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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies COMMITMENTS AND CONTINGENCIES
Operating Obligations
In connection with the execution of certain lease agreements, we have committed to provide capital improvements on certain of our farms, which are summarized in the table below (dollars in thousands):
Farm
Location		Farm
Acreage		Total
Commitment
Obligated
Completion
Date(1)
Amount Expended
or Accrued as of
December 31, 2021
St. Lucie, FL549230 Q3 2022111 
Santa Barbara, CA2714,000 
(2)
Q3 20222,427 
Manatee, FL590280 Q4 2022— 
Manatee, FL271280 Q4 2022— 
Hillsborough, FL552,250 
(2)
Q4 20221,554 
Charlotte, FL9753,000 
(2)
Q4 2022— 
Napa, CA2701,548 
(2)
Q3 20231,019 
Columbia, OR1571,800 
(2)
Q3 20241,146 
Collier & Hendry, FL3,6122,000 
(2)
Q2 2025— 
Wicomico & Caroline, MD, and Sussex, DE833115 Q3 203049 
(1)Our obligation to provide capital to fund these improvements does not extend beyond these respective dates.
(2)Pursuant to contractual agreements, we will earn additional rent on the cost of these capital improvements as the funds are disbursed by us.
Ground Lease Obligations
In connection with certain farms acquired through a leasehold interest, we assumed certain ground lease arrangements under which we are the lessee. These operating ground leases have lease expiration dates ranging from February 2025 through December 2041, and none of these leases contain any extension, renewal, or termination options. At lease commencement, the net present value of the minimum lease payments was determined by discounting the respective future minimum lease payments using a discount rate equivalent to our fully-collateralized borrowing rate ranging from 4.22% to 8.72%.
As of December 31, 2021 and 2020, we recorded the following as a result of these operating ground leases (dollars in thousands, except for footnotes):
December 31, 2021December 31, 2020
Operating lease right-of-use assets(1)
$671 $136 
Operating lease liabilities(2)
$664 $130 
Weighted-average remaining lease term (years)15.73.8
Weighted-average incremental borrowing rate7.78 %4.20 %
(1)Operating lease right-of-use assets are shown net of prepaid lease payments of approximately $7,000 and $6,000 for the years ended December 31, 2021 and 2020, respectively, and are included within Other assets, net on the accompanying Consolidated Balance Sheets.
(2)Included within Other liabilities, net on the accompanying Consolidated Balance Sheets.
Future minimum lease payments due under the remaining non-cancelable terms of these leases as of December 31, 2021, is as follows (dollars in thousands):
Period
Future Lease Payments(1)
For the fiscal years ending December 31:2022$92 
202392 
202492 
202562 
202662 
Thereafter755 
Total undiscounted lease payments1,155 
Less: imputed interest(491)
Present value of lease payments$664 
(1)Certain annual lease payments are set at the beginning of each year to then-current market rates (as determined by the lessor). The amounts shown above represent estimated amounts based on the lease rates currently in place.
As a result of these ground leases, we recorded lease expense (included within Property operating expenses on the accompanying Consolidated Statement of Operations and Comprehensive Income) of approximately $81,000 and $59,000 during the years ended December 31, 2021, and 2020, respectively.
Litigation
In the ordinary course of business, we may be involved in legal proceedings from time to time. We are not currently subject to any material known or threatened litigation.