FPI · Farmland Partners Inc.

Management Discussion of Financial Condition and Results of Operations

Q1 2026 results reflect the interplay between stable core leasing operations and GAAP accounting requirements for financial instruments. Revenue declined modestly to $10.1M, a 1.5% decrease from $10.3M in Q1 2025. This stability is consistent with management’s assessment that quality U.S. farmland maintains a near-zero vacancy rate due to enduring supply and demand fundamentals. Global demand for primary crops continues to be supported by long-term structural drivers — specifically, growth in global GDP per capita and population — which underpin tenant demand for leased farmland.

Net income decreased significantly to $640K, down 68.6% year-over-year from $2.0M. This decline stems primarily from GAAP-mandated provisions for credit losses on the FPI Loan Program, which reflect updated assumptions about portfolio risk rather than realized defaults. As noted in prior disclosures, such provisions are forward-looking estimates required under current accounting standards and do not indicate deterioration in underlying loan performance. Diluted EPS followed this trend at $0.01, down from $0.03, reflecting both lower net income and the Company’s outstanding share count.

From an operational standpoint, the Company continues to bear costs primarily for major capital improvements permanently attached to land — such as irrigation systems and grain storage — and typically seeks to recover these over multiple years through rental rate adjustments. Personnel cost inflation, affecting many U.S. businesses, has not meaningfully impacted Farmland Partners’ expense structure to date, reinforcing the scalability of its asset-light model. Looking ahead, management expects global crop demand to keep pace with population growth and anticipates that future interest rate cuts, if implemented, would favorably affect the Company’s cost of debt.