Adviser for our pro-rata share of our Adviser’s payroll and related benefit expenses on an employee-by-employee basis, based on the percentage of each employee’s time devoted to our matters in relation to the time such employees devoted to all affiliated funds, collectively, advised by our Adviser. We also reimbursed the Adviser for general overhead expenses multiplied by the ratio of hours worked by the Adviser’s employees on Company matters to the total hours worked by the Adviser’s employees. We compensated our Adviser through reimbursement of our portion of the Adviser’s payroll, benefits and general overhead expenses. This reimbursement was generally subject to a combined annual management advisory fee limitation of 2.0% of our average invested assets for the year, with certain exceptions. Reimbursement for overhead expenses was only required up to the point that reimbursed overhead expenses and payroll and benefits expenses, on a combined basis, equaled 2.0% of our average invested assets for the year, and general overhead expenses were required to be reimbursed only if the amount of payroll and benefits reimbursed to the Adviser was less than 2.0% of our average invested assets for the year. However, payroll and benefits expenses were required to be reimbursed by us to the extent that they exceed the overall 2.0% annual management advisory fee limitation. To the extent that overhead expenses payable or reimbursable by us exceeded this limit and our independent directors determined that the excess expenses were justified based on unusual and nonrecurring factors which they deemed sufficient, we were permitted to reimburse the Adviser in future years for the full amount of the excess expenses, or any portion thereof, but only to the extent that the reimbursement would not have caused our overhead expense reimbursements to exceed the 2.0% limitation in any one year. The management advisory fee under the Prior Advisory Agreement never exceeded the annual cap.

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Prior Administration Agreement

We entered into the Prior Administration Agreement with our Administrator, effective January 1, 2010, as amended on June 1, 2011, pursuant to which we paid for our allocable portion of our Administrator’s overhead expenses in performing its obligations to us, including, but not limited to, rent and the salaries and benefits of our chief financial officer and treasurer, chief compliance officer, internal counsel and secretary and their respective staffs. We compensated our Administrator through reimbursement of our portion of the Administrator’s payroll, benefits and general overhead expenses.

Amended and Restated Advisory and Administration Agreements

On February 1, 2013, we entered into each of the Amended Advisory Agreement and the Amended Administration Agreement.

Amended Advisory Agreement

Base Management Fee

Pursuant to the Amended Advisory Agreement that went into effect on February 1, 2013, we pay an annual base management fee equal to a percentage of our adjusted stockholders’ equity, which is defined as our total stockholders’ equity at the end of each quarter less the recorded value of any preferred stock we may issue and, for 2013 only, any uninvested cash proceeds from the IPO. For 2013, the base management fee was set at 1.0% of our adjusted stockholders’ equity; however, beginning January 1, 2014, we pay a base management equal to 2.0% of our adjusted stockholders’ equity, which no longer excludes uninvested cash proceeds from the IPO.

Incentive Fee

Pursuant to the Amended Advisory Agreement, we also pay an additional quarterly incentive fee based on funds from operations (“FFO”). For purposes of calculating the incentive fee, our FFO, before giving effect to any incentive fee (our “Pre-Incentive Fee FFO”) will include any realized capital gains or losses, less any distributions paid on our preferred stock, but will not include any unrealized capital gains or losses. The incentive fee will reward our Adviser if our Pre-Incentive Fee FFO for a particular calendar quarter exceeds a hurdle rate of 1.75% (7% annualized) of our total stockholders’ equity at the end of the quarter. Our Adviser will receive 100% of the amount of the Pre-Incentive Fee FFO for the quarter that exceeds the hurdle rate but is less than 2.1875% of our total stockholders’ equity at the end of the quarter (8.75% annualized), and 20% of the amount of our Pre-Incentive Fee FFO that exceeds 2.1875% for the quarter.

For the three months ended March 31, 2013, we paid an incentive fee to our Adviser of $41,037; however, during the three months ended June 30, 2013, our Adviser issued a one-time, irrevocable waiver equal to the full amount of the incentive fee paid for the three months ended March 31, 2013, and such fee was credited to us during the three months ended June 30, 2013. There was no incentive fee earned by our Adviser for the years ended December 31, 2014, 2013 or 2012, as our Pre-Incentive Fee FFO did not exceed the hurdle rate.

Amended Administration Agreement

Pursuant to the Amended Administration Agreement that went into effect on February 1, 2013, we pay for our allocable portion of the Administrator’s expenses incurred while performing services to us, including, but not limited to, rent and the salaries and benefits expenses of our Administrator’s employees, including our chief financial officer, treasurer, chief compliance officer, general counsel and secretary (who also serves as our Administrator’s president) and their respective staffs. From February 1, 2013, through June 30, 2014, our allocable portion of these expenses was generally derived by multiplying that portion of the Administrator’s expenses allocable to all funds managed by the Adviser by the percentage of our total assets at the beginning of each quarter in comparison to the total assets of all funds managed by our Adviser.

As approved by our Board of Directors, effective July 1, 2014, our allocable portion of the Administrator’s expenses is now generally derived by multiplying our Administrator’s total expenses by the approximate percentage of time the Administrator’s employees perform services for us in relation to their time spent performing services for all companies serviced by our Administrator under similar contractual agreements. This change in methodology resulted in an increase in the fee we paid to our Administrator of approximately 137% for the six months ended December 31, 2014, as compared to the first six months of the fiscal year.

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The following table summarizes the management fees, incentive fees and associated credits and the administration fees reflected in our accompanying Consolidated Statements of Operations:

	For the Years Ended December 31,
	2014		2013			2012
Management Fee:
Allocated payroll and benefits	$	—	$	38,668		$	224,931
Allocated overhead expenses		—		7,538			42,349
Prior management advisory fee(1)		—		46,206			267,280
Amended base management fee(2)		1,079,534		149,403			—
Total management fee(3)	$	1,079,534	$	195,609		$	267,280
Incentive Fee:
Incentive Fee(3)(4)	$	—	$	41,037		$	—
Credit from voluntary, irrevocable waiver
by Adviser’s board of directors(3)(4)		—		(41,037	)		—
Net incentive fee	$	—	$	—		$	—
Administration Fee:
Allocated payroll and benefits	$	—	$	14,034		$	143,381
Allocated overhead expenses		—		4,498			37,017
Prior administration fee(1)		—		18,532			180,398
Amended administration fee(2)		442,584		175,932			—
Total administration fee(3)	$	442,584	$	194,464		$	180,398

⁽¹⁾  Pursuant to the Prior Advisory and Administration Agreements, respectively, as defined and described in further detail above, both of which were terminated on January 31, 2013.

⁽²⁾  Pursuant to the Amended Advisory and Administration Agreements, respectively, as defined and described in further detail above, both of which became effective on February 1, 2013.

⁽³⁾  Reflected as a line item on our accompanying Consolidated Statements of Operations.

⁽⁴⁾  An incentive fee of $41,037 was paid to our Adviser for the three months ended March 31, 2013; however, during the three months ended June 30, 2013, our Adviser issued a one-time, voluntary and irrevocable waiver equal to the full amount of the incentive fee due and payable to the Adviser for the three months ended March 31, 2013.

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Related Party Fees Due

Amounts due to related parties on our accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013 were as follows:

	2014		2013
Management fee due to Adviser	$	301,487	$	91,823
Other due to Adviser(1)		3,187		9,834
Total due to Adviser		304,674		101,657
Administration fee due to Administrator		166,427		59,062
Total due to Administrator		166,427		59,062
Total due to related parties(2)	$	471,101	$	160,719

⁽¹⁾  Other fees due to related parties primarily relate to miscellaneous general and administrative expenses paid by our Adviser or Administrator on our behalf.

⁽²⁾ Reflected as a line item on our accompanying Consolidated Balance Sheets.

NOTE 5. BORROWINGS

Our borrowings as of December 31, 2014 and 2013 are summarized below:

							As of December 31, 2014								As of December 31, 2013
Issuer	Type of Issuance	Date of Issuance	Initial Commitment		Maturity Date		Principal Outstanding		Stated Interest Rate			Undrawn Commitment			Principal Outstanding			Stated Interest Rate			Undrawn Commitment
MetLife	Mortgage Note Payable	12/30/2010	$	45,200,000		1/5/2026	$	—		N/A		$	—		$	43,054,165	(1)		3.50	%	$	—
MetLife	Line of Credit	5/23/2012		4,785,000		4/5/2017		—		N/A			—			100,000	(1)		3.25	%		4,685,000
MetLife	Mortgage Note Payable	5/9/2014		100,000,000		1/5/2029		66,331,998		3.61	%(2)		33,668,002	(3)		—			N/A			—
MetLife	Line of Credit	5/9/2014		25,000,000		4/5/2024		4,000,000		2.75	%		21,000,000	(3)		—			N/A			—
Farm Credit	Mortgage Note Payable	9/19/2014		2,655,000		8/1/2034		2,655,000		3.52	%(4)		—			—			N/A			—
Farm Credit	Mortgage Note Payable	9/19/2014		1,599,600		8/1/2034		1,599,600		3.52	%(4)		—			—			N/A			—
Farm Credit	Mortgage Note Payable	9/29/2014		8,259,000		8/1/2034		8,155,763		3.54	%(4)		—			—			N/A			—
Farmer Mac	Bond Payable	12/11/2014		75,000,000		12/11/2019		3,675,000		3.25	%(5)		71,325,000	(6)		—			N/A			—
						Totals:	$	86,417,361				$	125,993,002		$	43,154,165					$	4,685,000

⁽¹⁾ Indebtedness was fully repaid with the proceeds from the New MetLife Credit Facility, as defined below, and was terminated on May 9, 2014.

⁽²⁾ Represents the blended rate on the borrowings as of December 31, 2014.

⁽³⁾ Based on the properties that were pledged as collateral as of December 31, 2014, approximately $13.8 million of the remaining availability was available for us to draw.

⁽⁴⁾ Rate is before interest repatriation and is fixed through July 2017.

⁽⁵⁾ Rate is fixed through December 2019.

⁽⁶⁾ As of December 31, 2014, there was no additional availability to draw under this facility, as no additional properties had been pledged as collateral.

The weighted-average effective interest rate charged on all of our borrowings, excluding the impact of deferred financing costs and before any interest repatriation, was 3.6% for each of the years ended December 31, 2014 and 2013 and 3.7% for the year ended December 31, 2012.

MetLife Credit Facility

On December 30, 2010, we executed a loan agreement with Metropolitan Life Insurance Company (“MetLife”) in an amount not to exceed $45.2 million, pursuant to a long-term mortgage promissory note that was scheduled to mature on January 5, 2026 (the “Prior MetLife Note Payable”). The Prior MetLife Note Payable accrued interest at a rate of 3.50% per year and also included a commitment fee of 0.20% on any undrawn amounts. As of December 31, 2013, there was no remaining balance available under the Prior MetLife Note Payable.

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On May 23, 2012, we obtained a $4.8 million revolving line of credit with MetLife that was scheduled to mature on April 5, 2017 (the “Prior MetLife Line of Credit,” and, together with the Prior MetLife Note Payable, the “Prior MetLife Credit Facility”). The Prior MetLife Line of Credit was collateralized by a mortgage on San Andreas and bore interest at an annual rate equal to the three-month LIBOR plus 3.00%. Proceeds from the Prior MetLife Line of Credit were used to repay a $3.3 million revolving line of credit facility that we had entered into with Rabo Agrifinance in November 2002.

On May 9, 2014, we closed on a new mortgage loan facility and a new revolving line of credit MetLife for an aggregate amount of up to $125.0 million (the “New MetLife Credit Facility”), which replaced the Prior MetLife Credit Facility. The New MetLife Credit Facility consists of a $100.0 million long-term note payable (the “New MetLife Note Payable”) and a $25.0 million revolving equity line of credit (the “New MetLife Line of Credit”). Under the New MetLife Credit Facility, we may borrow up to 58% of the aggregate of the lower of cost or the appraised value of the real property pledged as collateral.

The New MetLife Note Payable is scheduled to mature on January 5, 2029, and we may not repay the note prior to maturity, except on one of the interest rate adjustment dates. Initial advances bear interest at a fixed rate of 3.50% per annum, plus an unused fee of 0.20% on undrawn amounts, and interest rates for subsequent disbursements are based on prevailing market rates at the time of such disbursements. The interest rates on the initial advance and any subsequent disbursements will be subject to adjustment every three years. If we have not drawn the full commitment amount of $100.0 million by December 31, 2016, MetLife has the option to be relieved of its obligation to disburse the additional funds under this loan. As of December 31, 2014, there was approximately $66.3 million outstanding under the New MetLife Note Payable that bore interest at a blended rate of 3.61% per annum.

The New MetLife Line of Credit is scheduled to mature on April 5, 2024, and advances will initially bear interest at a variable rate equal to the three-month LIBOR plus a spread of 2.50%, with a minimum annualized rate of 2.75%, plus an unused fee of 0.20% on undrawn amounts. The interest rate spread on borrowings under the New MetLife Line of Credit will be subject to adjustment in April 2017. As of December 31, 2014, there was $4.0 million outstanding under the New MetLife Line of Credit that bore interest at a rate of 2.75% per annum.

Similar to the Prior MetLife Credit Facility, the continuing ability to borrow under the New MetLife Credit Facility will be subject to our ongoing compliance with various affirmative and negative covenants, including with respect to liens, indebtedness, mergers and asset sales. The New MetLife Credit Facility also requires that we satisfy financial covenants on a consolidated basis at the end of each calendar quarter, including:

• a debt-to-asset-value ratio of equal to or less than sixty-five percent (65%);

• a net worth value in excess of $50,000,000;

• a debt-to-two-times-net-worth ratio of equal to or less than 0.65; and

• a rental-revenue-to-debt ratio of equal to or greater than 5.0%.

As of December 31, 2014, we were in compliance with all covenants.

Amounts owed under the New MetLife Credit Facility are guaranteed by us and each subsidiary of ours that owns a property pledged as collateral pursuant to the loan documents.

A portion of the proceeds from the New MetLife Credit Facility was used to repay amounts owed under the Prior MetLife Credit Facility. No early termination penalties or fees were incurred in connection with the repayment of the Prior MetLife Credit Facility. In connection with obtaining the New MetLife Credit Facility and the subsequent pledging of properties under the facility, as of December 31, 2014, we have incurred loan fees of $220,500 and aggregate financing costs, which includes legal fees, origination fees and administrative fees, of $614,646. In addition, $298,614 of unamortized deferred financing costs associated with our Prior MetLife Credit Facility was further deferred and are being amortized over the term of our New MetLife Credit Facility.

As of December 31, 2014, the following properties were pledged as collateral under the New MetLife Credit Facility: San Andreas, West Gonzales, West Beach, Dalton Lane, 38^th Avenue, Sequoia Street, Natividad Road, 20^th Avenue, Broadway Road, Oregon Trail, East Shelton, Spring Valley, Naumann Road, Sycamore Road and Santa Clara Avenue. With these properties pledged as collateral, as of December 31, 2014, we had the ability to draw an additional $13.8 million under the New MetLife Credit Facility. Subsequent to December 31, 2014, Collins Road was also pledged to the New MetLife Credit Facility, which provided us with approximately $1.6 million of additional availability.

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Farm Credit Notes Payable

On September 19, 2014, we, through certain subsidiaries of our Operating Partnership, closed on two loans from Farm Credit of Central Florida, FLCA (“Farm Credit”), in the aggregate amount of approximately $4.2 million. In addition, on September 29, 2014, we obtained an additional loan for approximately $8.3 million. As of December 31, 2014, aggregate borrowings from Farm Credit were approximately $12.4 million. (collectively, the “Farm Credit Notes Payable”).

The Farm Credit Notes Payable are scheduled to mature on August 1, 2034, and will bear interest (before interest repatriation) at a blended fixed rate of 3.53% per annum through July 31, 2017; thereafter, the interest rate will be equal to the one-month LIBOR, plus 2.875%. The original principal amounts borrowed from Farm Credit equaled approximately 60% of the aggregate appraised value of the real properties pledged as collateral under the Farm Credit Notes Payable.

Our agreement with Farm Credit contains various affirmative and negative covenants, including with respect to liens, indebtedness, mergers and asset sales. The Farm Credit Notes Payable also require us to satisfy financial covenants on a consolidated basis at the end of each calendar year, including having:

• a net worth value in excess of $50,000,000; and

• a maximum leverage ratio of equal to or less than sixty-five percent (65%).

As of December 31, 2014, we were in compliance with all covenants.

Certain amounts owed under the Farm Credit Notes Payable, limited to 12 months of principal and interest due under the loans, are guaranteed by us pursuant to the loan documents.

The proceeds from the Farm Credit Notes Payable were invested into the acquisition of three new farms during the three months ended September 30, 2014. In connection with the Farm Credit Notes Payable, we incurred loan fees of $78,211 and aggregate financing costs, which includes legal fees, origination fees and administrative fees, of $126,640.

As of December 31, 2014, the following properties were pledged as collateral under the Farm Credit Notes Payable: Trapnell Road, McIntosh Road and Wauchula Road.

Farmer Mac Facility

On December 5, 2014, we, through certain subsidiaries of our Operating Partnership, entered into a bond purchase agreement (the “Bond Purchase Agreement”) with Federal Agricultural Mortgage Corporation (“Farmer Mac”) and Farmer Mac Mortgage Securities Corporation (the “Bond Purchaser”), for a secured note purchase facility that provides for bond issuances up to an aggregate principal amount of $75.0 million (the “Farmer Mac Facility”).

Pursuant to the Bond Purchase Agreement, we may, from time to time, issue one or more bonds to the Bond Purchaser that will be collateralized by a security interest in one or more loans originated by us (pursuant to the Pledge and Security Agreement described below), which, in turn, will be secured by first liens on agricultural real estate owned by subsidiaries of ours. The interest rate for each bond issuances will be based on prevailing market rates at the time of such issuance, and prepayment of each bond issuance will not be permitted unless otherwise agreed upon by all parties to the Bond Purchase Agreement. The bonds issued will have a maximum aggregate, effective loan-to-value ratio of 60% of the underlying agricultural real estate, after giving effect to the overcollateralization obligations described below. If we have not issued bonds to the Bond Purchaser such that the aggregate bond issuances total $75.0 million by December 11, 2016, Farmer Mac has the option to be relieved of its obligation to purchase additional bonds under this facility.

On December 11, 2014, we completed an initial issuance under the Farmer Mac Facility, for which we received proceeds of approximately $3.7 million (the “Initial Issuance”). The Initial Issuance, which is non-amortizing and has a term of five years, will bear interest at a fixed rate of 3.25% per annum throughout its term.

Our ability to borrow under the Farmer Mac Facility is subject to our ongoing compliance with a number of customary affirmative and negative covenants, as well as financial covenants, including:

• a maximum leverage ratio of not more than 65%;

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• a minimum fixed charge coverage ratio of 1.4; and

• a minimum tangible net worth in excess of $50,000,000 (plus a certain percentage of future equity offerings).

As of December 31, 2014, we were in compliance with all covenants.

In connection with the Bond Purchase Agreement, on December 5, 2014, we also entered into a pledge and security agreement (the “Pledge and Security Agreement”) in favor of the Bond Purchaser and Farmer Mac, which provides for us to pledge, as collateral for bonds issued pursuant to the Farmer Mac Facility, all of our respective right, title, and interest in mortgage loans made by us, which, among other things, must have at all times a value of not less than 110% of the aggregate principal amount of the outstanding bonds held by the Bond Purchaser.

The Bond Purchase Agreement and the Pledge Agreement include customary events of default, the occurrence of any of which, after any applicable cure period, would permit the Bond Purchaser and Farmer Mac to, among other things, accelerate payment of all amounts outstanding under the Farmer Mac Facility and to exercise its remedies with respect to the pledged collateral, including foreclosure and sale of the agricultural real estate underlying the pledged mortgage loans.

Proceeds from the Initial Issuance were used to repay amounts owed under the New MetLife Line of Credit and for other general corporate purposes. In connection with the Farmer Mac Facility, we incurred aggregate financing costs, which include legal fees and administrative fees, of $41,781. As of December 31, 2014, only Dufau Road was pledged as collateral under the Farmer Mac Facility.

Subsequent to December 31, 2014, we issued an additional bond under the Farmer Mac Facility, for which we received proceeds of approximately $10.2 million, which proceeds were used to acquire a property that was simultaneously pledged as collateral under the facility. See Note 10, “Subsequent Events,” for further discussion on the bond issuance and property acquisition.

Debt Service—Aggregate Maturities

Scheduled principal payments of our aggregate borrowings as of December 31, 2014, for each of the five succeeding fiscal years and thereafter are as follows:

Period	Scheduled Principal Payments
For the fiscal years ending December 31:     2015	$	625,680
2016		2,947,300
2017		2,866,043
2018		2,787,631
2019		6,386,962
Thereafter		70,803,745
	$	86,417,361

Fair Value

ASC 820 provides a definition of fair value that focuses on the exchange (exit) price of an asset or liability in the principal, or most advantageous, market and prioritizes the use of market-based inputs to the valuation. ASC 820-10 establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

• Level 1—inputs are based upon quoted prices (unadjusted) for identical assets or liabilities in active markets;

• Level 2—inputs are based upon quoted prices for similar assets or liabilities in active or inactive markets or model-based valuation techniques, for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities;

• Level 3—inputs are generally unobservable and significant to the fair valuation measurement. These unobservable inputs are generally supported by little or no market activity and are based upon management’s estimates of assumptions that market participants would use in pricing the asset or liability.

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The fair value of the mortgage notes and bonds payable is valued using Level 3 inputs under the hierarchy established by ASC 820-10 and is calculated based on a discounted cash flow analysis, using discount rates based on management’s estimates of market interest rates on long-term debt with comparable terms.

As of December 31, 2014, the aggregate fair value of our mortgage notes and bonds payable was approximately $82.0 million, as compared to an aggregate carrying value of $82.4 million. Due to the revolving nature of our New MetLife Line of Credit and the lack of changes in market credit spreads, its fair value as of December 31, 2014, is deemed to approximate its carrying value of $4.0 million.

NOTE 6. STOCKHOLDERS’ EQUITY

2013 Initial Public Offering

On January 28, 2013, we priced our initial public offering (“IPO”) of 3,333,334 shares of our common stock at a public offering price of $15.00 per share, which closed on January 31, 2013. Including the underwriters’ option to cover over-allotments, which was exercised on February 19, 2013, we issued a total of 3,780,264 shares, resulting in gross proceeds of $56.7 million and net proceeds, after deducting underwriting discounts and offering expenses borne by us, of approximately $51.3 million. Approximately $37.9 million of these proceeds were invested in new property acquisitions, and an additional $1.7 million was expended or accrued for capital improvements on existing properties. In addition, $10.3 million was used to pay distributions to our stockholders, and the remainder was used for other general corporate purposes. As of December 31, 2014, there were no uninvested proceeds remaining from our IPO.

2014 Follow-on Offering

On September 24, 2014, we priced a follow-on public offering (the “Follow-on Offering”) of 1,150,000 shares of our common stock at a public offering price of $12.28 per share, which closed on September 29, 2014. In connection with the Follow-on Offering, we issued a total of 1,150,000 shares, resulting in gross proceeds of approximately $14.1 million and net proceeds, after deducting underwriting discounts and offering expenses borne by us, of approximately $13.2 million. $11.1 million of these proceeds were used to repay existing indebtedness, with the remainder being invested into new property acquisitions.

On October 24, 2014, the underwriters exercised a portion of their over-allotment option in connection with our Follow-on Offering, and, as a result, we issued an additional 73,453 shares. This transaction closed on October 29, 2014, and resulted in gross proceeds of approximately $902,000 and net proceeds, after deducting underwriting discounts and offering expenses borne by us, of approximately $843,000. These proceeds were used to repay existing indebtedness and for other general corporate purposes.

As of December 31, 2014, there were no uninvested proceeds remaining from our Follow-on Offering.

Distributions

The distributions to common stockholders declared by our Board of Directors and paid by us during the years ended December 31, 2014 and 2013 are reflected in the table below. No distributions were declared or paid during the year ended December 31, 2012.

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Fiscal Year	Declaration Date	Record Date	Payment Date	Distributions per Common Share
2014	January 7, 2014	January 22, 2014	January 31, 2014	$	0.03
	January 7, 2014	February 19, 2014	February 28, 2014		0.03
	January 7, 2014	March 17, 2014	March 31, 2014		0.03
	April 8, 2014	April 21, 2014	April 30, 2014		0.03
	April 8, 2014	May 20, 2014	May 30, 2014		0.03
	April 8, 2014	June 19, 2014	June 30, 2014		0.03
	July 15, 2014	July 25, 2014	August 5, 2014		0.03
	July 15, 2014	August 20, 2014	August 29, 2014		0.03
	July 15, 2014	September 19, 2014	September 30, 2014		0.03
	October 7, 2014	October 22, 2014	October 31, 2014		0.03
	October 7, 2014	November 17, 2014	November 26, 2014		0.03
	October 7, 2014	December 19, 2014	December 31, 2014		0.03
	Year ended December 31, 2014			$	0.36
2013	February 5, 2013	February 15, 2013	February 28, 2013	$	0.04
	February 5, 2013	March 15, 2013	March 28, 2013		0.04
	April 9, 2013	April 22, 2013	April 30, 2013		0.12
	April 9, 2013	May 20, 2013	May 31, 2013		0.12
	April 9, 2013	June 19, 2013	June 28, 2013		0.12
	July 9, 2013	July 19, 2013	July 31, 2013		0.12
	July 9, 2013	August 21, 2013	August 30, 2013		0.12
	July 9, 2013	September 18, 2013	September 30, 2013		0.12
	October 8, 2013	October 22, 2013	October 31, 2013		0.12
	October 8, 2013	November 14, 2013	November 29, 2013		0.12
	October 8, 2013	December 16, 2013	December 31, 2013		0.12
	December 3, 2013	December 16, 2013	December 31, 2013		0.33	(1)
	Year ended December 31, 2013			$	1.49

⁽¹⁾ Represents a one-time declaration to distribute the final amount of remaining earnings and profits from prior years.

During the years ended December 31, 2014 and 2013, we paid aggregate distributions to stockholders of approximately $2.5 million and $9.7 million, respectively. Approximately $9.6 million of the distributions to stockholders during the year ended December 31, 2013, related to the distribution of accumulated earnings and profits from prior years that we were required to pay out by December 31, 2013, in order to qualify as a REIT for our taxable year ended December 31, 2013.

For federal income tax characterization purposes, distributions paid to stockholders may be characterized as ordinary income, capital gains, return of capital or a combination thereof. We have not had any capital gains since our inception. The characterization of distributions on our common stock during each of the last two years is reflected in the following table:

For the Years Ended	Ordinary Income			Return of Capital
December 31, 2014:
Common Stock		95.66078	%		4.33922	%
December 31, 2013:
Common Stock		100.00000	%(1)		0.00000	%

⁽¹⁾ 98.53746% of this amount was classified as a Qualified Dividend.

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Registration Statement

We filed a universal registration statement on Form S-3 (File No. 333-194539) with the SEC on March 13, 2014, which the SEC declared effective on April 2, 2014. This universal registration statement permits us to issue up to an aggregate of $300.0 million in securities, consisting of common stock, senior common stock, preferred stock, subscription rights, debt securities and warrants to purchase common stock, including through a combined offering of two or more of such securities. As of December 31, 2014, we have issued 1,223,453 shares of common stock for gross proceeds of $15.0 million under this universal registration statement. In addition, we filed a registration statement on Form S-11 (File No. 333-199896) with the SEC on November 5, 2014, which has yet to be declared effective by the SEC. Once effective, this registration statement will permit us to issue up to $35.0 million of common stock.

NOTE 7. COMMITMENTS AND CONTINGENCIES

Commitments and Contingencies from Business Operations

In connection with the execution of a new lease on Colding Loop in May 2013, we were required to install new wells and irrigation equipment on 121 of the 181 total farmable acres on the property. The installation of the new wells and irrigation equipment on these acres was completed in January 2014 at a total cost of $616,071. In addition, if the tenant notifies us of their intention to fully utilize the remaining 60 acres of the property, we will be required to install new irrigation equipment to cover the additional 60 acres, which is estimated to cost approximately $83,000. However, should we be required to install this additional irrigation equipment, the lease provides for an increase in the amount of rental income to be received. To further increase the water supply on the property, as of December 31, 2014, we had also applied for an additional water permit for the property, for which $129,700 was placed in an escrow account, and which funds are included in Restricted cash on our Consolidated Balance Sheet as of December 31, 2014. Our application for the new water permit was approved on January 27, 2015, and the funds were released on February 12, 2015. We expect to amend the current lease on the property to provide for additional income; however, no amendment has been executed at this time.

Coinciding with the extension of the lease on West Beach that was executed in September 2013, we entered into an agreement with the then-current tenants on the farm for them to provide oversight on certain capital improvements that will serve to upgrade the irrigation system on the property and protect it against future flooding. Pursuant to the agreement with the then-current tenants, we were required to pay them a one-time fee of $46,000 for their oversight role, which was fully paid as of December 31, 2014. The costs of these improvements, which are expected to be completed during the first half of 2015, are being borne by us. As of December 31, 2014, we have expended or accrued approximately $650,862 related to these improvements, and we expect to incur additional costs of approximately $104,000.

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As a result of the fire on West Gonzales in April 2014, as of December 31, 2014, we have paid $320,828 for repairs, the full amount of which was reimbursed through insurance proceeds. We have one additional payment of $35,648 remaining to complete the repairs, which we expect to occur during the first half of 2015, and we have received assurance from the insurance company of full recovery for this amount. In addition, we paid $175,956 to further upgrade the insulation inside the cooler, for which $113,371 was reimbursed through insurance proceeds.

In connection with the follow-on lease we executed upon our acquisition of Sycamore Road in July 2014, we are required to make certain irrigation improvements on the property to increase overall water availability by November 1, 2015. Work on these improvements will begin in early 2015, and we expect the total cost to be $750,000 or less. In addition, we will earn additional rent on the total cost of these improvements, up to a total cost of $750,000, commensurate with the annual yields on the farmland.

In connection with the lease we executed upon our acquisition of Wauchula Road in September 2014, we agreed to fund certain irrigation upgrades at the tenant’s option. Currently, 125 of the 590 farm acres on the property are subject to drip irrigation. Pursuant to the lease, the tenant has the option to construct irrigation improvements necessary to convert all or a portion of the drip-irrigated acres to overhead irrigation and be reimbursed by us, up to a maximum aggregate cost of $1.5 million. The lease provides for additional rental income to be earned on the newly-converted acres upon completion of the irrigation improvements. The tenant has informed us of their intention to construct these improvements, and the work is expected to be completed during 2015.

Litigation

We are not currently subject to any material known or threatened litigation.

NOTE 8. EARNINGS PER SHARE OF COMMON STOCK

The following table sets forth the computation of basic and diluted earnings per common share for the years ended December 31, 2014, 2013 and 2012. Earnings per share is computed using the weighted average number of shares outstanding during the respective periods.

	2014			2013			2012
Net (loss) income	$	(125,133	)	$	(1,224,683	)	$	600,373
Weighted average shares of common stock outstanding – basic and diluted		6,852,917			6,214,557			2,750,000
Basic and diluted (loss) earnings per common share	$	(0.02	)	$	(0.20	)	$	0.22

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NOTE 9. QUARTERLY FINANCIAL INFORMATION (unaudited)

The following table reflects the quarterly results of operations for the years ended December 31, 2014 and 2013:

Fiscal Year 2014:	Quarter Ended
	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Operating revenues	$	1,495,636		$	1,565,935		$	1,777,675		$	2,345,676
Operating expenses		(1,100,452	)		(1,208,458	)		(1,476,092	)		(1,799,948	)
Other expenses		(367,643	)		(651,948	)		(194,351	)		(484,661	)
Net income before income taxes		27,541			(294,471	)		107,232			61,067
Provision for income taxes		(6,623	)		(6,623	)		(6,857	)		(6,399	)
Net income (loss)	$	20,918		$	(301,094	)	$	100,375		$	54,668
Earnings (loss) per weighted average common shares—basic and diluted	$	0.00		$	(0.05	)	$	0.02		$	0.01
Weighted average common shares outstanding—basic and diluted		6,530,264			6,530,264			6,605,264			7,735,354

Fiscal Year 2013:	Quarter Ended
	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013
Operating revenues	$	914,583		$	949,756		$	996,096		$	1,177,703
Operating expenses		(538,105	)		(611,333	)		(647,480	)		(883,767	)
Other expenses		(269,773	)		(261,229	)		(258,450	)		(272,954	)
Net income before income taxes		106,705			77,194			90,166			20,982
Provision for income taxes		(59,189	)		(46,838	)		(85,406	)		(1,328,297	)
Net income	$	47,516		$	30,356		$	4,760		$	(1,307,315	)
Earnings per weighted average common shares—basic and diluted	$	0.01		$	0.00		$	0.00		$	(0.21	)
Weighted average common shares outstanding—basic and diluted		5,249,898			6,530,264			6,530,264			6,530,264

NOTE 10. SUBSEQUENT EVENTS

We have evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through February 24, 2014, the day the financial statements were issued.

Investment Activity

On January 5, 2015, we acquired one farm comprised of 331 acres of farmland near Salinas, California (“Espinosa Road”), for an aggregate purchase price of approximately $17.0 million. The property is irrigated cropland that is primarily farmed for strawberries and miscellaneous vegetables, such as lettuce. We funded this acquisition through a new bond issuance under the Farmer Mac Facility (see “—Financing Activity” below) and by drawing on the New MetLife Line of Credit. At closing, we were assigned the existing triple-net lease, which has approximately 22 months remaining on the term and provides for annualized, straight-line cash rents of approximately $778,000. We will account for this acquisition as a business combination in accordance with ASC 805; however, the initial accounting for this transaction is not yet complete, making certain disclosures unavailable at this time.

Financing Activity

In connection with the acquisition of Espinosa Road, on January 5, 2015, we issued a bond under the Farmer Mac Facility, for which we received proceeds of approximately $10.2 million. The bond, which is non-amortizing and has a term of five years, will bear interest at a fixed rate of 3.25% per annum throughout its term. The bond is collateralized by a mortgage loan on Espinosa Road and has an effective loan-to-value ratio of 60% of the underlying property.

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Distributions

On January 13, 2015, our Board of Directors declared the following monthly cash distributions to common stockholders, representing a 16.7% increase over that of the prior quarter:

Record Date	Payment Date		Distribution per Common Share
January 23, 2015		February 3, 2015	$	0.035
February 18, 2015		February 27, 2015		0.035
March 20, 2015		March 31, 2015		0.035
		Total:	$	0.105

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GLADSTONE LAND CORPORATION

SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2014

					Initial Cost						Subsequent Capitalized Additions					Total Cost
Location and Description of Property	Date Acquired		Encum brances		Land and Land Improve ments		Buildings & Improve ments		Horti culture		Land Improvement Costs Capitalized Subsequent to Acquisition		Building & Improvements Costs Capitalized Subsequent to Acquisition			Land and Land Improve ments		Buildings & Improvements		Horti culture		Total(1)		Accumulated Depreciation(2)			Net Real Estate
Santa Cruz County, California:
Land & Irrigation System		6/16/1997	$	4,220,586	$	4,350,000	$	—	$	—	$	—	$	579,307		$	4,350,000	$	579,307	$	—	$	4,929,307	$	(103,812	)	$	4,825,495
Ventura County, California:
Land, Buildings & Irrigation System		9/15/1998		21,473,134		9,895,497		5,283,954		—		—		176,380			9,895,497		5,460,334		—		15,355,831		(2,950,620	)		12,405,211
Santa Cruz County, California:
Land & Irrigation System		1/3/2011		4,111,433		8,328,475		—		—		170,115		480,747			8,498,590		480,747		—		8,979,337		—			8,979,337
Santa Cruz County, California:
Land & Buildings		7/7/2011		1,362,231		2,314,113		414,075		—		—		—			2,314,113		414,075		—		2,728,188		(39,169	)		2,689,019
Hillsborough County, Florida:
Land		10/26/2011		—		1,227,816		—		—		—		—			1,227,816		—		—		1,227,816		—			1,227,816
Hillsborough County, Florida:
Land, Buildings, Irrigation System & Site Improvements		8/9/2012		—		2,513,696		909,491		—		28,794		656,071			2,542,490		1,565,562		—		4,108,052		(197,929	)		3,910,123
Hillsborough County, Florida:
Land, Buildings, Irrigation System & Site Improvements		9/12/2012		2,655,000		2,198,728		1,657,339		—		—		446,108			2,198,728		2,103,447		—		4,302,175		(281,742	)		4,020,433
Van Buren County, Michigan:
Land, Buildings, Irrigation System, Site Improvements & Horticulture		4/5/2013		650,552		646,522		282,428		446,408		—		170,150			646,522		452,578		446,408		1,545,508		(98,720	)		1,446,788
Marion County, Oregon:
Land, Buildings, Irrigation System & Site Improvements		5/31/2013		1,503,888		2,494,911		703,764		—		—		395,903			2,494,911		1,099,667		—		3,594,578		(81,543	)		3,513,035
Monterey County, California:
Land, Buildings & Irrigation System		10/21/2013		3,395,874		7,186,774		164,114		—		—		—			7,186,774		164,114		—		7,350,888		(13,220	)		7,337,668
Van Buren County, Michigan:
Land, Buildings, Irrigation System, Site Improvements & Horticulture		11/5/2013		970,250		805,677		722,575		488,605		12,600		(60,365	)		818,277		662,210		488,605		1,969,092		(86,121	)		1,882,971
Ventura County, California:
Land, Buildings, Irrigation System, Site Improvements & Horticulture		12/16/2013		1,455,375		2,851,353		72,840		103,334		—		—			2,851,353		72,840		103,334		3,027,527		(92,179	)		2,935,348
Morrow County, Oregon:
Land & Irrigation System		12/27/2013		6,791,748		12,941,092		1,118,640		—		—		—			12,941,092		1,118,640		—		14,059,732		(74,576	)		13,985,156
Cochise County, Arizona:
Land, Buildings & Irrigation System		12/27/2013		3,250,336		6,175,702		573,007		—		—		1,157,507			6,175,702		1,730,514		—		7,906,216		(149,523	)		7,756,693
Columbia County, Oregon:
Land, Buildings, Site Improvements & Horticulture		5/30/2014		—		1,252,388		682,385		520,993		—		—			1,252,388		682,385		520,993		2,455,766		(56,654	)		2,399,112
Santa Cruz County, California:
Land, Building & Irrigation System		6/13/2014		2,862,237		5,576,138		206,636		—		—		—			5,576,138		206,636		—		5,782,774		(28,243	)		5,754,531
Hillsborough County, Florida:
Land, Buildings, Irrigation System & Site Improvements		6/20/2014		1,599,600		1,970,074		570,846		—		—		8,775			1,970,074		579,621		—		2,549,695		(25,636	)		2,524,059
Ventura County, California:
Land, Buildings, Irrigation System & Site Improvements		7/23/2014		3,342,510		6,219,293		504,673		—		—		—			6,219,293		504,673		—		6,723,966		(13,594	)		6,710,372
Kern County, California:
Land & Irrigation System		7/25/2014		2,813,724		5,840,750		67,000		—		—		—			5,840,750		67,000		—		5,907,750		(5,583	)		5,902,167
Manatee County, Florida:
Land, Buildings, Irrigation System & Site Improvements		9/29/2014		8,155,762		8,466,185		5,426,170		—		—		—			8,466,185		5,426,170		—		13,892,355		(125,054	)		13,767,301
Ventura County, California:
Land, Buildings, Irrigation System & Site Improvements		10/29/2014		12,128,121		23,672,902		350,454		—		—		—			23,672,902		350,454		—		24,023,356		(5,841	)		24,017,515
Ventura County, California:
Land, Irrigation System & Site Improvements		11/4/2014		3,675,000		5,859,721		91,848		—		—		—			5,859,721		91,848		—		5,951,569		(1,531	)		5,950,038
			$	86,417,361	$	122,787,807	$	19,802,239	$	1,559,340	$	211,509	$	4,010,583		$	122,999,316	$	23,812,822	$	1,559,340	$	148,371,478	$	(4,431,290	)	$	143,940,188

⁽¹⁾  The aggregate cost for land, buildings, improvements and horticulture for federal income tax purposes is approximately $145.7 million.

⁽²⁾  The Company computes depreciation using the straight-line method over the shorter of the estimated useful life or 39 years for buildings and improvements, the the shorter of the estimated useful life or 25 years for horticulture and 5 to 7 years for equipment and fixtures and the shorter of the useful life or the remaining lease term for leasehold improvements.

108

The following table reconciles the change in the balance of real estate during the years ended December 31, 2014, 2013 and 2012, respectively:

	2014			2013		2012
Balance, beginning of period	$	78,478,053		$	39,678,968	$	32,399,715
Additions:
Acquisitions during the period		67,287,231			37,768,162		7,279,253
Improvements		2,726,734			1,030,923		—
Deductions:
Dispositions during period		(120,540	)		—		—
Purchase price adjustments		—			—		—
Balance, end of period	$	148,371,478		$	78,478,053	$	39,678,968

The following table reconciles the change in the balance of accumulated depreciation during the years ended December 31, 2014, 2013 and 2012, respectively:

	2014		2013		2012
Balance, beginning of period	$	3,166,870	$	2,535,084	$	2,122,817
Additions during period		1,264,420		631,786		412,267
Dispositions during period		—		—		—
Balance, end of period	$	4,431,290	$	3,166,870	$	2,535,084

109

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of December 31, 2014, our management, including our chief executive officer and chief financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, management, including the chief executive officer and chief financial officer, concluded that our disclosure controls and procedures were effective as of December 31, 2014, in providing a reasonable level of assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in applicable SEC rules and forms, including providing a reasonable level of assurance that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our chief executive officer and our chief financial officer, as appropriate to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of necessarily achieving the desired control objectives, and management was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Management’s Annual Report on Internal Control over Financial Reporting

Refer to Management’s Report on Internal Controls over Financial Reporting located in Item 8 of this Form 10-K.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended December 31, 2014, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

110

PART III

We will file a definitive Proxy Statement for our 2015 Annual Meeting of Stockholders (the “2015 Proxy Statement”) with the SEC, pursuant to Regulation 14A, not later than 120 days after December 31, 2014. Accordingly, certain information required by Part III has been omitted under General Instruction G(3) to Form 10-K. Only those sections of the 2015 Proxy Statement that specifically address the items set forth herein are incorporated by reference.

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by Item 10 is hereby incorporated by reference from our 2015 Proxy Statement under the captions “Election of Directors to Class of 2018,” “Information Regarding the Board of Directors and Corporate Governance,” “Compensation Committee Report” and “Section 16(a) Beneficial Ownership Reporting Compliance” and the sub-caption “Code of Business Conduct and Ethics.”

ITEM 11. EXECUTIVE COMPENSATION

The information required by Item 11 is hereby incorporated by reference from our 2015 Proxy Statement under the captions “Executive Compensation,” “Director Compensation,” “Compensation Committee Report” and sub-caption “Compensation Committee Interlocks and Insider Participation.”

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by Item 12 is hereby incorporated by reference from our 2015 Proxy Statement under the caption “Security Ownership of Certain Beneficial Owners and Management.”

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

The information required by Item 13 is hereby incorporated by reference from our 2015 Proxy Statement under the captions “Transactions with Related Persons” and “Information Regarding the Board of Directors and Corporate Governance.”

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by Item 14 is hereby incorporated by reference from our 2015 Proxy Statement under the sub-captions “Independent Registered Public Accounting Firm Fees” and “Pre-Approval Policy and Procedures” under the caption “Ratification of Selection of Independent Registered Public Accounting Firm.”

111

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

a. DOCUMENTS FILED AS PART OF THIS REPORT

1. The following financial statements are filed herewith:

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheets as of December 31, 2014 and 2013

Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012

Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2014, 2013 and 2012

Consolidated Statements of Cash Flows for the years ended December 31, 2014, 2013 and 2012

Notes to Financial Statements

2. Financial statement schedules

Schedule III—Real Estate and Accumulated Depreciation is filed herewith.

All other schedules are omitted because they are not applicable, or because the required information is included in the financial statements or notes thereto.

3. Exhibits

The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the Securities and Exchange Commission:

112

Exhibit Number	Exhibit Description
3.1	Articles of Incorporation of the Registrant, incorporated by reference to Exhibit 3.1 to Pre-Effective Amendment No. 2 to the Registration Statement on Form S-11 (File No. 333-183965), filed November 2, 2012.
3.2	Amended and Restated Bylaws of the Registrant, incorporated by reference to Exhibit 3.2 to Pre-Effective Amendment No. 3 the Registration Statement on Form S-11 (File No. 333-183965), filed November 15, 2012.
4.1	Form of Common Stock Certificate of the Registrant, incorporated by reference to Exhibit 4.1 to Pre-Effective Amendment No. 4 to the Registration Statement on Form S-11 (File No. 333-183965), filed December 27, 2012.
4.2	Form of Indenture, incorporated by reference to Exhibit 4.4 to the Registration Statement on Form S-3 (File No. 333-194539), filed March 13, 2014.
10.1	Amended and Restated Investment Advisory Agreement by and between the Registrant and Gladstone Management Corporation, dated February 1, 2013, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-35795), filed February 4, 2013.
10.2	Second Amended and Restated Administration Agreement by and between the Registrant and Gladstone Administration, LLC, dated February 1, 2013, incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K (File No. 001-35795), filed February 4, 2013.
10.3	Loan Agreement, dated as of April 30, 2014, by and among Gladstone Land Limited Partnership, as borrower, the Registrant, as guarantor, and Metropolitan Life Insurance Company, as lender, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-35795), filed May 14, 2014.
10.4	Loan Guaranty Agreement, dated as of April 30, 2014, by the Registrant for the benefit of Metropolitan Life Insurance Company, incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K (File No. 001-35795), filed May 14, 2014.
10.5	Promissory Note (Note A) by Gladstone Land Limited Partnership in favor of Metropolitan Life Insurance Company, dated April 30, 2014, incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K (File No. 001-35795), filed May 14, 2014.
10.6	Promissory Note (Note B—RELOC) by Gladstone Land Limited Partnership in favor of Metropolitan Life Insurance Company, dated April 30, 2014, incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K (File No. 001-35795), filed May 14, 2014.
10.7	First Amended and Restated Agreement of Limited Partnership of Gladstone Land Limited Partnership, dated October 7, 2014, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-35795), filed October 14, 2014.
10.8	Agreement of Purchase and Sale, by and between the Registrant and Oxnard Plains, LLC and Santa Clara Plains, LLC, dated August 11, 2014, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-35795), filed November 3, 2014.
10.9	Agvantage Bond Purchase Agreement, dated as of December 5, 2014, by and among Gladstone Lending Company, LLC, Farmer Mac Mortgage Securities Corporation and Federal Agricultural Mortgage Corporation, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-35795), filed December 17, 2014.
10.10	Pledge and Security Agreement, dated as of December 5, 2014, by and among Gladstone Lending Company, LLC, Farmer Mac Mortgage Securities Corporation and Federal Agricultural Mortgage Corporation, incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K (File No. 001-35795), filed December 17, 2014.
10.11	Acceptance of Bid to Purchase Real Property, by and between Gladstone Land Corporation and John L. McDonnell, Jr., trustee of the Jarvis Replacement Administrative Trust., dated December 17, 2014, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File no. 001-35795), filed January 9, 2015.
11	Computation of Per Share Earnings from Operations (included in the notes to the audited financial statements contained in this Report).

113

21	List of Subsidiaries of the Registrant (filed herewith).
23	Consent of PricewaterhouseCoopers, LLP (filed herewith).
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
101.INS***	XBRL Instance Document
101.SCH***	XBRL Taxonomy Extension Schema Document
101.CAL***	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB***	XBRL Taxonomy Extension Label Linkbase Document
101.PRE***	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF***	XBRL Definition Linkbase

*** Attached as Exhibit 101 to this Annual Report on Form 10-K are the following materials, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets as of December 31, 2014 and 2013, (ii) the Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012, (iii) the Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2014, 2013 and 2012, (iv) the Consolidated Statements of Cash Flows for the years ended December 31, 2014, 2013 and 2012 and (v) the Notes to Consolidated Financial Statements.

114

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Gladstone Land Corporation
Date: February 24, 2015	By:	/s/ Lewis Parrish
		Lewis Parrish
		Chief Financial Officer
Date: February 24, 2015	By:	/s/ David Gladstone
		David Gladstone
		Chief Executive Officer and Chairman of the Board of Directors

115

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date: February 24, 2015	By:	/s/ David Gladstone
		David Gladstone Chief Executive Officer and Chairman of the Board of Directors (principal executive officer)
Date: February 24, 2015	By:	/s/ Terry Lee Brubaker
		Terry Lee Brubaker Vice Chairman, Chief Operating Officer and Director
Date: February 24, 2015	By:	/s/ Lewis Parrish
		Lewis Parrish Chief Financial Officer (principal financial and accounting officer)
Date: February 24, 2015	By:	/s/ Paul Adelgren
		Paul Adelgren Director
Date: February 24, 2015	By:	/s/ Michela A. English
		Michela A. English Director
Date: February 24, 2015	By:	/s/ Caren D. Merrick
		Caren D. Merrick Director
Date: February 24, 2015	By:	/s/ John Outland
		John Outland Director
Date: February 24, 2015	By:	/s/ Anthony W. Parker
		Anthony W. Parker Director
Date: February 24, 2015	By:	/s/ Walter H. Wilkinson, Jr.
		Walter H. Wilkinson, Jr. Director

116

EX-21

Exhibit 21

SUBSIDIARIES OF GLADSTONE LAND CORPORATION

Arizona

East Shelton Road, LLC

California

Broadway Road Moorpark, LLC

Dalton Lane Watsonville, LLC

Dufau Road Oxnard, LP

Natividad Road Salinas, LLC

Naumann Road Oxnard, LP

San Andreas Road Watsonville, LLC

Santa Clara Avenue Oxnard, LP

Spring Valley Road Watsonville, LP

Sycamore Road Arvin, LP

West Beach Street Watsonville, LLC

West Gonzales Road Oxnard, LLC

Delaware

Gladstone California Farmland GP, LLC

Gladstone Land Advisers, Inc.

Gladstone Land Limited Partnership

Gladstone Land Partners, LLC

Gladstone Lending Company, LLC

Florida

Colding Loop Road Wimauma, LLC

Keysville Road Plant City, LLC

McIntosh Road Dover, LLC

Trapnell Road Plant City, LLC

Wauchula Road Duette, LLC

Michigan

20^th Avenue South Haven, LLC

38^th Avenue Covert, LLC

Collins Road Clatskanie, LLC

Oregon

Oregon Trail Highway, LLC

Sequoia Street Brooks, LLC

EX-23

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statement on Form S-3 (File No. 333-194539) of Gladstone Land Corporation of our report dated February 24, 2015 relating to the financial statements and financial statement schedule, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

McLean, Virginia

February 24, 2015

EX-31.1

Exhibit 31.1

CERTIFICATION

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, David Gladstone, certify that:

1. I have reviewed this annual report on Form 10-K of Gladstone Land Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 24, 2015

/s/ David Gladstone

David Gladstone

Chief Executive Officer and

Chairman of the Board of Directors

EX-31.2

Exhibit 31.2

CERTIFICATION

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Lewis Parrish, certify that:

1. I have reviewed this annual report on Form 10-K of Gladstone Land Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 24, 2015

/s/ Lewis Parrish

Lewis Parrish

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, the Chief Executive Officer of Gladstone Land Corporation (the “Company”), hereby certifies on the date hereof, pursuant to 18 U.S.C. §1350(a), as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, that the Annual Report on Form 10-K for the year ended December 31, 2014 (“Form 10-K”), filed concurrently herewith by the Company, fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Dated: February 24, 2015

/s/ David Gladstone

David Gladstone

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, the Chief Financial Officer and Treasurer of Gladstone Land Corporation (the “Company”), hereby certifies on the date hereof, pursuant to 18 U.S.C. §1350(a), as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, that the Annual Report on Form 10-K for the year ended December 31, 2014 (“Form 10-K”), filed concurrently herewith by the Company, fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Dated: February 24, 2015

/s/ Lewis Parrish

Lewis Parrish

Chief Financial Officer

XML

Real Estate and Lease Intangibles - Fair Value of Acquired Assets and Liabilities Assumed Related to Properties Acquired (Parenthetical) (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014
2014 New Real Estate Activity [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Acquisition costs were direct costs incurred related to leases	$ 21,409
2013 New Real Estate Activity [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Acquisition costs were direct costs incurred related to leases	$ 21,408

XML

Related-Party Transactions - Details of Amounts Due to Related Parties on Our Accompanying Condensed Consolidated Balance Sheets (Detail) (USD $)	Dec. 31, 2014		Dec. 31, 2013
Related Party Transactions [Abstract]
Management fee due to Adviser	$ 301,487		$ 91,823
Other due to Adviser	3,187		9,834
Total due to Adviser	304,674		101,657
Administration fee due to Administrator	166,427		59,062
Total due to Administrator	166,427		59,062
Total due to related parties	$ 471,101	[1]	$ 160,719	[1]

[1] Refer to Note 4, "Related-Party Transactions," for additional information

XML

Real Estate and Lease Intangibles - Summary of Geographic Locations of Properties (Detail) (USD $)	0 Months Ended	12 Months Ended			0 Months Ended
	Sep. 30, 2014 Farm	Dec. 31, 2014 Farm acre	Dec. 31, 2013 Farm acre	Dec. 31, 2012	Dec. 31, 2014
Real Estate Properties [Line Items]
Number of Farms	32	32	21
Total Acres		8,039	6,000		8,039
% of Total Acres		100.00%	100.00%
Rental revenue		$ 7,170,318	$ 4,027,687	$ 3,390,594
% of Total Rental Revenue		100.00%	100.00%
California [Member]
Real Estate Properties [Line Items]
Number of Farms		14	8
Total Acres		2,391	1,454		2,391
% of Total Acres		29.70%	24.20%		29.70%
Rental revenue		4,778,579	3,362,020
% of Total Rental Revenue		66.60%	83.50%
Oregon [Member]
Real Estate Properties [Line Items]
Number of Farms		4	2
Total Acres		2,313	2,113		2,313
% of Total Acres		28.80%	35.20%
Rental revenue		1,080,105	123,138
% of Total Rental Revenue		15.10%	3.00%
Florida [Member]
Real Estate Properties [Line Items]
Number of Farms		9	6
Total Acres		1,304	402		1,304
% of Total Acres		16.20%	6.70%
Rental revenue		759,398	454,135
% of Total Rental Revenue		10.60%	11.30%
Arizona [Member]
Real Estate Properties [Line Items]
Number of Farms		1	1
Total Acres		1,761	1,761		1,761
% of Total Acres		21.90%	29.40%
Rental revenue		299,785	3,715
% of Total Rental Revenue		4.20%	0.10%
Michigan [Member]
Real Estate Properties [Line Items]
Number of Farms		4	4
Total Acres		270	270		270
% of Total Acres		3.40%	4.50%
Rental revenue		$ 252,451	$ 84,679
% of Total Rental Revenue		3.50%	2.10%

XML

Schedule III - Real Estate and Accumulated Depreciation - Schedule of Change in Balance of Real Estate (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract]
Balance, beginning of period	$ 78,478,053	$ 39,678,968	$ 32,399,715
Additions:
Acquisitions during the period	67,287,231	37,768,162	7,279,253
Improvements	2,726,734	1,030,923
Deductions:
Dispositions during period	(120,540)
Purchase price adjustments	0	0	0
Balance, end of period	$ 148,371,478	$ 78,478,053	$ 39,678,968

XML

Borrowings - Summary of Mortgage Note Payable and Line of Credit (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	May 09, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Principal Outstanding	$ 86,417,361		$ 43,154,165
Undrawn Commitment	125,993,002		4,685,000
New Line of Credit [Member]
Debt Instrument [Line Items]
Maturity Date	Apr. 05, 2024
MetLife [Member]
Debt Instrument [Line Items]
Initial Commitment		125,000,000
Maturity Date	May 09, 2014
MetLife [Member] | Mortgage Note Payable [Member]
Debt Instrument [Line Items]
Issuer	MetLife
Date of Issuance	Dec. 30, 2010
Initial Commitment	45,200,000	100,000,000
Maturity Date	Jan. 05, 2026
Principal Outstanding			43,054,165
Stated Interest Rate	3.50%		3.50%
MetLife [Member] | New Line of Credit [Member]
Debt Instrument [Line Items]
Issuer	MetLife
Date of Issuance	May 23, 2012
Initial Commitment	4,785,000	25,000,000
Maturity Date	Apr. 05, 2017
Principal Outstanding			100,000
Stated Interest Rate			3.25%
Undrawn Commitment			4,685,000
MetLife [Member] | Mortgage Note Payable [Member]
Debt Instrument [Line Items]
Issuer	MetLife
Date of Issuance	May 09, 2014
Initial Commitment	100,000,000
Maturity Date	Jan. 05, 2029
Principal Outstanding	66,331,998
Stated Interest Rate	3.61%
Undrawn Commitment	33,668,002
MetLife [Member] | New Line of Credit [Member]
Debt Instrument [Line Items]
Issuer	MetLife
Date of Issuance	May 09, 2014
Initial Commitment	25,000,000
Maturity Date	Apr. 05, 2024
Principal Outstanding	4,000,000
Stated Interest Rate	2.75%
Undrawn Commitment	21,000,000
Farm Credit [Member]
Debt Instrument [Line Items]
Maturity Date	Aug. 01, 2034
Stated Interest Rate	3.53%
Farm Credit [Member] | Mortgage Note Payable [Member]
Debt Instrument [Line Items]
Issuer	Farm Credit
Date of Issuance	Sep. 19, 2014
Initial Commitment	2,655,000
Maturity Date	Aug. 01, 2034
Principal Outstanding	2,655,000
Stated Interest Rate	3.52%
Farm Credit [Member] | Mortgage Note Payable [Member]
Debt Instrument [Line Items]
Issuer	Farm Credit
Date of Issuance	Sep. 19, 2014
Initial Commitment	1,599,600
Maturity Date	Aug. 01, 2034
Principal Outstanding	1,599,600
Stated Interest Rate	3.52%
Farm Credit [Member] | Mortgage Note Payable [Member]
Debt Instrument [Line Items]
Issuer	Farm Credit
Date of Issuance	Sep. 29, 2014
Initial Commitment	8,259,000
Maturity Date	Aug. 01, 2034
Principal Outstanding	8,155,763
Stated Interest Rate	3.54%
Farmer Mac [Member] | Bonds Payable [Member]
Debt Instrument [Line Items]
Issuer	Farmer Mac
Date of Issuance	Dec. 11, 2014
Initial Commitment	75,000,000
Maturity Date	Dec. 11, 2019
Principal Outstanding	3,675,000
Stated Interest Rate	3.25%
Undrawn Commitment	$ 71,325,000

XML

Real Estate and Lease Intangibles - Summarizes Lease Expirations by Year for Properties with Leases (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014 acre Lease	Dec. 31, 2013 acre	Dec. 31, 2012
Property Subject to or Available for Operating Lease [Line Items]
Number of Expiring Leases	28
Expiring Leased Acreage	8,039	6,000
% of Total Acreage	100.00%
Rental Revenue for the Year Ended December 31, 2014	$ 7,170,318	$ 4,027,687	$ 3,390,594
% of Total Rental Revenue	100.00%
2015 [Member]
Property Subject to or Available for Operating Lease [Line Items]
Number of Expiring Leases	4
Expiring Leased Acreage	405
% of Total Acreage	5.00%
Rental Revenue for the Year Ended December 31, 2014	386,642
% of Total Rental Revenue	5.40%
2016 [Member]
Property Subject to or Available for Operating Lease [Line Items]
Number of Expiring Leases	2
Expiring Leased Acreage	204
% of Total Acreage	2.50%
Rental Revenue for the Year Ended December 31, 2014	217,331
% of Total Rental Revenue	3.00%
2017 [Member]
Property Subject to or Available for Operating Lease [Line Items]
Number of Expiring Leases	7
Expiring Leased Acreage	351
% of Total Acreage	4.40%
Rental Revenue for the Year Ended December 31, 2014	424,737
% of Total Rental Revenue	5.90%
2018 [Member]
Property Subject to or Available for Operating Lease [Line Items]
Number of Expiring Leases	3
Expiring Leased Acreage	370
% of Total Acreage	4.60%
Rental Revenue for the Year Ended December 31, 2014	364,803
% of Total Rental Revenue	5.10%
2019 [Member]
Property Subject to or Available for Operating Lease [Line Items]
Number of Expiring Leases	0
Expiring Leased Acreage	0
% of Total Acreage	0.00%
% of Total Rental Revenue	0.00%
Thereafter [Member]
Property Subject to or Available for Operating Lease [Line Items]
Number of Expiring Leases	12
Expiring Leased Acreage	6,709
% of Total Acreage	83.50%
Rental Revenue for the Year Ended December 31, 2014	$ 5,776,805
% of Total Rental Revenue	80.60%

XML

Real Estate and Lease Intangibles - Additional Information (Detail) (USD $)	0 Months Ended		12 Months Ended			1 Months Ended	0 Months Ended				1 Months Ended
	Dec. 31, 2014	Sep. 30, 2014 Farm	Dec. 31, 2014 Farm acre	Dec. 31, 2013 Farm acre	Dec. 31, 2012	Jul. 31, 2014	Jan. 20, 2014	Oct. 21, 2013	Mar. 27, 2014	Jun. 17, 2014	Apr. 30, 2014
Real Estate Properties [Line Items]
Number of farm			32
Number of farms acquired in separate transaction			11	9
Additional debt issued			$ 0
Number of farms acquired			11	9
Rental income			7,170,318	4,027,687	3,390,594
Additional insurance reimbursement proceeds	35,648		35,648
Aggregate annual real estate property taxes	997,000
Real estate property tax	457,000		457,000
Area leased	8,039		8,039	6,000
Area leased, percentage			100.00%	100.00%
Percent of total rental revenue			100.00%	100.00%
Number of Farms		32	32	21
2013 New Real Estate Activity [Member]
Real Estate Properties [Line Items]
Number of farms acquired				9
Rental income				305,438
Annualized Straight-line Rent						37,791
Willcox, AZ [Member]
Real Estate Properties [Line Items]
Irrigation upgrade project,farmland area						1,761
Cost of irrigation upgrade project						1,200,000
Irrigation upgrade project expected at acquisition						336,000
Number of existing wells rehabilitated						13
Number of new wells added						2
California [Member]
Real Estate Properties [Line Items]
Number of farm		14
Rental income			4,778,579	3,362,020
Area leased	2,391		2,391	1,454
Area leased, percentage	29.70%		29.70%	24.20%
Percent of total rental revenue			66.60%	83.50%
Number of Farms			14	8
Oregon [Member]
Real Estate Properties [Line Items]
Rental income			1,080,105	123,138
Area leased	2,313		2,313	2,113
Area leased, percentage			28.80%	35.20%
Percent of total rental revenue			15.10%	3.00%
Number of Farms			4	2
Florida [Member]
Real Estate Properties [Line Items]
Rental income			759,398	454,135
Area leased	1,304		1,304	402
Area leased, percentage			16.20%	6.70%
Percent of total rental revenue			10.60%	11.30%
Number of Farms			9	6
Trapnell Road [Member]
Real Estate Properties [Line Items]
Cooling facility upgrade and expansion maximum costs to be incurred							450,000
Percentage of increase in rental income of the cost incurred							8.50%
Cooling facility upgrade and expansion costs actually incurred								446,108
West Beach [Member]
Real Estate Properties [Line Items]
Extended lease term									9 years
Maturity date of lease									Dec. 31, 2023
Rental income									540,469
Percentage increase in lease amount									20.70%
San Andreas [Member]
Real Estate Properties [Line Items]
Extended lease term										6 years
Maturity date of lease										Dec. 31, 2020
Rental income										566,592
Percentage increase in lease amount										31.30%
20th Avenue [Member]
Real Estate Properties [Line Items]
Property and casualty loss											94,243
Insurance recoveries			61,500
20th Avenue [Member] | 2013 New Real Estate Activity [Member]
Real Estate Properties [Line Items]
Rental income				20,184
West Gonzales [Member]
Real Estate Properties [Line Items]
Insurance proceeds			434,200
Total repair cost			496,784
Repair cost, capitalized as real estate			407,096
Repair and maintenance expense			89,688
West Gonzales [Member] | Adjusted Estimate [Member]
Real Estate Properties [Line Items]
Property and casualty loss			138,494
Maximum [Member] | Rental Income [Member] | California [Member]
Real Estate Properties [Line Items]
Percentage of individual tenant represented total rental revenue recorded			10.00%	10.00%
Dole Food Company [Member]
Real Estate Properties [Line Items]
Rental income			$ 2,900,000
Total number of lease agreement with single tenant	2
Area leased	960		960
Area leased, percentage	11.90%
Percent of total rental revenue			40.40%	66.20%
Dole Food Company [Member] | Maximum [Member] | Rental Income [Member]
Real Estate Properties [Line Items]
Percentage of individual tenant represented total rental revenue recorded	10.00%			20.00%
Separate Tenant [Member]
Real Estate Properties [Line Items]
Percent of total rental revenue			10.60%

XML

Borrowings - Additional Information (Detail) (USD $)	12 Months Ended			0 Months Ended			3 Months Ended	0 Months Ended
	Dec. 31, 2014 Farm	Dec. 31, 2013 Farm	Dec. 31, 2012	Dec. 31, 2014	May 09, 2014	Sep. 29, 2014	Sep. 30, 2014 Farm	Dec. 11, 2014	Sep. 19, 2014	Nov. 30, 2002	Dec. 30, 2010	May 23, 2012	Dec. 12, 2014
Debt Instrument [Line Items]
Weighted average interest rate on borrowings	3.60%	3.60%	3.70%
Debt instrument interest rate	Three-month LIBOR plus 3.00%
Expiration date of commitment	May 31, 2012
Note payable, outstanding	$ 82,417,361	$ 43,054,165		$ 82,417,361
Line of credit, carrying value	4,000,000	100,000		4,000,000
Unamortized deferred financing costs	1,039,714	309,933		1,039,714
Number of Farms	11	9
MetLife [Member]
Debt Instrument [Line Items]
Debt instrument face amount					125,000,000
Maturity Date	May 09, 2014
New Credit Facility maximum borrowing capacity, percentage					58.00%
Loan fees aggregate amount	220,500			220,500
Aggregate financing costs				614,646
Unamortized deferred financing costs	298,614			298,614
Availability of credit facility	13,800,000			13,800,000
Additional availability of credit facility	1,600,000
Farm Credit [Member]
Debt Instrument [Line Items]
Maturity Date	Aug. 01, 2034
Blended fixed interest rate	3.53%			3.53%
Debt instrument covenants description	A net worth value in excess of $50,000,000; and a maximum leverage ratio of equal to or less than sixty-five percent (65%).
Debt instrument, net worth value	50,000,000			50,000,000
Loan fees aggregate amount	78,211			78,211
Aggregate financing costs	126,640
Aggregate notes payable									4,200,000
Additional borrowings						8,300,000
Total borrowings from credit notes payable	12,400,000			12,400,000
Credit notes payable interest rate there after, Description	LIBOR, plus 2.875%.
Credit notes payable interest rate there after	2.875%
Original principal amounts as a percent of aggregate appraised value	60.00%			60.00%
Number of Farms							3
Notes payable of principal and interest due period	12 months
Agrifinance [Member]
Debt Instrument [Line Items]
Revolving line of credit facility										3,300,000
Farmer Mac Facility [Member]
Debt Instrument [Line Items]
Debt instrument covenants description	A maximum leverage ratio of not more than 65%; a minimum fixed charge coverage ratio of 1.4; and a minimum tangible net worth in excess of $50,000,000 (plus a certain percentage of future equity offerings).
Debt instrument, net worth value	50,000,000			50,000,000
Aggregate financing costs	41,781
Additional borrowings	10,200,000
Debt instrument, maximum leverage ratio	0.65
Debt instrument, minimum fixed charge coverage ratio	1.4			1.4
Percentage of outstanding bonds held by bond purchasers	110.00%
New Line of Credit [Member]
Debt Instrument [Line Items]
Maturity Date	Apr. 05, 2024
New Line of Credit [Member] | MetLife [Member]
Debt Instrument [Line Items]
Debt instrument face amount	4,785,000			4,785,000	25,000,000
Maturity Date	Apr. 05, 2017
Blended fixed interest rate		3.25%
Commitment fee on undrawn amount	0.20%			0.20%
Debt instrument interest rate	Three-month LIBOR plus a spread of 2.50%
Minimum annualized rate	2.75%
Debt instrument covenants description	A debt-to-asset-value ratio of equal to or less than sixty-five percent (65%); a net worth value in excess of $50,000,000; a debt-to-two-times-net-worth ratio of equal to or less than 0.65; and a rental-revenue-to-debt ratio of equal to or greater than 5.0%.
Debt instrument, net worth value	50,000,000			50,000,000
Prior Note Payable [Member] | MetLife [Member]
Debt Instrument [Line Items]
Maturity Date	Jan. 05, 2026
Blended fixed interest rate	3.50%			3.50%
Commitment fee on undrawn amount	0.20%			0.20%
Remaining balance available to disburse under MetLife Note Payable	0			0
Prior Note Payable [Member] | MetLife [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument face amount											45,200,000
Prior Line of Credit [Member] | MetLife [Member]
Debt Instrument [Line Items]
Debt instrument face amount												4,800,000
Maturity Date	Apr. 05, 2017
Mortgage Note Payable [Member] | MetLife [Member]
Debt Instrument [Line Items]
Debt instrument face amount	45,200,000			45,200,000	100,000,000
Maturity Date	Jan. 05, 2026
Blended fixed interest rate	3.50%	3.50%		3.50%
Commitment fee on undrawn amount	0.20%			0.20%
Period for interest rate adjustment	3 years
Expiration date of commitment	Dec. 31, 2016
Line of credit, carrying value	4,000,000			4,000,000
Mortgage Note Payable [Member] | MetLife [Member] | Maximum [Member]
Debt Instrument [Line Items]
Maturity Date	Jan. 05, 2029
Mortgage Note Payable [Member] | Mortgage Notes and Bonds Payable [Member]
Debt Instrument [Line Items]
Aggregate fair value of mortgage notes payable outstanding	82,000,000			82,000,000
Mortgage notes payable, carrying value	82,400,000			82,400,000
Mortgage Note Payable [Member] | MetLife [Member]
Debt Instrument [Line Items]
Debt instrument face amount	100,000,000			100,000,000
Maturity Date	Jan. 05, 2029
Blended fixed interest rate	3.61%			3.61%
Note payable, outstanding													66,300,000
New Line of Credit [Member] | MetLife [Member]
Debt Instrument [Line Items]
Debt instrument face amount	25,000,000			25,000,000
Maturity Date	Apr. 05, 2024
Blended fixed interest rate	2.75%			2.75%
Line of credit, carrying value	4,000,000			4,000,000
Bonds Payable [Member] | Farmer Mac Facility [Member]
Debt Instrument [Line Items]
Debt instrument face amount	75,000,000			75,000,000
Blended fixed interest rate								3.25%
Additional borrowings								$ 3,700,000
Maximum loan-to-value ratio	60.00%
Expiration term								5 years

XML

Schedule III - Real Estate and Accumulated Depreciation - Schedule of Change in Balance of Accumulated Depreciation (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract]
Balance, beginning of period	$ 3,166,870	$ 2,535,084	$ 2,122,817
Additions during period	1,264,420	631,786	412,267
Dispositions during period	0	0	0
Balance, end of period	$ 4,431,290	$ 3,166,870	$ 2,535,084

XML

Earnings Per Share of Common Stock (Tables)

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Common Share

The following table sets forth the computation of basic and diluted earnings per common share for the years ended December 31, 2014, 2013 and 2012. Earnings per share is computed using the weighted average number of shares outstanding during the respective periods.

	2014			2013			2012
Net (loss) income	$	(125,133	)	$	(1,224,683	)	$	600,373
Weighted average shares of common stock outstanding – basic and diluted		6,852,917			6,214,557			2,750,000
Basic and diluted (loss) earnings per common share	$	(0.02	)	$	(0.20	)	$	0.22

XML

Real Estate and Lease Intangibles - Schedule of Purchase Agreements (Parenthetical) (Detail) (Strawberries [Member], California [Member], USD $)	12 Months Ended
	Dec. 31, 2014
2014 Agreement [Member]
Real Estate Properties [Line Items]
Agreement termination date	Jan. 20, 2015
Deposits included in other assets	$ 100,000
2015 Agreement [Member]
Real Estate Properties [Line Items]
Acquisition date	Jan. 05, 2015

XML

Real Estate and Lease Intangibles - Weighted Average Amortization Period for Intangible Assets Acquired and Liabilities Assumed (Detail)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Acquired Finite-Lived Intangible Assets [Line Items]
All intangible assets and liabilities	3 years 3 months 18 days	2 years 10 months 24 days
In-place Leases [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
All intangible assets and liabilities	2 years 2 months 12 days	2 years
Leasing Commissions [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
All intangible assets and liabilities	5 years 1 month 6 days	7 years
Tenant Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
All intangible assets and liabilities	4 years 8 months 12 days
Above-Market Lease Values [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
All intangible assets and liabilities	3 years
Below-Market Lease Values [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
All intangible assets and liabilities	1 year 6 months	2 years

XML

Real Estate and Lease Intangibles - Summarized Information of Acquisition of Properties (Parenthetical) (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014 Renewal_Options	Dec. 31, 2013	Dec. 31, 2012
Real Estate Properties [Line Items]
Follow on lease, number of renewal terms	1
Lease revenue, annualized straight line rents	$ 7,170,318	$ 4,027,687	$ 3,390,594
McIntosh Road [Member] | Dover, FL [Member]
Real Estate Properties [Line Items]
Lease Expiration Date	Jun. 30, 2017
Natividad Road [Member]
Real Estate Properties [Line Items]
Follow on lease, number of renewal terms		1
Lease term		2 years
Lease assumed, number of renewal options		1
Lease renewal term		3 years
Below market lease liability		161,547
Follow on lease term		9 years
Lessor leasing arrangement, lease renewal term		5 years
Lease revenue, annualized straight line rents		413,476
Follow on lease origination costs capitalized		4,915
2014 New Real Estate Activity [Member]
Real Estate Properties [Line Items]
Lease Expiration Date	Oct. 31, 2015
Annualized Straight-line Rent	3,523,666
Direct leasing costs in connection with acquisitions	21,409
Lease revenue, annualized straight line rents	1,026,625
2014 New Real Estate Activity [Member] | New Tenant Lease Agreement [Member]
Real Estate Properties [Line Items]
Renewal Options	3 years
Follow-on lease period	9 years
Annualized Straight-line Rent	311,760
Direct leasing costs in connection with acquisitions	21,409
2014 New Real Estate Activity [Member] | McIntosh Road [Member]
Real Estate Properties [Line Items]
Lease revenue, annualized straight line rents	58,021
2014 New Real Estate Activity [Member] | McIntosh Road [Member] | Dover, FL [Member] | Strawberries [Member]
Real Estate Properties [Line Items]
Renewal Options	3 years
Annualized Straight-line Rent	$ 133,154
2014 New Real Estate Activity [Member] | McIntosh Road [Member] | Dover, FL [Member] | Lease Farm One [Member] | Strawberries [Member]
Real Estate Properties [Line Items]
Renewal Options	3 years
2014 New Real Estate Activity [Member] | McIntosh Road [Member] | Dover, FL [Member] | Lease Farm Two [Member] | Strawberries [Member]
Real Estate Properties [Line Items]
Renewal Options	0 years

XML

Related-Party Transactions - Summary of Management Fees, Incentive Fees and Associated Credits and Administration Fees (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Management Fee:
Allocated payroll and benefits			$ 38,668		$ 224,931
Allocated overhead expenses			7,538		42,349
Prior management advisory fee			46,206		267,280
Amended base management fee	1,079,534		149,403
Total management fee	1,079,534	[1]	195,609	[1]	267,280	[1]
Incentive Fee:
Incentive fee			41,037	[1]
Credit from voluntary, irrevocable waiver by Adviser's board of directors			(41,037)
Net incentive fee	0		0		0
Administration Fee:
Allocated payroll and benefits			14,034		143,381
Allocated overhead expenses			4,498		37,017
Prior administration fee			18,532		180,398
Amended administration fee	442,584		175,932
Total administration fee	$ 442,584	[1]	$ 194,464	[1]	$ 180,398	[1]

[1] Refer to Note 4, "Related-Party Transactions," for additional information

XML

Subsequent Events - Monthly Distributions Declared by Company's Board of Directors (Detail) (Subsequent Event [Member], USD $)	0 Months Ended
	Jan. 13, 2015	Jan. 13, 2015
Subsequent Event [Line Items]
Distribution per Common Share	$ 0.105	$ 0.105
Dividend Period One [Member]
Subsequent Event [Line Items]
Record Date	Jan. 23, 2015
Payment Date	Feb. 03, 2015
Distribution per Common Share	$ 0.035	$ 0.035
Dividend Period Two [Member]
Subsequent Event [Line Items]
Record Date	Feb. 18, 2015
Payment Date	Feb. 27, 2015
Distribution per Common Share	$ 0.035	$ 0.035
Dividend Period Three [Member]
Subsequent Event [Line Items]
Record Date	Mar. 20, 2015
Payment Date	Mar. 31, 2015
Distribution per Common Share	$ 0.035	$ 0.035

XML

Stockholders' Equity - Schedule of Distributions On Common Stock (Detail)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Equity [Abstract]
Ordinary Income	95.66078%	100.00%
Return of Capital	4.33922%	0.00%

XML

Real Estate and Lease Intangibles - Future Operating Lease Payments from Tenants under Non-Cancelable Leases (Detail) (USD $)	Dec. 31, 2014
Real Estate [Abstract]
For the fiscal years ending December 31: 2015	$ 7,735,500
2016	8,205,815
2017	7,494,621
2018	6,882,291
2019	6,919,095
Thereafter	19,581,336
Total	$ 56,818,658

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Out-of-Period Adjustment

During the year ended December 31, 2013, we recorded adjustments to our income tax provision and to other assets that were related to our 2011 and 2012 provision reconciliation. As a result of the correction of these errors, we understated net income by $40,438 for the year ended December 31, 2013. We concluded that these adjustments were not material to the 2011, 2012 or 2013 results of operations; as such, these adjustments were recorded during 2013.

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates.

Real Estate and Lease Intangibles

Our investments in real estate consist of farmland and improvements made to the farmland, consisting of buildings; irrigation and drain systems; coolers, which are storage facilities used for cooling crops; warehouses used for storing, assembling and packing boxes; and horticulture acquired in connection with the land purchase, which currently consists of blueberry bushes and avocado and lemon trees. We record investments in real estate at cost and capitalize improvements and replacements when they extend the useful life or improve the efficiency of the asset. We expense costs of repairs and maintenance as such costs are incurred. We compute depreciation using the straight-line method over the shorter of the estimated useful life or 39 years for buildings and improvements, the shorter of the estimated useful life or 25 years for horticulture acquired in connection with the purchase of farmland, 5 to 7 years for equipment and fixtures and the shorter of the useful life or the remaining lease term for leasehold improvements.

Certain of our acquisitions involve sale-leaseback transactions with newly-originated leases, which we account for as asset acquisitions under ASC 360, “Property, Plant and Equipment.” In the case of an asset acquisition, we will capitalize the transaction costs incurred in connection with the acquisition. Other of our acquisitions involve the acquisition of farmland that is already being operated as rental property and has a lease in place that we assume at the time of acquisition, which we will generally consider to be a business combination under ASC 805, “Business Combinations.” When an acquisition is considered a business combination, ASC 805 requires that the purchase price of real estate be allocated to the tangible assets acquired and liabilities assumed, consisting of land, buildings, improvements, horticulture and long-term debt; and identifiable intangible assets and liabilities, typically the value of above-market and below-market leases, in-place leases, unamortized lease origination costs and tenant relationships, based in each case on their fair values. ASC 805 also requires that all expenses related to the acquisition be expensed as incurred, rather than capitalized into the cost of the acquisition.

Whether our acquisitions are treated as an asset acquisition under ASC 360 or a business combination under ASC 805, the fair value of the purchase price is allocated among the assets acquired and any liabilities assumed. Management’s estimates of fair value are made using methods similar to those used by independent appraisers, such as a sales comparison approach, a cost approach and either an income capitalization approach or discounted cash flow analysis. Factors considered by management in its analysis include an estimate of carrying costs during hypothetical, expected lease-up periods, taking into consideration current market conditions and costs to execute similar leases. We also consider information obtained about each property as a result of our pre-acquisition due diligence and marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired and liabilities assumed. In estimating carrying costs, management also includes lost reimbursement of real estate taxes, insurance and other operating expenses, as well as estimates of lost rental income at market rates during the hypothetical, expected lease-up periods, which typically range from 1 to 24 months, depending on specific local market conditions. Management also estimates costs to execute similar leases, including leasing commissions, legal and other related expenses, to the extent that such costs are not already incurred in connection with a new lease origination as part of the transaction. While management believes these estimates to be reasonable based on the information available at the time of acquisition, the preliminary purchase price allocation may be adjusted if management obtains more information regarding the valuations of the assets acquired or liabilities assumed.

We allocate purchase price to the fair value of the tangible assets and liabilities of an acquired property by valuing the property as if it were vacant. The “as-if-vacant” value is allocated to land, buildings, improvements and horticulture, based on management’s determination of the fair values of such assets. Real estate depreciation expense on these tangible assets was $1,384,960, $631,786 and $412,267 for the years ended December 31, 2014, 2013 and 2012, respectively.

We record above-market and below-market in-place lease values for acquired properties based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining, non-cancelable term of the lease. When determining the non-cancelable term of the lease, we evaluate whether fixed-rate renewal options, if any, should be included.

The fair value of capitalized above-market leases, included as part of Other assets in the accompanying Consolidated Balance Sheets, is amortized as a reduction of rental income on a straight-line basis over the remaining, non-cancelable terms of the respective leases, including that of any fixed-price or below-market renewal options. As of December 31, 2014, the aggregate gross amount of above-market lease values was $65,203, and the total accumulated amortization related to these values was $9,027. Total amortization related to above-market lease values was $9,027 for the year ended December 31, 2014. There were no above-market lease values recorded prior to 2014. The fair value of capitalized below-market leases, included as part of Other liabilities in the accompanying Consolidated Balance Sheets, is amortized as an increase to rental income on a straight-line basis over the remaining, non-cancelable terms of the respective leases, including that of any fixed-price or below-market renewal options. As of December 31, 2014, 2013 and 2012, the aggregate gross amount of below-market lease values was $371,707, $260,356 and $98,808, respectively, and the total accumulated amortization related to these values was $162,194, $114,469 and $45,852, respectively. Total amortization related to below-market lease values was $146,534, $68,617 and $45,852 for the years ended December 31, 2014, 2013 and 2012, respectively.

The total amount of the remaining intangible assets acquired, which consists of in-place lease values, unamortized lease origination costs and tenant relationship intangible values, are allocated based on management’s evaluation of the specific characteristics of each tenant’s lease and our overall relationship with that respective tenant. Characteristics to be considered by management in allocating these values include the nature and extent of our existing business relationships with the tenant, prospects for developing additional business with the tenant, the tenant’s credit quality and our expectations of lease renewals (including those existing under the terms of the lease agreement), among other factors.

The value of in-place leases and unamortized lease origination costs are amortized to amortization expense on a straight-line basis over the remaining, non-cancelable terms of the respective leases, which currently range from 1 to 10 years. The value of tenant relationship intangibles, which is the benefit to us resulting from the likelihood of an existing tenant renewing its lease at the existing property or entering into a lease at a different property we own, is amortized to amortization expense over the remaining lease term and any anticipated renewal periods in the respective leases.

Should a tenant terminate its lease, the unamortized portion of the above-market and below-market lease values, in-place lease values, lease origination costs and tenant relationship intangibles will be immediately charged to the appropriate income or expense account.

The total amount recorded as amortization expense related to these intangible assets was $350,684, $90,669 and $62,213 for the years ended December 31, 2014, 2013 and 2012, respectively. In addition, in September 2014, we wrote off $46,526 of intangible assets due to the termination of a lease that was assumed in connection with a farm acquired in June 2014, and the unamortized balance of these assets, which was $43,328, was immediately charged to amortization expense.

Impairment of Real Estate Assets

We account for the impairment of our tangible and identifiable intangible real estate assets in accordance with ASC 360, which requires us to periodically review the carrying value of each property to determine whether indicators of impairment exist. Such indicators may include, but are not limited to, declines in a property’s operating performance, deteriorating market conditions and environmental or legal concerns. If circumstances support the possibility of impairment, we prepare a projection of the total undiscounted future cash flows of the specific property, including proceeds from disposition without interest charges, and compare them to the net book value of the property to determine whether the carrying value of the property is recoverable. In performing the analysis, we consider such factors as the tenants’ payment history and financial condition, the likelihood of lease renewal, agricultural and business conditions in the regions in which our farms are located and whether there are indications that the fair value of the real estate has decreased. If the carrying amount is more than the aggregate undiscounted future cash flows, we would recognize an impairment loss to the extent the carrying value exceeds the estimated fair value of the property.

We evaluate our entire property portfolio each quarter for any impairment indicators and perform an impairment analysis on those select properties that have an indication of impairment. During the three months ended June 30, 2014, we had two separate fires that partially damaged structures on two separate properties, which constituted an indicator of impairment. However, in accordance with ASC 360, we assessed the recoverability of the two properties and determined that the net carrying value of each property was fully recoverable. Therefore, no impairment loss was recorded; however, we recorded property and casualty losses for each event. See “—Involuntary Conversions and Property and Casualty Recovery” below for further detail. We further concluded that none of our properties were impaired as of December 31, 2014, and we will continue to monitor our portfolio for any indicators of impairment. There have been no impairments recognized on real estate assets since our inception.

Leasehold Improvements

From time to time, our tenants may pay for improvements on certain of our properties with the ownership of the improvements remaining with us, in which case we will record the cost of such improvements as an asset, leasehold improvements, along with a corresponding liability, deferred rent liability, on our balance sheet. Leasehold improvements will be depreciated, and the deferred rent liability will be amortized as an addition to rental income, each over the shorter of the useful life of the respective improvement or the remaining term of the existing lease in place. In determining whether the tenant or the Company is the owner (for accounting purposes) of such improvements, several factors will be considered, including, but not limited to: (i) whether the tenant or landlord retains legal title to the improvements upon expiration of the lease; (ii) whether the lease stipulates how such improvements should be treated; (iii) the uniqueness of the improvements (i.e., whether the improvements were made to meet the specific needs or for the benefit of the tenant leasing the property, or if the improvements generally increased the value or extended the useful life of the asset improved upon); (iv) the expected useful life of the improvements relative to the remaining length of the lease; and (v) whether the tenant or the Company constructs or directs construction of the improvements. The determination of who owns the improvements (for accounting purposes) is subject to significant judgment. As of December 31, 2014, we recorded aggregate gross leasehold improvements of $585,947, and accumulated depreciation related to these improvements was $56,760. During the year ended December 31, 2014, approximately $56,760 was recorded as both depreciation expense and an addition to rental income. No leasehold improvements were recorded prior to 2014.

When improvements on properties are paid for and determined to be owned by us, we record such costs as site improvements and depreciate the costs over the estimated useful life of the improvement.

Cash and Cash Equivalents

We consider cash equivalents to be all short-term, highly-liquid investments that are both readily convertible to cash and have a maturity of three months or less at the time of purchase, except that any such investments purchased with funds held in escrow or similar accounts are classified as restricted cash. Items classified as cash equivalents include money-market deposit accounts. Our cash and cash equivalents at December 31, 2014 and 2013 were held in the custody of one financial institution, and our balance at times may exceed federally-insurable limits.

Restricted Cash

As of December 31, 2014 and 2013, restricted cash consisted of accrued interest owed on funds held in escrow related to the acquisition of a property in December 2013. During the years ended December 31, 2014 and 2013, we accrued $3,000 and $41, respectively, of accrued interest on these funds held in escrow. In addition, restricted cash as of December 31, 2014, consists of $129,700 that was earmarked for the purchase of a water permit on one of our farms. This water permit was approved on January 27, 2015, and these funds were released on February 12, 2015.

Short-term Investments

We consider short-term investments to consist of any highly-liquid securities that have an original maturity of less than one year but greater than three months at the time of purchase. As of December 31, 2014 and 2013, short-term investments consisted of approximately $0.7 million held in a certificate of deposit (“CD”). The CD originally matured on September 6, 2013; however, upon maturity, the balance was rolled into a new, 12-month CD that matured on September 6, 2014, at which time the balance was again rolled into a new, 12-month CD with a maturity date of September 6, 2015. Due to the short-term nature of the CD, the amortized cost of the security was deemed to approximate its fair value as of both December 31, 2014 and 2013. During the year ended December 31, 2013, we also held $20.0 million of short-term U.S. Treasury Bills that matured on June 27, 2013, and were subsequently invested in a money-market deposit account. As of both December 31, 2014 and 2013, our short-term investments were classified as held-to-maturity and were recorded at their amortized cost on the Consolidated Balance Sheets.

Total income earned on these short-term investments is included in Interest income on the accompanying Consolidated Statements of Operations and totaled $681, $5,746 and $168 for the years ended December 31, 2014, 2013 and 2012, respectively.

Deferred Financing Costs

Deferred financing costs consist of costs incurred to obtain financing, including legal fees, origination fees and administrative fees. Costs associated with our borrowings are deferred and amortized over the terms of the respective financings using the straight-line method. In the case of our line of credit, the straight-line method is used due to the revolving nature of the financing instrument; in the case of our mortgage notes payable, the straight-line method approximates the effective interest method. Upon early extinguishment of any borrowings, the unamortized portion of the related deferred financing costs will be immediately charged to expense. As such, during 2012, we wrote off $35,511 of unamortized deferred financing costs associated with a line of credit that was terminated on May 31, 2012.

In addition, in accordance with ASC 470, “Debt,” when a financing arrangement is amended so that the borrowing capacity increases, the unamortized deferred financing costs from the prior arrangement should be amortized over the term of the new arrangement. As such, $298,614 of unamortized deferred financing costs associated with our Prior MetLife Credit Facility (as defined in Note 5, “Borrowings—MetLife Credit Facility”) were deferred and amortized over the term of our New MetLife Credit Facility (as defined in Note 5, “Borrowings—MetLife Credit Facility”).

Accumulated amortization of deferred financing costs was $117,433 and $64,148 as of December 31, 2014 and 2013, respectively. Total amortization expense related to deferred financing costs is included in Interest expense on the accompanying Consolidated Statements of Operations. See Note 5, “Borrowings,” for further discussion on these related financings.

Deferred Offering Costs

We account for deferred offering costs in accordance with SEC Staff Accounting Bulletin (“SAB”), Topic 5.A, which states that incremental costs directly attributable to a proposed or actual offering of securities may properly be deferred and charged against the gross proceeds of the offering. Accordingly, we record costs incurred related to public offerings of equity securities on our Condensed Consolidated Balance Sheets and pro-ratably apply these amounts to the proceeds of equity as stock is issued. We incurred $140,822 related to the filing and preparation of a registration statement on Form S-3, which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on April 2, 2014, and $7,052 of such costs were pro-ratably applied to the use of proceeds of our Follow-on Offering (as defined in Note 6, “Stockholders’ Equity—2014 Follow-on Offering”). In addition, we incurred $114,961 related to the filing and preparation of a registration statement on Form S-11, which has not yet been declared effective by the SEC.

Other Assets and Other Liabilities

Other assets consist of deferred rent assets, income taxes receivable, deposits on potential real estate acquisitions, prepaid expenses, above-market lease values, and other miscellaneous receivables. Other liabilities consist of rents received in advance, deferred rent liabilities, below-market lease values and funds held in escrow.

Revenue Recognition

Rental revenue includes rents that each tenant pays in accordance with the terms of its respective lease, reported evenly over the non-cancelable term of the lease. Most of our leases contain rental increases at specified intervals; we recognize such revenues on a straight-line basis. Deferred rent receivable, included in Other assets on the accompanying Consolidated Balance Sheets, includes the cumulative difference between rental revenue, as recorded on a straight-line basis, and rents received from the tenants in accordance with the lease terms. Capitalized above-market and below-market lease values are included in Other assets and Other liabilities, respectively, on the accompanying Consolidated Balance Sheets, which are amortized against or into rental income over the life of the respective leases. In addition, we determine, in our judgment, to what extent the deferred rent receivable applicable to each specific tenant is collectable. We perform a quarterly review on deferred rent receivable as it relates to straight-line rents and take into consideration the tenant’s payment history, the financial condition of the tenant, business conditions of the industry in which the tenant operates and economic and agricultural conditions in the geographic area in which the property is located. In the event that the collectability of deferred rent with respect to any given tenant is in doubt, we record an allowance for uncollectable accounts or record a direct write-off of the specific rent receivable. No such reserves or direct write-offs have been recorded to date.

Tenant reimbursement revenue includes payments received from tenants as reimbursements for certain operating expenses, such as property taxes and insurance premiums. These expenses and their subsequent reimbursements are recognized under property operating expenses as incurred and tenant reimbursement revenue as earned, respectively, and are recorded in the same periods.

Other Income

We record non-operating and unusual or infrequent income as Other income on our Consolidated Statements of Operations. Other income recorded for the years ended December 31, 2014 and 2012 was primarily from additional interest earned on income tax refunds from the State of California. See “ —Income taxes” below for more information on the income tax refunds. There was no Other income recognized during the year ended December 31, 2013.

Involuntary Conversions and Property and Casualty Recovery

We account for involuntary conversions, for example, when a nonmonetary asset, such as property or equipment, is involuntarily converted to a monetary asset, such as insurance proceeds, in accordance with ASC 605, “Revenue Recognition – Gains and Losses,” which requires us to recognize a gain or a loss equal to the difference between the carrying amount of the nonmonetary asset and the amount of monetary assets received. Further, in accordance with ASC 450, “Contingencies,” if recovery of the loss is considered to be probable, we will recognize a receivable for the amount expected to be covered by insurance proceeds, not to exceed the related loss recognized, unless such amounts have been realized.

Income taxes

We have operated and intend to continue to operate in a manner that will allow us to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended. On September 3, 2014, we filed our 2013 federal income tax return, on which we elected to be taxed as a REIT for federal income tax purposes beginning with our tax year ended December 31, 2013. As a REIT, we generally are not subject to federal income taxes on amounts that we distribute to our stockholders (except income from any foreclosure property), provided that, on an annual basis, we distribute at least 90% of our REIT taxable income (determined without regard to the deduction for dividends paid and excluding net capital gains) to our stockholders and meet certain other conditions. To the extent that we satisfy the annual distribution requirement but distribute less than 100% of our taxable income, we will be subject to an excise tax on our undistributed taxable income.

Beginning January 1, 2013, Land Advisers has been treated as a wholly-owned TRS that is subject to federal and state income taxes. Though Land Advisers has had no activity to date, we would account for any future income taxes in accordance with the provisions of ASC 740, “Income Taxes.”

Under ASC 740-10-25, we account for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. In estimating future tax consequences, we consider all future events, other than changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period of enactment. In addition, ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, we may recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not (defined as a likelihood of more than 50%) that the tax position, based on the technical merits of the position, will be sustained upon examination by taxing authorities, including resolutions of any related appeals or litigation processes. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater-than-fifty-percent likelihood of being realized upon ultimate settlement. If a tax position does not meet the more-likely-than-not recognition threshold, despite our belief that the filing position is supportable, the benefit of that tax position is not recognized in the Consolidated Statements of Operations. ASC 740 also provides guidance on derecognition, classification, interest and penalties on income taxes, as well as accounting in interim periods, and requires increased disclosures. We recognize interest and penalties, as applicable, related to unrecognized tax benefits as General and administrative expense on the Consolidated Statements of Operations. We recognize unrecognized tax benefits in the period that the uncertainty is eliminated by either affirmative agreement of the uncertain tax position by the applicable taxing authority or by expiration of the applicable statute of limitation.

For all tax years prior to 2013, our pre-tax net income was taxed at regular corporate tax rates for both federal and state purposes, and we accounted for such income taxes in accordance with the provisions of ASC 740.

We have performed a review of our tax positions and determined that, as of December 31, 2014 and 2013, we had no material provisions for uncertain tax positions.

A reconciliation between the U.S. statutory federal income tax rate and our effective income tax rate for the years ended December 31, 2014, 2013 and 2012 is provided in the following table:

	For the Years Ended December 31,
	2014			2013			2012
U.S. statutory federal income tax rate(1)		0.0	%		0.0	%		34.0	%
State taxes, net of U.S. federal income tax benefit(2)		26.9	%		41.7	%		4.0	%
Other adjustments(3)		0.0	%		473.4	%		-4.7	%
Effective tax rate		26.9	%		515.1	%		33.3	%

⁽¹⁾ Beginning with our tax year ended December 31, 2013, we qualified to be taxed as a REIT for federal income tax purposes.

⁽²⁾ In 2012, California state tax returns were filed on a unitary basis with our Adviser. State tax adjustments made to the 2013 and 2014 income tax provision relate to taxes owed to the state of California as a result of prior-year land transfers.

⁽³⁾ Adjustments made to the 2013 income tax provision related primarily to the recognition of $2.1 million of income taxes on a deferred intercompany gain relating to land transfers from prior years. This tax become due upon our election to be taxed as a REIT for the tax year ended December 31, 2013. This was partially offset by the reversal of our deferred tax liability, which resulted in a net benefit of REIT conversion of $743,676.

The provision for income taxes included in our Consolidated Financial Statements for both 2014 and 2013 was all current, while prior years included both a current portion and a deferred portion. The following table shows the breakdown between the current and deferred income taxes for the year ended December 31, 2012:

	2012
Current portion	$	(268,356	)
Deferred portion		568,675
Total income taxes	$	300,319

Prior to 2013, we carried a deferred tax liability on our balance sheet that represented the basis difference in our real estate as it relates to depreciation, as well as differences relating to rents received in advance, straight-line rents and other temporary differences. As of and for the year ended December 31, 2013, this deferred tax liability was reversed through our income tax provision, as we qualified and elected to be treated as a REIT for federal income tax purposes for our tax year ended December 31, 2013. Our permanent differences related to federal and state income taxes.

Segment Reporting

We do not evaluate performance on a property-specific or transactional basis, nor do we distinguish our principal business or group our operations on a geographical basis for purposes of measuring performance. Thus, we believe we have a single operating segment for reporting purposes in accordance with GAAP, that segment being farmland and farm-related properties.

Comprehensive (Loss) Income

For the years ended December 31, 2014, 2013 and 2012, net (loss) income equaled comprehensive (loss) income; therefore, a separate statement of comprehensive income is not included in the accompanying Consolidated Financial Statements.

Distributions

We operate in a manner intended to enable us to continue to qualify as a REIT under Sections 856-860 of the Code. Under those sections, a REIT that distributes at least 90% of its REIT taxable income to its stockholders each year and meets certain other conditions will not be subject to federal income tax on that portion of its taxable income that is distributed to stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate rates (including any alternative minimum tax) and may not be able to qualify as a REIT for the four immediately-subsequent taxable years. Even as a REIT, we may be subject to certain state and local income and property taxes and to federal income and excise taxes on undistributed taxable income. In general, however, as long as we qualify as a REIT, no provision for federal income taxes will be necessary, except for taxes on undistributed REIT taxable income and taxes on the income generated by a TRS, if any.

Recently-Issued Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” Under this revised guidance, only disposals representing a strategic shift in operations, such as a disposal of a major geographic area, a major line of business or a major equity method investment, will be presented as discontinued operations. As an emerging growth company, the standard is effective for us with respect to (a) all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015, and (b) all activities that, upon acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015. We currently anticipate that this standard will result in most of our disposals (if any) not qualifying for discontinued operations presentation.

In May 2014, the FASB issued ASC 606, “Revenue from Contracts with Customers.” This revenue standard contains principles that an entity should apply to determine the measurement of revenue and timing of when it should be recognized. This standard is effective for our fiscal year beginning January 1, 2017, and we are currently evaluating any impact from adoption.

In August 2014, the FASB issued Accounting Standards Update 2014–15 (“ASU 2014-15), “Presentation of Financial Statements — Going Concern (Subtopic 205 – 40): Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 requires management to evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, and to provide certain disclosures when it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. Since this guidance is primarily centered around certain disclosures to the financial statements, we anticipate no impact on our financial position, results of operations or cash flows from adopting this standard. We are currently assessing the additional disclosure requirements, if any, of ASU 2014-15. ASU 2014-15 is effective for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter, with early adoption permitted. We do not intend to opt for early adoption as an Emerging Growth Company.

XML

Stockholders' Equity - Schedule of Distributions On Common Stock (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2013
Equity [Abstract]
Percentage of qualified dividends	98.53746%

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Real Estate and Lease Intangibles - Pro-Forma Condensed Consolidated Statements of Operations as Properties Acquired (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Operating Data:
Total operating revenue	$ 8,547,496	$ 9,113,902
Total operating expenses	(6,287,653)	(5,183,279)
Other expenses	(2,902,815)	(2,760,914)
Net income before income taxes	(642,972)	1,169,708
Provision for income taxes	(26,502)	(1,519,730)
Net income	$ (669,474)	$ (350,022)
Share and Per share Data:
Earnings per share of common stock - basic and diluted	$ (0.09)	$ (0.05)
Weighted average common shares outstanding - basic and diluted	7,563,060	7,443,197

XML

Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	0 Months Ended	3 Months Ended	12 Months Ended			1 Months Ended	3 Months Ended
	Apr. 02, 2014	Jun. 30, 2014 Property	Dec. 31, 2014 Property	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2014
Organization And Summary Of Significant Accounting Policies [Line Items]
Decrease in net income due to out of period adjustment				$ 40,438
Amortization of acquired above market lease values			9,027	0
Accumulated amortization of acquired above market lease values			9,027
Amortization of acquired below market lease values			146,534	68,617	45,852
Accumulated amortization of acquired below market lease values			162,194	114,469	45,852
Amortization expense on intangibles assets			350,684	90,669	62,213
Number of property damaged		2
Number of properties recoverable			2
Impairments recognized on real estate			0
Leasehold improvements			585,947	0
Accrued interest on escrow funds			3,000	41
Restricted cash			132,741	41
Short-term investments			681,124	680,443
Total income earned			681	5,746	168
Unamortized deferred financing costs					35,511
Line of credit termination date			May 31, 2012
Unamortized deferred financing costs			1,039,714	309,933
Accumulated amortization of deferred financing costs			117,433	64,148
Costs incurred for filing and preparation of a registration statement	140,822		950,965	4,687,579	686,339
Reserves or direct write-offs recorded			0
Other income				0
Uncertain tax positions, percentage			50.00%
2014 New Real Estate Activity [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Amortization expense on intangibles assets			43,328				43,328
Written off intangibles assets			(46,526)			(46,526)
Follow-on Offering [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Costs incurred for filing and preparation of a registration statement			114,961
Issuance costs applied to proceeds	7,052
Certificate of Deposit [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Maturity of short term investment period			12 months
Short-term investments			700,000	700,000
Amended maturity date of certificate of deposit			Sep. 06, 2014
Certificate of deposit's maturity date			Sep. 06, 2013
New Certificates of Deposit [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Certificate of deposit's maturity date			Sep. 06, 2015
U.S. Treasury Bills [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Certificate of deposit's maturity date			Jun. 27, 2013
Short-term U.S. Treasury Bills				20,000,000
MetLife [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Unamortized deferred financing costs			298,614
Above-Market Lease Values [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Purchase price allocated to lease values in connection with the current-year acquisitions			65,203	0
Below-Market Lease Values [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Purchase price allocated to lease values in connection with the current-year acquisitions			371,707	260,356	98,808
Water Permit [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Restricted cash			129,700
Permit approved date			Jan. 27, 2015
Restricted cash funds released date			Feb. 12, 2015
Real Estate [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Depreciation expense			1,384,960	631,786	412,267
Minimum [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Hypothetical expected lease-up periods for estimating carrying costs			1 month
Maturity of short term investment period			3 months
Percentage of REIT taxable income to its stockholders			90.00%
Minimum [Member] | Leases Acquired in Place and Origination Cost [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Period of amortization for lease origination cost			1 year
Maximum [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Hypothetical expected lease-up periods for estimating carrying costs			24 months
Maturity of short term investment period			1 year
Percentage of REIT taxable income to its stockholders			100.00%
Maximum [Member] | Leases Acquired in Place and Origination Cost [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Period of amortization for lease origination cost			10 years
Buildings and Improvements [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Estimated useful life			39 years
Horticulture [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Estimated useful life			25 years
Equipment and Fixtures [Member] | Minimum [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Estimated useful life			5 years
Equipment and Fixtures [Member] | Maximum [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Estimated useful life			7 years
Leasehold Improvements [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Depreciation expense			56,760
Accumulated depreciation			$ 56,760

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Business and Organization - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014
MARYLAND
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Company re-incorporated date	Mar. 24, 2011
Delaware [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Company re-incorporated date	May 25, 2004
California [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Company originally incorporated date	Jun. 14, 1997
Gladstone Land Advisers, Inc. [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Fees related to leasing of real estate or ancillary services	0
Company's ownership percent of voting securities of Land Advisers	100.00%

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Borrowings - Summary of Mortgage Note Payable and Line of Credit (Parenthetical) (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014
MetLife [Member]
Debt Instrument [Line Items]
New MetLife Credit Facility, termination date	May 09, 2014
Remaining availability	$ 13,800,000
Farmer Mac [Member]
Debt Instrument [Line Items]
Remaining availability	$ 0

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Real Estate and Lease Intangibles - Carrying Value of Lease Intangibles and Accumulated Amortization for Each Intangible Asset or Liability Class (Detail) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
Below-market lease values, gross	$ (371,707)	$ (260,356)
Below-market lease values, accumulated (amortization) accretion	162,194	114,469	45,852
Above-Market Lease Values [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	65,203
Finite-lived intangible asset, accumulated (amortization) accretion	(9,027)
Above (Below)-Market Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	(306,504)	(260,356)
Finite-lived intangible asset, accumulated (amortization) accretion	153,167	114,469
In-place Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	869,207	397,728
Finite-lived intangible asset, accumulated (amortization) accretion	(263,428)	(241,697)
Leasing Commissions [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	357,210	146,558
Finite-lived intangible asset, accumulated (amortization) accretion	(80,617)	(34,727)
Tenant Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	501,670	93,187
Finite-lived intangible asset, accumulated (amortization) accretion	(66,467)	(49,985)
Total Lease Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	1,728,087	637,473
Finite-lived intangible asset, accumulated (amortization) accretion	$ (410,512)	$ (326,409)

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Summary of Significant Accounting Policies - Reconciliation between U.S. Statutory Federal Income Tax Rate and Effective Income Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]
U.S. statutory federal income tax rate	0.00%	0.00%	34.00%
State taxes, net of U.S. federal income tax benefit	26.90%	41.70%	4.00%
Other adjustments	0.00%	473.40%	(4.70%)
Effective tax rate	26.90%	515.10%	33.30%

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Summary of Significant Accounting Policies - Reconciliation between U.S. Statutory Federal Income Tax Rate and Effective Income Tax Rate (Parenthetical) (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
Income tax provision on deferred intercompany gains	$ 2,100,000
Benefit of REIT conversion	$ 743,676

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Business and Organization

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Business and Organization

NOTE 1. BUSINESS AND ORGANIZATION

Business

Gladstone Land Corporation (the “Company) was re-incorporated in Maryland on March 24, 2011, having been previously re-incorporated in Delaware on May 25, 2004, and having been originally incorporated in California on June 14, 1997. We are primarily in the business of owning and leasing farmland. Subject to certain restrictions and limitations, and pursuant to contractual agreements, our business is managed by Gladstone Management Corporation (the “Adviser”), a Delaware corporation, and administrative services are provided to us by Gladstone Administration, LLC (the “Administrator”), a Delaware limited liability company. Both the Adviser and the Administrator are affiliates of ours; see Note 4, “Related-Party Transactions.”

Organization

We conduct substantially all of our operations through a subsidiary, Gladstone Land Limited Partnership (the “Operating Partnership”), a Delaware limited partnership. As we currently own, directly or indirectly, all of the general and limited partnership interests of the Operating Partnership, the financial position and results of operations of the Operating Partnership are consolidated within our financial statements.

Gladstone Land Partners, LLC (“Land Partners”), a Delaware limited liability company and a subsidiary of ours, was organized to engage in any lawful act or activity for which a limited liability company may be organized in Delaware. Land Partners is the general partner of the Operating Partnership and has the power to make and perform all contracts and to engage in all activities necessary in carrying out the purposes of the Company, as well as all other powers available to it as a limited liability company. As we currently own all of the membership interests of Land Partners, the financial position and results of operations of Land Partners are consolidated within our financial statements.

Gladstone Land Advisers, Inc. (“Land Advisers”), a Delaware corporation and a subsidiary of ours, was created to collect any non-qualifying income related to our real estate portfolio. We have elected for Land Advisers to be taxed as a taxable REIT subsidiary (“TRS”). It is currently anticipated that this income will predominately consist of fees we receive related to the leasing of real estate, though we may also provide ancillary services to farmers through this subsidiary. There have been no fees related to the leasing of real estate or for ancillary services earned by Land Advisers to date. Since we currently own 100% of the voting securities of Land Advisers, the financial position and results of operations of Land Advisers are consolidated within our financial statements.

All subsequent references in this report to the “Company,” “we,” “us” and “our” refer, collectively, to Gladstone Land Corporation, the Operating Partnership and the Company’s and the Operating Partnership’s subsidiaries, unless the context otherwise requires or where otherwise indicated.

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Summary of Significant Accounting Policies - Breakdown between Current and Deferred Income Taxes (Detail) (USD $)	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]
Current portion											$ (268,356)
Deferred portion										(743,676)	568,675
Total income taxes	$ 6,399	$ 6,857	$ 6,623	$ 6,623	$ 1,328,297	$ 85,406	$ 46,838	$ 59,189	$ 26,502	$ 1,519,730	$ 300,319

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Real Estate and Lease Intangibles - Summary of Total Revenue and Earnings Recognized on Properties Acquired (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Real Estate Properties [Line Items]
Rental revenue	$ 7,170,318	$ 4,027,687	$ 3,390,594
Natividad Road [Member]
Real Estate Properties [Line Items]
Rental revenue		413,476
2014 New Real Estate Activity [Member]
Real Estate Properties [Line Items]
Rental revenue	1,026,625
Earnings	444,208
2014 New Real Estate Activity [Member] | Collins Road [Member]
Real Estate Properties [Line Items]
Acquisition Date	May 30, 2014
Rental revenue	106,658
Earnings	33,303
2014 New Real Estate Activity [Member] | Spring Valley [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jun. 13, 2014
Rental revenue	148,996
Earnings	81,073
2014 New Real Estate Activity [Member] | McIntosh Road [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jun. 20, 2014
Rental revenue	58,021
Earnings	(22,902)
2014 New Real Estate Activity [Member] | Naumann Road [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jul. 23, 2014
Rental revenue	145,337
Earnings	104,726
2014 New Real Estate Activity [Member] | Sycamore Road [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jul. 25, 2014
Rental revenue	80,328
Earnings	39,574
2014 New Real Estate Activity [Member] | Wauchula Road [Member]
Real Estate Properties [Line Items]
Acquisition Date	Sep. 29, 2014
Rental revenue	226,978
Earnings	101,794
2014 New Real Estate Activity [Member] | Santa Clara Avenue [Member]
Real Estate Properties [Line Items]
Acquisition Date	Oct. 29, 2014
Rental revenue	212,078
Earnings	73,833
2014 New Real Estate Activity [Member] | Dufau Road [Member]
Real Estate Properties [Line Items]
Acquisition Date	Nov. 04, 2014
Rental revenue	48,229
Earnings	32,807
2013 New Real Estate Activity [Member]
Real Estate Properties [Line Items]
Rental revenue		305,438
Earnings		206,460
2013 New Real Estate Activity [Member] | 38th Avenue [Member]
Real Estate Properties [Line Items]
Acquisition Date		Apr. 05, 2013
Rental revenue		64,494
Earnings		35,996
2013 New Real Estate Activity [Member] | Sequoia Street [Member]
Real Estate Properties [Line Items]
Acquisition Date		May 31, 2013
Rental revenue		112,944
Earnings		83,262
2013 New Real Estate Activity [Member] | Natividad Road [Member]
Real Estate Properties [Line Items]
Acquisition Date		Oct. 21, 2013
Rental revenue		86,510
Earnings		63,133
2013 New Real Estate Activity [Member] | 20th Avenue [Member]
Real Estate Properties [Line Items]
Acquisition Date		May 11, 2013
Rental revenue		20,184
Earnings		6,919
2013 New Real Estate Activity [Member] | Broadway Road [Member]
Real Estate Properties [Line Items]
Acquisition Date		Dec. 16, 2013
Rental revenue		7,396
Earnings		3,713
2013 New Real Estate Activity [Member] | Oregon Trail [Member]
Real Estate Properties [Line Items]
Acquisition Date		Dec. 27, 2013
Rental revenue		10,195
Earnings		10,154
2013 New Real Estate Activity [Member] | East Shelton [Member]
Real Estate Properties [Line Items]
Acquisition Date		Dec. 27, 2013
Rental revenue		3,715
Earnings		$ 3,283

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Related-Party Transactions - Summary of Management Fees, Incentive Fees and Associated Credits and Administration Fees (Parenthetical) (Detail) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Related Party Transactions [Abstract]
Incentive fee paid to adviser	$ 41,037	$ 0	$ 0	$ 0

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Consolidated Balance Sheets (USD $)	Dec. 31, 2014		Dec. 31, 2013
ASSETS
Real estate, at cost	$ 148,371,478		$ 78,478,053
Less: accumulated depreciation	(4,431,290)		(3,166,870)
Total real estate, net	143,940,188		75,311,183
Lease intangibles, net	1,317,575		311,064
Cash and cash equivalents	2,619,342		16,271,282
Restricted cash	132,741		41
Short-term investments	681,124		680,443
Deferred financing costs, net	1,039,714		309,933
Deferred offering costs	248,731
Other assets	1,723,209		789,518
TOTAL ASSETS	151,702,624		93,673,464
LIABILITIES
Mortgage notes and bonds payable	82,417,361		43,054,165
Borrowings under line of credit	4,000,000		100,000
Accounts payable and accrued expenses	1,925,251		1,097,270
Due to related parties	471,101	[1]	160,719	[1]
Other liabilities	2,919,583		749,318
TOTAL LIABILITIES	91,733,296		45,161,472
Commitments and contingencies		[2]		[2]
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value; 20,000,000 shares authorized; 7,753,717 and 6,530,264 shares issued and outstanding as of December 31, 2014, and December 31, 2013, respectively	7,754		6,530
Additional paid in capital	65,366,309		51,326,262
Distributions in excess of earnings	(5,404,735)		(2,820,800)
TOTAL STOCKHOLDERS' EQUITY	59,969,328		48,511,992
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 151,702,624		$ 93,673,464

[1] Refer to Note 4, "Related-Party Transactions," for additional information

[2] Refer to Note 7, "Commitments and Contingencies," for additional information

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Real Estate and Lease Intangibles - Summary of Estimated Aggregate Amortization Expense and Estimated Net Impact on Rental Income (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Estimated Amortization Expense, 2015	$ 676,448
Estimated Amortization Expense, 2016	289,465
Estimated Amortization Expense, 2017	161,781
Estimated Amortization Expense, 2018	41,254
Estimated Amortization Expense, 2019	38,542
Estimated Amortization Expense, Thereafter	110,085
Total aggregate amortization expense	1,317,575	311,064
Estimated Net Increase (Decrease) in Rental Revenue, For the fiscal years ending December 31: 2015	171,636
Estimated Net Increase (Decrease) in Rental Revenue, 2016	(5,284)
Estimated Net Increase (Decrease) in Rental Revenue, 2017	(13,015)
Estimated Net Increase (Decrease) in Rental Revenue, 2018	0
Estimated Net Increase (Decrease) in Rental Revenue, 2019	0
Estimated Net Increase (Decrease) in Rental Revenue, Thereafter	0
Total Estimated Net Increase (Decrease) in Rental Revenue	$ 153,337

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Consolidated Statements of Cash Flows (USD $)	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (125,133)		$ (1,224,683)		$ 600,373
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization	1,735,644		722,455		474,480
Amortization of deferred financing costs	53,286		30,024		59,472
Amortization of deferred rent assets and liabilities, net	(194,267)		(68,617)		(45,852)
Property and casualty recovery, net	(262,963)
Insurance proceeds received utilized for repairs to real estate assets	89,688
Deferred income taxes			(743,676)		568,675
Changes in operating assets and liabilities:
Other assets	(684,782)		25,205		(609,131)
Accounts payable, accrued expenses, and due to related parties	1,180,185		250,139		235,090
Other liabilities	1,751,964		548,800		(145,330)
Net cash provided by (used in) operating activities	3,543,622		(460,353)		1,137,777
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of new real estate	(68,626,968)		(37,871,978)		(7,499,644)
Capital expenditures on existing real estate	(2,619,084)		(811,605)
Increase in restricted cash	(132,700)		(41)
Purchase of certificate of deposit					(679,717)
Purchase of U.S. Treasuries			(19,994,981)
Maturity of U.S. Treasuries			20,000,000
Deposits on future acquisitions	(350,000)		(200,000)		(150,000)
Deposits refunded	50,000		150,000		200,000
Insurance proceeds received capitalized as real estate asset additions	344,512
Net cash used in investing activities	(71,334,240)		(38,728,605)		(8,129,361)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of equity	15,024,003		56,703,960
Offering costs	(950,965)		(4,687,579)		(686,339)
Borrowings from mortgage notes payable	41,188,600		13,565,000		8,707,000
Repayments on mortgage note payable	(1,825,404)		(1,228,715)		(917,120)
Borrowings from line of credit	25,500,000		1,600,000		3,100,000
Repayments on line of credit	(21,600,000)		(1,600,000)		(4,205,000)
Financing fees	(738,754)		(35,807)		(137,337)
Distributions paid	(2,458,802)		(9,730,093)
Net cash provided by financing activities	54,138,678		54,586,766		5,861,204
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(13,651,940)		15,397,808		(1,130,380)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	16,271,282		873,474		2,003,854
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,619,342		16,271,282		873,474
Cash paid during the year for interest	1,431,214		1,055,333		854,876
Cash paid during the year for income taxes	27,000		2,274,727	[1]	464,772
NON-CASH INVESTING AND FINANCING INFORMATION:
Non-cash additions to real estate	667,019	[2]	309,174
Offering costs included in accounts payable and accrued expenses	141,967	[3]			319,756
Financing fees included in accounts payable and accrued expenses	44,313
Insurance proceeds included in Other assets	$ 61,500	[4]

[1] Cash paid during 2013 for income taxes includes a $2.1 million tax prepayment made related to a deferred intercompany gain on prior-year land transfers.

[2] 2014 real estate additions include $81,072 of additions included in accounts payable and accrued expenses and $585,947 of leasehold improvements recorded during the year. 2013 real estate additions were all included in accounts payable and accrued expenses.

[3] 2014 non-cash offering costs consist of $110,200 included in "Other assets" and $31,767 included in "Additional paid in capital" on the Consolidated Balance Sheet.

[4] Insurance proceeds of $61,500 related to a fire-damaged structure on one of our properties were paid directly to the tenant in advance of construction.

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Stockholders' Equity - Additional Information (Detail) (USD $)	12 Months Ended			0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014	Jan. 28, 2013	Sep. 24, 2014	Oct. 29, 2014	Oct. 24, 2014	Apr. 02, 2014
Subsidiary, Sale of Stock [Line Items]
Gross proceeds from initial public offering	$ 56,700,000
Distributions paid	2,458,802	9,730,093
Common stock, shares issued	7,753,717	6,530,264		7,753,717
Dividend declared or paid			$ 0
Accumulated earnings and profits		9,600,000
Maximum [Member]
Subsidiary, Sale of Stock [Line Items]
Securities allowed for issuance									300,000,000
Common Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Common stock shares issued	1,223,453	3,780,264
Public offering price					15.00
Net proceeds after deducting offering expenses	51,300,000
Gross proceeds from issuance of common stock	15,000,000
Value of common stock issuable per registration statement	35,000,000
IPO [Member]
Subsidiary, Sale of Stock [Line Items]
Common stock shares issued					3,333,334
Additional common stock shares issued	3,780,264
Invested in new property acquisition		37,900,000
Expended or accrued for capital improvements		1,700,000
Distributions paid				10,300,000
Uninvested proceed from initial public offering	0			0
Follow-on Offering [Member]
Subsidiary, Sale of Stock [Line Items]
Net proceeds after deducting offering expenses						13,200,000
Common stock, shares issued						1,150,000
Price per share						$ 12.28
Gross proceeds from issuance of common stock						14,100,000
Proceeds from common stock used to repay existing indebtedness						11,100,000
Uninvested proceeds from stock offerings	0			0
Over-Allotment Option [Member]
Subsidiary, Sale of Stock [Line Items]
Additional common stock shares issued								73,453
Net proceeds after deducting offering expenses							843,000
Gross proceeds from issuance of common stock							$ 902,000

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Real Estate and Lease Intangibles - Summary of Components of Investments in Real Estate (Detail) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Real estate:
Land and land improvements	$ 122,999,316	$ 63,944,307
Irrigation system	12,365,514	6,007,845
Buildings and improvements	11,447,308	7,487,051
Horticulture	1,559,340	1,038,850
Real estate, gross	148,371,478	78,478,053
Accumulated Depreciation	(4,431,290)	(3,166,870)	(2,535,084)	(2,122,817)
Real estate, net	$ 143,940,188	$ 75,311,183

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Quarterly Financial Information - Summary of Quarterly Results of Operations (Detail) (USD $)	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Quarterly Financial Information Disclosure [Abstract]
Operating revenues	$ 2,345,676	$ 1,777,675	$ 1,565,935	$ 1,495,636	$ 1,177,703	$ 996,096	$ 949,756	$ 914,583	$ 7,184,922	$ 4,038,138	$ 3,390,594
Operating expenses	(1,799,948)	(1,476,092)	(1,208,458)	(1,100,452)	(883,767)	(647,480)	(611,333)	(538,105)
Other expenses	(484,661)	(194,351)	(651,948)	(367,643)	(272,954)	(258,450)	(261,229)	(269,773)	(1,698,603)	(1,062,406)	(1,000,923)
Net (loss) income before income taxes	61,067	107,232	(294,471)	27,541	20,982	90,166	77,194	106,705	(98,631)	295,047	900,692
Provision for income taxes	(6,399)	(6,857)	(6,623)	(6,623)	(1,328,297)	(85,406)	(46,838)	(59,189)	(26,502)	(1,519,730)	(300,319)
Net income (loss)	$ 54,668	$ 100,375	$ (301,094)	$ 20,918	$ (1,307,315)	$ 4,760	$ 30,356	$ 47,516	$ (125,133)	$ (1,224,683)	$ 600,373
Earnings (loss) per weighted average common shares - basic and diluted	$ 0.01	$ 0.02	$ (0.05)	$ 0.00	$ (0.21)	$ 0.00	$ 0.00	$ 0.01	$ (0.02)	$ (0.20)	$ 0.22
Weighted average common shares outstanding - basic and diluted	7,735,354	6,605,264	6,530,264	6,530,264	6,530,264	6,530,264	6,530,264	5,249,898	6,852,917	6,214,557	2,750,000

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Related-Party Transactions (Tables)

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Summary of Management Fees, Incentive Fees and Associated Credits and Administration Fees

The following table summarizes the management fees, incentive fees and associated credits and the administration fees reflected in our accompanying Consolidated Statements of Operations:

	For the Years Ended December 31,
	2014		2013			2012
Management Fee:
Allocated payroll and benefits	$	—	$	38,668		$	224,931
Allocated overhead expenses		—		7,538			42,349
Prior management advisory fee(1)		—		46,206			267,280
Amended base management fee(2)		1,079,534		149,403			—
Total management fee(3)	$	1,079,534	$	195,609		$	267,280
Incentive Fee:
Incentive Fee(3)(4)	$	—	$	41,037		$	—
Credit from voluntary, irrevocable waiver
by Adviser’s board of directors(3)(4)		—		(41,037	)		—
Net incentive fee	$	—	$	—		$	—
Administration Fee:
Allocated payroll and benefits	$	—	$	14,034		$	143,381
Allocated overhead expenses		—		4,498			37,017
Prior administration fee(1)		—		18,532			180,398
Amended administration fee(2)		442,584		175,932			—
Total administration fee(3)	$	442,584	$	194,464		$	180,398

⁽¹⁾  Pursuant to the Prior Advisory and Administration Agreements, respectively, as defined and described in further detail above, both of which were terminated on January 31, 2013.

⁽²⁾  Pursuant to the Amended Advisory and Administration Agreements, respectively, as defined and described in further detail above, both of which became effective on February 1, 2013.

⁽³⁾  Reflected as a line item on our accompanying Consolidated Statements of Operations.

⁽⁴⁾  An incentive fee of $41,037 was paid to our Adviser for the three months ended March 31, 2013; however, during the three months ended June 30, 2013, our Adviser issued a one-time, voluntary and irrevocable waiver equal to the full amount of the incentive fee due and payable to the Adviser for the three months ended March 31, 2013.

Details of Amounts Due to Related Parties on Our Accompanying Condensed Consolidated Balance Sheets

Amounts due to related parties on our accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013 were as follows:

	2014		2013
Management fee due to Adviser	$	301,487	$	91,823
Other due to Adviser(1)		3,187		9,834
Total due to Adviser		304,674		101,657
Administration fee due to Administrator		166,427		59,062
Total due to Administrator		166,427		59,062
Total due to related parties(2)	$	471,101	$	160,719

⁽¹⁾  Other fees due to related parties primarily relate to miscellaneous general and administrative expenses paid by our Adviser or Administrator on our behalf.

⁽²⁾ Reflected as a line item on our accompanying Consolidated Balance Sheets.

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Real Estate and Lease Intangibles - Summarized Information of Acquisition of Properties (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014 Farm	Dec. 31, 2013 Farm
Real Estate Properties [Line Items]
Number of Farms	11	9
Debt Issued / Encumbrances	$ 86,417,361
McIntosh Road [Member] | Dover, FL [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jun. 20, 2014
Debt Issued / Encumbrances	1,599,600
Collins Road [Member] | Clatskanie, OR [Member]
Real Estate Properties [Line Items]
Acquisition Date	May 30, 2014
Spring Valley [Member] | Watsonville, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jun. 13, 2014
Debt Issued / Encumbrances	2,862,237
Naumann Road [Member] | Oxnard, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jul. 23, 2014
Debt Issued / Encumbrances	3,342,510
Sycamore Road [Member] | Arvin, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jul. 25, 2014
Debt Issued / Encumbrances	2,813,724
Wauchula Road [Member] | Duette, FL [Member]
Real Estate Properties [Line Items]
Acquisition Date	Sep. 29, 2014
Debt Issued / Encumbrances	8,155,762
Santa Clara Avenue [Member] | Oxnard, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date	Oct. 29, 2014
Debt Issued / Encumbrances	12,128,121
Dufau Road [Member] | Oxnard, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date	Nov. 04, 2014
Debt Issued / Encumbrances	3,675,000
Natividad Road [Member] | Salinas, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date	Oct. 21, 2013
Debt Issued / Encumbrances	3,395,874
38th Avenue [Member] | Covert, MI [Member]
Real Estate Properties [Line Items]
Acquisition Date	Apr. 05, 2013
Debt Issued / Encumbrances	650,552
Sequoia Street [Member] | Brooks, OR [Member]
Real Estate Properties [Line Items]
Acquisition Date	May 31, 2013
Debt Issued / Encumbrances	1,503,888
20th Avenue [Member] | South Haven, MI [Member]
Real Estate Properties [Line Items]
Acquisition Date	Nov. 05, 2013
Debt Issued / Encumbrances	970,250
Broadway Road [Member] | Moorpark, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date	Dec. 16, 2013
Debt Issued / Encumbrances	1,455,375
Oregon Trail [Member] | Echo, OR [Member]
Real Estate Properties [Line Items]
Acquisition Date	Dec. 27, 2013
Debt Issued / Encumbrances	6,791,748
East Shelton [Member] | Willcox, AZ [Member]
Real Estate Properties [Line Items]
Acquisition Date	Dec. 27, 2013
Debt Issued / Encumbrances	3,250,336
2014 New Real Estate Activity [Member]
Real Estate Properties [Line Items]
Total Acreage	2,039
Number of Farms	11
Total Purchase Price	68,328,433
Acquisition Costs	601,559
Annualized Straight-line Rent	3,523,666
Debt Issued / Encumbrances	34,680,192
2014 New Real Estate Activity [Member] | McIntosh Road [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jun. 20, 2014
2014 New Real Estate Activity [Member] | Collins Road [Member]
Real Estate Properties [Line Items]
Acquisition Date	May 30, 2014
2014 New Real Estate Activity [Member] | Spring Valley [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jun. 13, 2014
2014 New Real Estate Activity [Member] | Naumann Road [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jul. 23, 2014
2014 New Real Estate Activity [Member] | Sycamore Road [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jul. 25, 2014
2014 New Real Estate Activity [Member] | Wauchula Road [Member]
Real Estate Properties [Line Items]
Acquisition Date	Sep. 29, 2014
2014 New Real Estate Activity [Member] | Santa Clara Avenue [Member]
Real Estate Properties [Line Items]
Acquisition Date	Oct. 29, 2014
2014 New Real Estate Activity [Member] | Dufau Road [Member]
Real Estate Properties [Line Items]
Acquisition Date	Nov. 04, 2014
2014 New Real Estate Activity [Member] | Strawberries [Member] | McIntosh Road [Member] | Dover, FL [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jun. 20, 2014
Total Acreage	94
Number of Farms	2
Lease Term	3 years
Renewal Options	3 years
Total Purchase Price	2,666,000
Acquisition Costs	60,939
Annualized Straight-line Rent	133,154
Debt Issued / Encumbrances	1,599,600
2014 New Real Estate Activity [Member] | Blueberries [Member] | Collins Road [Member] | Clatskanie, OR [Member]
Real Estate Properties [Line Items]
Acquisition Date	May 30, 2014
Total Acreage	200
Number of Farms	2
Lease Term	10 years 3 months 18 days
Renewal Options	5 years
Total Purchase Price	2,591,333
Acquisition Costs	60,869
Annualized Straight-line Rent	181,172
2014 New Real Estate Activity [Member] | Strawberries, Misc. Vegetables and Lilies [Member] | Spring Valley [Member] | Watsonville, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jun. 13, 2014
Total Acreage	145
Number of Farms	1
Lease Term	2 years 3 months 18 days
Total Purchase Price	5,900,000
Acquisition Costs	49,582
Annualized Straight-line Rent	270,901
Debt Issued / Encumbrances	2,862,237
2014 New Real Estate Activity [Member] | Strawberries and Raspberries [Member] | Naumann Road [Member] | Oxnard, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jul. 23, 2014
Total Acreage	68
Number of Farms	1
Lease Term	3 years
Renewal Options	3 years
Total Purchase Price	6,888,500
Acquisition Costs	91,103
Annualized Straight-line Rent	329,667
Debt Issued / Encumbrances	3,342,510
2014 New Real Estate Activity [Member] | Misc. Vegetables and Grain [Member] | Sycamore Road [Member] | Arvin, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date	Jul. 25, 2014
Total Acreage	326
Number of Farms	1
Lease Term	1 year 3 months 18 days
Total Purchase Price	5,800,000
Acquisition Costs	44,434
Annualized Straight-line Rent	184,304
Debt Issued / Encumbrances	2,813,724
2014 New Real Estate Activity [Member] | Strawberries, Misc. Vegetables, and Melons [Member] | Wauchula Road [Member] | Duette, FL [Member]
Real Estate Properties [Line Items]
Acquisition Date	Sep. 29, 2014
Total Acreage	808
Number of Farms	1
Lease Term	10 years
Renewal Options	5 years
Total Purchase Price	13,765,000
Acquisition Costs	132,555
Annualized Straight-line Rent	888,439
Debt Issued / Encumbrances	8,259,000
2014 New Real Estate Activity [Member] | Strawberries and Misc. Vegetables [Member] | Santa Clara Avenue [Member] | Oxnard, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date	Oct. 29, 2014
Total Acreage	333
Number of Farms	2
Lease Term	9 months 18 days
Renewal Options	2 years
Total Purchase Price	24,592,000
Acquisition Costs	100,603
Annualized Straight-line Rent	1,231,422
Debt Issued / Encumbrances	12,128,121
2014 New Real Estate Activity [Member] | Strawberries and Misc. Vegetables [Member] | Dufau Road [Member] | Oxnard, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date	Apr. 11, 2014
Total Acreage	65
Number of Farms	1
Lease Term	3 years
Renewal Options	3 years
Total Purchase Price	6,125,600
Acquisition Costs	61,474
Annualized Straight-line Rent	304,607
Debt Issued / Encumbrances	3,675,000
2013 New Real Estate Activity [Member]
Real Estate Properties [Line Items]
Total Acreage		4,370
Number of Farms		9
Total Purchase Price		37,306,120
Acquisition Costs		520,417
Annualized Straight-line Rent		2,070,955
2013 New Real Estate Activity [Member] | Natividad Road [Member]
Real Estate Properties [Line Items]
Acquisition Date		Oct. 21, 2013
2013 New Real Estate Activity [Member] | 38th Avenue [Member]
Real Estate Properties [Line Items]
Acquisition Date		Apr. 05, 2013
2013 New Real Estate Activity [Member] | Sequoia Street [Member]
Real Estate Properties [Line Items]
Acquisition Date		May 31, 2013
2013 New Real Estate Activity [Member] | 20th Avenue [Member]
Real Estate Properties [Line Items]
Acquisition Date		May 11, 2013
2013 New Real Estate Activity [Member] | Broadway Road [Member]
Real Estate Properties [Line Items]
Acquisition Date		Dec. 16, 2013
2013 New Real Estate Activity [Member] | Oregon Trail [Member]
Real Estate Properties [Line Items]
Acquisition Date		Dec. 27, 2013
2013 New Real Estate Activity [Member] | East Shelton [Member]
Real Estate Properties [Line Items]
Acquisition Date		Dec. 27, 2013
2013 New Real Estate Activity [Member] | Blueberries [Member] | 38th Avenue [Member] | Covert, MI [Member]
Real Estate Properties [Line Items]
Acquisition Date		Apr. 05, 2013
Total Acreage		119
Number of Farms		1
Lease Term		7 years
Renewal Options		7 years
Total Purchase Price		1,341,000
Acquisition Costs		38,200
Annualized Straight-line Rent		87,286
2013 New Real Estate Activity [Member] | Blueberries [Member] | Sequoia Street [Member] | Brooks, OR [Member]
Real Estate Properties [Line Items]
Acquisition Date		May 31, 2013
Total Acreage		218
Number of Farms		1
Lease Term		15 years
Renewal Options		5 years
Total Purchase Price		3,100,000
Acquisition Costs		108,211
Annualized Straight-line Rent		193,617
2013 New Real Estate Activity [Member] | Blueberries [Member] | 20th Avenue [Member] | South Haven, MI [Member]
Real Estate Properties [Line Items]
Acquisition Date		Nov. 05, 2013
Total Acreage		151
Number of Farms		3
Lease Term		5 years
Renewal Options		5 years
Total Purchase Price		1,985,000
Acquisition Costs		34,479
Annualized Straight-line Rent		129,755
2013 New Real Estate Activity [Member] | Strawberries and Raspberries [Member] | Natividad Road [Member] | Salinas, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date		Oct. 21, 2013
Total Acreage		166
Number of Farms		1
Lease Term		2 years
Total Purchase Price		7,325,120
Acquisition Costs		47,850
Annualized Straight-line Rent		439,575
2013 New Real Estate Activity [Member] | Lemons [Member] | Broadway Road [Member] | Moorpark, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date		Dec. 16, 2013
Total Acreage		60
Number of Farms		1
Lease Term		10 years
Renewal Options		10 years
Total Purchase Price		3,000,000
Acquisition Costs		27,528
Annualized Straight-line Rent		171,958
2013 New Real Estate Activity [Member] | Corn, Onions And Potatoes [Member] | Oregon Trail [Member] | Echo, OR [Member]
Real Estate Properties [Line Items]
Acquisition Date		Dec. 27, 2013
Total Acreage		1,895
Number of Farms		1
Lease Term		10 years
Renewal Options		5 years
Total Purchase Price		13,855,000
Acquisition Costs		213,458
Annualized Straight-line Rent		758,480
2013 New Real Estate Activity [Member] | Corn And Dry Edible Beans [Member] | East Shelton [Member] | Willcox, AZ [Member]
Real Estate Properties [Line Items]
Acquisition Date		Dec. 27, 2013
Total Acreage		1,761
Number of Farms		1
Lease Term		10 years
Total Purchase Price		6,700,000
Acquisition Costs		50,691
Annualized Straight-line Rent		290,284

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Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Monthly Distributions Declared and Paid by Company's Board of Directors

The distributions to common stockholders declared by our Board of Directors and paid by us during the years ended December 31, 2014 and 2013 are reflected in the table below. No distributions were declared or paid during the year ended December 31, 2012.

Fiscal Year	Declaration Date	Record Date	Payment Date	Distributions per Common Share
2014	January 7, 2014	January 22, 2014	January 31, 2014	$	0.03
	January 7, 2014	February 19, 2014	February 28, 2014		0.03
	January 7, 2014	March 17, 2014	March 31, 2014		0.03
	April 8, 2014	April 21, 2014	April 30, 2014		0.03
	April 8, 2014	May 20, 2014	May 30, 2014		0.03
	April 8, 2014	June 19, 2014	June 30, 2014		0.03
	July 15, 2014	July 25, 2014	August 5, 2014		0.03
	July 15, 2014	August 20, 2014	August 29, 2014		0.03
	July 15, 2014	September 19, 2014	September 30, 2014		0.03
	October 7, 2014	October 22, 2014	October 31, 2014		0.03
	October 7, 2014	November 17, 2014	November 26, 2014		0.03
	October 7, 2014	December 19, 2014	December 31, 2014		0.03
	Year ended December 31, 2014			$	0.36
2013	February 5, 2013	February 15, 2013	February 28, 2013	$	0.04
	February 5, 2013	March 15, 2013	March 28, 2013		0.04
	April 9, 2013	April 22, 2013	April 30, 2013		0.12
	April 9, 2013	May 20, 2013	May 31, 2013		0.12
	April 9, 2013	June 19, 2013	June 28, 2013		0.12
	July 9, 2013	July 19, 2013	July 31, 2013		0.12
	July 9, 2013	August 21, 2013	August 30, 2013		0.12
	July 9, 2013	September 18, 2013	September 30, 2013		0.12
	October 8, 2013	October 22, 2013	October 31, 2013		0.12
	October 8, 2013	November 14, 2013	November 29, 2013		0.12
	October 8, 2013	December 16, 2013	December 31, 2013		0.12
	December 3, 2013	December 16, 2013	December 31, 2013		0.33	(1)
	Year ended December 31, 2013			$	1.49

⁽¹⁾ Represents a one-time declaration to distribute the final amount of remaining earnings and profits from prior years.

Schedule of Distributions On Common Stock

The characterization of distributions on our common stock during each of the last two years is reflected in the following table:

For the Years Ended	Ordinary Income			Return of Capital
December 31, 2014:
Common Stock		95.66078	%		4.33922	%
December 31, 2013:
Common Stock		100.00000	%(1)		0.00000	%

⁽¹⁾ 98.53746% of this amount was classified as a Qualified Dividend.

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Schedule III - Real Estate and Accumulated Depreciation (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 86,417,361
Initial Cost, Land and Land Improvements	122,787,807
Initial Cost, Buildings & Improvements	19,802,239
Initial Cost, Horticulture	1,559,340
Land Improvement Costs Capitalized Subsequent to Acquisition	211,509
Building & Improvements Costs Capitalized Subsequent to Acquisition	4,010,583
Total Cost, Land and Land Improvements	122,999,316
Total Cost, Buildings & Improvements	23,812,822
Total Cost, Horticulture	1,559,340	1,038,850
Total Cost	148,371,478	78,478,053	39,678,968	32,399,715
Accumulated Depreciation	(4,431,290)	(3,166,870)	(2,535,084)	(2,122,817)
Net Real Estate	143,940,188
Land, Buildings, Site Improvements & Horticulture [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Total Cost	145,700,000
Santa Cruz County, California [Member] | Land & Irrigation System [Member] | Date Acquired 6/16/1997 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Jun. 16, 1997
Encumbrances	4,220,586
Initial Cost, Land and Land Improvements	4,350,000
Building & Improvements Costs Capitalized Subsequent to Acquisition	579,307
Total Cost, Land and Land Improvements	4,350,000
Total Cost, Buildings & Improvements	579,307
Total Cost	4,929,307
Accumulated Depreciation	(103,812)
Net Real Estate	4,825,495
Santa Cruz County, California [Member] | Land & Irrigation System [Member] | Date Acquired 1/3/2011 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Jan. 03, 2011
Encumbrances	4,111,433
Initial Cost, Land and Land Improvements	8,328,475
Land Improvement Costs Capitalized Subsequent to Acquisition	170,115
Building & Improvements Costs Capitalized Subsequent to Acquisition	480,747
Total Cost, Land and Land Improvements	8,498,590
Total Cost, Buildings & Improvements	480,747
Total Cost	8,979,337
Net Real Estate	8,979,337
Santa Cruz County, California [Member] | Land, Buildings & Irrigation System [Member] | Date Acquired 6/13/2014 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Jun. 13, 2014
Encumbrances	2,862,237
Initial Cost, Land and Land Improvements	5,576,138
Initial Cost, Buildings & Improvements	206,636
Total Cost, Land and Land Improvements	5,576,138
Total Cost, Buildings & Improvements	206,636
Total Cost	5,782,774
Accumulated Depreciation	(28,243)
Net Real Estate	5,754,531
Santa Cruz County, California [Member] | Land & Buildings [Member] | Date Acquired 7/7/2011 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Jul. 07, 2011
Encumbrances	1,362,231
Initial Cost, Land and Land Improvements	2,314,113
Initial Cost, Buildings & Improvements	414,075
Total Cost, Land and Land Improvements	2,314,113
Total Cost, Buildings & Improvements	414,075
Total Cost	2,728,188
Accumulated Depreciation	(39,169)
Net Real Estate	2,689,019
Ventura County, California [Member] | Land, Buildings & Irrigation System [Member] | Date Acquired 9/15/1998 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Sep. 15, 1998
Encumbrances	21,473,134
Initial Cost, Land and Land Improvements	9,895,497
Initial Cost, Buildings & Improvements	5,283,954
Building & Improvements Costs Capitalized Subsequent to Acquisition	176,380
Total Cost, Land and Land Improvements	9,895,497
Total Cost, Buildings & Improvements	5,460,334
Total Cost	15,355,831
Accumulated Depreciation	(2,950,620)
Net Real Estate	12,405,211
Ventura County, California [Member] | Land, Buildings, Irrigation System & Site Improvements [Member] | Date Acquired 7/23/2014 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Jul. 23, 2014
Encumbrances	3,342,510
Initial Cost, Land and Land Improvements	6,219,293
Initial Cost, Buildings & Improvements	504,673
Total Cost, Land and Land Improvements	6,219,293
Total Cost, Buildings & Improvements	504,673
Total Cost	6,723,966
Accumulated Depreciation	(13,594)
Net Real Estate	6,710,372
Ventura County, California [Member] | Land, Buildings, Irrigation System & Site Improvements [Member] | Date Acquired 10/29/2014 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Oct. 29, 2014
Encumbrances	12,128,121
Initial Cost, Land and Land Improvements	23,672,902
Initial Cost, Buildings & Improvements	350,454
Total Cost, Land and Land Improvements	23,672,902
Total Cost, Buildings & Improvements	350,454
Total Cost	24,023,356
Accumulated Depreciation	(5,841)
Net Real Estate	24,017,515
Ventura County, California [Member] | Land, Buildings, Irrigation System, Site Improvements & Horticulture [Member] | Date Acquired 12/16/2013 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Dec. 16, 2013
Encumbrances	1,455,375
Initial Cost, Land and Land Improvements	2,851,353
Initial Cost, Buildings & Improvements	72,840
Initial Cost, Horticulture	103,334
Total Cost, Land and Land Improvements	2,851,353
Total Cost, Buildings & Improvements	72,840
Total Cost, Horticulture	103,334
Total Cost	3,027,527
Accumulated Depreciation	(92,179)
Net Real Estate	2,935,348
Ventura County, California [Member] | Land Irrigation System And Site Improvements [Member] | Date Acquired 11/4/2014 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Nov. 04, 2014
Encumbrances	3,675,000
Initial Cost, Land and Land Improvements	5,859,721
Initial Cost, Buildings & Improvements	91,848
Total Cost, Land and Land Improvements	5,859,721
Total Cost, Buildings & Improvements	91,848
Total Cost	5,951,569
Accumulated Depreciation	(1,531)
Net Real Estate	5,950,038
Hillsborough County, Florida [Member] | Land [Member] | Date Acquired 10/26/2011 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Oct. 26, 2011
Initial Cost, Land and Land Improvements	1,227,816
Total Cost, Land and Land Improvements	1,227,816
Total Cost	1,227,816
Net Real Estate	1,227,816
Hillsborough County, Florida [Member] | Land, Buildings, Irrigation System & Site Improvements [Member] | Date Acquired 8/9/2012 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Aug. 09, 2012
Initial Cost, Land and Land Improvements	2,513,696
Initial Cost, Buildings & Improvements	909,491
Land Improvement Costs Capitalized Subsequent to Acquisition	28,794
Building & Improvements Costs Capitalized Subsequent to Acquisition	656,071
Total Cost, Land and Land Improvements	2,542,490
Total Cost, Buildings & Improvements	1,565,562
Total Cost	4,108,052
Accumulated Depreciation	(197,929)
Net Real Estate	3,910,123
Hillsborough County, Florida [Member] | Land, Buildings, Irrigation System & Site Improvements [Member] | Date Acquired 9/12/2012 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Sep. 12, 2012
Encumbrances	2,655,000
Initial Cost, Land and Land Improvements	2,198,728
Initial Cost, Buildings & Improvements	1,657,339
Building & Improvements Costs Capitalized Subsequent to Acquisition	446,108
Total Cost, Land and Land Improvements	2,198,728
Total Cost, Buildings & Improvements	2,103,447
Total Cost	4,302,175
Accumulated Depreciation	(281,742)
Net Real Estate	4,020,433
Hillsborough County, Florida [Member] | Land, Buildings, Irrigation System & Site Improvements [Member] | Date Acquired 6/20/2014 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Jun. 20, 2014
Encumbrances	1,599,600
Initial Cost, Land and Land Improvements	1,970,074
Initial Cost, Buildings & Improvements	570,846
Building & Improvements Costs Capitalized Subsequent to Acquisition	8,775
Total Cost, Land and Land Improvements	1,970,074
Total Cost, Buildings & Improvements	579,621
Total Cost	2,549,695
Accumulated Depreciation	(25,636)
Net Real Estate	2,524,059
Van Buren County, Michigan [Member] | Land, Buildings, Irrigation System, Site Improvements & Horticulture [Member] | Date Acquired 4/5/2013 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Apr. 05, 2013
Encumbrances	650,552
Initial Cost, Land and Land Improvements	646,522
Initial Cost, Buildings & Improvements	282,428
Initial Cost, Horticulture	446,408
Building & Improvements Costs Capitalized Subsequent to Acquisition	170,150
Total Cost, Land and Land Improvements	646,522
Total Cost, Buildings & Improvements	452,578
Total Cost, Horticulture	446,408
Total Cost	1,545,508
Accumulated Depreciation	(98,720)
Net Real Estate	1,446,788
Van Buren County, Michigan [Member] | Land, Buildings, Irrigation System, Site Improvements & Horticulture [Member] | Date Acquired 11/5/2013 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Nov. 05, 2013
Encumbrances	970,250
Initial Cost, Land and Land Improvements	805,677
Initial Cost, Buildings & Improvements	722,575
Initial Cost, Horticulture	488,605
Land Improvement Costs Capitalized Subsequent to Acquisition	12,600
Building & Improvements Costs Capitalized Subsequent to Acquisition	(60,365)
Total Cost, Land and Land Improvements	818,277
Total Cost, Buildings & Improvements	662,210
Total Cost, Horticulture	488,605
Total Cost	1,969,092
Accumulated Depreciation	(86,121)
Net Real Estate	1,882,971
Marion County, Oregon [Member] | Land, Buildings, Irrigation System & Site Improvements [Member] | Acquired Date 5/31/2013 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	May 31, 2013
Encumbrances	1,503,888
Initial Cost, Land and Land Improvements	2,494,911
Initial Cost, Buildings & Improvements	703,764
Building & Improvements Costs Capitalized Subsequent to Acquisition	395,903
Total Cost, Land and Land Improvements	2,494,911
Total Cost, Buildings & Improvements	1,099,667
Total Cost	3,594,578
Accumulated Depreciation	(81,543)
Net Real Estate	3,513,035
Monterey County, California [Member] | Land, Buildings & Irrigation System [Member] | Date Acquired 10/21/2013 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Oct. 21, 2013
Encumbrances	3,395,874
Initial Cost, Land and Land Improvements	7,186,774
Initial Cost, Buildings & Improvements	164,114
Total Cost, Land and Land Improvements	7,186,774
Total Cost, Buildings & Improvements	164,114
Total Cost	7,350,888
Accumulated Depreciation	(13,220)
Net Real Estate	7,337,668
Morrow County, Oregon [Member] | Land & Irrigation System [Member] | Date Acquired 12/27/2013 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Dec. 27, 2013
Encumbrances	6,791,748
Initial Cost, Land and Land Improvements	12,941,092
Initial Cost, Buildings & Improvements	1,118,640
Total Cost, Land and Land Improvements	12,941,092
Total Cost, Buildings & Improvements	1,118,640
Total Cost	14,059,732
Accumulated Depreciation	(74,576)
Net Real Estate	13,985,156
Cochise County, Arizona [Member] | Land, Buildings & Irrigation System [Member] | Date Acquired 12/27/2013 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Dec. 27, 2013
Encumbrances	3,250,336
Initial Cost, Land and Land Improvements	6,175,702
Initial Cost, Buildings & Improvements	573,007
Building & Improvements Costs Capitalized Subsequent to Acquisition	1,157,507
Total Cost, Land and Land Improvements	6,175,702
Total Cost, Buildings & Improvements	1,730,514
Total Cost	7,906,216
Accumulated Depreciation	(149,523)
Net Real Estate	7,756,693
Columbia County Oregan [Member] | Land, Buildings, Site Improvements & Horticulture [Member] | Date Acquired 5/30/2014 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	May 30, 2014
Initial Cost, Land and Land Improvements	1,252,388
Initial Cost, Buildings & Improvements	682,385
Initial Cost, Horticulture	520,993
Total Cost, Land and Land Improvements	1,252,388
Total Cost, Buildings & Improvements	682,385
Total Cost, Horticulture	520,993
Total Cost	2,455,766
Accumulated Depreciation	(56,654)
Net Real Estate	2,399,112
Kem County California [Member] | Land & Irrigation System [Member] | Date Acquired 7/25/2014 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Jul. 25, 2014
Encumbrances	2,813,724
Initial Cost, Land and Land Improvements	5,840,750
Initial Cost, Buildings & Improvements	67,000
Total Cost, Land and Land Improvements	5,840,750
Total Cost, Buildings & Improvements	67,000
Total Cost	5,907,750
Accumulated Depreciation	(5,583)
Net Real Estate	5,902,167
Manatee County Florida [Member] | Land, Buildings, Irrigation System & Site Improvements [Member] | Date Acquired 9/29/2014 [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Date Acquired	Sep. 29, 2014
Encumbrances	8,155,762
Initial Cost, Land and Land Improvements	8,466,185
Initial Cost, Buildings & Improvements	5,426,170
Total Cost, Land and Land Improvements	8,466,185
Total Cost, Buildings & Improvements	5,426,170
Total Cost	13,892,355
Accumulated Depreciation	(125,054)
Net Real Estate	$ 13,767,301

XML

Consolidated Statements of Cash Flows (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Statement of Cash Flows [Abstract]
Income tax prepayment		$ 2,100,000
Non-cash additions to real estate, accounts payable and accrued expenses	81,072
Non-cash additions to real estate, leasehold improvements	585,947
Non-cash offering costs, other assets	110,200
Non-cash offering costs, additional paid in capital	31,767
Non-cash insurance proceeds, other assets	$ 61,500

XML

Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	7,753,717	6,530,264
Common stock, shares outstanding	7,753,717	6,530,264

XML

Subsequent Events

12 Months Ended

Dec. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

NOTE 10. SUBSEQUENT EVENTS

We have evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through February 24, 2014, the day the financial statements were issued.

Investment Activity

On January 5, 2015, we acquired one farm comprised of 331 acres of farmland near Salinas, California (“Espinosa Road”), for an aggregate purchase price of approximately $17.0 million. The property is irrigated cropland that is primarily farmed for strawberries and miscellaneous vegetables, such as lettuce. We funded this acquisition through a new bond issuance under the Farmer Mac Facility (see “—Financing Activity” below) and by drawing on the New MetLife Line of Credit. At closing, we were assigned the existing triple-net lease, which has approximately 22 months remaining on the term and provides for annualized, straight-line cash rents of approximately $778,000. We will account for this acquisition as a business combination in accordance with ASC 805; however, the initial accounting for this transaction is not yet complete, making certain disclosures unavailable at this time.

Financing Activity

In connection with the acquisition of Espinosa Road, on January 5, 2015, we issued a bond under the Farmer Mac Facility, for which we received proceeds of approximately $10.2 million. The bond, which is non-amortizing and has a term of five years, will bear interest at a fixed rate of 3.25% per annum throughout its term. The bond is collateralized by a mortgage loan on Espinosa Road and has an effective loan-to-value ratio of 60% of the underlying property.

Distributions

On January 13, 2015, our Board of Directors declared the following monthly cash distributions to common stockholders, representing a 16.7% increase over that of the prior quarter:

Record Date	Payment Date		Distribution per Common Share
January 23, 2015		February 3, 2015	$	0.035
February 18, 2015		February 27, 2015		0.035
March 20, 2015		March 31, 2015		0.035
		Total:	$	0.105

XML

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Feb. 23, 2015	Jun. 30, 2014
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Trading Symbol	LAND
Entity Registrant Name	GLADSTONE LAND Corp
Entity Central Index Key	0001495240
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		7,753,717
Entity Public Float			$ 48,927,147

XML

Schedule III - Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2014

SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract]

Schedule III - Real Estate and Accumulated Depreciation

SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2014

					Initial Cost						Subsequent Capitalized Additions					Total Cost
Location and Description of Property	Date Acquired		Encum brances		Land and Land Improve ments		Buildings & Improve ments		Horti culture		Land Improvement Costs Capitalized Subsequent to Acquisition		Building & Improvements Costs Capitalized Subsequent to Acquisition			Land and Land Improve ments		Buildings & Improvements		Horti culture		Total(1)		Accumulated Depreciation(2)			Net Real Estate
Santa Cruz County, California:
Land & Irrigation System		6/16/1997	$	4,220,586	$	4,350,000	$	—	$	—	$	—	$	579,307		$	4,350,000	$	579,307	$	—	$	4,929,307	$	(103,812	)	$	4,825,495
Ventura County, California:
Land, Buildings & Irrigation System		9/15/1998		21,473,134		9,895,497		5,283,954		—		—		176,380			9,895,497		5,460,334		—		15,355,831		(2,950,620	)		12,405,211
Santa Cruz County, California:
Land & Irrigation System		1/3/2011		4,111,433		8,328,475		—		—		170,115		480,747			8,498,590		480,747		—		8,979,337		—			8,979,337
Santa Cruz County, California:
Land & Buildings		7/7/2011		1,362,231		2,314,113		414,075		—		—		—			2,314,113		414,075		—		2,728,188		(39,169	)		2,689,019
Hillsborough County, Florida:
Land		10/26/2011		—		1,227,816		—		—		—		—			1,227,816		—		—		1,227,816		—			1,227,816
Hillsborough County, Florida:
Land, Buildings, Irrigation System & Site Improvements		8/9/2012		—		2,513,696		909,491		—		28,794		656,071			2,542,490		1,565,562		—		4,108,052		(197,929	)		3,910,123
Hillsborough County, Florida:
Land, Buildings, Irrigation System & Site Improvements		9/12/2012		2,655,000		2,198,728		1,657,339		—		—		446,108			2,198,728		2,103,447		—		4,302,175		(281,742	)		4,020,433
Van Buren County, Michigan:
Land, Buildings, Irrigation System, Site Improvements & Horticulture		4/5/2013		650,552		646,522		282,428		446,408		—		170,150			646,522		452,578		446,408		1,545,508		(98,720	)		1,446,788
Marion County, Oregon:
Land, Buildings, Irrigation System & Site Improvements		5/31/2013		1,503,888		2,494,911		703,764		—		—		395,903			2,494,911		1,099,667		—		3,594,578		(81,543	)		3,513,035
Monterey County, California:
Land, Buildings & Irrigation System		10/21/2013		3,395,874		7,186,774		164,114		—		—		—			7,186,774		164,114		—		7,350,888		(13,220	)		7,337,668
Van Buren County, Michigan:
Land, Buildings, Irrigation System, Site Improvements & Horticulture		11/5/2013		970,250		805,677		722,575		488,605		12,600		(60,365	)		818,277		662,210		488,605		1,969,092		(86,121	)		1,882,971
Ventura County, California:
Land, Buildings, Irrigation System, Site Improvements & Horticulture		12/16/2013		1,455,375		2,851,353		72,840		103,334		—		—			2,851,353		72,840		103,334		3,027,527		(92,179	)		2,935,348
Morrow County, Oregon:
Land & Irrigation System		12/27/2013		6,791,748		12,941,092		1,118,640		—		—		—			12,941,092		1,118,640		—		14,059,732		(74,576	)		13,985,156
Cochise County, Arizona:
Land, Buildings & Irrigation System		12/27/2013		3,250,336		6,175,702		573,007		—		—		1,157,507			6,175,702		1,730,514		—		7,906,216		(149,523	)		7,756,693
Columbia County, Oregon:
Land, Buildings, Site Improvements & Horticulture		5/30/2014		—		1,252,388		682,385		520,993		—		—			1,252,388		682,385		520,993		2,455,766		(56,654	)		2,399,112
Santa Cruz County, California:
Land, Building & Irrigation System		6/13/2014		2,862,237		5,576,138		206,636		—		—		—			5,576,138		206,636		—		5,782,774		(28,243	)		5,754,531
Hillsborough County, Florida:
Land, Buildings, Irrigation System & Site Improvements		6/20/2014		1,599,600		1,970,074		570,846		—		—		8,775			1,970,074		579,621		—		2,549,695		(25,636	)		2,524,059
Ventura County, California:
Land, Buildings, Irrigation System & Site Improvements		7/23/2014		3,342,510		6,219,293		504,673		—		—		—			6,219,293		504,673		—		6,723,966		(13,594	)		6,710,372
Kern County, California:
Land & Irrigation System		7/25/2014		2,813,724		5,840,750		67,000		—		—		—			5,840,750		67,000		—		5,907,750		(5,583	)		5,902,167
Manatee County, Florida:
Land, Buildings, Irrigation System & Site Improvements		9/29/2014		8,155,762		8,466,185		5,426,170		—		—		—			8,466,185		5,426,170		—		13,892,355		(125,054	)		13,767,301
Ventura County, California:
Land, Buildings, Irrigation System & Site Improvements		10/29/2014		12,128,121		23,672,902		350,454		—		—		—			23,672,902		350,454		—		24,023,356		(5,841	)		24,017,515
Ventura County, California:
Land, Irrigation System & Site Improvements		11/4/2014		3,675,000		5,859,721		91,848		—		—		—			5,859,721		91,848		—		5,951,569		(1,531	)		5,950,038
			$	86,417,361	$	122,787,807	$	19,802,239	$	1,559,340	$	211,509	$	4,010,583		$	122,999,316	$	23,812,822	$	1,559,340	$	148,371,478	$	(4,431,290	)	$	143,940,188

⁽¹⁾  The aggregate cost for land, buildings, improvements and horticulture for federal income tax purposes is approximately $145.7 million.

⁽²⁾  The Company computes depreciation using the straight-line method over the shorter of the estimated useful life or 39 years for buildings and improvements, the the shorter of the estimated useful life or 25 years for horticulture and 5 to 7 years for equipment and fixtures and the shorter of the useful life or the remaining lease term for leasehold improvements.

The following table reconciles the change in the balance of real estate during the years ended December 31, 2014, 2013 and 2012, respectively:

	2014			2013		2012
Balance, beginning of period	$	78,478,053		$	39,678,968	$	32,399,715
Additions:
Acquisitions during the period		67,287,231			37,768,162		7,279,253
Improvements		2,726,734			1,030,923		—
Deductions:
Dispositions during period		(120,540	)		—		—
Purchase price adjustments		—			—		—
Balance, end of period	$	148,371,478		$	78,478,053	$	39,678,968

The following table reconciles the change in the balance of accumulated depreciation during the years ended December 31, 2014, 2013 and 2012, respectively:

	2014		2013		2012
Balance, beginning of period	$	3,166,870	$	2,535,084	$	2,122,817
Additions during period		1,264,420		631,786		412,267
Dispositions during period		—		—		—
Balance, end of period	$	4,431,290	$	3,166,870	$	2,535,084

XML

Consolidated Statements of Operations (USD $)	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
OPERATING REVENUES:
Rental revenue	$ 7,170,318		$ 4,027,687		$ 3,390,594
Tenant recovery revenue	14,604		10,451
Total operating revenues	7,184,922		4,038,138		3,390,594
OPERATING EXPENSES:
Depreciation and amortization	1,735,644		722,455		474,480
Management fee	1,079,534	[1]	195,609	[1]	267,280	[1]
Incentive fee			41,037	[1]
Administration fee	442,584	[1]	194,464	[1]	180,398	[1]
Professional fees	595,163		615,879		245,414
Acquisition-related expenses	520,352		153,725		153,494
Property operating expenses	434,514		119,463		117,569
General and administrative expenses	777,159		679,090		50,344
Operating expenses before credits from Adviser	5,584,950		2,721,722		1,488,979
Credits to fees from Adviser			(41,037)	[1]
Total operating expenses, net of credits to fees	5,584,950		2,680,685		1,488,979
OPERATING INCOME	1,599,972		1,357,453		1,901,615
OTHER INCOME (EXPENSE):
Interest income	12,031		56,234		1,830
Other income	35,489				4,233
Interest expense	(2,009,086)		(1,118,640)		(1,006,986)
Property and casualty recovery, net	262,963
Total other expense	(1,698,603)		(1,062,406)		(1,000,923)
Net (loss) income before income taxes	(98,631)		295,047		900,692
Income tax provision	(26,502)		(1,519,730)		(300,319)
NET (LOSS) INCOME	$ (125,133)		$ (1,224,683)		$ 600,373
(LOSS) EARNINGS PER COMMON SHARE:
Basic and diluted	$ (0.02)		$ (0.20)		$ 0.22
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING - basic and diluted	6,852,917		6,214,557		2,750,000

[1] Refer to Note 4, "Related-Party Transactions," for additional information

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Borrowings

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Borrowings

NOTE 5. BORROWINGS

Our borrowings as of December 31, 2014 and 2013 are summarized below:

							As of December 31, 2014								As of December 31, 2013
Issuer	Type of Issuance	Date of Issuance	Initial Commitment		Maturity Date		Principal Outstanding		Stated Interest Rate			Undrawn Commitment			Principal Outstanding			Stated Interest Rate			Undrawn Commitment
MetLife	Mortgage Note Payable	12/30/2010	$	45,200,000		1/5/2026	$	—		N/A		$	—		$	43,054,165	(1)		3.50	%	$	—
MetLife	Line of Credit	5/23/2012		4,785,000		4/5/2017		—		N/A			—			100,000	(1)		3.25	%		4,685,000
MetLife	Mortgage Note Payable	5/9/2014		100,000,000		1/5/2029		66,331,998		3.61	%(2)		33,668,002	(3)		—			N/A			—
MetLife	Line of Credit	5/9/2014		25,000,000		4/5/2024		4,000,000		2.75	%		21,000,000	(3)		—			N/A			—
Farm Credit	Mortgage Note Payable	9/19/2014		2,655,000		8/1/2034		2,655,000		3.52	%(4)		—			—			N/A			—
Farm Credit	Mortgage Note Payable	9/19/2014		1,599,600		8/1/2034		1,599,600		3.52	%(4)		—			—			N/A			—
Farm Credit	Mortgage Note Payable	9/29/2014		8,259,000		8/1/2034		8,155,763		3.54	%(4)		—			—			N/A			—
Farmer Mac	Bond Payable	12/11/2014		75,000,000		12/11/2019		3,675,000		3.25	%(5)		71,325,000	(6)		—			N/A			—
						Totals:	$	86,417,361				$	125,993,002		$	43,154,165					$	4,685,000

⁽¹⁾ Indebtedness was fully repaid with the proceeds from the New MetLife Credit Facility, as defined below, and was terminated on May 9, 2014.

⁽²⁾ Represents the blended rate on the borrowings as of December 31, 2014.

⁽³⁾ Based on the properties that were pledged as collateral as of December 31, 2014, approximately $13.8 million of the remaining availability was available for us to draw.

⁽⁴⁾ Rate is before interest repatriation and is fixed through July 2017.

⁽⁵⁾ Rate is fixed through December 2019.

⁽⁶⁾ As of December 31, 2014, there was no additional availability to draw under this facility, as no additional properties had been pledged as collateral.

The weighted-average effective interest rate charged on all of our borrowings, excluding the impact of deferred financing costs and before any interest repatriation, was 3.6% for each of the years ended December 31, 2014 and 2013 and 3.7% for the year ended December 31, 2012.

MetLife Credit Facility

On December 30, 2010, we executed a loan agreement with Metropolitan Life Insurance Company (“MetLife”) in an amount not to exceed $45.2 million, pursuant to a long-term mortgage promissory note that was scheduled to mature on January 5, 2026 (the “Prior MetLife Note Payable”). The Prior MetLife Note Payable accrued interest at a rate of 3.50% per year and also included a commitment fee of 0.20% on any undrawn amounts. As of December 31, 2013, there was no remaining balance available under the Prior MetLife Note Payable.

On May 23, 2012, we obtained a $4.8 million revolving line of credit with MetLife that was scheduled to mature on April 5, 2017 (the “Prior MetLife Line of Credit,” and, together with the Prior MetLife Note Payable, the “Prior MetLife Credit Facility”). The Prior MetLife Line of Credit was collateralized by a mortgage on San Andreas and bore interest at an annual rate equal to the three-month LIBOR plus 3.00%. Proceeds from the Prior MetLife Line of Credit were used to repay a $3.3 million revolving line of credit facility that we had entered into with Rabo Agrifinance in November 2002.

On May 9, 2014, we closed on a new mortgage loan facility and a new revolving line of credit MetLife for an aggregate amount of up to $125.0 million (the “New MetLife Credit Facility”), which replaced the Prior MetLife Credit Facility. The New MetLife Credit Facility consists of a $100.0 million long-term note payable (the “New MetLife Note Payable”) and a $25.0 million revolving equity line of credit (the “New MetLife Line of Credit”). Under the New MetLife Credit Facility, we may borrow up to 58% of the aggregate of the lower of cost or the appraised value of the real property pledged as collateral.

The New MetLife Note Payable is scheduled to mature on January 5, 2029, and we may not repay the note prior to maturity, except on one of the interest rate adjustment dates. Initial advances bear interest at a fixed rate of 3.50% per annum, plus an unused fee of 0.20% on undrawn amounts, and interest rates for subsequent disbursements are based on prevailing market rates at the time of such disbursements. The interest rates on the initial advance and any subsequent disbursements will be subject to adjustment every three years. If we have not drawn the full commitment amount of $100.0 million by December 31, 2016, MetLife has the option to be relieved of its obligation to disburse the additional funds under this loan. As of December 31, 2014, there was approximately $66.3 million outstanding under the New MetLife Note Payable that bore interest at a blended rate of 3.61% per annum.

The New MetLife Line of Credit is scheduled to mature on April 5, 2024, and advances will initially bear interest at a variable rate equal to the three-month LIBOR plus a spread of 2.50%, with a minimum annualized rate of 2.75%, plus an unused fee of 0.20% on undrawn amounts. The interest rate spread on borrowings under the New MetLife Line of Credit will be subject to adjustment in April 2017. As of December 31, 2014, there was $4.0 million outstanding under the New MetLife Line of Credit that bore interest at a rate of 2.75% per annum.

Similar to the Prior MetLife Credit Facility, the continuing ability to borrow under the New MetLife Credit Facility will be subject to our ongoing compliance with various affirmative and negative covenants, including with respect to liens, indebtedness, mergers and asset sales. The New MetLife Credit Facility also requires that we satisfy financial covenants on a consolidated basis at the end of each calendar quarter, including:

• a debt-to-asset-value ratio of equal to or less than sixty-five percent (65%);

• a net worth value in excess of $50,000,000;

• a debt-to-two-times-net-worth ratio of equal to or less than 0.65; and

• a rental-revenue-to-debt ratio of equal to or greater than 5.0%.

As of December 31, 2014, we were in compliance with all covenants.

Amounts owed under the New MetLife Credit Facility are guaranteed by us and each subsidiary of ours that owns a property pledged as collateral pursuant to the loan documents.

A portion of the proceeds from the New MetLife Credit Facility was used to repay amounts owed under the Prior MetLife Credit Facility. No early termination penalties or fees were incurred in connection with the repayment of the Prior MetLife Credit Facility. In connection with obtaining the New MetLife Credit Facility and the subsequent pledging of properties under the facility, as of December 31, 2014, we have incurred loan fees of $220,500 and aggregate financing costs, which includes legal fees, origination fees and administrative fees, of $614,646. In addition, $298,614 of unamortized deferred financing costs associated with our Prior MetLife Credit Facility was further deferred and are being amortized over the term of our New MetLife Credit Facility.

As of December 31, 2014, the following properties were pledged as collateral under the New MetLife Credit Facility: San Andreas, West Gonzales, West Beach, Dalton Lane, 38^th Avenue, Sequoia Street, Natividad Road, 20^th Avenue, Broadway Road, Oregon Trail, East Shelton, Spring Valley, Naumann Road, Sycamore Road and Santa Clara Avenue. With these properties pledged as collateral, as of December 31, 2014, we had the ability to draw an additional $13.8 million under the New MetLife Credit Facility. Subsequent to December 31, 2014, Collins Road was also pledged to the New MetLife Credit Facility, which provided us with approximately $1.6 million of additional availability.

Farm Credit Notes Payable

On September 19, 2014, we, through certain subsidiaries of our Operating Partnership, closed on two loans from Farm Credit of Central Florida, FLCA (“Farm Credit”), in the aggregate amount of approximately $4.2 million. In addition, on September 29, 2014, we obtained an additional loan for approximately $8.3 million. As of December 31, 2014, aggregate borrowings from Farm Credit were approximately $12.4 million. (collectively, the “Farm Credit Notes Payable”).

The Farm Credit Notes Payable are scheduled to mature on August 1, 2034, and will bear interest (before interest repatriation) at a blended fixed rate of 3.53% per annum through July 31, 2017; thereafter, the interest rate will be equal to the one-month LIBOR, plus 2.875%. The original principal amounts borrowed from Farm Credit equaled approximately 60% of the aggregate appraised value of the real properties pledged as collateral under the Farm Credit Notes Payable.

Our agreement with Farm Credit contains various affirmative and negative covenants, including with respect to liens, indebtedness, mergers and asset sales. The Farm Credit Notes Payable also require us to satisfy financial covenants on a consolidated basis at the end of each calendar year, including having:

• a net worth value in excess of $50,000,000; and

• a maximum leverage ratio of equal to or less than sixty-five percent (65%).

As of December 31, 2014, we were in compliance with all covenants.

Certain amounts owed under the Farm Credit Notes Payable, limited to 12 months of principal and interest due under the loans, are guaranteed by us pursuant to the loan documents.

The proceeds from the Farm Credit Notes Payable were invested into the acquisition of three new farms during the three months ended September 30, 2014. In connection with the Farm Credit Notes Payable, we incurred loan fees of $78,211 and aggregate financing costs, which includes legal fees, origination fees and administrative fees, of $126,640.

As of December 31, 2014, the following properties were pledged as collateral under the Farm Credit Notes Payable: Trapnell Road, McIntosh Road and Wauchula Road.

Farmer Mac Facility

On December 5, 2014, we, through certain subsidiaries of our Operating Partnership, entered into a bond purchase agreement (the “Bond Purchase Agreement”) with Federal Agricultural Mortgage Corporation (“Farmer Mac”) and Farmer Mac Mortgage Securities Corporation (the “Bond Purchaser”), for a secured note purchase facility that provides for bond issuances up to an aggregate principal amount of $75.0 million (the “Farmer Mac Facility”).

Pursuant to the Bond Purchase Agreement, we may, from time to time, issue one or more bonds to the Bond Purchaser that will be collateralized by a security interest in one or more loans originated by us (pursuant to the Pledge and Security Agreement described below), which, in turn, will be secured by first liens on agricultural real estate owned by subsidiaries of ours. The interest rate for each bond issuances will be based on prevailing market rates at the time of such issuance, and prepayment of each bond issuance will not be permitted unless otherwise agreed upon by all parties to the Bond Purchase Agreement. The bonds issued will have a maximum aggregate, effective loan-to-value ratio of 60% of the underlying agricultural real estate, after giving effect to the overcollateralization obligations described below. If we have not issued bonds to the Bond Purchaser such that the aggregate bond issuances total $75.0 million by December 11, 2016, Farmer Mac has the option to be relieved of its obligation to purchase additional bonds under this facility.

On December 11, 2014, we completed an initial issuance under the Farmer Mac Facility, for which we received proceeds of approximately $3.7 million (the “Initial Issuance”). The Initial Issuance, which is non-amortizing and has a term of five years, will bear interest at a fixed rate of 3.25% per annum throughout its term.

Our ability to borrow under the Farmer Mac Facility is subject to our ongoing compliance with a number of customary affirmative and negative covenants, as well as financial covenants, including:

• a maximum leverage ratio of not more than 65%;

• a minimum fixed charge coverage ratio of 1.4; and

• a minimum tangible net worth in excess of $50,000,000 (plus a certain percentage of future equity offerings).

As of December 31, 2014, we were in compliance with all covenants.

In connection with the Bond Purchase Agreement, on December 5, 2014, we also entered into a pledge and security agreement (the “Pledge and Security Agreement”) in favor of the Bond Purchaser and Farmer Mac, which provides for us to pledge, as collateral for bonds issued pursuant to the Farmer Mac Facility, all of our respective right, title, and interest in mortgage loans made by us, which, among other things, must have at all times a value of not less than 110% of the aggregate principal amount of the outstanding bonds held by the Bond Purchaser.

The Bond Purchase Agreement and the Pledge Agreement include customary events of default, the occurrence of any of which, after any applicable cure period, would permit the Bond Purchaser and Farmer Mac to, among other things, accelerate payment of all amounts outstanding under the Farmer Mac Facility and to exercise its remedies with respect to the pledged collateral, including foreclosure and sale of the agricultural real estate underlying the pledged mortgage loans.

Proceeds from the Initial Issuance were used to repay amounts owed under the New MetLife Line of Credit and for other general corporate purposes. In connection with the Farmer Mac Facility, we incurred aggregate financing costs, which include legal fees and administrative fees, of $41,781. As of December 31, 2014, only Dufau Road was pledged as collateral under the Farmer Mac Facility.

Subsequent to December 31, 2014, we issued an additional bond under the Farmer Mac Facility, for which we received proceeds of approximately $10.2 million, which proceeds were used to acquire a property that was simultaneously pledged as collateral under the facility. See Note 10, “Subsequent Events,” for further discussion on the bond issuance and property acquisition.

Debt Service—Aggregate Maturities

Scheduled principal payments of our aggregate borrowings as of December 31, 2014, for each of the five succeeding fiscal years and thereafter are as follows:

Period	Scheduled Principal Payments
For the fiscal years ending December 31:     2015	$	625,680
2016		2,947,300
2017		2,866,043
2018		2,787,631
2019		6,386,962
Thereafter		70,803,745
	$	86,417,361

Fair Value

ASC 820 provides a definition of fair value that focuses on the exchange (exit) price of an asset or liability in the principal, or most advantageous, market and prioritizes the use of market-based inputs to the valuation. ASC 820-10 establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

• Level 1—inputs are based upon quoted prices (unadjusted) for identical assets or liabilities in active markets;

• Level 2—inputs are based upon quoted prices for similar assets or liabilities in active or inactive markets or model-based valuation techniques, for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities;

• Level 3—inputs are generally unobservable and significant to the fair valuation measurement. These unobservable inputs are generally supported by little or no market activity and are based upon management’s estimates of assumptions that market participants would use in pricing the asset or liability.

The fair value of the mortgage notes and bonds payable is valued using Level 3 inputs under the hierarchy established by ASC 820-10 and is calculated based on a discounted cash flow analysis, using discount rates based on management’s estimates of market interest rates on long-term debt with comparable terms.

As of December 31, 2014, the aggregate fair value of our mortgage notes and bonds payable was approximately $82.0 million, as compared to an aggregate carrying value of $82.4 million. Due to the revolving nature of our New MetLife Line of Credit and the lack of changes in market credit spreads, its fair value as of December 31, 2014, is deemed to approximate its carrying value of $4.0 million.

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Related-Party Transactions

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Related-Party Transactions

NOTE 4. RELATED-PARTY TRANSACTIONS

We are externally managed pursuant to contractual arrangements with our Adviser and our Administrator, which collectively employ all of our personnel and pay their salaries, benefits and general expenses directly. We had an advisory agreement with our Adviser that was in effect through January 31, 2013 (the “Prior Advisory Agreement”), which we and our Adviser amended, effective February 1, 2013 (the “Amended Advisory Agreement”). We also had an administration agreement with our Administrator that was in effect through January 31, 2013 (the “Prior Administration Agreement”), which we and our Administrator amended, effective February 1, 2013 (the “Amended Administration Agreement”). The management and administrative services and fees under both of these agreements are described below.

Prior Advisory and Administration Agreements

Prior Advisory Agreement

We entered into the Prior Advisory Agreement with our Adviser in 2004, pursuant to which the Adviser was responsible for managing us on a day-to-day basis and for identifying, evaluating, negotiating and consummating investment transactions consistent with our criteria. In exchange for such services, we paid the Adviser a management advisory fee, which consisted of the reimbursement of certain expenses of the Adviser. We reimbursed our Adviser for our pro-rata share of our Adviser’s payroll and related benefit expenses on an employee-by-employee basis, based on the percentage of each employee’s time devoted to our matters in relation to the time such employees devoted to all affiliated funds, collectively, advised by our Adviser. We also reimbursed the Adviser for general overhead expenses multiplied by the ratio of hours worked by the Adviser’s employees on Company matters to the total hours worked by the Adviser’s employees. We compensated our Adviser through reimbursement of our portion of the Adviser’s payroll, benefits and general overhead expenses. This reimbursement was generally subject to a combined annual management advisory fee limitation of 2.0% of our average invested assets for the year, with certain exceptions. Reimbursement for overhead expenses was only required up to the point that reimbursed overhead expenses and payroll and benefits expenses, on a combined basis, equaled 2.0% of our average invested assets for the year, and general overhead expenses were required to be reimbursed only if the amount of payroll and benefits reimbursed to the Adviser was less than 2.0% of our average invested assets for the year. However, payroll and benefits expenses were required to be reimbursed by us to the extent that they exceed the overall 2.0% annual management advisory fee limitation. To the extent that overhead expenses payable or reimbursable by us exceeded this limit and our independent directors determined that the excess expenses were justified based on unusual and nonrecurring factors which they deemed sufficient, we were permitted to reimburse the Adviser in future years for the full amount of the excess expenses, or any portion thereof, but only to the extent that the reimbursement would not have caused our overhead expense reimbursements to exceed the 2.0% limitation in any one year. The management advisory fee under the Prior Advisory Agreement never exceeded the annual cap.

Prior Administration Agreement

We entered into the Prior Administration Agreement with our Administrator, effective January 1, 2010, as amended on June 1, 2011, pursuant to which we paid for our allocable portion of our Administrator’s overhead expenses in performing its obligations to us, including, but not limited to, rent and the salaries and benefits of our chief financial officer and treasurer, chief compliance officer, internal counsel and secretary and their respective staffs. We compensated our Administrator through reimbursement of our portion of the Administrator’s payroll, benefits and general overhead expenses.

Amended and Restated Advisory and Administration Agreements

On February 1, 2013, we entered into each of the Amended Advisory Agreement and the Amended Administration Agreement.

Amended Advisory Agreement

Base Management Fee

Pursuant to the Amended Advisory Agreement that went into effect on February 1, 2013, we pay an annual base management fee equal to a percentage of our adjusted stockholders’ equity, which is defined as our total stockholders’ equity at the end of each quarter less the recorded value of any preferred stock we may issue and, for 2013 only, any uninvested cash proceeds from the IPO. For 2013, the base management fee was set at 1.0% of our adjusted stockholders’ equity; however, beginning January 1, 2014, we pay a base management equal to 2.0% of our adjusted stockholders’ equity, which no longer excludes uninvested cash proceeds from the IPO.

Incentive Fee

Pursuant to the Amended Advisory Agreement, we also pay an additional quarterly incentive fee based on funds from operations (“FFO”). For purposes of calculating the incentive fee, our FFO, before giving effect to any incentive fee (our “Pre-Incentive Fee FFO”) will include any realized capital gains or losses, less any distributions paid on our preferred stock, but will not include any unrealized capital gains or losses. The incentive fee will reward our Adviser if our Pre-Incentive Fee FFO for a particular calendar quarter exceeds a hurdle rate of 1.75% (7% annualized) of our total stockholders’ equity at the end of the quarter. Our Adviser will receive 100% of the amount of the Pre-Incentive Fee FFO for the quarter that exceeds the hurdle rate but is less than 2.1875% of our total stockholders’ equity at the end of the quarter (8.75% annualized), and 20% of the amount of our Pre-Incentive Fee FFO that exceeds 2.1875% for the quarter.

For the three months ended March 31, 2013, we paid an incentive fee to our Adviser of $41,037; however, during the three months ended June 30, 2013, our Adviser issued a one-time, irrevocable waiver equal to the full amount of the incentive fee paid for the three months ended March 31, 2013, and such fee was credited to us during the three months ended June 30, 2013. There was no incentive fee earned by our Adviser for the years ended December 31, 2014, 2013 or 2012, as our Pre-Incentive Fee FFO did not exceed the hurdle rate.

Amended Administration Agreement

Pursuant to the Amended Administration Agreement that went into effect on February 1, 2013, we pay for our allocable portion of the Administrator’s expenses incurred while performing services to us, including, but not limited to, rent and the salaries and benefits expenses of our Administrator’s employees, including our chief financial officer, treasurer, chief compliance officer, general counsel and secretary (who also serves as our Administrator’s president) and their respective staffs. From February 1, 2013, through June 30, 2014, our allocable portion of these expenses was generally derived by multiplying that portion of the Administrator’s expenses allocable to all funds managed by the Adviser by the percentage of our total assets at the beginning of each quarter in comparison to the total assets of all funds managed by our Adviser.

As approved by our Board of Directors, effective July 1, 2014, our allocable portion of the Administrator’s expenses is now generally derived by multiplying our Administrator’s total expenses by the approximate percentage of time the Administrator’s employees perform services for us in relation to their time spent performing services for all companies serviced by our Administrator under similar contractual agreements. This change in methodology resulted in an increase in the fee we paid to our Administrator of approximately 137% for the six months ended December 31, 2014, as compared to the first six months of the fiscal year.

The following table summarizes the management fees, incentive fees and associated credits and the administration fees reflected in our accompanying Consolidated Statements of Operations:

	For the Years Ended December 31,
	2014		2013			2012
Management Fee:
Allocated payroll and benefits	$	—	$	38,668		$	224,931
Allocated overhead expenses		—		7,538			42,349
Prior management advisory fee(1)		—		46,206			267,280
Amended base management fee(2)		1,079,534		149,403			—
Total management fee(3)	$	1,079,534	$	195,609		$	267,280
Incentive Fee:
Incentive Fee(3)(4)	$	—	$	41,037		$	—
Credit from voluntary, irrevocable waiver
by Adviser’s board of directors(3)(4)		—		(41,037	)		—
Net incentive fee	$	—	$	—		$	—
Administration Fee:
Allocated payroll and benefits	$	—	$	14,034		$	143,381
Allocated overhead expenses		—		4,498			37,017
Prior administration fee(1)		—		18,532			180,398
Amended administration fee(2)		442,584		175,932			—
Total administration fee(3)	$	442,584	$	194,464		$	180,398

⁽¹⁾  Pursuant to the Prior Advisory and Administration Agreements, respectively, as defined and described in further detail above, both of which were terminated on January 31, 2013.

⁽²⁾  Pursuant to the Amended Advisory and Administration Agreements, respectively, as defined and described in further detail above, both of which became effective on February 1, 2013.

⁽³⁾  Reflected as a line item on our accompanying Consolidated Statements of Operations.

⁽⁴⁾  An incentive fee of $41,037 was paid to our Adviser for the three months ended March 31, 2013; however, during the three months ended June 30, 2013, our Adviser issued a one-time, voluntary and irrevocable waiver equal to the full amount of the incentive fee due and payable to the Adviser for the three months ended March 31, 2013.

Related Party Fees Due

Amounts due to related parties on our accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013 were as follows:

	2014		2013
Management fee due to Adviser	$	301,487	$	91,823
Other due to Adviser(1)		3,187		9,834
Total due to Adviser		304,674		101,657
Administration fee due to Administrator		166,427		59,062
Total due to Administrator		166,427		59,062
Total due to related parties(2)	$	471,101	$	160,719

⁽¹⁾  Other fees due to related parties primarily relate to miscellaneous general and administrative expenses paid by our Adviser or Administrator on our behalf.

⁽²⁾ Reflected as a line item on our accompanying Consolidated Balance Sheets.

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Borrowings (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Summary of Mortgage Note Payable and Line of Credit

Our borrowings as of December 31, 2014 and 2013 are summarized below:

							As of December 31, 2014								As of December 31, 2013
Issuer	Type of Issuance	Date of Issuance	Initial Commitment		Maturity Date		Principal Outstanding		Stated Interest Rate			Undrawn Commitment			Principal Outstanding			Stated Interest Rate			Undrawn Commitment
MetLife	Mortgage Note Payable	12/30/2010	$	45,200,000		1/5/2026	$	—		N/A		$	—		$	43,054,165	(1)		3.50	%	$	—
MetLife	Line of Credit	5/23/2012		4,785,000		4/5/2017		—		N/A			—			100,000	(1)		3.25	%		4,685,000
MetLife	Mortgage Note Payable	5/9/2014		100,000,000		1/5/2029		66,331,998		3.61	%(2)		33,668,002	(3)		—			N/A			—
MetLife	Line of Credit	5/9/2014		25,000,000		4/5/2024		4,000,000		2.75	%		21,000,000	(3)		—			N/A			—
Farm Credit	Mortgage Note Payable	9/19/2014		2,655,000		8/1/2034		2,655,000		3.52	%(4)		—			—			N/A			—
Farm Credit	Mortgage Note Payable	9/19/2014		1,599,600		8/1/2034		1,599,600		3.52	%(4)		—			—			N/A			—
Farm Credit	Mortgage Note Payable	9/29/2014		8,259,000		8/1/2034		8,155,763		3.54	%(4)		—			—			N/A			—
Farmer Mac	Bond Payable	12/11/2014		75,000,000		12/11/2019		3,675,000		3.25	%(5)		71,325,000	(6)		—			N/A			—
						Totals:	$	86,417,361				$	125,993,002		$	43,154,165					$	4,685,000

⁽¹⁾ Indebtedness was fully repaid with the proceeds from the New MetLife Credit Facility, as defined below, and was terminated on May 9, 2014.

⁽²⁾ Represents the blended rate on the borrowings as of December 31, 2014.

⁽³⁾ Based on the properties that were pledged as collateral as of December 31, 2014, approximately $13.8 million of the remaining availability was available for us to draw.

⁽⁴⁾ Rate is before interest repatriation and is fixed through July 2017.

⁽⁵⁾ Rate is fixed through December 2019.

⁽⁶⁾ As of December 31, 2014, there was no additional availability to draw under this facility, as no additional properties had been pledged as collateral.

Principal Payments of Aggregate Borrowings

Scheduled principal payments of our aggregate borrowings as of December 31, 2014, for each of the five succeeding fiscal years and thereafter are as follows:

Period	Scheduled Principal Payments
For the fiscal years ending December 31:     2015	$	625,680
2016		2,947,300
2017		2,866,043
2018		2,787,631
2019		6,386,962
Thereafter		70,803,745
	$	86,417,361

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Out-of-Period Adjustment

Out-of-Period Adjustment

During the year ended December 31, 2013, we recorded adjustments to our income tax provision and to other assets that were related to our 2011 and 2012 provision reconciliation. As a result of the correction of these errors, we understated net income by $40,438 for the year ended December 31, 2013. We concluded that these adjustments were not material to the 2011, 2012 or 2013 results of operations; as such, these adjustments were recorded during 2013.

Use of Estimates

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates.

Real Estate and Lease Intangibles

Real Estate and Lease Intangibles

Our investments in real estate consist of farmland and improvements made to the farmland, consisting of buildings; irrigation and drain systems; coolers, which are storage facilities used for cooling crops; warehouses used for storing, assembling and packing boxes; and horticulture acquired in connection with the land purchase, which currently consists of blueberry bushes and avocado and lemon trees. We record investments in real estate at cost and capitalize improvements and replacements when they extend the useful life or improve the efficiency of the asset. We expense costs of repairs and maintenance as such costs are incurred. We compute depreciation using the straight-line method over the shorter of the estimated useful life or 39 years for buildings and improvements, the shorter of the estimated useful life or 25 years for horticulture acquired in connection with the purchase of farmland, 5 to 7 years for equipment and fixtures and the shorter of the useful life or the remaining lease term for leasehold improvements.

Certain of our acquisitions involve sale-leaseback transactions with newly-originated leases, which we account for as asset acquisitions under ASC 360, “Property, Plant and Equipment.” In the case of an asset acquisition, we will capitalize the transaction costs incurred in connection with the acquisition. Other of our acquisitions involve the acquisition of farmland that is already being operated as rental property and has a lease in place that we assume at the time of acquisition, which we will generally consider to be a business combination under ASC 805, “Business Combinations.” When an acquisition is considered a business combination, ASC 805 requires that the purchase price of real estate be allocated to the tangible assets acquired and liabilities assumed, consisting of land, buildings, improvements, horticulture and long-term debt; and identifiable intangible assets and liabilities, typically the value of above-market and below-market leases, in-place leases, unamortized lease origination costs and tenant relationships, based in each case on their fair values. ASC 805 also requires that all expenses related to the acquisition be expensed as incurred, rather than capitalized into the cost of the acquisition.

Whether our acquisitions are treated as an asset acquisition under ASC 360 or a business combination under ASC 805, the fair value of the purchase price is allocated among the assets acquired and any liabilities assumed. Management’s estimates of fair value are made using methods similar to those used by independent appraisers, such as a sales comparison approach, a cost approach and either an income capitalization approach or discounted cash flow analysis. Factors considered by management in its analysis include an estimate of carrying costs during hypothetical, expected lease-up periods, taking into consideration current market conditions and costs to execute similar leases. We also consider information obtained about each property as a result of our pre-acquisition due diligence and marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired and liabilities assumed. In estimating carrying costs, management also includes lost reimbursement of real estate taxes, insurance and other operating expenses, as well as estimates of lost rental income at market rates during the hypothetical, expected lease-up periods, which typically range from 1 to 24 months, depending on specific local market conditions. Management also estimates costs to execute similar leases, including leasing commissions, legal and other related expenses, to the extent that such costs are not already incurred in connection with a new lease origination as part of the transaction. While management believes these estimates to be reasonable based on the information available at the time of acquisition, the preliminary purchase price allocation may be adjusted if management obtains more information regarding the valuations of the assets acquired or liabilities assumed.

We allocate purchase price to the fair value of the tangible assets and liabilities of an acquired property by valuing the property as if it were vacant. The “as-if-vacant” value is allocated to land, buildings, improvements and horticulture, based on management’s determination of the fair values of such assets. Real estate depreciation expense on these tangible assets was $1,384,960, $631,786 and $412,267 for the years ended December 31, 2014, 2013 and 2012, respectively.

We record above-market and below-market in-place lease values for acquired properties based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining, non-cancelable term of the lease. When determining the non-cancelable term of the lease, we evaluate whether fixed-rate renewal options, if any, should be included.

The fair value of capitalized above-market leases, included as part of Other assets in the accompanying Consolidated Balance Sheets, is amortized as a reduction of rental income on a straight-line basis over the remaining, non-cancelable terms of the respective leases, including that of any fixed-price or below-market renewal options. As of December 31, 2014, the aggregate gross amount of above-market lease values was $65,203, and the total accumulated amortization related to these values was $9,027. Total amortization related to above-market lease values was $9,027 for the year ended December 31, 2014. There were no above-market lease values recorded prior to 2014. The fair value of capitalized below-market leases, included as part of Other liabilities in the accompanying Consolidated Balance Sheets, is amortized as an increase to rental income on a straight-line basis over the remaining, non-cancelable terms of the respective leases, including that of any fixed-price or below-market renewal options. As of December 31, 2014, 2013 and 2012, the aggregate gross amount of below-market lease values was $371,707, $260,356 and $98,808, respectively, and the total accumulated amortization related to these values was $162,194, $114,469 and $45,852, respectively. Total amortization related to below-market lease values was $146,534, $68,617 and $45,852 for the years ended December 31, 2014, 2013 and 2012, respectively.

The total amount of the remaining intangible assets acquired, which consists of in-place lease values, unamortized lease origination costs and tenant relationship intangible values, are allocated based on management’s evaluation of the specific characteristics of each tenant’s lease and our overall relationship with that respective tenant. Characteristics to be considered by management in allocating these values include the nature and extent of our existing business relationships with the tenant, prospects for developing additional business with the tenant, the tenant’s credit quality and our expectations of lease renewals (including those existing under the terms of the lease agreement), among other factors.

The value of in-place leases and unamortized lease origination costs are amortized to amortization expense on a straight-line basis over the remaining, non-cancelable terms of the respective leases, which currently range from 1 to 10 years. The value of tenant relationship intangibles, which is the benefit to us resulting from the likelihood of an existing tenant renewing its lease at the existing property or entering into a lease at a different property we own, is amortized to amortization expense over the remaining lease term and any anticipated renewal periods in the respective leases.

Should a tenant terminate its lease, the unamortized portion of the above-market and below-market lease values, in-place lease values, lease origination costs and tenant relationship intangibles will be immediately charged to the appropriate income or expense account.

The total amount recorded as amortization expense related to these intangible assets was $350,684, $90,669 and $62,213 for the years ended December 31, 2014, 2013 and 2012, respectively. In addition, in September 2014, we wrote off $46,526 of intangible assets due to the termination of a lease that was assumed in connection with a farm acquired in June 2014, and the unamortized balance of these assets, which was $43,328, was immediately charged to amortization expense.

Impairment of Real Estate Assets

Impairment of Real Estate Assets

We account for the impairment of our tangible and identifiable intangible real estate assets in accordance with ASC 360, which requires us to periodically review the carrying value of each property to determine whether indicators of impairment exist. Such indicators may include, but are not limited to, declines in a property’s operating performance, deteriorating market conditions and environmental or legal concerns. If circumstances support the possibility of impairment, we prepare a projection of the total undiscounted future cash flows of the specific property, including proceeds from disposition without interest charges, and compare them to the net book value of the property to determine whether the carrying value of the property is recoverable. In performing the analysis, we consider such factors as the tenants’ payment history and financial condition, the likelihood of lease renewal, agricultural and business conditions in the regions in which our farms are located and whether there are indications that the fair value of the real estate has decreased. If the carrying amount is more than the aggregate undiscounted future cash flows, we would recognize an impairment loss to the extent the carrying value exceeds the estimated fair value of the property.

We evaluate our entire property portfolio each quarter for any impairment indicators and perform an impairment analysis on those select properties that have an indication of impairment. During the three months ended June 30, 2014, we had two separate fires that partially damaged structures on two separate properties, which constituted an indicator of impairment. However, in accordance with ASC 360, we assessed the recoverability of the two properties and determined that the net carrying value of each property was fully recoverable. Therefore, no impairment loss was recorded; however, we recorded property and casualty losses for each event. See “—Involuntary Conversions and Property and Casualty Recovery” below for further detail. We further concluded that none of our properties were impaired as of December 31, 2014, and we will continue to monitor our portfolio for any indicators of impairment. There have been no impairments recognized on real estate assets since our inception.

Leasehold Improvements

Leasehold Improvements

From time to time, our tenants may pay for improvements on certain of our properties with the ownership of the improvements remaining with us, in which case we will record the cost of such improvements as an asset, leasehold improvements, along with a corresponding liability, deferred rent liability, on our balance sheet. Leasehold improvements will be depreciated, and the deferred rent liability will be amortized as an addition to rental income, each over the shorter of the useful life of the respective improvement or the remaining term of the existing lease in place. In determining whether the tenant or the Company is the owner (for accounting purposes) of such improvements, several factors will be considered, including, but not limited to: (i) whether the tenant or landlord retains legal title to the improvements upon expiration of the lease; (ii) whether the lease stipulates how such improvements should be treated; (iii) the uniqueness of the improvements (i.e., whether the improvements were made to meet the specific needs or for the benefit of the tenant leasing the property, or if the improvements generally increased the value or extended the useful life of the asset improved upon); (iv) the expected useful life of the improvements relative to the remaining length of the lease; and (v) whether the tenant or the Company constructs or directs construction of the improvements. The determination of who owns the improvements (for accounting purposes) is subject to significant judgment. As of December 31, 2014, we recorded aggregate gross leasehold improvements of $585,947, and accumulated depreciation related to these improvements was $56,760. During the year ended December 31, 2014, approximately $56,760 was recorded as both depreciation expense and an addition to rental income. No leasehold improvements were recorded prior to 2014.

When improvements on properties are paid for and determined to be owned by us, we record such costs as site improvements and depreciate the costs over the estimated useful life of the improvement.

Cash and Cash Equivalents

Cash and Cash Equivalents

We consider cash equivalents to be all short-term, highly-liquid investments that are both readily convertible to cash and have a maturity of three months or less at the time of purchase, except that any such investments purchased with funds held in escrow or similar accounts are classified as restricted cash. Items classified as cash equivalents include money-market deposit accounts. Our cash and cash equivalents at December 31, 2014 and 2013 were held in the custody of one financial institution, and our balance at times may exceed federally-insurable limits.

Restricted Cash

Restricted Cash

As of December 31, 2014 and 2013, restricted cash consisted of accrued interest owed on funds held in escrow related to the acquisition of a property in December 2013. During the years ended December 31, 2014 and 2013, we accrued $3,000 and $41, respectively, of accrued interest on these funds held in escrow. In addition, restricted cash as of December 31, 2014, consists of $129,700 that was earmarked for the purchase of a water permit on one of our farms. This water permit was approved on January 27, 2015, and these funds were released on February 12, 2015.

Short-term Investments

Short-term Investments

We consider short-term investments to consist of any highly-liquid securities that have an original maturity of less than one year but greater than three months at the time of purchase. As of December 31, 2014 and 2013, short-term investments consisted of approximately $0.7 million held in a certificate of deposit (“CD”). The CD originally matured on September 6, 2013; however, upon maturity, the balance was rolled into a new, 12-month CD that matured on September 6, 2014, at which time the balance was again rolled into a new, 12-month CD with a maturity date of September 6, 2015. Due to the short-term nature of the CD, the amortized cost of the security was deemed to approximate its fair value as of both December 31, 2014 and 2013. During the year ended December 31, 2013, we also held $20.0 million of short-term U.S. Treasury Bills that matured on June 27, 2013, and were subsequently invested in a money-market deposit account. As of both December 31, 2014 and 2013, our short-term investments were classified as held-to-maturity and were recorded at their amortized cost on the Consolidated Balance Sheets.

Total income earned on these short-term investments is included in Interest income on the accompanying Consolidated Statements of Operations and totaled $681, $5,746 and $168 for the years ended December 31, 2014, 2013 and 2012, respectively.

Deferred Financing Costs

Deferred Financing Costs

Deferred financing costs consist of costs incurred to obtain financing, including legal fees, origination fees and administrative fees. Costs associated with our borrowings are deferred and amortized over the terms of the respective financings using the straight-line method. In the case of our line of credit, the straight-line method is used due to the revolving nature of the financing instrument; in the case of our mortgage notes payable, the straight-line method approximates the effective interest method. Upon early extinguishment of any borrowings, the unamortized portion of the related deferred financing costs will be immediately charged to expense. As such, during 2012, we wrote off $35,511 of unamortized deferred financing costs associated with a line of credit that was terminated on May 31, 2012.

In addition, in accordance with ASC 470, “Debt,” when a financing arrangement is amended so that the borrowing capacity increases, the unamortized deferred financing costs from the prior arrangement should be amortized over the term of the new arrangement. As such, $298,614 of unamortized deferred financing costs associated with our Prior MetLife Credit Facility (as defined in Note 5, “Borrowings—MetLife Credit Facility”) were deferred and amortized over the term of our New MetLife Credit Facility (as defined in Note 5, “Borrowings—MetLife Credit Facility”).

Accumulated amortization of deferred financing costs was $117,433 and $64,148 as of December 31, 2014 and 2013, respectively. Total amortization expense related to deferred financing costs is included in Interest expense on the accompanying Consolidated Statements of Operations. See Note 5, “Borrowings,” for further discussion on these related financings.

Deferred Offering Costs

Deferred Offering Costs

We account for deferred offering costs in accordance with SEC Staff Accounting Bulletin (“SAB”), Topic 5.A, which states that incremental costs directly attributable to a proposed or actual offering of securities may properly be deferred and charged against the gross proceeds of the offering. Accordingly, we record costs incurred related to public offerings of equity securities on our Condensed Consolidated Balance Sheets and pro-ratably apply these amounts to the proceeds of equity as stock is issued. We incurred $140,822 related to the filing and preparation of a registration statement on Form S-3, which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on April 2, 2014, and $7,052 of such costs were pro-ratably applied to the use of proceeds of our Follow-on Offering (as defined in Note 6, “Stockholders’ Equity—2014 Follow-on Offering”). In addition, we incurred $114,961 related to the filing and preparation of a registration statement on Form S-11, which has not yet been declared effective by the SEC.

Other Assets and Other Liabilities

Other Assets and Other Liabilities

Other assets consist of deferred rent assets, income taxes receivable, deposits on potential real estate acquisitions, prepaid expenses, above-market lease values, and other miscellaneous receivables. Other liabilities consist of rents received in advance, deferred rent liabilities, below-market lease values and funds held in escrow.

Revenue Recognition

Revenue Recognition

Rental revenue includes rents that each tenant pays in accordance with the terms of its respective lease, reported evenly over the non-cancelable term of the lease. Most of our leases contain rental increases at specified intervals; we recognize such revenues on a straight-line basis. Deferred rent receivable, included in Other assets on the accompanying Consolidated Balance Sheets, includes the cumulative difference between rental revenue, as recorded on a straight-line basis, and rents received from the tenants in accordance with the lease terms. Capitalized above-market and below-market lease values are included in Other assets and Other liabilities, respectively, on the accompanying Consolidated Balance Sheets, which are amortized against or into rental income over the life of the respective leases. In addition, we determine, in our judgment, to what extent the deferred rent receivable applicable to each specific tenant is collectable. We perform a quarterly review on deferred rent receivable as it relates to straight-line rents and take into consideration the tenant’s payment history, the financial condition of the tenant, business conditions of the industry in which the tenant operates and economic and agricultural conditions in the geographic area in which the property is located. In the event that the collectability of deferred rent with respect to any given tenant is in doubt, we record an allowance for uncollectable accounts or record a direct write-off of the specific rent receivable. No such reserves or direct write-offs have been recorded to date.

Tenant reimbursement revenue includes payments received from tenants as reimbursements for certain operating expenses, such as property taxes and insurance premiums. These expenses and their subsequent reimbursements are recognized under property operating expenses as incurred and tenant reimbursement revenue as earned, respectively, and are recorded in the same periods.

Other Income

Other Income

We record non-operating and unusual or infrequent income as Other income on our Consolidated Statements of Operations. Other income recorded for the years ended December 31, 2014 and 2012 was primarily from additional interest earned on income tax refunds from the State of California. See “ —Income taxes” below for more information on the income tax refunds. There was no Other income recognized during the year ended December 31, 2013.

Involuntary Conversions and Property and Casualty Recovery

Involuntary Conversions and Property and Casualty Recovery

We account for involuntary conversions, for example, when a nonmonetary asset, such as property or equipment, is involuntarily converted to a monetary asset, such as insurance proceeds, in accordance with ASC 605, “Revenue Recognition – Gains and Losses,” which requires us to recognize a gain or a loss equal to the difference between the carrying amount of the nonmonetary asset and the amount of monetary assets received. Further, in accordance with ASC 450, “Contingencies,” if recovery of the loss is considered to be probable, we will recognize a receivable for the amount expected to be covered by insurance proceeds, not to exceed the related loss recognized, unless such amounts have been realized.

Income taxes

Income taxes

We have operated and intend to continue to operate in a manner that will allow us to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended. On September 3, 2014, we filed our 2013 federal income tax return, on which we elected to be taxed as a REIT for federal income tax purposes beginning with our tax year ended December 31, 2013. As a REIT, we generally are not subject to federal income taxes on amounts that we distribute to our stockholders (except income from any foreclosure property), provided that, on an annual basis, we distribute at least 90% of our REIT taxable income (determined without regard to the deduction for dividends paid and excluding net capital gains) to our stockholders and meet certain other conditions. To the extent that we satisfy the annual distribution requirement but distribute less than 100% of our taxable income, we will be subject to an excise tax on our undistributed taxable income.

Beginning January 1, 2013, Land Advisers has been treated as a wholly-owned TRS that is subject to federal and state income taxes. Though Land Advisers has had no activity to date, we would account for any future income taxes in accordance with the provisions of ASC 740, “Income Taxes.”

Under ASC 740-10-25, we account for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. In estimating future tax consequences, we consider all future events, other than changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period of enactment. In addition, ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, we may recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not (defined as a likelihood of more than 50%) that the tax position, based on the technical merits of the position, will be sustained upon examination by taxing authorities, including resolutions of any related appeals or litigation processes. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater-than-fifty-percent likelihood of being realized upon ultimate settlement. If a tax position does not meet the more-likely-than-not recognition threshold, despite our belief that the filing position is supportable, the benefit of that tax position is not recognized in the Consolidated Statements of Operations. ASC 740 also provides guidance on derecognition, classification, interest and penalties on income taxes, as well as accounting in interim periods, and requires increased disclosures. We recognize interest and penalties, as applicable, related to unrecognized tax benefits as General and administrative expense on the Consolidated Statements of Operations. We recognize unrecognized tax benefits in the period that the uncertainty is eliminated by either affirmative agreement of the uncertain tax position by the applicable taxing authority or by expiration of the applicable statute of limitation.

For all tax years prior to 2013, our pre-tax net income was taxed at regular corporate tax rates for both federal and state purposes, and we accounted for such income taxes in accordance with the provisions of ASC 740.

We have performed a review of our tax positions and determined that, as of December 31, 2014 and 2013, we had no material provisions for uncertain tax positions.

A reconciliation between the U.S. statutory federal income tax rate and our effective income tax rate for the years ended December 31, 2014, 2013 and 2012 is provided in the following table:

	For the Years Ended December 31,
	2014			2013			2012
U.S. statutory federal income tax rate(1)		0.0	%		0.0	%		34.0	%
State taxes, net of U.S. federal income tax benefit(2)		26.9	%		41.7	%		4.0	%
Other adjustments(3)		0.0	%		473.4	%		-4.7	%
Effective tax rate		26.9	%		515.1	%		33.3	%

⁽¹⁾ Beginning with our tax year ended December 31, 2013, we qualified to be taxed as a REIT for federal income tax purposes.

⁽²⁾ In 2012, California state tax returns were filed on a unitary basis with our Adviser. State tax adjustments made to the 2013 and 2014 income tax provision relate to taxes owed to the state of California as a result of prior-year land transfers.

⁽³⁾ Adjustments made to the 2013 income tax provision related primarily to the recognition of $2.1 million of income taxes on a deferred intercompany gain relating to land transfers from prior years. This tax become due upon our election to be taxed as a REIT for the tax year ended December 31, 2013. This was partially offset by the reversal of our deferred tax liability, which resulted in a net benefit of REIT conversion of $743,676.

The provision for income taxes included in our Consolidated Financial Statements for both 2014 and 2013 was all current, while prior years included both a current portion and a deferred portion. The following table shows the breakdown between the current and deferred income taxes for the year ended December 31, 2012:

	2012
Current portion	$	(268,356	)
Deferred portion		568,675
Total income taxes	$	300,319

Prior to 2013, we carried a deferred tax liability on our balance sheet that represented the basis difference in our real estate as it relates to depreciation, as well as differences relating to rents received in advance, straight-line rents and other temporary differences. As of and for the year ended December 31, 2013, this deferred tax liability was reversed through our income tax provision, as we qualified and elected to be treated as a REIT for federal income tax purposes for our tax year ended December 31, 2013. Our permanent differences related to federal and state income taxes.

Segment Reporting

Segment Reporting

We do not evaluate performance on a property-specific or transactional basis, nor do we distinguish our principal business or group our operations on a geographical basis for purposes of measuring performance. Thus, we believe we have a single operating segment for reporting purposes in accordance with GAAP, that segment being farmland and farm-related properties.

Comprehensive (Loss) Income

Comprehensive (Loss) Income

For the years ended December 31, 2014, 2013 and 2012, net (loss) income equaled comprehensive (loss) income; therefore, a separate statement of comprehensive income is not included in the accompanying Consolidated Financial Statements.

Distributions

Distributions

We operate in a manner intended to enable us to continue to qualify as a REIT under Sections 856-860 of the Code. Under those sections, a REIT that distributes at least 90% of its REIT taxable income to its stockholders each year and meets certain other conditions will not be subject to federal income tax on that portion of its taxable income that is distributed to stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate rates (including any alternative minimum tax) and may not be able to qualify as a REIT for the four immediately-subsequent taxable years. Even as a REIT, we may be subject to certain state and local income and property taxes and to federal income and excise taxes on undistributed taxable income. In general, however, as long as we qualify as a REIT, no provision for federal income taxes will be necessary, except for taxes on undistributed REIT taxable income and taxes on the income generated by a TRS, if any.

Recently-Issued Accounting Pronouncements

Recently-Issued Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” Under this revised guidance, only disposals representing a strategic shift in operations, such as a disposal of a major geographic area, a major line of business or a major equity method investment, will be presented as discontinued operations. As an emerging growth company, the standard is effective for us with respect to (a) all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015, and (b) all activities that, upon acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015. We currently anticipate that this standard will result in most of our disposals (if any) not qualifying for discontinued operations presentation.

In May 2014, the FASB issued ASC 606, “Revenue from Contracts with Customers.” This revenue standard contains principles that an entity should apply to determine the measurement of revenue and timing of when it should be recognized. This standard is effective for our fiscal year beginning January 1, 2017, and we are currently evaluating any impact from adoption.

In August 2014, the FASB issued Accounting Standards Update 2014–15 (“ASU 2014-15), “Presentation of Financial Statements — Going Concern (Subtopic 205 – 40): Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 requires management to evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, and to provide certain disclosures when it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. Since this guidance is primarily centered around certain disclosures to the financial statements, we anticipate no impact on our financial position, results of operations or cash flows from adopting this standard. We are currently assessing the additional disclosure requirements, if any, of ASU 2014-15. ASU 2014-15 is effective for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter, with early adoption permitted. We do not intend to opt for early adoption as an Emerging Growth Company.

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Earnings Per Share of Common Stock

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share of Common Stock

NOTE 8. EARNINGS PER SHARE OF COMMON STOCK

The following table sets forth the computation of basic and diluted earnings per common share for the years ended December 31, 2014, 2013 and 2012. Earnings per share is computed using the weighted average number of shares outstanding during the respective periods.

	2014			2013			2012
Net (loss) income	$	(125,133	)	$	(1,224,683	)	$	600,373
Weighted average shares of common stock outstanding – basic and diluted		6,852,917			6,214,557			2,750,000
Basic and diluted (loss) earnings per common share	$	(0.02	)	$	(0.20	)	$	0.22

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Stockholders' Equity - Monthly Distributions Declared and Paid by Company's Board of Directors (Detail) (USD $)	0 Months Ended	12 Months Ended	0 Months Ended		12 Months Ended	0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Jan. 31, 2014	Feb. 28, 2013	Dec. 31, 2014	Feb. 28, 2014	Mar. 28, 2013	Mar. 31, 2014	Apr. 30, 2013	Apr. 30, 2014	May 31, 2013	May 30, 2014	Jun. 28, 2013	Jun. 30, 2014	Jul. 31, 2013	Aug. 05, 2014	Aug. 30, 2013	Aug. 29, 2014	Sep. 30, 2013	Sep. 30, 2014	Oct. 31, 2013	Oct. 31, 2014	Nov. 29, 2013	Nov. 26, 2014	Dec. 31, 2013
Class of Stock [Line Items]
Distributions per Common Share	$ 0.36	$ 1.49
Monthly Distribution One [Member]
Class of Stock [Line Items]
Dividend Declaration Date		Feb. 05, 2013			Jan. 07, 2014
Record Date		Feb. 15, 2013			Jan. 22, 2014
Dividend Payment Date		Feb. 28, 2013			Jan. 31, 2014
Distributions per Common Share			$ 0.03	$ 0.04
Monthly Distribution Two [Member]
Class of Stock [Line Items]
Dividend Declaration Date		Feb. 05, 2013			Jan. 07, 2014
Record Date		Mar. 15, 2013			Feb. 19, 2014
Dividend Payment Date		Mar. 28, 2013			Feb. 28, 2014
Distributions per Common Share						$ 0.03	$ 0.04
Monthly Distribution Three [Member]
Class of Stock [Line Items]
Dividend Declaration Date		Apr. 09, 2013			Jan. 07, 2014
Record Date		Apr. 22, 2013			Mar. 17, 2014
Dividend Payment Date		Apr. 30, 2013			Mar. 31, 2014
Distributions per Common Share								$ 0.03	$ 0.12
Monthly Distribution Four [Member]
Class of Stock [Line Items]
Dividend Declaration Date		Apr. 09, 2013			Apr. 08, 2014
Record Date		May 20, 2013			Apr. 21, 2014
Dividend Payment Date		May 31, 2013			Apr. 30, 2014
Distributions per Common Share										$ 0.03	$ 0.12
Monthly Distribution Five [Member]
Class of Stock [Line Items]
Dividend Declaration Date		Apr. 09, 2013			Apr. 08, 2014
Record Date		Jun. 19, 2013			May 20, 2014
Dividend Payment Date		Jun. 28, 2013			May 30, 2014
Distributions per Common Share												$ 0.03	$ 0.12
Monthly Distribution Six [Member]
Class of Stock [Line Items]
Dividend Declaration Date		Jul. 09, 2013			Apr. 08, 2014
Record Date		Jul. 19, 2013			Jun. 19, 2014
Dividend Payment Date		Jul. 31, 2013			Jun. 30, 2014
Distributions per Common Share														$ 0.03	$ 0.12
Monthly Distribution Seven [Member]
Class of Stock [Line Items]
Dividend Declaration Date		Jul. 09, 2013			Jul. 15, 2014
Record Date		Aug. 21, 2013			Jul. 25, 2014
Dividend Payment Date		Aug. 30, 2013			Aug. 05, 2014
Distributions per Common Share																$ 0.03	$ 0.12
Monthly Distribution Eight [Member]
Class of Stock [Line Items]
Dividend Declaration Date		Jul. 09, 2013			Jul. 15, 2014
Record Date		Sep. 18, 2013			Aug. 20, 2014
Dividend Payment Date		Sep. 30, 2013			Aug. 29, 2014
Distributions per Common Share																		$ 0.03	$ 0.12
Monthly Distribution Nine [Member]
Class of Stock [Line Items]
Dividend Declaration Date		Oct. 08, 2013			Jul. 15, 2014
Record Date		Oct. 22, 2013			Sep. 19, 2014
Dividend Payment Date		Oct. 31, 2013			Sep. 30, 2014
Distributions per Common Share																				$ 0.03	$ 0.12
Monthly Distribution Ten [Member]
Class of Stock [Line Items]
Dividend Declaration Date		Oct. 08, 2013			Oct. 07, 2014
Record Date		Nov. 14, 2013			Oct. 22, 2014
Dividend Payment Date		Nov. 29, 2013			Oct. 31, 2014
Distributions per Common Share																						$ 0.03	$ 0.12
Monthly Distribution Eleven [Member]
Class of Stock [Line Items]
Dividend Declaration Date		Oct. 08, 2013			Oct. 07, 2014
Record Date		Dec. 16, 2013			Nov. 17, 2014
Dividend Payment Date		Dec. 31, 2013			Nov. 26, 2014
Distributions per Common Share																								$ 0.03	$ 0.12
Monthly Distribution Twelve [Member]
Class of Stock [Line Items]
Dividend Declaration Date		Dec. 03, 2013			Oct. 07, 2014
Record Date		Dec. 16, 2013			Dec. 19, 2014
Dividend Payment Date		Dec. 31, 2013			Dec. 31, 2014
Distributions per Common Share	$ 0.03																								$ 0.33

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Stockholders' Equity

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Stockholders' Equity

NOTE 6. STOCKHOLDERS’ EQUITY

2013 Initial Public Offering

On January 28, 2013, we priced our initial public offering (“IPO”) of 3,333,334 shares of our common stock at a public offering price of $15.00 per share, which closed on January 31, 2013. Including the underwriters’ option to cover over-allotments, which was exercised on February 19, 2013, we issued a total of 3,780,264 shares, resulting in gross proceeds of $56.7 million and net proceeds, after deducting underwriting discounts and offering expenses borne by us, of approximately $51.3 million. Approximately $37.9 million of these proceeds were invested in new property acquisitions, and an additional $1.7 million was expended or accrued for capital improvements on existing properties. In addition, $10.3 million was used to pay distributions to our stockholders, and the remainder was used for other general corporate purposes. As of December 31, 2014, there were no uninvested proceeds remaining from our IPO.

2014 Follow-on Offering

On September 24, 2014, we priced a follow-on public offering (the “Follow-on Offering”) of 1,150,000 shares of our common stock at a public offering price of $12.28 per share, which closed on September 29, 2014. In connection with the Follow-on Offering, we issued a total of 1,150,000 shares, resulting in gross proceeds of approximately $14.1 million and net proceeds, after deducting underwriting discounts and offering expenses borne by us, of approximately $13.2 million. $11.1 million of these proceeds were used to repay existing indebtedness, with the remainder being invested into new property acquisitions.

On October 24, 2014, the underwriters exercised a portion of their over-allotment option in connection with our Follow-on Offering, and, as a result, we issued an additional 73,453 shares. This transaction closed on October 29, 2014, and resulted in gross proceeds of approximately $902,000 and net proceeds, after deducting underwriting discounts and offering expenses borne by us, of approximately $843,000. These proceeds were used to repay existing indebtedness and for other general corporate purposes.

As of December 31, 2014, there were no uninvested proceeds remaining from our Follow-on Offering.

Distributions

The distributions to common stockholders declared by our Board of Directors and paid by us during the years ended December 31, 2014 and 2013 are reflected in the table below. No distributions were declared or paid during the year ended December 31, 2012.

Fiscal Year	Declaration Date	Record Date	Payment Date	Distributions per Common Share
2014	January 7, 2014	January 22, 2014	January 31, 2014	$	0.03
	January 7, 2014	February 19, 2014	February 28, 2014		0.03
	January 7, 2014	March 17, 2014	March 31, 2014		0.03
	April 8, 2014	April 21, 2014	April 30, 2014		0.03
	April 8, 2014	May 20, 2014	May 30, 2014		0.03
	April 8, 2014	June 19, 2014	June 30, 2014		0.03
	July 15, 2014	July 25, 2014	August 5, 2014		0.03
	July 15, 2014	August 20, 2014	August 29, 2014		0.03
	July 15, 2014	September 19, 2014	September 30, 2014		0.03
	October 7, 2014	October 22, 2014	October 31, 2014		0.03
	October 7, 2014	November 17, 2014	November 26, 2014		0.03
	October 7, 2014	December 19, 2014	December 31, 2014		0.03
	Year ended December 31, 2014			$	0.36
2013	February 5, 2013	February 15, 2013	February 28, 2013	$	0.04
	February 5, 2013	March 15, 2013	March 28, 2013		0.04
	April 9, 2013	April 22, 2013	April 30, 2013		0.12
	April 9, 2013	May 20, 2013	May 31, 2013		0.12
	April 9, 2013	June 19, 2013	June 28, 2013		0.12
	July 9, 2013	July 19, 2013	July 31, 2013		0.12
	July 9, 2013	August 21, 2013	August 30, 2013		0.12
	July 9, 2013	September 18, 2013	September 30, 2013		0.12
	October 8, 2013	October 22, 2013	October 31, 2013		0.12
	October 8, 2013	November 14, 2013	November 29, 2013		0.12
	October 8, 2013	December 16, 2013	December 31, 2013		0.12
	December 3, 2013	December 16, 2013	December 31, 2013		0.33	(1)
	Year ended December 31, 2013			$	1.49

⁽¹⁾ Represents a one-time declaration to distribute the final amount of remaining earnings and profits from prior years.

During the years ended December 31, 2014 and 2013, we paid aggregate distributions to stockholders of approximately $2.5 million and $9.7 million, respectively. Approximately $9.6 million of the distributions to stockholders during the year ended December 31, 2013, related to the distribution of accumulated earnings and profits from prior years that we were required to pay out by December 31, 2013, in order to qualify as a REIT for our taxable year ended December 31, 2013.

For federal income tax characterization purposes, distributions paid to stockholders may be characterized as ordinary income, capital gains, return of capital or a combination thereof. We have not had any capital gains since our inception. The characterization of distributions on our common stock during each of the last two years is reflected in the following table:

For the Years Ended	Ordinary Income			Return of Capital
December 31, 2014:
Common Stock		95.66078	%		4.33922	%
December 31, 2013:
Common Stock		100.00000	%(1)		0.00000	%

⁽¹⁾ 98.53746% of this amount was classified as a Qualified Dividend.

Registration Statement

We filed a universal registration statement on Form S-3 (File No. 333-194539) with the SEC on March 13, 2014, which the SEC declared effective on April 2, 2014. This universal registration statement permits us to issue up to an aggregate of $300.0 million in securities, consisting of common stock, senior common stock, preferred stock, subscription rights, debt securities and warrants to purchase common stock, including through a combined offering of two or more of such securities. As of December 31, 2014, we have issued 1,223,453 shares of common stock for gross proceeds of $15.0 million under this universal registration statement. In addition, we filed a registration statement on Form S-11 (File No. 333-199896) with the SEC on November 5, 2014, which has yet to be declared effective by the SEC. Once effective, this registration statement will permit us to issue up to $35.0 million of common stock.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 7. COMMITMENTS AND CONTINGENCIES

Commitments and Contingencies from Business Operations

In connection with the execution of a new lease on Colding Loop in May 2013, we were required to install new wells and irrigation equipment on 121 of the 181 total farmable acres on the property. The installation of the new wells and irrigation equipment on these acres was completed in January 2014 at a total cost of $616,071. In addition, if the tenant notifies us of their intention to fully utilize the remaining 60 acres of the property, we will be required to install new irrigation equipment to cover the additional 60 acres, which is estimated to cost approximately $83,000. However, should we be required to install this additional irrigation equipment, the lease provides for an increase in the amount of rental income to be received. To further increase the water supply on the property, as of December 31, 2014, we had also applied for an additional water permit for the property, for which $129,700 was placed in an escrow account, and which funds are included in Restricted cash on our Consolidated Balance Sheet as of December 31, 2014. Our application for the new water permit was approved on January 27, 2015, and the funds were released on February 12, 2015. We expect to amend the current lease on the property to provide for additional income; however, no amendment has been executed at this time.

Coinciding with the extension of the lease on West Beach that was executed in September 2013, we entered into an agreement with the then-current tenants on the farm for them to provide oversight on certain capital improvements that will serve to upgrade the irrigation system on the property and protect it against future flooding. Pursuant to the agreement with the then-current tenants, we were required to pay them a one-time fee of $46,000 for their oversight role, which was fully paid as of December 31, 2014. The costs of these improvements, which are expected to be completed during the first half of 2015, are being borne by us. As of December 31, 2014, we have expended or accrued approximately $650,862 related to these improvements, and we expect to incur additional costs of approximately $104,000.

As a result of the fire on West Gonzales in April 2014, as of December 31, 2014, we have paid $320,828 for repairs, the full amount of which was reimbursed through insurance proceeds. We have one additional payment of $35,648 remaining to complete the repairs, which we expect to occur during the first half of 2015, and we have received assurance from the insurance company of full recovery for this amount. In addition, we paid $175,956 to further upgrade the insulation inside the cooler, for which $113,371 was reimbursed through insurance proceeds.

In connection with the follow-on lease we executed upon our acquisition of Sycamore Road in July 2014, we are required to make certain irrigation improvements on the property to increase overall water availability by November 1, 2015. Work on these improvements will begin in early 2015, and we expect the total cost to be $750,000 or less. In addition, we will earn additional rent on the total cost of these improvements, up to a total cost of $750,000, commensurate with the annual yields on the farmland.

In connection with the lease we executed upon our acquisition of Wauchula Road in September 2014, we agreed to fund certain irrigation upgrades at the tenant’s option. Currently, 125 of the 590 farm acres on the property are subject to drip irrigation. Pursuant to the lease, the tenant has the option to construct irrigation improvements necessary to convert all or a portion of the drip-irrigated acres to overhead irrigation and be reimbursed by us, up to a maximum aggregate cost of $1.5 million. The lease provides for additional rental income to be earned on the newly-converted acres upon completion of the irrigation improvements. The tenant has informed us of their intention to construct these improvements, and the work is expected to be completed during 2015.

Litigation

We are not currently subject to any material known or threatened litigation.

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Quarterly Financial Information

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

NOTE 9. QUARTERLY FINANCIAL INFORMATION (unaudited)

The following table reflects the quarterly results of operations for the years ended December 31, 2014 and 2013:

Fiscal Year 2014:	Quarter Ended
	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Operating revenues	$	1,495,636		$	1,565,935		$	1,777,675		$	2,345,676
Operating expenses		(1,100,452	)		(1,208,458	)		(1,476,092	)		(1,799,948	)
Other expenses		(367,643	)		(651,948	)		(194,351	)		(484,661	)
Net income before income taxes		27,541			(294,471	)		107,232			61,067
Provision for income taxes		(6,623	)		(6,623	)		(6,857	)		(6,399	)
Net income (loss)	$	20,918		$	(301,094	)	$	100,375		$	54,668
Earnings (loss) per weighted average common shares—basic and diluted	$	0.00		$	(0.05	)	$	0.02		$	0.01
Weighted average common shares outstanding—basic and diluted		6,530,264			6,530,264			6,605,264			7,735,354

Fiscal Year 2013:	Quarter Ended
	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013
Operating revenues	$	914,583		$	949,756		$	996,096		$	1,177,703
Operating expenses		(538,105	)		(611,333	)		(647,480	)		(883,767	)
Other expenses		(269,773	)		(261,229	)		(258,450	)		(272,954	)
Net income before income taxes		106,705			77,194			90,166			20,982
Provision for income taxes		(59,189	)		(46,838	)		(85,406	)		(1,328,297	)
Net income	$	47,516		$	30,356		$	4,760		$	(1,307,315	)
Earnings per weighted average common shares—basic and diluted	$	0.01		$	0.00		$	0.00		$	(0.21	)
Weighted average common shares outstanding—basic and diluted		5,249,898			6,530,264			6,530,264			6,530,264

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Earnings Per Share of Common Stock - Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $)	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Earnings Per Share [Abstract]
Net (loss) income	$ 54,668	$ 100,375	$ (301,094)	$ 20,918	$ (1,307,315)	$ 4,760	$ 30,356	$ 47,516	$ (125,133)	$ (1,224,683)	$ 600,373
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING - basic and diluted	7,735,354	6,605,264	6,530,264	6,530,264	6,530,264	6,530,264	6,530,264	5,249,898	6,852,917	6,214,557	2,750,000
Basic and diluted (loss) earnings per common share	$ 0.01	$ 0.02	$ (0.05)	$ 0.00	$ (0.21)	$ 0.00	$ 0.00	$ 0.01	$ (0.02)	$ (0.20)	$ 0.22

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Subsequent Events - Additional Information (Detail) (USD $)	12 Months Ended	0 Months Ended
	Dec. 31, 2014	Jan. 13, 2015	Jan. 05, 2015
Salinas [Member]
Subsequent Event [Line Items]
Acquisition Date	Jan. 05, 2015
Lease extend term	22 months
Subsequent Event [Member]
Subsequent Event [Line Items]
Cash distributions to common stockholders, percentage		16.70%
Subsequent Event [Member] | Salinas [Member]
Subsequent Event [Line Items]
Area of acquired farm			331
Total Purchase Price			$ 17,000,000
Straight-line cash rents			778,000
Subsequent Event [Member] | Farmer Mac Facility [Member]
Subsequent Event [Line Items]
Debt instrument, fixed rate of interest			3.25%
Additional borrowings			$ 10,200,000
Expiration term			5 years
Loan to value ratio			60.00%

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Commitments and Contingencies - Additional Information (Detail) (USD $)	12 Months Ended	0 Months Ended
	Dec. 31, 2014 acre	Nov. 01, 2015	Dec. 31, 2014	Jan. 31, 2014
Loss Contingencies [Line Items]
Area for installation of irrigation equipment	121
Total farmable area of Colding loop property	181		181
Expended irrigation costs				$ 616,071
Additional leased farm land	60
Additional estimated irrigation costs	83,000		83,000
Additional water permit for property, escrow amount	129,700
Farm Acres	6,637		6,637
Water Permit [Member]
Loss Contingencies [Line Items]
Date of plan approval for new water permit	Jan. 27, 2015
Date of funds released for new water permit	Feb. 12, 2015
West Gonzales [Member]
Loss Contingencies [Line Items]
Total cost of upgrading cooling facility	175,956
Cost of upgrading cooling facility reimbursed through insurance proceeds	113,371
West Gonzales [Member] | Fire [Member]
Loss Contingencies [Line Items]
Cash paid for repairs, reimbursed through insurance proceeds	320,828
Additional payment of remaining repairs	35,648
Sycamore Road [Member]
Loss Contingencies [Line Items]
Lease, acquisition, irrigation improvements, description	In connection with the follow-on lease we executed upon our acquisition of Sycamore Road in July 2014, we are required to make certain irrigation improvements on the property to increase overall water availability by November 1, 2015. Work on these improvements will begin in early 2015, and we expect the total cost to be $750,000 or less. In addition, we will earn additional rent on the total cost of these improvements, up to a total cost of $750,000, commensurate with the annual yields on the farmland.
Sycamore Road [Member] | Scenario, Forecast [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Expected cost of irrigation improvements to increase overall water availability		750,000
Wauchula Road [Member]
Loss Contingencies [Line Items]
Farm Acres	590		590
Wauchula Road [Member] | Drip Irrigation [Member]
Loss Contingencies [Line Items]
Farm Acres	125		125
Wauchula Road [Member] | Drip Irrigation [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Aggregate cost of improvements	1,500,000
West Beach [Member]
Loss Contingencies [Line Items]
Expended or accrued for capital improvements			650,862
Additional costs expected for capital improvements			104,000
West Beach [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Amount payable to tenant under agreement in two installments	$ 46,000		$ 46,000

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Real Estate and Lease Intangibles - Summary Information of Thirty-Two Farms (Detail) (USD $)	0 Months Ended	12 Months Ended		0 Months Ended
	Sep. 30, 2014 Farm	Dec. 31, 2014 Farm acre	Dec. 31, 2013 Farm acre	Jun. 17, 2014	Mar. 27, 2014
Real Estate Properties [Line Items]
Number of Farms	32	32	21
Total Acres		8,039	6,000
Farm Acres		6,637
Net Cost Basis		$ 145,257,763
Encumbrances		86,417,361
San Andreas [Member]
Real Estate Properties [Line Items]
Lease Expiration Date				Dec. 31, 2020
San Andreas [Member] | Watsonville, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date		Jun. 16, 1997
Number of Farms		1
Total Acres		307
Farm Acres		238
Lease Expiration Date		Dec. 31, 2020
Net Cost Basis		4,826,248
Encumbrances		4,220,586
West Gonzales [Member] | Oxnard, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date		Sep. 15, 1998
Number of Farms		1
Total Acres		653
Farm Acres		502
Lease Expiration Date		Jun. 30, 2020
Net Cost Basis		12,406,298
Encumbrances		21,473,134
West Beach [Member]
Real Estate Properties [Line Items]
Lease Expiration Date					Dec. 31, 2023
West Beach [Member] | Watsonville, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date		Jan. 03, 2011
Number of Farms		3
Total Acres		196
Farm Acres		195
Lease Expiration Date		Dec. 31, 2023
Net Cost Basis		8,979,337
Encumbrances		4,111,433
Dalton Lane [Member] | Watsonville, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date		Jul. 07, 2011
Number of Farms		1
Total Acres		72
Farm Acres		70
Lease Expiration Date		Nov. 01, 2015
Net Cost Basis		2,700,026
Encumbrances		1,362,231
Keysville Road [Member] | Plant City, FL [Member]
Real Estate Properties [Line Items]
Acquisition Date		Oct. 26, 2011
Number of Farms		2
Total Acres		59
Farm Acres		50
Lease Expiration Date		Jul. 01, 2016
Net Cost Basis		1,232,260
Colding Loop [Member] | Wimauma, FL [Member]
Real Estate Properties [Line Items]
Acquisition Date		Aug. 09, 2012
Number of Farms		1
Total Acres		219
Farm Acres		181
Lease Expiration Date		Jun. 14, 2018
Net Cost Basis		3,925,704
Trapnell Road [Member] | Plant City, FL [Member]
Real Estate Properties [Line Items]
Acquisition Date		Sep. 12, 2012
Number of Farms		3
Total Acres		124
Farm Acres		110
Lease Expiration Date		Jun. 30, 2017
Net Cost Basis		4,106,218
Encumbrances		2,655,000
38th Avenue [Member] | Covert, MI [Member]
Real Estate Properties [Line Items]
Acquisition Date		Apr. 05, 2013
Number of Farms		1
Total Acres		119
Farm Acres		89
Lease Expiration Date		Apr. 04, 2020
Net Cost Basis		1,449,670
Encumbrances		650,552
Sequoia Street [Member] | Brooks, OR [Member]
Real Estate Properties [Line Items]
Acquisition Date		May 31, 2013
Number of Farms		1
Total Acres		218
Farm Acres		206
Lease Expiration Date		May 31, 2028
Net Cost Basis		3,521,564
Encumbrances		1,503,888
Natividad Road [Member] | Salinas, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date		Oct. 21, 2013
Number of Farms		1
Total Acres		166
Farm Acres		166
Lease Expiration Date		Oct. 31, 2024
Net Cost Basis		7,398,003
Encumbrances		3,395,874
20th Avenue [Member] | South Haven, MI [Member]
Real Estate Properties [Line Items]
Acquisition Date		Nov. 05, 2013
Number of Farms		3
Total Acres		151
Farm Acres		94
Lease Expiration Date		Apr. 11, 2018
Net Cost Basis		1,884,981
Encumbrances		970,250
Broadway Road [Member] | Moorpark, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date		Dec. 16, 2013
Number of Farms		1
Total Acres		60
Farm Acres		60
Lease Expiration Date		Dec. 15, 2023
Net Cost Basis		2,935,348
Encumbrances		1,455,375
Oregon Trail [Member] | Echo, OR [Member]
Real Estate Properties [Line Items]
Acquisition Date		Dec. 27, 2013
Number of Farms		1
Total Acres		1,895
Farm Acres		1,640
Lease Expiration Date		Dec. 31, 2023
Net Cost Basis		13,993,009
Encumbrances		6,791,748
East Shelton [Member] | Willcox, AZ [Member]
Real Estate Properties [Line Items]
Acquisition Date		Dec. 27, 2013
Number of Farms		1
Total Acres		1,761
Farm Acres		1,320
Lease Expiration Date		Feb. 29, 2024
Net Cost Basis		7,760,059
Encumbrances		3,250,336
Collins Road [Member] | Clatskanie, OR [Member]
Real Estate Properties [Line Items]
Acquisition Date		May 30, 2014
Number of Farms		2
Total Acres		200
Farm Acres		157
Lease Expiration Date		Sep. 30, 2024
Net Cost Basis		2,532,950
Spring Valley [Member] | Watsonville, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date		Jun. 13, 2014
Number of Farms		1
Total Acres		145
Farm Acres		110
Lease Expiration Date		Sep. 30, 2016
Net Cost Basis		5,882,738
Encumbrances		2,862,237
McIntosh Road [Member] | Dover, FL [Member]
Real Estate Properties [Line Items]
Acquisition Date		Jun. 20, 2014
Number of Farms		2
Total Acres		94
Farm Acres		78
Lease Expiration Date		Jun. 30, 2017
Net Cost Basis		2,553,874
Encumbrances		1,599,600
Naumann Road [Member] | Oxnard, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date		Jul. 23, 2014
Number of Farms		1
Total Acres		68
Farm Acres		64
Lease Expiration Date		Jul. 31, 2017
Net Cost Basis		6,859,860
Encumbrances		3,342,510
Sycamore Road [Member] | Arvin, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date		Jul. 25, 2014
Number of Farms		1
Total Acres		326
Farm Acres		322
Lease Expiration Date		Oct. 31, 2024
Net Cost Basis		5,939,523
Encumbrances		2,813,724
Wauchula Road [Member]
Real Estate Properties [Line Items]
Farm Acres		590
Wauchula Road [Member] | Duette, FL [Member]
Real Estate Properties [Line Items]
Acquisition Date		Sep. 29, 2014
Number of Farms		1
Total Acres		808
Farm Acres		590
Lease Expiration Date		Sep. 30, 2024
Net Cost Basis		13,772,371
Encumbrances		8,155,762
Santa Clara Avenue [Member] | Oxnard, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date		Oct. 29, 2014
Number of Farms		2
Total Acres		333
Farm Acres		331
Lease Expiration Date		Jul. 31, 2015
Net Cost Basis		24,497,797
Encumbrances		12,128,121
Dufau Road [Member] | Oxnard, CA [Member]
Real Estate Properties [Line Items]
Acquisition Date		Nov. 04, 2014
Number of Farms		1
Total Acres		65
Farm Acres		64
Lease Expiration Date		Nov. 03, 2017
Net Cost Basis		6,099,925
Encumbrances		$ 3,675,000

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Related-Party Transactions - Additional Information (Detail) (USD $)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Related Party Transactions [Abstract]
Maximum annual management fee			2.00%
Reimbursement for overhead expenses			2.00%
Amount of payroll and benefits reimbursed			2.00%
Overhead expense reimbursements limitation period			1 year
Annual base management fee, in percentage of stockholders' equity, in excess of recorded value of preferred stock			1.00%
Expected annual base management fee			2.00%
Pre-incentive quarterly fee FFO in percentage of common stockholders equity that will reward the advisor			1.75%
Pre-incentive annual fee FFO in percentage of common stockholders equity that will reward the advisor			7.00%
Amount to be paid to Adviser in percentage of pre-incentive fee condition one			100.00%
Pre-incentive fee in percentage of common stockholders equity that awards adviser hundred percent of amount of pre-incentive fee, maximum percentage			2.1875%
Adviser will receive 100% of the amount of the pre-incentive fee FFO annually that exceeds the hurdle but less than			8.75%
Amount to be paid to Adviser in percentage of pre-incentive fee condition two			20.00%
Pre-incentive fee in percentage of common stockholders' equity that awards the adviser 20% of the amount of the pre-incentive fee, minimum percentage			2.1875%
Incentive fee paid to adviser	$ 41,037		$ 0	$ 0	$ 0
Increase in percentage of fee paid to administrator		137.00%

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Real Estate and Lease Intangibles (Tables)

12 Months Ended

Dec. 31, 2014

Summary Information of Thirty-Two Farms

The following table provides certain summary information about our 32 farms as of December 31, 2014:

Property Name	Location	Date Acquired	Number of Farms		Total Acres		Farm Acres		Lease Expiration Date	Net Cost Basis(1)		Encumbrances
San Andreas	Watsonville, CA	6/16/1997		1		307		238	12/31/2020	$	4,826,248	$	4,220,586
West Gonzales	Oxnard, CA	9/15/1998		1		653		502	6/30/2020		12,406,298		21,473,134
West Beach	Watsonville, CA	1/3/2011		3		196		195	12/31/2023		8,979,337		4,111,433
Dalton Lane	Watsonville, CA	7/7/2011		1		72		70	11/1/2015		2,700,026		1,362,231
Keysville Road	Plant City, FL	10/26/2011		2		59		50	7/1/2016		1,232,260		—
Colding Loop	Wimauma, FL	8/9/2012		1		219		181	6/14/2018		3,925,704		—
Trapnell Road	Plant City, FL	9/12/2012		3		124		110	6/30/2017		4,106,218		2,655,000
38th Avenue	Covert, MI	4/5/2013		1		119		89	4/4/2020		1,449,670		650,552
Sequoia Street	Brooks, OR	5/31/2013		1		218		206	5/31/2028		3,521,564		1,503,888
Natividad Road	Salinas, CA	10/21/2013		1		166		166	10/31/2024		7,398,003		3,395,874
20th Avenue	South Haven, MI	11/5/2013		3		151		94	11/4/2018		1,884,981		970,250
Broadway Road	Moorpark, CA	12/16/2013		1		60		60	12/15/2023		2,935,348		1,455,375
Oregon Trail	Echo, OR	12/27/2013		1		1,895		1,640	12/31/2023		13,993,009		6,791,748
East Shelton	Willcox, AZ	12/27/2013		1		1,761		1,320	2/29/2024		7,760,059		3,250,336
Collins Road	Clatskanie, OR	5/30/2014		2		200		157	9/30/2024		2,532,950		—
Spring Valley	Watsonville, CA	6/13/2014		1		145		110	9/30/2016		5,882,738		2,862,237
McIntosh Road	Dover, FL	6/20/2014		2		94		78	6/30/2017		2,553,874		1,599,600
Naumann Road	Oxnard, CA	7/23/2014		1		68		64	7/31/2017		6,859,860		3,342,510
Sycamore Road	Arvin, CA	7/25/2014		1		326		322	10/31/2024		5,939,523		2,813,724
Wauchula Road	Duette, FL	9/29/2014		1		808		590	9/30/2024		13,772,371		8,155,762
Santa Clara Avenue	Oxnard, CA	10/29/2014		2		333		331	7/31/2015		24,497,797		12,128,121
Dufau Road	Oxnard, CA	11/4/2014		1		65		64	11/3/2017		6,099,925		3,675,000
				32		8,039		6,637		$	145,257,763	$	86,417,361

⁽¹⁾ Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets, excluding those allocated to above- and below-market lease values), plus subsequent improvements and other capitalized costs associated with the properties, and adjusted for depreciation and amortization accumulated through December 31, 2014.

Summary of Components of Investments in Real Estate

The following table sets forth the components of our investments in tangible real estate assets as of December 31, 2014 and 2013:

	2014			2013
Real estate:
Land and land improvements	$	122,999,316		$	63,944,307
Irrigation system		12,365,514			6,007,845
Buildings and improvements		11,447,308			7,487,051
Horticulture		1,559,340			1,038,850
Real estate, gross		148,371,478			78,478,053
Accumulated depreciation		(4,431,290	)		(3,166,870	)
Real estate, net	$	143,940,188		$	75,311,183

Weighted Average Amortization Period for Intangible Assets Acquired and Liabilities Assumed

The following table shows the weighted-average amortization period, in years, for the intangible assets acquired and liabilities assumed in connection with the new properties acquired during the years ended December 31, 2014 and 2013:

Intangible Assets and Liabilities	2014		2013
In-place leases		2.2		2.0
Leasing commissions		5.1		7.0
Tenant relationships		4.7		—
Above-market lease values		3.0		—
Below-market lease values		1.5		2.0
All intangible assets and liabilities		3.3		2.9

Pro-Forma Condensed Consolidated Statements of Operations as Properties Acquired

The table below reflects pro-forma financials for all farms acquired, regardless of whether they were treated as asset acquisitions or business combinations.

	For the Years Ended December 31,
	2014			2013
	(Unaudited)			(Unaudited)
Operating Data:
Total operating revenue	$	8,547,496		$	9,113,902
Total operating expenses		(6,287,653	)		(5,183,279	)
Other expenses		(2,902,815	)		(2,760,914	)
Net income before income taxes		(642,972	)		1,169,708
Provision for income taxes		(26,502	)		(1,519,730	)
Net income	$	(669,474	)	$	(350,022	)
Share and Per-share Data:
Earnings per share of common stock - basic and diluted	$	(0.09	)	$	(0.05	)
Weighted average common shares outstanding - basic and diluted		7,563,060			7,443,197

Carrying Value of Lease Intangibles and Accumulated Amortization for Each Intangible Asset or Liability Class

The following table summarizes the carrying value of lease intangibles and the accumulated amortization for each intangible asset or liability class as of December 31, 2014 and 2013:

	2014						2013
	Lease Intangibles			Accumulated Amortization			Lease Intangibles			Accumulated Amortization
In-place leases	$	869,207		$	(263,428	)	$	397,728		$	(241,697	)
Leasing costs		357,210			(80,617	)		146,558			(34,727	)
Tenant relationships		501,670			(66,467	)		93,187			(49,985	)
	$	1,728,087		$	(410,512	)	$	637,473		$	(326,409	)
	Deferred Rent Asset (Liability)			Accumulated (Amortization) Accretion			Deferred Rent Liability			Accumulated Accretion
Above-market lease values	$	65,203		$	(9,027	)	$	—		$	—
Below-market lease values		(371,707	)		162,194			(260,356	)		114,469
	$	(306,504	)	$	153,167		$	(260,356	)	$	114,469

Summary of Estimated Aggregate Amortization Expense and Estimated Net Impact on Rental Income

The estimated aggregate amortization expense to be recorded related to in-place leases, leasing costs and tenant relationships and the estimated net impact on rental income from the amortization of above- and below-market lease values for each of the five succeeding fiscal years and thereafter is as follows:

Period	Estimated Amortization Expense		Estimated Net Increase (Decrease) in Rental Revenue
For the fiscal years ending December 31:     2015	$	676,448	$	171,636
2016		289,465		(5,284	)
2017		161,781		(13,015	)
2018		41,254		—
2019		38,542		—
Thereafter		110,085		—
	$	1,317,575	$	153,337

Summarizes Lease Expirations by Year for Properties with Leases

The following table summarizes the lease expirations by year for our properties with leases in place as of December 31, 2014:

Year	Number of Expiring Leases		Expiring Leased Acreage		% of Total Acreage			Rental Revenue for the Year Ended December 31, 2014		% of Total Rental Revenue
2015(1)		4		405		5.0	%	$	386,642		5.4	%
2016		2		204		2.5	%		217,331		3.0	%
2017		7		351		4.4	%		424,737		5.9	%
2018		3		370		4.6	%		364,803		5.1	%
2019		0		0		0.0	%		—		0.0	%
Thereafter		12		6,709		83.5	%		5,776,805		80.6	%
Totals		28		8,039		100.0	%	$	7,170,318		100.0	%

⁽¹⁾  Includes a surface area lease on a portion of one property leased to an oil company that is renewed on a year-to-year basis.

Future Operating Lease Payments from Tenants under Non-Cancelable Leases

Future operating lease payments from tenants under all non-cancelable leases, excluding tenant reimbursement of expenses, for each of the five succeeding fiscal years and thereafter as of December 31, 2014, are as follows:

Period	Tenant Lease Payments
For the fiscal years ending December 31:     2015	$	7,735,500
2016		8,205,815
2017		7,494,621
2018		6,882,291
2019		6,919,095
Thereafter		19,581,336
	$	56,818,658

Summary of Geographic Locations of Properties

The following table summarizes the geographic locations of our properties with leases in place as of December 31, 2014 and 2013:

	As of and For the Year Ended December 31, 2014												As of and For the Year Ended December 31, 2013
State	Number of Farms		Total Acres		% of Total Acres			Rental Revenue		% of Total Rental Revenue			Number of Farms		Total Acres		% of Total Acres			Rental Revenue		% of Total Rental Revenue
California		14		2,391		29.7	%	$	4,778,579		66.6	%		8		1,454		24.2	%	$	3,362,020		83.5	%
Oregon		4		2,313		28.8	%		1,080,105		15.1	%		2		2,113		35.2	%		123,138		3.0	%
Florida		9		1,304		16.2	%		759,398		10.6	%		6		402		6.7	%		454,135		11.3	%
Arizona		1		1,761		21.9	%		299,785		4.2	%		1		1,761		29.4	%		3,715		0.1	%
Michigan		4		270		3.4	%		252,451		3.5	%		4		270		4.5	%		84,679		2.1	%
		32		8,039		100.0	%	$	7,170,318		100.0	%		21		6,000		100.0	%	$	4,027,687		100.0	%

Schedule of Purchase Agreements

As of December 31, 2014, we were entered into the following purchase agreements:

Date Entered Into	Gross Acres		State		Primary Crop(s)		Purchase Price
9/29/2014		63		CA		Strawberries	$	3,800,000	(1)
12/17/2015		331		CA		Strawberries		16,964,021	(2)
		394					$	20,764,021

⁽¹⁾  Agreement was terminated on January 20, 2015, and the related deposit of $100,000, which deposit is included in Other Assets on our Consolidated Balance Sheet as of December 31, 2014, was returned to us.

⁽²⁾  Acquisition was completed on January 5, 2015. See Note 10, “Subsequent Events,” for further discussion on the acquisition of this property.

2014 New Real Estate Activity [Member]

Summary Information of Thirty-Two Farms

During the year ended December 31, 2014, we acquired 11 new farms in 8 separate transactions, which are summarized in the table below.

Property Name	Property Location	Acquisition Date		Total Acreage		Number of Farms		Primary Crop(s)	Lease Term	Renewal Options	Total Purchase Price		Acquisition Costs			Annualized Straight- line Rent(1)		Debt Issued / Encumbrances
Collins Road	Clatskanie, OR		5/30/2014		200		2	Blueberries	10.3 years	3 (5 years each)	$	2,591,333	$	60,869	(4)	$	181,172	$	—
Spring Valley	Watsonville, CA		6/13/2014		145		1	Strawberries, Misc. Vegetables and Lilies	2.3 years	None		5,900,000		49,582	(4)		270,901		2,862,237	(6)
McIntosh Road	Dover, FL		6/20/2014		94		2	Strawberries	3.0 years	1 (3 years) /None(2)		2,666,000		60,939	(4)		133,154		1,599,600	(7)
Naumann Road	Oxnard, CA		7/23/2014		68		1	Strawberries and Raspberries	3.0 years	1 (3 years)		6,888,500		91,103	(4)		329,667		3,342,510	(6)
Sycamore Road	Arvin, CA		7/25/2014		326		1	Misc. Vegetables and Grain	1.3 years	None(3)		5,800,000		44,434	(4)		184,304		2,813,724	(6)
Wauchula Road	Duette, FL		9/29/2014		808		1	Strawberries, Misc. Vegetables, and Melons	10.0 years	2 (5 years each)		13,765,000		132,555	(5)		888,439		8,259,000	(7)
Santa Clara Avenue	Oxnard, CA		10/29/2014		333		2	Strawberries and Misc. Vegetables	0.8 years	1 (2 years)		24,592,000		100,603	(4)		1,231,422		12,128,121	(6)
Dufau Road	Oxnard, CA		11/4/2014		65		1	Strawberries and Misc. Vegetables	3.0 years	1 (3 years)		6,125,600		61,474	(4)		304,607		3,675,000	(7)
					2,039		11				$	68,328,433	$	601,559		$	3,523,666	$	34,680,192

⁽¹⁾ Annualized straight-line amount is based on the minimum rental payments required per the lease and includes the amortization of any above-market and below-market lease values recorded.

⁽²⁾ This property has a separate tenant leasing each of the property’s two farms. One lease provides for one 3-year renewal option, while the other does not include a renewal option.

⁽³⁾ Upon acquisition of this property, we assumed the in-place lease, which expires October 31, 2015. In addition, we executed a 9-year, follow-on lease with a new tenant that commences November 1, 2015. Under the terms of the follow-on lease, the tenant has one 3-year renewal option, and annualized, straight-line rents will be $311,760.

⁽⁴⁾ Acquisition accounted for as a business combination under ASC 805. As such, all acquisition-related costs were expensed as incurred, other than direct leasing costs, which were capitalized. In aggregate, we incurred $21,409 of direct leasing costs in connection with these acquisitions.

⁽⁵⁾ Acquisition accounted for as an asset acquisition under ASC 360. As such, all acquisition-related costs were capitalized and allocated among the identifiable assets acquired.

⁽⁶⁾ Acquisition funded through a draw on our New MetLife Credit Facility. Amount represents property’s proportionate share of the total borrowings outstanding under the New MetLife Credit Facility as of December 31, 2014, in relation to all properties pledged as collateral under the facility.

⁽⁷⁾ Represents new debt issued under various facilities; see Note 5, “Borrowings.”

Fair Value of Acquired Assets and Liabilities Assumed Related to Properties Acquired

We determined the fair value of acquired assets and liabilities assumed related to the properties acquired during the year ended December 31, 2014, to be as follows:

Property Name	Land and Land Improvements		Buildings and Improvements		Irrigation System		Horticulture(1)		In-place Leases		Leasing Costs(2)		Customer Relationships		Above- (Below)- Market Leases			Total Acquisition Cost
Collins Road	$	1,252,388	$	682,385	$	—	$	520,993	$	45,086	$	71,085	$	24,796	$	—		$	2,596,733
Spring Valley		5,576,138		5,781		200,855		—		83,487		17,998		66,217		(49,976	)		5,900,500
McIntosh Road		1,970,074		33,592		537,254		—		34,674		18,041		27,966		45,674			2,667,275
Naumann Road		6,219,293		433,087		71,586		—		75,520		41,012		54,786		—			6,895,284
Sycamore Road		5,840,750		—		67,000		—		48,670		7,364		—		(160,184	)		5,803,600
Wauchula Road		8,466,185		1,904,941		3,521,229		—		—		5,200		—		—			13,897,555
Santa Clara Avenue		23,672,902		163,140		187,314		—		310,119		30,353		229,372		—			24,593,200
Dufau Road		5,859,721		3,021		88,827		—		71,654		32,778		52,720		19,529			6,128,250
	$	58,857,451	$	3,225,947	$	4,674,065	$	520,993	$	669,210	$	223,831	$	455,857	$	(144,957	)	$	68,482,397

⁽¹⁾  Horticulture acquired on Collins Road consists of various types of blueberry bushes.

⁽²⁾  Leasing commissions represent the allocable portion of the purchase price, as well as direct costs that were incurred related to reviewing and assigning leases we assumed upon acquisition. Direct leasing costs incurred in connection with properties acquired during the year ended December 31, 2014, that were accounted for as business combinations under ASC 805 totaled $21,409.

Summary of Total Operating Revenues and Earnings Recognized on Properties Acquired

Below is a summary of the total operating revenues and earnings recognized on the properties acquired during the year December 31, 2014:

Property Name	Acquisition Date	Operating Revenues(1)		Earnings(2)
Collins Road	5/30/2014	$	106,658	$	33,303
Spring Valley	6/13/2014		148,996		81,073
McIntosh Road	6/20/2014		58,021		(22,902	)(3)
Naumann Road	7/23/2014		145,337		104,726
Sycamore Road	7/25/2014		80,328		39,574
Wauchula Road	9/29/2014		226,978		101,794
Santa Clara Avenue	10/29/2014		212,078		73,833
Dufau Road	11/4/2014		48,229		32,807
		$	1,026,625	$	444,208

⁽¹⁾  Includes the amortization of any above—and below—market lease values recorded.

⁽²⁾  Earnings are calculated as net income less interest expense (if debt was issued to acquire the property), income taxes and any acquisition—related costs that are required to be expensed if the acquisition is treated as a business combination under ASC 805.

⁽³⁾ Includes $43,328 of lease intangibles that were written off during the three months ended September 30, 2014, related to the termination of a lease in September 2014 that we had assumed upon acquisition. The property was immediately re—leased to a new tenant at similar rental rates.

2013 New Real Estate Activity [Member]

Fair Value of Acquired Assets and Liabilities Assumed Related to Properties Acquired

We determined the fair value of acquired assets and liabilities assumed related to the properties acquired during the year ended December 31, 2013, to be as follows:

Property Name	Land and Land Improvements		Buildings and Irrigation Improvements		System		Horticulture(1)		In-place Leasing		Leases Costs(2)		Below- Market Leases			Total Acquisition Cost
38th Avenue	$	646,522	$	42,660	$	239,768$		446,408	$	—	$	3,842	$	—		$	1,379,200
Sequoia Street		2,494,911		279,496		424,268		—		—		9,535		—			3,208,210
Natividad Road		7,186,774		19,199		144,915		—		110,753		29,941		(161,547	)		7,330,035
20th Avenue		805,677		281,160		441,415		488,604		—		2,623		—			2,019,479
Broadway Road		2,851,353		50,114		22,727		103,334		—		—		—			3,027,528
Oregon Trail		12,941,092		—		1,118,640		—		—		8,726		—			14,068,458
East Shelton		6,175,702		131,434		441,573		—		—		1,982		—			6,750,691
	$	33,102,031	$	804,063	$	2,833,306	$	1,038,346	$	110,753	$	56,649	$	(161,547	)	$	37,783,601

⁽¹⁾  Horticulture acquired on 38th Avenue and 20th Avenue consists of various types of high-bush variety blueberry bushes. Horticulture acquired on Broadway Road consits of an orchard of lemon trees.

⁽²⁾ Leasing commissions represent the allocable portion of the purchase price, as well as direct costs that were incurred related to reviewing and assigning leases we assumed upon acquisition. Direct leasing costs incurred in connection with properties acquired during the year ended December 31, 2014, that were accounted for as business combinations under ASC 805 totaled $21,408.

Summary of Total Operating Revenues and Earnings Recognized on Properties Acquired

Below is a summary of the total operating revenues and earnings recognized on the properties acquired during the year December 31, 2013:

Property Name	Acquisition Date	Revenues Operating(1)		Earnings(2)
38th Avenue	4/5/2013	$	64,494	$	35,996
Sequoia Street	5/31/2013		112,944		83,262
Natividad Road	10/21/2013		86,510		63,133
20th Avenue	11/5/2013		20,184		6,919
Broadway Road	12/16/2013		7,396		3,713
Oregon Trail	12/27/2013		10,195		10,154
East Shelton	12/27/2013		3,715		3,283
		$	305,438	$	206,460

⁽¹⁾ Includes the amortization of any below-market lease values recorded.

⁽²⁾ Earnings are calculated as net income less interest expense (if debt was issued to acquire the property), income taxes and any acquisition-related costs that are required to be expensed if the acquisition is treated as a business combination under ASC 805.

Summarized Information of Acquisition of Properties

During the year ended December 31, 2013, we acquired nine new farms in seven separate transactions, which are summarized in the table below.

Property Name	Property Location	Acquisition Date		Total Acreage		Number of Farms		Primary Crop(s)	Lease Term	Renewal Options	Total Purchase Price		Acquisition Costs			Annualized Straight- line Rent(1)
38th Avenue	Covert, MI		4/5/2013		119		1	Blueberries	7 years	1 (7 years)	$	1,341,000	$	38,200	(4)	$	87,286
Sequoia Street	Brooks, OR		5/31/2013		218		1	Blueberries	15 years	3 (5 years each)		3,100,000		108,211	(4)		193,617
Natividad Road	Salinas, CA		10/21/2013		166		1	Strawberries & Raspberries	2 years(3)	None(3)		7,325,120		47,850	(5)		439,575
20th Avenue	South Haven, MI		11/5/2013		151		3	Blueberries	5 years	1 (5 years)		1,985,000		34,479	(4)		129,755
Broadway Road	Moorpark, CA		12/16/2013		60		1	Lemons(2)	10 years	1 (10 years)		3,000,000		27,528	(4)		171,958
Oregon Trail	Echo, OR		12/27/2013		1,895		1	Corn, Onions & Potatoes	10 years	3 (5 years each)		13,855,000		213,458	(4)		758,480
East Shelton	Willcox, AZ		12/27/2013		1,761		1	Corn & Dry edible beans	10 years	None		6,700,000		50,691	(4)		290,284
					4,370		9				$	37,306,120	$	520,417		$	2,070,955

⁽¹⁾ Annualized straight-line amount is based on the minimum rental payments required per the lease and includes the amortization of any above-market and below-market lease values recorded.

⁽²⁾ Beginning in 2015, this property will be farmed for blueberries and avocados.

⁽³⁾ Upon acquisition of the property, we assumed a lease with two years remaining on it. T his lease originally provided for one, three-year extension option; however, the right to this option was waived by the tenant. In connection with assuming this lease, we recorded a below-market lease liability of $161,547. In addition, the Company executed a nine-year, follow-on lease with a separate tenant to commence at the expiration of the assumed lease. T he follow-on lease includes one, five-year renewal option and provides for prescribed rent escalations over the term of the lease, with annualized, straight-line rents of $413,476.

⁽⁴⁾ Acquisition accounted for as an asset acquisition under ASC 360. As such, all acquisition-related costs were capitalized and allocated among the identifiable assets acquired.

⁽⁵⁾ Acquisition accounted for as a business combination under ASC 805. As such, all acquisition-related costs were expensed as incurred, other than direct leasing costs, which were capitalized. We incurred $4,915 of direct leasing costs in connection with this acquisition.

XML

Quarterly Financial Information (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Summary of Quarterly Results of Operations

The following table reflects the quarterly results of operations for the years ended December 31, 2014 and 2013:

Fiscal Year 2014:	Quarter Ended
	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Operating revenues	$	1,495,636		$	1,565,935		$	1,777,675		$	2,345,676
Operating expenses		(1,100,452	)		(1,208,458	)		(1,476,092	)		(1,799,948	)
Other expenses		(367,643	)		(651,948	)		(194,351	)		(484,661	)
Net income before income taxes		27,541			(294,471	)		107,232			61,067
Provision for income taxes		(6,623	)		(6,623	)		(6,857	)		(6,399	)
Net income (loss)	$	20,918		$	(301,094	)	$	100,375		$	54,668
Earnings (loss) per weighted average common shares—basic and diluted	$	0.00		$	(0.05	)	$	0.02		$	0.01
Weighted average common shares outstanding—basic and diluted		6,530,264			6,530,264			6,605,264			7,735,354

Fiscal Year 2013:	Quarter Ended
	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013
Operating revenues	$	914,583		$	949,756		$	996,096		$	1,177,703
Operating expenses		(538,105	)		(611,333	)		(647,480	)		(883,767	)
Other expenses		(269,773	)		(261,229	)		(258,450	)		(272,954	)
Net income before income taxes		106,705			77,194			90,166			20,982
Provision for income taxes		(59,189	)		(46,838	)		(85,406	)		(1,328,297	)
Net income	$	47,516		$	30,356		$	4,760		$	(1,307,315	)
Earnings per weighted average common shares—basic and diluted	$	0.01		$	0.00		$	0.00		$	(0.21	)
Weighted average common shares outstanding—basic and diluted		5,249,898			6,530,264			6,530,264			6,530,264

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Real Estate and Lease Intangibles - Schedule of Purchase Agreements (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014 acre
Real Estate Properties [Line Items]
Purchase and sale agreements, Gross acres	394
Purchase and sale agreements, Purchase Price	$ 20,764,021
California [Member] | Strawberries [Member] | 2014 Agreement [Member]
Real Estate Properties [Line Items]
Purchase and sale agreements, Start date	Sep. 29, 2014
Purchase and sale agreements, Gross acres	63
Purchase and sale agreements, Purchase Price	3,800,000
California [Member] | Strawberries [Member] | 2015 Agreement [Member]
Real Estate Properties [Line Items]
Purchase and sale agreements, Start date	Dec. 17, 2015
Purchase and sale agreements, Gross acres	331
Purchase and sale agreements, Purchase Price	$ 16,964,021

XML

Real Estate and Lease Intangibles - Summary of Total Revenue and Earnings Recognized on Properties Acquired (Parenthetical) (Detail) (USD $)	12 Months Ended			3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2014
Real Estate Properties [Line Items]
Amortization expense on intangibles assets due to lease termination in connection with farm acquisition	$ 350,684	$ 90,669	$ 62,213
2014 New Real Estate Activity [Member]
Real Estate Properties [Line Items]
Amortization expense on intangibles assets due to lease termination in connection with farm acquisition	$ 43,328			$ 43,328

XML

Consolidated Statements of Stockholder's Equity (USD $)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings (Distributions in Excess of Earnings) [Member]
Beginning Balance at Dec. 31, 2011	$ 7,536,353	$ 2,750		$ 7,533,603
Beginning Balance, Shares at Dec. 31, 2011		2,750,000
Net (loss) income	600,373			600,373
Beginning Balance at Dec. 31, 2012	8,136,726	2,750		8,133,976
Beginning Balance, Shares at Dec. 31, 2012		2,750,000
Net (loss) income	(1,224,683)			(1,224,683)
Proceeds from issuance of common stock, net	51,330,042	3,780	51,326,262
Proceeds from issuance of common stock, net, Shares		3,780,264
Distributions	(9,730,093)			(9,730,093)
Beginning Balance at Dec. 31, 2013	48,511,992	6,530	51,326,262	(2,820,800)
Beginning Balance, Shares at Dec. 31, 2013		6,530,264
Net (loss) income	(125,133)			(125,133)
Proceeds from issuance of common stock, net	14,041,271	1,224	14,040,047
Proceeds from issuance of common stock, net, Shares		1,223,453
Distributions	(2,458,802)			(2,458,802)
Beginning Balance at Dec. 31, 2014	$ 59,969,328	$ 7,754	$ 65,366,309	$ (5,404,735)
Beginning Balance, Shares at Dec. 31, 2014		7,753,717

XML

Real Estate and Lease Intangibles

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Real Estate and Lease Intangibles

NOTE 3. REAL ESTATE AND LEASE INTANGIBLES

All of our properties are wholly-owned on a fee-simple basis. The following table provides certain summary information about our 32 farms as of December 31, 2014:

Property Name	Location	Date Acquired	Number of Farms		Total Acres		Farm Acres		Lease Expiration Date	Net Cost Basis(1)		Encumbrances
San Andreas	Watsonville, CA	6/16/1997		1		307		238	12/31/2020	$	4,826,248	$	4,220,586
West Gonzales	Oxnard, CA	9/15/1998		1		653		502	6/30/2020		12,406,298		21,473,134
West Beach	Watsonville, CA	1/3/2011		3		196		195	12/31/2023		8,979,337		4,111,433
Dalton Lane	Watsonville, CA	7/7/2011		1		72		70	11/1/2015		2,700,026		1,362,231
Keysville Road	Plant City, FL	10/26/2011		2		59		50	7/1/2016		1,232,260		—
Colding Loop	Wimauma, FL	8/9/2012		1		219		181	6/14/2018		3,925,704		—
Trapnell Road	Plant City, FL	9/12/2012		3		124		110	6/30/2017		4,106,218		2,655,000
38th Avenue	Covert, MI	4/5/2013		1		119		89	4/4/2020		1,449,670		650,552
Sequoia Street	Brooks, OR	5/31/2013		1		218		206	5/31/2028		3,521,564		1,503,888
Natividad Road	Salinas, CA	10/21/2013		1		166		166	10/31/2024		7,398,003		3,395,874
20th Avenue	South Haven, MI	11/5/2013		3		151		94	11/4/2018		1,884,981		970,250
Broadway Road	Moorpark, CA	12/16/2013		1		60		60	12/15/2023		2,935,348		1,455,375
Oregon Trail	Echo, OR	12/27/2013		1		1,895		1,640	12/31/2023		13,993,009		6,791,748
East Shelton	Willcox, AZ	12/27/2013		1		1,761		1,320	2/29/2024		7,760,059		3,250,336
Collins Road	Clatskanie, OR	5/30/2014		2		200		157	9/30/2024		2,532,950		—
Spring Valley	Watsonville, CA	6/13/2014		1		145		110	9/30/2016		5,882,738		2,862,237
McIntosh Road	Dover, FL	6/20/2014		2		94		78	6/30/2017		2,553,874		1,599,600
Naumann Road	Oxnard, CA	7/23/2014		1		68		64	7/31/2017		6,859,860		3,342,510
Sycamore Road	Arvin, CA	7/25/2014		1		326		322	10/31/2024		5,939,523		2,813,724
Wauchula Road	Duette, FL	9/29/2014		1		808		590	9/30/2024		13,772,371		8,155,762
Santa Clara Avenue	Oxnard, CA	10/29/2014		2		333		331	7/31/2015		24,497,797		12,128,121
Dufau Road	Oxnard, CA	11/4/2014		1		65		64	11/3/2017		6,099,925		3,675,000
				32		8,039		6,637		$	145,257,763	$	86,417,361

⁽¹⁾ Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets, excluding those allocated to above- and below-market lease values), plus subsequent improvements and other capitalized costs associated with the properties, and adjusted for depreciation and amortization accumulated through December 31, 2014.

Real Estate

The following table sets forth the components of our investments in tangible real estate assets as of December 31, 2014 and 2013:

	2014			2013
Real estate:
Land and land improvements	$	122,999,316		$	63,944,307
Irrigation system		12,365,514			6,007,845
Buildings and improvements		11,447,308			7,487,051
Horticulture		1,559,340			1,038,850
Real estate, gross		148,371,478			78,478,053
Accumulated depreciation		(4,431,290	)		(3,166,870	)
Real estate, net	$	143,940,188		$	75,311,183

New Real Estate Activity

2014 New Real Estate Activity

During the year ended December 31, 2014, we acquired 11 new farms in 8 separate transactions, which are summarized in the table below.

Property Name	Property Location	Acquisition Date		Total Acreage		Number of Farms		Primary Crop(s)	Lease Term	Renewal Options	Total Purchase Price		Acquisition Costs			Annualized Straight- line Rent(1)		Debt Issued / Encumbrances
Collins Road	Clatskanie, OR		5/30/2014		200		2	Blueberries	10.3 years	3 (5 years each)	$	2,591,333	$	60,869	(4)	$	181,172	$	—
Spring Valley	Watsonville, CA		6/13/2014		145		1	Strawberries, Misc. Vegetables and Lilies	2.3 years	None		5,900,000		49,582	(4)		270,901		2,862,237	(6)
McIntosh Road	Dover, FL		6/20/2014		94		2	Strawberries	3.0 years	1 (3 years) /None(2)		2,666,000		60,939	(4)		133,154		1,599,600	(7)
Naumann Road	Oxnard, CA		7/23/2014		68		1	Strawberries and Raspberries	3.0 years	1 (3 years)		6,888,500		91,103	(4)		329,667		3,342,510	(6)
Sycamore Road	Arvin, CA		7/25/2014		326		1	Misc. Vegetables and Grain	1.3 years	None(3)		5,800,000		44,434	(4)		184,304		2,813,724	(6)
Wauchula Road	Duette, FL		9/29/2014		808		1	Strawberries, Misc. Vegetables, and Melons	10.0 years	2 (5 years each)		13,765,000		132,555	(5)		888,439		8,259,000	(7)
Santa Clara Avenue	Oxnard, CA		10/29/2014		333		2	Strawberries and Misc. Vegetables	0.8 years	1 (2 years)		24,592,000		100,603	(4)		1,231,422		12,128,121	(6)
Dufau Road	Oxnard, CA		11/4/2014		65		1	Strawberries and Misc. Vegetables	3.0 years	1 (3 years)		6,125,600		61,474	(4)		304,607		3,675,000	(7)
					2,039		11				$	68,328,433	$	601,559		$	3,523,666	$	34,680,192

⁽¹⁾ Annualized straight-line amount is based on the minimum rental payments required per the lease and includes the amortization of any above-market and below-market lease values recorded.

⁽²⁾ This property has a separate tenant leasing each of the property’s two farms. One lease provides for one 3-year renewal option, while the other does not include a renewal option.

⁽³⁾ Upon acquisition of this property, we assumed the in-place lease, which expires October 31, 2015. In addition, we executed a 9-year, follow-on lease with a new tenant that commences November 1, 2015. Under the terms of the follow-on lease, the tenant has one 3-year renewal option, and annualized, straight-line rents will be $311,760.

⁽⁴⁾ Acquisition accounted for as a business combination under ASC 805. As such, all acquisition-related costs were expensed as incurred, other than direct leasing costs, which were capitalized. In aggregate, we incurred $21,409 of direct leasing costs in connection with these acquisitions.

⁽⁵⁾ Acquisition accounted for as an asset acquisition under ASC 360. As such, all acquisition-related costs were capitalized and allocated among the identifiable assets acquired.

⁽⁶⁾ Acquisition funded through a draw on our New MetLife Credit Facility. Amount represents property’s proportionate share of the total borrowings outstanding under the New MetLife Credit Facility as of December 31, 2014, in relation to all properties pledged as collateral under the facility.

⁽⁷⁾ Represents new debt issued under various facilities; see Note 5, “Borrowings.”

As noted in the table above, certain acquisitions during the year ended December 31, 2014, were accounted for as business combinations in accordance with ASC 805, as there was a leasing history on the property or a lease in place that we assumed upon acquisition. As such, the fair value of all assets acquired and liabilities assumed were determined in accordance with ASC 805, and all acquisition-related costs were expensed as incurred, other than those costs that directly related to reviewing or assigning leases we assumed upon acquisition, which were capitalized as part of leasing costs. For acquisitions accounted for as asset acquisitions under ASC 360, the acquisition-related costs were capitalized and included as part of the fair value allocation of the identifiable tangible assets acquired. Further, for those transactions treated as asset acquisitions, none of the purchase price was allocated to intangible assets or liabilities; however, direct costs we incurred in connection with originating the new leases on the properties were capitalized.

We determined the fair value of acquired assets and liabilities assumed related to the properties acquired during the year ended December 31, 2014, to be as follows:

Property Name	Land and Land Improvements		Buildings and Improvements		Irrigation System		Horticulture(1)		In-place Leases		Leasing Costs(2)		Customer Relationships		Above- (Below)- Market Leases			Total Acquisition Cost
Collins Road	$	1,252,388	$	682,385	$	—	$	520,993	$	45,086	$	71,085	$	24,796	$	—		$	2,596,733
Spring Valley		5,576,138		5,781		200,855		—		83,487		17,998		66,217		(49,976	)		5,900,500
McIntosh Road		1,970,074		33,592		537,254		—		34,674		18,041		27,966		45,674			2,667,275
Naumann Road		6,219,293		433,087		71,586		—		75,520		41,012		54,786		—			6,895,284
Sycamore Road		5,840,750		—		67,000		—		48,670		7,364		—		(160,184	)		5,803,600
Wauchula Road		8,466,185		1,904,941		3,521,229		—		—		5,200		—		—			13,897,555
Santa Clara Avenue		23,672,902		163,140		187,314		—		310,119		30,353		229,372		—			24,593,200
Dufau Road		5,859,721		3,021		88,827		—		71,654		32,778		52,720		19,529			6,128,250
	$	58,857,451	$	3,225,947	$	4,674,065	$	520,993	$	669,210	$	223,831	$	455,857	$	(144,957	)	$	68,482,397

⁽¹⁾  Horticulture acquired on Collins Road consists of various types of blueberry bushes.

⁽²⁾  Leasing commissions represent the allocable portion of the purchase price, as well as direct costs that were incurred related to reviewing and assigning leases we assumed upon acquisition. Direct leasing costs incurred in connection with properties acquired during the year ended December 31, 2014, that were accounted for as business combinations under ASC 805 totaled $21,409.

Below is a summary of the total operating revenues and earnings recognized on the properties acquired during the year December 31, 2014:

Property Name	Acquisition Date	Operating Revenues(1)		Earnings(2)
Collins Road	5/30/2014	$	106,658	$	33,303
Spring Valley	6/13/2014		148,996		81,073
McIntosh Road	6/20/2014		58,021		(22,902	)(3)
Naumann Road	7/23/2014		145,337		104,726
Sycamore Road	7/25/2014		80,328		39,574
Wauchula Road	9/29/2014		226,978		101,794
Santa Clara Avenue	10/29/2014		212,078		73,833
Dufau Road	11/4/2014		48,229		32,807
		$	1,026,625	$	444,208

⁽¹⁾  Includes the amortization of any above—and below—market lease values recorded.

⁽²⁾  Earnings are calculated as net income less interest expense (if debt was issued to acquire the property), income taxes and any acquisition—related costs that are required to be expensed if the acquisition is treated as a business combination under ASC 805.

⁽³⁾ Includes $43,328 of lease intangibles that were written off during the three months ended September 30, 2014, related to the termination of a lease in September 2014 that we had assumed upon acquisition. The property was immediately re—leased to a new tenant at similar rental rates.

2013 New Real Estate Activity

During the year ended December 31, 2013, we acquired nine new farms in seven separate transactions, which are summarized in the table below.

Property Name	Property Location	Acquisition Date		Total Acreage		Number of Farms		Primary Crop(s)	Lease Term	Renewal Options	Total Purchase Price		Acquisition Costs			Annualized Straight- line Rent(1)
38th Avenue	Covert, MI		4/5/2013		119		1	Blueberries	7 years	1 (7 years)	$	1,341,000	$	38,200	(4)	$	87,286
Sequoia Street	Brooks, OR		5/31/2013		218		1	Blueberries	15 years	3 (5 years each)		3,100,000		108,211	(4)		193,617
Natividad Road	Salinas, CA		10/21/2013		166		1	Strawberries & Raspberries	2 years(3)	None(3)		7,325,120		47,850	(5)		439,575
20th Avenue	South Haven, MI		11/5/2013		151		3	Blueberries	5 years	1 (5 years)		1,985,000		34,479	(4)		129,755
Broadway Road	Moorpark, CA		12/16/2013		60		1	Lemons(2)	10 years	1 (10 years)		3,000,000		27,528	(4)		171,958
Oregon Trail	Echo, OR		12/27/2013		1,895		1	Corn, Onions & Potatoes	10 years	3 (5 years each)		13,855,000		213,458	(4)		758,480
East Shelton	Willcox, AZ		12/27/2013		1,761		1	Corn & Dry edible beans	10 years	None		6,700,000		50,691	(4)		290,284
					4,370		9				$	37,306,120	$	520,417		$	2,070,955

⁽¹⁾ Annualized straight-line amount is based on the minimum rental payments required per the lease and includes the amortization of any above-market and below-market lease values recorded.

⁽²⁾ Beginning in 2015, this property will be farmed for blueberries and avocados.

⁽³⁾ Upon acquisition of the property, we assumed a lease with two years remaining on it. T his lease originally provided for one, three-year extension option; however, the right to this option was waived by the tenant. In connection with assuming this lease, we recorded a below-market lease liability of $161,547. In addition, the Company executed a nine-year, follow-on lease with a separate tenant to commence at the expiration of the assumed lease. T he follow-on lease includes one, five-year renewal option and provides for prescribed rent escalations over the term of the lease, with annualized, straight-line rents of $413,476.

⁽⁴⁾ Acquisition accounted for as an asset acquisition under ASC 360. As such, all acquisition-related costs were capitalized and allocated among the identifiable assets acquired.

⁽⁵⁾ Acquisition accounted for as a business combination under ASC 805. As such, all acquisition-related costs were expensed as incurred, other than direct leasing costs, which were capitalized. We incurred $4,915 of direct leasing costs in connection with this acquisition.

All of the acquisitions in the table above were purchased using proceeds from the January 2013 IPO (as defined in Note 6, “Stockholders’ Equity—2013 Initial Public Offering”); thus, no additional debt was issued to finance either transaction.

As noted in the table above, certain acquisitions during the year ended December 31, 2013, were accounted for as business combinations in accordance with ASC 805, as there was a leasing history on the property or a lease in place that we assumed upon acquisition. As such, the fair value of all assets acquired and liabilities assumed were determined in accordance with ASC 805, and all acquisition-related costs were expensed as incurred, other than those costs that directly related to reviewing or assigning leases we assumed upon acquisition, which were capitalized as part of leasing costs. For acquisitions accounted for as asset acquisitions under ASC 360, the acquisition-related costs were capitalized and included as part of the fair value allocation of the identifiable tangible assets acquired. Further, for those transactions treated as asset acquisitions, none of the purchase price was allocated to intangible assets; however, direct costs we incurred in connection with originating the new leases on the properties were capitalized.

We determined the fair value of acquired assets and liabilities assumed related to the properties acquired during the year ended December 31, 2013, to be as follows:

Property Name	Land and Land Improvements		Buildings and Irrigation Improvements		System		Horticulture(1)		In-place Leasing		Leases Costs(2)		Below- Market Leases			Total Acquisition Cost
38th Avenue	$	646,522	$	42,660	$	239,768$		446,408	$	—	$	3,842	$	—		$	1,379,200
Sequoia Street		2,494,911		279,496		424,268		—		—		9,535		—			3,208,210
Natividad Road		7,186,774		19,199		144,915		—		110,753		29,941		(161,547	)		7,330,035
20th Avenue		805,677		281,160		441,415		488,604		—		2,623		—			2,019,479
Broadway Road		2,851,353		50,114		22,727		103,334		—		—		—			3,027,528
Oregon Trail		12,941,092		—		1,118,640		—		—		8,726		—			14,068,458
East Shelton		6,175,702		131,434		441,573		—		—		1,982		—			6,750,691
	$	33,102,031	$	804,063	$	2,833,306	$	1,038,346	$	110,753	$	56,649	$	(161,547	)	$	37,783,601

⁽¹⁾  Horticulture acquired on 38th Avenue and 20th Avenue consists of various types of high-bush variety blueberry bushes. Horticulture acquired on Broadway Road consits of an orchard of lemon trees.

⁽²⁾ Leasing commissions represent the allocable portion of the purchase price, as well as direct costs that were incurred related to reviewing and assigning leases we assumed upon acquisition. Direct leasing costs incurred in connection with properties acquired during the year ended December 31, 2014, that were accounted for as business combinations under ASC 805 totaled $21,408.

Below is a summary of the total operating revenues and earnings recognized on the properties acquired during the year December 31, 2013:

Property Name	Acquisition Date	Revenues Operating(1)		Earnings(2)
38th Avenue	4/5/2013	$	64,494	$	35,996
Sequoia Street	5/31/2013		112,944		83,262
Natividad Road	10/21/2013		86,510		63,133
20th Avenue	11/5/2013		20,184		6,919
Broadway Road	12/16/2013		7,396		3,713
Oregon Trail	12/27/2013		10,195		10,154
East Shelton	12/27/2013		3,715		3,283
		$	305,438	$	206,460

⁽¹⁾ Includes the amortization of any below-market lease values recorded.

⁽²⁾ Earnings are calculated as net income less interest expense (if debt was issued to acquire the property), income taxes and any acquisition-related costs that are required to be expensed if the acquisition is treated as a business combination under ASC 805.

Acquired Intangibles and Liabilities

For acquisitions treated as business combinations, the purchase price was allocated to the identifiable intangible assets and liabilities in accordance with ASC 805. No purchase price was allocated to any intangible assets or liabilities related to acquisitions treated as asset acquisitions under ASC 360; however, the direct costs we incurred in connection with originating new leases or reviewing existing leases were capitalized over the lives of the respective leases. The following table shows the weighted-average amortization period, in years, for the intangible assets acquired and liabilities assumed in connection with the new properties acquired during the years ended December 31, 2014 and 2013:

Intangible Assets and Liabilities	2014		2013
In-place leases		2.2		2.0
Leasing commissions		5.1		7.0
Tenant relationships		4.7		—
Above-market lease values		3.0		—
Below-market lease values		1.5		2.0
All intangible assets and liabilities		3.3		2.9

Pro-Forma Information

We acquired 11 farms during the year ended December 31, 2014, and 9 farms during the year ended December 31, 2013. The following table reflects pro-forma consolidated financial information as if the properties were acquired at the beginning of the previous period. The table below reflects pro-forma financials for all farms acquired, regardless of whether they were treated as asset acquisitions or business combinations.

	For the Years Ended December 31,
	2014			2013
	(Unaudited)			(Unaudited)
Operating Data:
Total operating revenue	$	8,547,496		$	9,113,902
Total operating expenses		(6,287,653	)		(5,183,279	)
Other expenses		(2,902,815	)		(2,760,914	)
Net income before income taxes		(642,972	)		1,169,708
Provision for income taxes		(26,502	)		(1,519,730	)
Net income	$	(669,474	)	$	(350,022	)
Share and Per-share Data:
Earnings per share of common stock - basic and diluted	$	(0.09	)	$	(0.05	)
Weighted average common shares outstanding - basic and diluted		7,563,060			7,443,197

The pro-forma consolidated results are prepared for informational purposes only. They are not necessarily indicative of what our consolidated financial condition or results of operations actually would have been assuming the acquisitions had occurred at the beginning of the respective previous periods, nor do they purport to represent our consolidated financial position or results of operations for future periods.

Significant Existing Real Estate Activity

On January 20, 2014, we completed the work for the expansion and upgrade of the cooling facility on Trapnell Road, for which we agreed to incur the costs, up to a maximum of $450,000. We expended a total of $446,108 in connection with this project, and, in accordance with the lease amendment executed on October 21, 2013, we will earn additional rental income on the costs incurred related to this project at an initial annual rate of 8.5% of the total cost, with prescribed rental escalations provided for in the lease.

On March 27, 2014, we executed a lease with a new tenant to occupy West Beach that commenced on November 1, 2014, as the lease term with the current tenants on the property expired on October 31, 2014. The new lease term is for 9 years, through December 31, 2023, and provides for prescribed rent escalations over its life, with minimum annualized straight-line rental income of $540,469, representing a 20.7% increase over that of the current lease.

On June 17, 2014, we extended the lease with the tenant occupying San Andreas, which was originally set to expire in December 2014. The lease was extended for an additional 6 years, through December 2020, and provides for rent escalations over its life, with minimum annualized, straight-line rental income of $566,592, representing a 31.3% increase over that of the previous lease.

In July 2014, we completed an irrigation upgrade project on 1,761 acres of farmland near Willcox, Arizona, for which we rehabilitated several of the 13 existing wells on the property, in addition to adding two new wells. The total cost of this project was approximately $1.2 million, of which $336,000 was expected at acquisition and accounted for in the rental stream included in the original lease. To account for the additional costs incurred, on October 22, 2014, we executed a lease amendment with the current tenant on the property to provide for an additional $37,791 of annualized, straight-line rent.

Involuntary Conversions and Property and Casualty Recovery

In April 2014, two separate fires occurred on two of our properties, partially damaging a structure on each property. One occurred on 20^th Avenue, on which the majority of a residential house was destroyed by a fire. We determined the carrying value of the portion of the residential house damaged by the fire to be $94,243. The second fire occurred on West Gonzales and damaged a portion of the cooling facility on the property. We determined the carrying value of the portion of the cooling facility damaged by the fire to be approximately $138,494. Thus, we wrote down the carrying value of these properties on the accompanying Consolidated Balance Sheets by these respective amounts, and, in accordance with ASC 605, we also recorded a corresponding property and casualty loss, which is included in Property and casualty recovery, net on the accompanying Consolidated Statements of Operations.

Both of the assets were insured, either by us or the tenant, at the time of the fires. As a result of the fire on 20^th Avenue, insurance proceeds of $61,500 were recovered during the year ended December 31, 2014. Thus, in accordance with ASC 450, during the year ended December 31, 2014, we recorded this recovery as an offset to the property and casualty loss we recorded earlier in the year, and such recovery is included as part of Property and casualty recovery, net on the accompanying Consolidated Statements of Operations. In connection with the fire on West Gonzales, insurance proceeds of $434,200 were recovered during the year ended December 31, 2014; thus, we recorded this amount as an offset to the property and casualty loss we recorded earlier in the year, and such recovery is included as part of Property and casualty recovery, net on the accompanying Consolidated Statements of Operations. We expect to recover at least an additional $35,648 for these repairs, and we have received confirmation from the insurer regarding payment of at least this amount. Thus, we have recorded this expected recovery as a receivable and a corresponding liability, included in Other assets and Other liabilities, respectively, on the accompanying Consolidated Balance Sheets. We will recognize this amount and any other insurance recoveries as a gain upon receipt. We continue to assess the total amount expected to be recovered for each of these events, as well as the collectability of such amounts; thus, no further offsets to the property and casualty loss we recorded earlier in the year have been recorded at this time.

Repairs are still ongoing on West Gonzales, and, during the year ended December 31, 2014, we expended $496,784 in repairs and upgrades to the cooler as a result of the fire. Of this amount, $407,096 was capitalized as a real estate addition, and $89,688 was recorded as repairs and maintenance expense, included in Property operating expense on the accompanying Consolidated Statements of Operations. Repairs on 20^th Avenue are expected to begin in 2015.

Intangible Assets and Liabilities

The following table summarizes the carrying value of lease intangibles and the accumulated amortization for each intangible asset or liability class as of December 31, 2014 and 2013:

	2014						2013
	Lease Intangibles			Accumulated Amortization			Lease Intangibles			Accumulated Amortization
In-place leases	$	869,207		$	(263,428	)	$	397,728		$	(241,697	)
Leasing costs		357,210			(80,617	)		146,558			(34,727	)
Tenant relationships		501,670			(66,467	)		93,187			(49,985	)
	$	1,728,087		$	(410,512	)	$	637,473		$	(326,409	)
	Deferred Rent Asset (Liability)			Accumulated (Amortization) Accretion			Deferred Rent Liability			Accumulated Accretion
Above-market lease values	$	65,203		$	(9,027	)	$	—		$	—
Below-market lease values		(371,707	)		162,194			(260,356	)		114,469
	$	(306,504	)	$	153,167		$	(260,356	)	$	114,469

The estimated aggregate amortization expense to be recorded related to in-place leases, leasing costs and tenant relationships and the estimated net impact on rental income from the amortization of above- and below-market lease values for each of the five succeeding fiscal years and thereafter is as follows:

Period	Estimated Amortization Expense		Estimated Net Increase (Decrease) in Rental Revenue
For the fiscal years ending December 31:     2015	$	676,448	$	171,636
2016		289,465		(5,284	)
2017		161,781		(13,015	)
2018		41,254		—
2019		38,542		—
Thereafter		110,085		—
	$	1,317,575	$	153,337

Lease Expirations

The following table summarizes the lease expirations by year for our properties with leases in place as of December 31, 2014:

Year	Number of Expiring Leases		Expiring Leased Acreage		% of Total Acreage			Rental Revenue for the Year Ended December 31, 2014		% of Total Rental Revenue
2015(1)		4		405		5.0	%	$	386,642		5.4	%
2016		2		204		2.5	%		217,331		3.0	%
2017		7		351		4.4	%		424,737		5.9	%
2018		3		370		4.6	%		364,803		5.1	%
2019		0		0		0.0	%		—		0.0	%
Thereafter		12		6,709		83.5	%		5,776,805		80.6	%
Totals		28		8,039		100.0	%	$	7,170,318		100.0	%

⁽¹⁾  Includes a surface area lease on a portion of one property leased to an oil company that is renewed on a year-to-year basis.

Future Lease Payments

Future operating lease payments from tenants under all non-cancelable leases, excluding tenant reimbursement of expenses, for each of the five succeeding fiscal years and thereafter as of December 31, 2014, are as follows:

Period	Tenant Lease Payments
For the fiscal years ending December 31:     2015	$	7,735,500
2016		8,205,815
2017		7,494,621
2018		6,882,291
2019		6,919,095
Thereafter		19,581,336
	$	56,818,658

In accordance with the lease terms, substantially all operating expenses are required to be paid by the tenant; however, we would be required to pay real estate property taxes on the respective parcels of land in the event the tenants fail to pay them. The aggregate annual real estate property taxes for all parcels of land owned by us as of December 31, 2014, are approximately $997,000. As of December 31, 2014, due to the terms of certain of our leases, we are responsible for approximately $457,000 of this annual amount.

Portfolio Diversification and Concentrations

Diversification

The following table summarizes the geographic locations of our properties with leases in place as of December 31, 2014 and 2013:

	As of and For the Year Ended December 31, 2014												As of and For the Year Ended December 31, 2013
State	Number of Farms		Total Acres		% of Total Acres			Rental Revenue		% of Total Rental Revenue			Number of Farms		Total Acres		% of Total Acres			Rental Revenue		% of Total Rental Revenue
California		14		2,391		29.7	%	$	4,778,579		66.6	%		8		1,454		24.2	%	$	3,362,020		83.5	%
Oregon		4		2,313		28.8	%		1,080,105		15.1	%		2		2,113		35.2	%		123,138		3.0	%
Florida		9		1,304		16.2	%		759,398		10.6	%		6		402		6.7	%		454,135		11.3	%
Arizona		1		1,761		21.9	%		299,785		4.2	%		1		1,761		29.4	%		3,715		0.1	%
Michigan		4		270		3.4	%		252,451		3.5	%		4		270		4.5	%		84,679		2.1	%
		32		8,039		100.0	%	$	7,170,318		100.0	%		21		6,000		100.0	%	$	4,027,687		100.0	%

Concentrations

Credit Risk

All of our farms are leased to unrelated, third-party tenants. Two of our farms are leased to the same tenant, Dole Food Company (“Dole”). As of December 31, 2014, 960 acres were leased to Dole, representing 11.9% of the total acreage we owned. Furthermore, aggregate rental income attributable to Dole accounted for approximately $2.9 million, or 40.4%, of the rental revenue recorded during the year ended December 31, 2014. Rental income from Dole accounted for 66.2% of the total rental revenue recorded during the year ended December 31, 2013. In addition, a separate tenant accounted for approximately 10.6% of the total rental revenue recorded during the year ended December 31, 2014. If either of these tenants fails to make rental payments or elects to terminate either of their leases, and the land cannot be re-leased on satisfactory terms, there would be a material adverse effect on our financial performance and ability to continue operations. No other individual tenant represented greater than 10.0% of the total rental revenue recorded during the years ended December 31, 2014 or 2013.

Geographic Risk

14 of our 32 farms owned as of December 31, 2014, are located in California. As of December 31, 2014, our farmland in California accounted for 2,391 acres, or 29.7% of the total acreage we owned. Furthermore, these farms accounted for approximately $4.8 million, or 66.6%, of the rental revenue recorded during the year ended December 31, 2014. Rental revenue from our farms in California accounted for 83.5% of the total rental income recorded by us during the year ended December 31, 2013. However, our farms are spread across 3 of the many different growing regions within California. In addition, our farms in Oregon accounted for approximately 15.1% of the rental revenue recorded during the year ended December 31, 2014, and our farms in Florida accounted for approximately 10.6% and 11.3% of the rental revenue recorded during the years ended December 31, 2014 and 2013, respectively. Though we seek to continue to further diversify geographically, as may be desirable or feasible, should an unexpected natural disaster occur where our properties are located, there could be a material adverse effect on our financial performance and ability to continue operations. No other single state accounted for more than 10.0% of the total rental revenue recorded during the years ended December 31, 2014 or 2013.

Active Purchase and Sale Agreements

As of December 31, 2014, we were entered into the following purchase agreements:

Date Entered Into	Gross Acres		State		Primary Crop(s)		Purchase Price
9/29/2014		63		CA		Strawberries	$	3,800,000	(1)
12/17/2015		331		CA		Strawberries		16,964,021	(2)
		394					$	20,764,021

⁽¹⁾  Agreement was terminated on January 20, 2015, and the related deposit of $100,000, which deposit is included in Other Assets on our Consolidated Balance Sheet as of December 31, 2014, was returned to us.

⁽²⁾  Acquisition was completed on January 5, 2015. See Note 10, “Subsequent Events,” for further discussion on the acquisition of this property.

XML

Borrowings - Principal Payments of Aggregate Borrowings (Detail) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Total	$ 86,417,361	$ 43,154,165
Mortgage Notes and Bonds Payable [Member]
Debt Instrument [Line Items]
For the fiscal years ending December 31: 2015	625,680
2016	2,947,300
2017	2,866,043
2018	2,787,631
2019	6,386,962
Thereafter	70,803,745
Total	$ 86,417,361

XML

Schedule III - Real Estate and Accumulated Depreciation (Parenthetical) (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Aggregate cost	148,371,478	$ 78,478,053	$ 39,678,968	$ 32,399,715
Land, Buildings, Site Improvements & Horticulture [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Aggregate cost	145,700,000
Buildings and Improvements [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Estimated useful life	39 years
Horticulture [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Estimated useful life	25 years
Minimum [Member] | Equipment and Fixtures [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Estimated useful life	5 years
Maximum [Member] | Equipment and Fixtures [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Estimated useful life	7 years

XML

Subsequent Events (Tables)

12 Months Ended

Dec. 31, 2014

Subsequent Events [Abstract]

Monthly Distributions Declared by Company's Board of Directors

On January 13, 2015, our Board of Directors declared the following monthly cash distributions to common stockholders, representing a 16.7% increase over that of the prior quarter:

Record Date	Payment Date		Distribution per Common Share
January 23, 2015		February 3, 2015	$	0.035
February 18, 2015		February 27, 2015		0.035
March 20, 2015		March 31, 2015		0.035
		Total:	$	0.105

XML

Real Estate and Lease Intangibles - Fair Value of Acquired Assets and Liabilities Assumed Related to Properties Acquired (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014
2014 New Real Estate Activity [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		$ 68,482,397
2014 New Real Estate Activity [Member] | In-place Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		669,210
2014 New Real Estate Activity [Member] | Above (Below)-Market Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		(144,957)
2014 New Real Estate Activity [Member] | Collins Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		2,596,733
2014 New Real Estate Activity [Member] | Collins Road [Member] | In-place Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		45,086
2014 New Real Estate Activity [Member] | Spring Valley [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		5,900,500
2014 New Real Estate Activity [Member] | Spring Valley [Member] | In-place Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		83,487
2014 New Real Estate Activity [Member] | Spring Valley [Member] | Above (Below)-Market Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		(49,976)
2014 New Real Estate Activity [Member] | McIntosh Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		2,667,275
2014 New Real Estate Activity [Member] | McIntosh Road [Member] | In-place Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		34,674
2014 New Real Estate Activity [Member] | McIntosh Road [Member] | Above (Below)-Market Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		45,674
2014 New Real Estate Activity [Member] | Naumann Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		6,895,284
2014 New Real Estate Activity [Member] | Naumann Road [Member] | In-place Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		75,520
2014 New Real Estate Activity [Member] | Sycamore Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		5,803,600
2014 New Real Estate Activity [Member] | Sycamore Road [Member] | In-place Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		48,670
2014 New Real Estate Activity [Member] | Sycamore Road [Member] | Above (Below)-Market Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		(160,184)
2014 New Real Estate Activity [Member] | Wauchula Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		13,897,555
2014 New Real Estate Activity [Member] | Santa Clara Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		24,593,200
2014 New Real Estate Activity [Member] | Santa Clara Avenue [Member] | In-place Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		310,119
2014 New Real Estate Activity [Member] | Dufau Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		6,128,250
2014 New Real Estate Activity [Member] | Dufau Road [Member] | In-place Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		71,654
2014 New Real Estate Activity [Member] | Dufau Road [Member] | Above (Below)-Market Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		19,529
2014 New Real Estate Activity [Member] | Irrigation System [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		4,674,065
2014 New Real Estate Activity [Member] | Irrigation System [Member] | Spring Valley [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		200,855
2014 New Real Estate Activity [Member] | Irrigation System [Member] | McIntosh Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		537,254
2014 New Real Estate Activity [Member] | Irrigation System [Member] | Naumann Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		71,586
2014 New Real Estate Activity [Member] | Irrigation System [Member] | Sycamore Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		67,000
2014 New Real Estate Activity [Member] | Irrigation System [Member] | Wauchula Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		3,521,229
2014 New Real Estate Activity [Member] | Irrigation System [Member] | Santa Clara Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		187,314
2014 New Real Estate Activity [Member] | Irrigation System [Member] | Dufau Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		88,827
2014 New Real Estate Activity [Member] | Horticulture [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		520,993
2014 New Real Estate Activity [Member] | Horticulture [Member] | Collins Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		520,993
2014 New Real Estate Activity [Member] | Leasing Costs [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		223,831
2014 New Real Estate Activity [Member] | Leasing Costs [Member] | Collins Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		71,085
2014 New Real Estate Activity [Member] | Leasing Costs [Member] | Spring Valley [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		17,998
2014 New Real Estate Activity [Member] | Leasing Costs [Member] | McIntosh Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		18,041
2014 New Real Estate Activity [Member] | Leasing Costs [Member] | Naumann Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		41,012
2014 New Real Estate Activity [Member] | Leasing Costs [Member] | Sycamore Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		7,364
2014 New Real Estate Activity [Member] | Leasing Costs [Member] | Wauchula Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		5,200
2014 New Real Estate Activity [Member] | Leasing Costs [Member] | Santa Clara Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		30,353
2014 New Real Estate Activity [Member] | Leasing Costs [Member] | Dufau Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		32,778
2014 New Real Estate Activity [Member] | Customer Relationships [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		455,857
2014 New Real Estate Activity [Member] | Customer Relationships [Member] | Collins Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		24,796
2014 New Real Estate Activity [Member] | Customer Relationships [Member] | Spring Valley [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		66,217
2014 New Real Estate Activity [Member] | Customer Relationships [Member] | McIntosh Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		27,966
2014 New Real Estate Activity [Member] | Customer Relationships [Member] | Naumann Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		54,786
2014 New Real Estate Activity [Member] | Customer Relationships [Member] | Santa Clara Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		229,372
2014 New Real Estate Activity [Member] | Customer Relationships [Member] | Dufau Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		52,720
2013 New Real Estate Activity [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	37,783,601
2013 New Real Estate Activity [Member] | In-place Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	110,753
2013 New Real Estate Activity [Member] | Below-Market Lease Values [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	(161,547)
2013 New Real Estate Activity [Member] | 38th Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	1,379,200
2013 New Real Estate Activity [Member] | Sequoia Street [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	3,208,210
2013 New Real Estate Activity [Member] | Natividad Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	7,330,035
2013 New Real Estate Activity [Member] | Natividad Road [Member] | In-place Leases [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	110,753
2013 New Real Estate Activity [Member] | Natividad Road [Member] | Below-Market Lease Values [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	(161,547)
2013 New Real Estate Activity [Member] | 20th Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	2,019,479
2013 New Real Estate Activity [Member] | Broadway Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	3,027,528
2013 New Real Estate Activity [Member] | Oregon Trail [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	14,068,458
2013 New Real Estate Activity [Member] | East Shelton [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	6,750,691
2013 New Real Estate Activity [Member] | Irrigation System [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	2,833,306
2013 New Real Estate Activity [Member] | Irrigation System [Member] | 38th Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	239,768
2013 New Real Estate Activity [Member] | Irrigation System [Member] | Sequoia Street [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	424,268
2013 New Real Estate Activity [Member] | Irrigation System [Member] | Natividad Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	144,915
2013 New Real Estate Activity [Member] | Irrigation System [Member] | 20th Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	441,415
2013 New Real Estate Activity [Member] | Irrigation System [Member] | Broadway Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	22,727
2013 New Real Estate Activity [Member] | Irrigation System [Member] | Oregon Trail [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	1,118,640
2013 New Real Estate Activity [Member] | Irrigation System [Member] | East Shelton [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	441,573
2013 New Real Estate Activity [Member] | Horticulture [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	1,038,346
2013 New Real Estate Activity [Member] | Horticulture [Member] | 38th Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	446,408
2013 New Real Estate Activity [Member] | Horticulture [Member] | 20th Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	488,604
2013 New Real Estate Activity [Member] | Horticulture [Member] | Broadway Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	103,334
2013 New Real Estate Activity [Member] | Leasing Costs [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	56,649
2013 New Real Estate Activity [Member] | Leasing Costs [Member] | 38th Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	3,842
2013 New Real Estate Activity [Member] | Leasing Costs [Member] | Sequoia Street [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	9,535
2013 New Real Estate Activity [Member] | Leasing Costs [Member] | Natividad Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	29,941
2013 New Real Estate Activity [Member] | Leasing Costs [Member] | 20th Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	2,623
2013 New Real Estate Activity [Member] | Leasing Costs [Member] | Oregon Trail [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	8,726
2013 New Real Estate Activity [Member] | Leasing Costs [Member] | East Shelton [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	1,982
Land and Land Improvements [Member] | 2014 New Real Estate Activity [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		58,857,451
Land and Land Improvements [Member] | 2014 New Real Estate Activity [Member] | Collins Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		1,252,388
Land and Land Improvements [Member] | 2014 New Real Estate Activity [Member] | Spring Valley [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		5,576,138
Land and Land Improvements [Member] | 2014 New Real Estate Activity [Member] | McIntosh Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		1,970,074
Land and Land Improvements [Member] | 2014 New Real Estate Activity [Member] | Naumann Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		6,219,293
Land and Land Improvements [Member] | 2014 New Real Estate Activity [Member] | Sycamore Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		5,840,750
Land and Land Improvements [Member] | 2014 New Real Estate Activity [Member] | Wauchula Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		8,466,185
Land and Land Improvements [Member] | 2014 New Real Estate Activity [Member] | Santa Clara Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		23,672,902
Land and Land Improvements [Member] | 2014 New Real Estate Activity [Member] | Dufau Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		5,859,721
Land and Land Improvements [Member] | 2013 New Real Estate Activity [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	33,102,031
Land and Land Improvements [Member] | 2013 New Real Estate Activity [Member] | 38th Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	646,522
Land and Land Improvements [Member] | 2013 New Real Estate Activity [Member] | Sequoia Street [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	2,494,911
Land and Land Improvements [Member] | 2013 New Real Estate Activity [Member] | Natividad Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	7,186,774
Land and Land Improvements [Member] | 2013 New Real Estate Activity [Member] | 20th Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	805,677
Land and Land Improvements [Member] | 2013 New Real Estate Activity [Member] | Broadway Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	2,851,353
Land and Land Improvements [Member] | 2013 New Real Estate Activity [Member] | Oregon Trail [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	12,941,092
Land and Land Improvements [Member] | 2013 New Real Estate Activity [Member] | East Shelton [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	6,175,702
Buildings and Improvements [Member] | 2014 New Real Estate Activity [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		3,225,947
Buildings and Improvements [Member] | 2014 New Real Estate Activity [Member] | Collins Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		682,385
Buildings and Improvements [Member] | 2014 New Real Estate Activity [Member] | Spring Valley [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		5,781
Buildings and Improvements [Member] | 2014 New Real Estate Activity [Member] | McIntosh Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		33,592
Buildings and Improvements [Member] | 2014 New Real Estate Activity [Member] | Naumann Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		433,087
Buildings and Improvements [Member] | 2014 New Real Estate Activity [Member] | Wauchula Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		1,904,941
Buildings and Improvements [Member] | 2014 New Real Estate Activity [Member] | Santa Clara Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		163,140
Buildings and Improvements [Member] | 2014 New Real Estate Activity [Member] | Dufau Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Acquisition Cost		3,021
Buildings and Improvements [Member] | 2013 New Real Estate Activity [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	804,063
Buildings and Improvements [Member] | 2013 New Real Estate Activity [Member] | 38th Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	42,660
Buildings and Improvements [Member] | 2013 New Real Estate Activity [Member] | Sequoia Street [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	279,496
Buildings and Improvements [Member] | 2013 New Real Estate Activity [Member] | Natividad Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	19,199
Buildings and Improvements [Member] | 2013 New Real Estate Activity [Member] | 20th Avenue [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	281,160
Buildings and Improvements [Member] | 2013 New Real Estate Activity [Member] | Broadway Road [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	50,114
Buildings and Improvements [Member] | 2013 New Real Estate Activity [Member] | East Shelton [Member]
Business Acquisition Purchase Price Allocation [Line Items]
Total Purchase Price	$ 131,434

XML

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Reconciliation between U.S. Statutory Federal Income Tax Rate and Effective Income Tax Rate

A reconciliation between the U.S. statutory federal income tax rate and our effective income tax rate for the years ended December 31, 2014, 2013 and 2012 is provided in the following table:

	For the Years Ended December 31,
	2014			2013			2012
U.S. statutory federal income tax rate(1)		0.0	%		0.0	%		34.0	%
State taxes, net of U.S. federal income tax benefit(2)		26.9	%		41.7	%		4.0	%
Other adjustments(3)		0.0	%		473.4	%		-4.7	%
Effective tax rate		26.9	%		515.1	%		33.3	%

⁽¹⁾ Beginning with our tax year ended December 31, 2013, we qualified to be taxed as a REIT for federal income tax purposes.

⁽²⁾ In 2012, California state tax returns were filed on a unitary basis with our Adviser. State tax adjustments made to the 2013 and 2014 income tax provision relate to taxes owed to the state of California as a result of prior-year land transfers.

⁽³⁾ Adjustments made to the 2013 income tax provision related primarily to the recognition of $2.1 million of income taxes on a deferred intercompany gain relating to land transfers from prior years. This tax become due upon our election to be taxed as a REIT for the tax year ended December 31, 2013. This was partially offset by the reversal of our deferred tax liability, which resulted in a net benefit of REIT conversion of $743,676.

Breakdown between Current and Deferred Income Taxes

The following table shows the breakdown between the current and deferred income taxes for the year ended December 31, 2012:

	2012
Current portion	$	(268,356	)
Deferred portion		568,675
Total income taxes	$	300,319