| 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):
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Farm
Location
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Farm
Acreage
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Total
Commitment
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Obligated
Completion
Date(1)
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Amount Expended
or Accrued as of
June 30, 2020
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Hillsborough, FL |
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55 |
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$ |
2,250 |
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(2) |
Q2 2021 |
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$ |
515 |
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Cochise, AZ |
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1,320 |
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1,820 |
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(2)(3) |
Q4 2021 |
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1,482 |
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Cochise, AZ |
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875 |
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1,360 |
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(2)(4) |
Q4 2021 |
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982 |
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Van Buren, MI |
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89 |
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150 |
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Q4 2021 |
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126 |
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Napa, CA |
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269 |
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1,548 |
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(2) |
Q3 2023 |
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— |
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Columbia, OR |
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157 |
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1,800 |
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(2) |
Q3 2024 |
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1,146 |
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Collier & Hendry, FL |
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3,612 |
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2,000 |
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(2) |
Q2 2025 |
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— |
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Salinas, CA |
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304 |
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1,248 |
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Q4 2025 |
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548 |
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(1) |
Our obligation to provide capital to fund these improvements does not extend beyond these respective dates. |
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(2) |
Pursuant to contractual agreements, we will earn additional rent on the cost of these capital improvements as the funds are disbursed by us. |
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(3) |
Pursuant to the agreement, we will only earn additional rent if the total amount of capital improvements exceeds $1.3 million.
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(4) |
Pursuant to the agreement, we will only earn additional rent if the total amount of capital improvements exceeds $860,000.
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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.
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