Good morning. Welcome to Gladstone Land Corporation third quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Mr. David Gladstone, Chief Executive Officer. Thank you, sir. You may begin.

Well, thank you, Sherry. That was a nice introduction. This is David Gladstone, and thank you for calling in today. First, we'll hear from Katherine Gerkes. She's our Director of Investor Relations, and she'll discuss the certain terms regulating regulatory matters that are involved with us. Katherine, go ahead now.

Thanks, David, and good morning, everyone. Today's call may include forward-looking statements, which are based on management's estimates, assumptions, and projections. There are no guarantees of future performance, and actual results may differ materially from those expressed or implied in these statements due to various uncertainties, including the risk factors set forth in our SEC filing, which you can find on the Investors page of our website, gladstoneland.com. We assume no obligation to update any of these statements unless required by law. Please visit our website for a copy of our Form 10-Q and earnings press release, both issued yesterday, for more detailed information. You can also sign up for our email notification service and find information on how to contact our Investor Relations Department. We are also on X at Gladstone Comps, as well as Facebook and LinkedIn. Keyword for both is the Gladstone Companies. Today we'll discuss FFO, which is Funds From Operations, a non-GAAP accounting term defined as net income, excluding gains or losses from the sale of real estate and any impairment losses on property, plus depreciation and amortization of real estate assets. We may also discuss core FFO, which we generally defined as FFO adjusted for certain non-recurring revenues and expenses, and adjusted FFO, which further adjusts core FFO for certain non-cash items, such as converting gap rents to normalized cash rents. We believe these metrics can be a better indication of our operating results and allow better comparability of our period over period performance. Now I'll turn it back to David Gladstone.

Oh, thank you, Catherine. That was very nice. Let's start out with just letting you know we currently own about 98,000 acres across 143 farms and nearly 56,000 acre feet of water. That's about 18 billion gallons of water that we have. It's mostly out in California. The farms are in 14 different states, and our water assets, well, they're all in California where they need to be. We are acquiring one property subsequent to quarter end, but that was not a good news other than part of a positive as kind of an ending to a negative. We were in a forbearance agreement with one of our tenants, and they defaulted. This was a small row crop company farm in Washington state that served as collateral for the lease and was transferred to us partially to satisfy the outstanding rent obligations. And during the quarter, we sold a property consisting of two citrus farms in Florida, about $3 million, so good positive income. We currently have two other properties under contract to be sold. About 30 million. Let's assume the transaction remains on track, and I think it will. People are coming back in and buying up some properties. One of them should close in Q4, which we're in now, really. And the other, there's going to be a Q1 of next year. Last time we checked, they were still on on going forward, and so we should receive that cash in over the next two quarters. In each case, we look to use most of the proceeds to pay down debt and buy back preferred stock, but we're still evaluating these and other opportunities at this time. We continue to take a disciplined approach to acquisitions and staying active in the market. So we're ready when conditions improve and it makes sense for us to start growing the portfolio again. When it does, we'll jump in. But we want to make sure that we're the only additional right kind of assets at the right prices. In terms of leases, we've got, we discussed in prior clause some of the updates in the leasing activity. Due to the market conditions affecting certain permanent crops, particularly nuts and wine grapes, we modified the lease structures in a handful of farms to reduce the growers' fixed costs while allowing us to participate very strongly in the upside through higher crop share participations. We also continue to directly operate two properties. Who's on the phone that keeps butting in? Can you mute whoever it is that's leading into my conversation? As we've discussed in prior calls, due to the market conditions affecting certain permanent crops, particularly the nuts and the wine grapes, we modified these leaf structures on a handful of farms to reduce the growers' fixed cost while allowing us to participate more in the upside. through higher crop share participations. And we also continue to directly operate two properties with the help of third-party managers. So our group's not managing the farm, but they're hiring people who might have managed these farms. Overall, in 2015, almonds and pistachio harvest were very strong, with results generally exceeding all of our expectations, and quite frankly, of most people. have underestimated how strong they were going to be, both in terms of yield and in pricing. Ground pricing on 2025 pistachio crop is expected to be at least 21% higher in 2024, and initial pricing on the 26th crop has already been announced at 67% above the initial price for the 2025 crop. With overall yields on the 2026 crop coming in significantly lower, we expect pricing to remain strong, which should help partially offset the negative impact of the lower yields, but may not fully make up for the shortfall. But given the uncertainties around the 2026 crop results, which impacted our 2027 earnings, The advisor has waived its incentive fee earned during the third quarter, and our priority remains preserving the dividend for our shareholders during the time. And this is a time of a lot of uncertainty. Of course, with regard to farming, the United States government has given a lot of money to the big farmers to keep them going. We made enough last year, probably one of our best years. We entered into similar arrangements for most of these farms that we are on for the 2026 crop as well. So we expect to see smaller earnings pattern next year with the majority of our related revenues and earnings again being recognized during the second half of the year. So we've got a ways out before we can give you much information about what's going on in the crops. and I also want to remind everyone that crop insurance continues to play an important role in our company as it helps to limit the downside risk on these farms where we have a lot riding on the production of nuts and other things. Our goal is still eventually to translate these farms back to more traditional leases structures which is fixed base rent But timing for that will depend on several factors such as crop production and as well as pricing interest rates. When we got in this business, we were borrowing at, I think, 3.5%. The best we could make on it was about 7.5% when all hell broke loose in the farming business. Looking ahead, seven leases scheduled to expire over the next six months. Total lease represent about 6.8% of our lease revenue year-to-date in 2026. We're currently in discussions with both existing and prospective tenants, and we expect to be able to renew the leases prior to the expirations. So I think that'll be just as far along as last year. In addition, subsequent to the quarter end, we ended into two agreements with solar companies, granting them options to purchase up to 5,600 acres of farmland in California, both for potential solar development. That's becoming a big thing in California. The agreements have terms of five to six years with a combined annual option payment starting at about $331,000. And they'll be increasing over time. We're going to get a lot of money back. We also are pursuing several other alternative revenue opportunities including all our water leases following programs and solar leases. I think solar leases are going to be a big thing. Wouldn't it be nice if we had solar leases on all of our vacant properties in Providence? Discussions continue to progress, and we hope to have some more of these agreements in place over the coming months. Probably in our portfolio, about 10 of these farms that could be converted to to producing electricity. And folks from New Jersey know this well because New Jersey has a lot of farms that were taken out of farming and put into producing electricity. And now I'll give a quick update on some of the ongoing tenancy matters that we're working through. We currently have seven farms that are wholly or partially vacant. and we're actively working towards solutions to get these funds back into our stable paying leases. Income producing situations is where we want to be because we're dividend payers. Hopefully we can get some of these situations resolved over the next few months. We're also currently recognizing revenue on cash basis for leases with four tenants. We received some cash rent payments from a couple of these tenants during the order. But we'll keep them on a cash basis until we see the rest of the payments come in. And I'll note that these figures include two properties we currently have under contract to be sold. So let me get rid of some of the problems and keep going. I'm going to stop here and turn it over to Executive Vice President Bill Ryan. Bill, why don't you come on and give us your report?

Thanks, David. Good morning, everyone. The third quarter of the year for us is always exciting with harvest in full swing. Some of our minor crops, such as cherries and figs, are harvested early in the year, but the harvest of our major crops, such as almonds and pistachios, well, almonds typically begin in August, sometimes late July. Pistachio generally begins around Labor Day, and one grape harvest typically starts in September as well. Overall, the season got started with a major heat spill in early spring, which caused crops to develop earlier than usual. Some crops responded well to that, while others, such as pistachios, were negatively impacted. Damage to the 2026 pistachio crop was felt across the entire industry, with projection expected to be among the lowest levels we've seen since 2015. Unfortunately, our orchards were no exception. We also had lower production across the board. However, our farms are well insured and we expect to receive significant insurance proceeds as David mentioned related to our 2026 pistachio crop. We also expect crop insurance proceeds from some of our wine grape blocks where we experienced lower production as well. On a more positive note, the almond crop came in strong across the board. Although we're still processing what was harvested, the trend is for our yields to be up. The almond market is very stable. Pricing continuing to strengthen slightly and remaining at profitable levels. Final price of our 2025 crop came in significantly higher than projected. We expect even higher prices for the 2026 crop. Combination of strong yields and stable pricing is really a welcome feeling after several challenging years. We expect these trends to continue as bearing acreage continues to decline. There are no significant signs yet of any increase in new plantings. And even if plantings were to increase, it'd be several years before the bearing acreage actually contributed to total almond production increasing. So we definitely feel a tailwind in the almond business. The pistachio market, as one might expect, given the significantly smaller crop this year, is very strong. Once the extent of the damage from the spring heat wave became apparent, prices really jumped. That helped us close out the 2025 crop at much higher than projected prices. Although the 2026 crop is very small, pricing will be significantly higher than for the 2025 crop. Despite these higher prices, the smaller crop will result in much lower trailing revenue numbers for us over the next 12 to 15 months. Crop insurance proceeds will help offset this decline, but Most of those proceeds are expected to be recognized in Q4 of 2026, leaving less revenue from the 2026 crop to be recognized in 2027 than in a typical year. The 2027 crop is expected to be another strong production year, and we're hopeful that current pricing strength will carry into 2027, potentially making it an even more profitable year than 2025 was. For the alternate bearing nature of pistachios, we like to compare on-years with on-years and off-years with off-years. So we're watching our 2027 shapes up relative to 2025. And now we're into November with harvest behind us. Planning for the 2027 crops becomes the focus of our ops team. Budgets are being finalized. Any new management or modified lease agreements are being put in place so we don't miss a beat with late fall and winter preparations. Little trees and vines still dormant in winter. There's a surprising amount of work that still needs to get done. The wine grape market hasn't changed much. Crop yields were significantly lower across the western U.S. The industries still face an oversupply. There hasn't been much relief on pricing. Vineyard removals are accelerating and we expect that to continue for the foreseeable future. The industries face significant challenges with several large producers going out of business, wine assets selling at substantial discounts, and increasing number of properties coming to market. I'll see a lot of consolidation on the production side, declining acreage, wine labels increasingly concentrated amongst larger producers. So it's gonna be real interesting to see how the industry emerges from this period of restructuring. We do see some signs in the wine market, some shortages and some particular varietals. These are the first positive signs we've seen in a couple of years, so hopefully this is the beginning of the recovery. We're continuing to evaluate our wine grape assets and exploring ways to position them, so maximize value, profitability. All those of our vineyards have remained under lease, allowing us to fare better than many others in the industry thus far. We may take several vineyards under direct operation in the near future. We do remain hopeful that market conditions will improve soon and put us in a better position to realize the long-term value of these assets. A few words on real estate, on the general real estate markets. I'd say overall, we're generally flat. You know, the trifecta of interest rates being where they are, crop inputs experiencing inflation and crop prices generally being flat, you know, outside of tree nuts is the main driver of land valuation. We do see some areas gaining strength driven mostly by the strong crop prices in areas where crops can be grown with plentiful and inexpensive water. There's a strong divergence in values around water cost and availability in California particularly. Areas with riskier water profile are seeing continued depression of land prices while properties with good cash flow potential are getting positive attention. Last quarter we reported that we were seeing a little more lending activity, and that is still the case, although lenders remain cautious and they're looking for more security with the money they're putting to work. Banks are looking for strong cash flow and equity to secure loans and get deals done. Both aspects are tough to find, but they are out there, but it's like an Easter egg hunt. I'll end this on some thoughts about water. The new water year began October 1, so this is somewhat Thank you for joining us. while most of California and the Southwest expect to be wetter. Of course, anything can happen, so we'll prepare for what we think is likely, but stay ready for the opposite. We are finding some good water purchase opportunities. We remain diligent and conservative with what we go after. Our goal is to only acquire water at prices that fit the economics of our crops in a particular area. Should El Nino result in significant flood water, we could see ourselves grabbing as much of that as we can to store our water bank. So as stated before, our strategic water goal is really to strengthen the overall water security of the portfolio through both long- and short-term strategic water purchases, continuing to invest in water delivery and storage infrastructure, and identifying opportunities to create synergies across our farm assets. That's it for me. Now I'll turn it over to our CFO, Lewis Parrish. Lewis?

Thanks, Bill, and good morning, everyone. I'll start with a brief update on our recent financing activity. We did not secure any new borrowings during the quarter, but we did pay off two mortgages totaling about $5 million, and one of which was paid off in connection with the property sale that David mentioned earlier. Given where our stock has been trading, we've had very limited activity under the ATM program lately, issuing just about $1.5 million of common stock at an average cost of capital of about 5.7%. We've also continued to execute on our preferred repurchase program. Since July 1st, we've repurchased about $13 million of our preferred stock under the program, at an average repurchase yield of 7.3%, resulting in a total gain of about $1.3 million on those repurchases. Turning to our operating results, for the third quarter, we recorded net income of about $11 million and net income to common shareholders of $6.1 million, or 14 cents per share. Adjusted FFO for the third quarter was $15.1 million, or 35 cents per share, compared to $1.4 million, or 4 cents per share, in the same quarter last year. Common dividends declared were 14 cents in both quarters. The improvement in AFFO was primarily driven by an earlier than usual announcement of the 2025 pistachio crop bonus primary processor. And that allowed us to recognize certain revenue amounts sooner than usual. Higher almond and pistachio prices also contributed to increased participation rents and profits from direct farming operations. These increases were partially offset by higher property expenses. I'll also note that 2025 was a bit of a transition year for us as we shifted certain farms to modified leaf structures or direct farming operations. So 2026 represents our first full crop cycle under these new arrangements. Year-over-year fixed base rents decreased by about $400,000 and that's primarily due to lost revenue from vacant and non-accrual properties as well as property sales completed over the past year. Participation rents increased by about $11.4 million due to the early announcement of the bonus payment for the 2025 pistachio crop, as well as continued strong pricing for almonds and pistachios. Direct farming operations also generated a net profit of about $2.9 million during the quarter, largely driven by those same factors. On the expense side, our recurring cash operating expenses increased by about $1.1 million, primarily due to higher property operating expenses. The increase in property operating expenses was largely driven by supplemental water costs we incurred on one property pursuant to our lease obligation, higher professional fees associated with protecting water rights on certain farms in California, and additional costs related to properties that were vacant, direct operated, or on non-accrual status. Total net related party fees remained relatively flat compared to the prior year quarter, and G&A expenses increased slightly, primarily due to higher professional fees. And finally, cash flows from operations increase largely as a result of higher cash receipts from participation rents and crop sales, a decrease in cash allowances paid to certain tenants, and lower interest payments. Turning to liquidity, we currently have over $105 million of immediately available capital and over $110 million of unplugged properties that could be used as additional collateral. About 92% of our borrowings are currently at fixed rates, and on a weighted average basis, these borrowings bear interest at 3.57% for another 2.1 years. Getting to upcoming debt maturities, we have roughly $34 million of loans maturing over the next 12 months. Given the value of the underlying collateral, we don't anticipate any issues refinancing these loans should we choose to do so. In addition, we have about $16 million of scheduled principal amortization payments due over that time. We also have about $132 million of loans with fixed rate terms that are scheduled to reset over the next year, although the loans themselves are not maturing. This includes about $130 million of loans under our MetLife facility that are scheduled to reprice in January 2027. We are in discussions with MetLife about re-fixing these rates, and we're also exploring financing alternatives with other lenders, as well as other options, including using proceeds from potential property sales to pay down a portion of these loans. Finally, regarding our common distributions, in October, we declared a monthly dividend of 4.67 cents per share for the fourth quarter. The most recent closing stock price is $6.88. This represents an 8.1% annualized yield, which is well above the reef sector average. With that, I'll turn the program back over to Lewis.

Well, thank you, Lewis. Overall, demand for prime row crop farmland remains relatively stable. across most of our regions, and particularly along the coast of California. We're also starting to see some signs of improvements in certain permanent crops, both in the price of the permanent crops as well as broader economics around these crops. So we're hopeful that the worst may be behind us now, but it's still too early to say. This year will say a lot to us about where we're going. I expect it to be different from the past, but strongly in our favor. In closing, over the long term, we expect inflation, particularly in the food sector, to continue to move higher, and we expect the values of the underlying farmland to increase. If we start selling more land, it will be to rid ourselves of some more of the preferred stock. And we expect this to be especially true in the healthy foods, such as fresh fruits and vegetables and nuts. Long-term trends toward healthier eating continues to grow. Now I'll open up for some questions. Those who are listening, operator, would you please come on and help our listeners ask questions?

Thank you. If you would like to ask a question, please press star 1 on your telephone keypads. The confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Gurav Mehta with Alliance Global Partners. Please proceed.

Thank you. Good morning. I wanted to ask you on the participation rents expectations for 4Q. Are you able to provide some color on what you're expecting for 4Q? Is it going to be similar to what you guys received in participation rents last year?

Sure. So it might not, as we said, we did recognize some crop share rents that would typically be recognized in Q4 early in Q3 because of that earlier announcement. So I don't know that we'd say it's going to equal Q4 of last year. It's really made up of three components for us. We have The crop share rents from our standard leases. We have net crop sale profits from our direct operated farms. And then we have insurance payments, which are expected to play a much larger role in the 26th crop. I guess we were just talking about the crop share from standard leases and the profits from our direct operations. I'd probably say we might be similar to where we were at Q3 of last year. The wild card here is the insurance payments. As Bill mentioned, we might be able to recognize a lot of that in Q4. Some of it could come into Q1 next year. But if it all comes in Q4, it could push us to where we were in Q4 of last year. But we're not sure of the exact timing of those payments quite yet. So I think on the low end, similar to Q3 of last year. On the high end, maybe similar to Q4 of last year.

understood. Second question on the balance sheet, you talked about some fixed rate term resets expected next year. Can you remind us where are the interest rates on the debt that's expected to reset and where do you expect the new interest rate to be?

Yes, right now it's 98% of that are the MetLife loans. Right now, that's about $128, $130 million that's going to reprice in January. Right now, the weighted average rate on those loans is about 3.5%. Today, we'd probably be looking at roughly 250 basis points of an increase if we were to refix those right now. But again, we are continuing discussions with MetLife and also talking with other lenders to try to get some competitive bids. and as I mentioned, we're also looking at alternatives of maybe using proceeds from potential property sales to repay all or a portion of those notes.

All right, thank you, that's a lot. Okay, operator, would you come on and see if there's some more questions?

Yes, our next question is from Craig Kuchera with Lucid Capital Markets. Please proceed.

Yeah, hey, good morning. Of the $17 million of variable lease payments that were made this quarter, can you give us a breakout of what was related to the 2025 pistachio bonus versus other crop types?

I don't have that exact breakout in front of me, but if I had to give a guess, it's probably close to 70% of that amount.

Okay, that's helpful. And just as we think about 2027, you know, given your commentary about, you know, kind of comparing on years versus off years, can you give us a sense of what the yield was off of the 24 crop for pistachios and how that compared to 2025, understanding that pricing is going to be much higher, of course?

Bill, you want to take that one? Yeah. Could you repeat that question? Yeah, I'm just trying to think.

I'm just trying to figure out when you have a down year with pistachios on your farms, what the yield would be relative to what it was off of the 25 crop, just for thinking about future revenue from the pistachios.

Yeah, it really runs the gamut. Not to sound elusive, but it really depends. And we've seen It's inconsistent. We've seen down years be, you know, 25% of an on year. And we, you know, 26 is, you know, is, you know, overall California's overall production is going to is about 800 million pounds versus, you know, 1.6 billion the previous year. So it was half, generally speaking, but then you have to factor in the impact of the pricing, right? So Does the percent that the yield goes down by, does the price go up by a significant enough percentage to fill it in? Sometimes it does, sometimes it doesn't. So it's really hard to just kind of place a general percentage on it. I don't know if that helps.

No, that actually was perfectly what I was looking for. And you ramped up assets sales or looking to sell more certainly assets held for sale. Are those related to the impairment charges you took in Arizona and Washington or are you looking to sell farms from other parts of the country?

Yes, the impairment was related to those sales.

Okay, great. Let's see here. As you're going through leasing here in fourth quarter, are you expecting any additional modified lease agreements, or do you anticipate that the three that you have will kind of be the ones that remain under modified leases?

We're not looking at any additional changes towards modified leases at this point, and I'll let Bill speak to this, but we're actually taking one, and it's a smaller property, but we are taking one property out of the We're planning to take one property out of the modified lease structure and put it into more of a traditional lease. And that's a small almond farm. Bill, any more color you want to give on that one?

Yeah, we don't anticipate any other modified leases. We have been getting inquiries going back to traditional leases. And like Lewis said, we have one smaller almond farm that is going back to a traditional. It's coming off the modified lease. and going back to a standard lease. And we just kind of evaluated, you know, case by case basis, you know, weighing those returns. And so, yeah, just one less going into next year and I don't anticipate any new ones for 2027.

One thing I'll add there, Craig, is on the direct operated side, we, you know, related to the Tenant that was in default, David mentioned we acquired one property as part of a forbearance agreement. They operate a couple of vineyards up in the Pacific Northwest. We might end up having to take those back under direct operations. So not modified lease, but we might have a couple of vineyards added to the direct operated bucket next quarter or in the fourth quarter.

Got it. And with the third-party solar agreement, did you say that was on vacant land or that's land that's currently being farmed?

on both. One of the agreements is on, well, actually, they're both leased, so they really aren't vacant. They are on a farm.

One was vacant last quarter, though, right?

Well, that's true.

One was leased, and the other one is now also leased, but on top of that, there's the solar purchase option agreement.

Got it. Okay. That's it for me. Thank you.

Operator, can you give us the last question?

Yes, sir. Our last question is from John Muscola with B. Reilly Securities. Please proceed.

Yeah, good morning. I've been thinking about the kind of overall farm transaction market in terms of acquisitions and dispositions. How is that being impacted by the move in interest rates? If at all, is that kind of changing any kind of strategy you have around... maybe selling some underperforming assets and using proceeds to kind of pay down parts of the capital stack. Just kind of curious how that's progressing.

It's a buyer's market for most farmlands at this point in time, so it is difficult to get things sold and particularly difficult to get things sold at a value that you know that is helpful to us but you know for example our farm in Arizona we had under contract just yesterday the buyer canceled right so you know we had a pricing that we liked but they didn't you know after doing their due diligence they determined that you know what that was going to cost them to operate you know they it was too expensive so they backed out so it's really really difficult to get these things to get transactions you know closed the buyer pool is typically right now the buyer pool is really just it's really just strategic very very few investors institutional activity is really at a at a very low level. And so any, you know, selling, going out and selling a bunch of properties to free up capital is just a, that is not a quick process at this time. It's just, it's going to be a grind. So I would say that that process of, you know, liquidating assets to redeploy that capital and some of this is just, it's because it's going to be slow and it's going to be slow for a while.

Okay, I mean, are you seeing movements in kind of cap rate to kind of compensate for that or is there just a buyer-seller disconnect out there given where kind of interest rates have moved?

No, that's a great question because that's what happens, right? Interest rates go up, cost of money goes up, transactions slow down, profitability starts to come back, right? So we definitely see certain crops, crops that have good profitability, you know, almonds and pistachios. Yeah, we're definitely starting to see cap rates coming back, right, to compensate for that. So we expect those trends to just kind of gently continue. One thing that is, you know, the one positive with interest rates is they, yeah, they came up and we're adjusting to that. But for the last, you know, 18 months, it's relatively stable, right? So That stability gives confidence in, you know, in the industry. And so then we can build, you know, we can build, we can build profitability back in. So, and then, you know, as guys, you know, like in the wine grape market, as it cleans up, you know, it is kind of sad people losing their jobs and companies going out of business. But, you know, that's capitalism, right? And so it's cleaning, as it cleans itself up, you know, that we expect that profitability, you know, to come back and it will come back. So, We were watching all of those things and figuring out how our assets play into that and what we can do to position ourselves so that we maximize values and returns in the future.

And then on a more technical level, you mentioned some crop insurance and certain crop types. Can you give maybe a little more color on the seasonality? I think it's going to hit in 4Q, but then the impact. in terms of lost kind of crop revenue is in 27. Just kind of curious how we should think about that impacting the top and bottom line both in 4Q and in 27.

So, you know, I was just going to say that, you know, generally speaking, crop insurance proceeds Let's compare those to the normal crop revenue. The crop insurance proceeds come right away. They come right after harvest. In fact, we've received some payments already. And so comparing to the typical crop revenue on those crops that lags for 15 months, sometimes longer, it shifts that revenue stream. Now, crop insurance obviously is kicking in when you've had a problem right so the profitability if you're if you're getting crop insurance payments then that whatever that was for were particular crop or in some cases just a particular block one block out of one farm it could be it could be that specific means that you had you know probably lower yields and and had to make a claim because you're What level of revenue you were insured to, you're dropping below that. So your overall profitability obviously is taking a hit wherever you're, because we're insuring to a level that covers our cost, covers our investment in the crop. We're not insuring profitability. So I think that's probably, I don't know, Lewis, what you can add to that, probably the best way I could describe it.

Yeah, I think that pretty much covers it. Nothing to add here.

Okay. and then last one maybe for Lewis. How are you thinking about the preferred stock repurchase program kind of going forward? Is that something we should just expect kind of a steady utilization of or could that be a little bit more variable based on where kind of capital needs are in any given quarter?

Yeah, definitely the latter. I mean, our line of credit, we're using that right now and that's going to reprice again in January. So that reprices every three months. will weigh the cost of that versus the cash needs versus the cost of the preferred or what yield we're able to buy it back at. And frankly, right now, the common is, based on last night's closing prices, yielding a little bit higher than the preferred. So we're going to weigh the best use of any funds that we have available versus other needs, possibly some acquisitions, although I don't see that in the near term, trumping either one of these repurchase options. So if things stayed how they did during Q3, then yes, I would expect it to continue, but we'll have to see where interest rates go and what the yields and all of our securities look like.

Okay. I appreciate all that detail. That's it for me. Thank you very much.

Okay. How are we doing on any more questions?

There are no further questions at this time.

Well, we're disappointed. We like it when people ask us a lot of questions, so I hope you all just get ready for the next one and give us a lot of questions about our best answer. That's the end of this, and we thank you all for being with us, and we'll see you next quarter.

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.