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Concentration Risk

9 Months Ended

Sep. 30, 2022

Note 3—Concentration Risk

Credit Risk

For the three and nine months ended September 30, 2022, the Company had no significant tenants representing a tenant concentration of 10% or greater of period revenue. Revenue for the three and nine months ended September 30, 2022 are not necessarily indicative of actual revenue for the entire year ending December 31, 2022. The Company receives a significant portion of its variable rental payments in the fourth quarter of each year, typically resulting in at least one tenant concentration of 10% or greater revenue in that quarter. If a significant tenant fails to make rental payments to the Company or elects to terminate its leases, and the land cannot be re-leased on satisfactory terms, there may be a material adverse effect on the Company’s financial performance and the Company’s ability to continue operations.

Geographic Risk

The following table summarizes the percentage of approximate total acres owned as of September 30, 2022 and 2021, and the fixed and variable rent recorded by the Company for the three and nine months ended September 30, 2022 and 2021 by location of the farm:


	Approximate %				Rental Income ⁽¹⁾
	of total acres				For the three months ended				For the nine months ended
	As of September 30,				September 30,				September 30,
Location of Farm ⁽²⁾	2022		2021		2022		2021		2022		2021
Corn Belt	29.1	%	27.3	%	44.7	%	34.0	%	41.4	%	35.5	%
Delta and South	20.4	%	20.4	%	13.4	%	13.8	%	14.8	%	11.6	%
High Plains	18.1	%	18.8	%	9.8	%	8.2	%	9.3	%	8.0	%
Southeast	25.1	%	26.2	%	23.4	%	22.5	%	23.3	%	23.0	%
West Coast	7.3	%	7.3	%	8.7	%	21.5	%	11.2	%	21.9	%
	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

⁽¹⁾

Due to regional disparities in the use of leases with variable rent and seasonal variations in the recognition of variable rent revenue, regional comparisons by rental income are not fully representative of each region’s income-producing capacity until a full year is taken into account.

⁽²⁾

Corn Belt includes farms located in Illinois, Indiana, Michigan, Missouri and eastern Nebraska. Delta and South includes farms located in Arkansas, Louisiana, Mississippi. High Plains includes farms located in Colorado, Kansas, western Nebraska, and South Dakota. Southeast includes farms located in Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia. West Coast includes farms located in California.