Quarterly report pursuant to Section 13 or 15(d)

COMMITMENTS AND CONTINGENCIES

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COMMITMENTS AND CONTINGENCIES
3 Months Ended
Mar. 31, 2022
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(s)
Farm
Acreage
Total
Commitment
Obligated
Completion
Date(1)
Amount Expended
or Accrued as of
March 31, 2022
St. Lucie, FL 549 $ 230  Q3 2022 $ 148 
Hillsborough, FL 55 2,250 
(2)
Q4 2022 $ 1,552 
Charlotte, FL 975 3,000 
(2)
Q4 2022 1,318 
Manatee, FL 590 280  Q4 2022 266 
Manatee, FL 271 280  Q4 2022 280 
Napa, CA 270 1,548 
(2)
Q3 2023 1,019 
Umatilla, OR 135 2,750 
(2)
Q4 2023 332 
Columbia, OR 157 1,800 
(2)
Q3 2024 1,146 
Holt, NE 1,052 180  Q1 2025 — 
Collier & Hendry, FL 3,612 2,000 
(2)
Q2 2025 — 
Wicomico & Caroline, MD, and Sussex, DE 833 115  Q3 2030 49 
Madera, CA 212 755 
(2)
Q4 2031 636 
(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. Future minimum lease payments due under the remaining non-cancelable terms of these leases as of March 31, 2022, is as follows (dollars in thousands):
Period
Future Lease Payments(1)
For the remaining nine months ending December 31: 2022 $ 40 
For the fiscal years ending December 31: 2023 92 
2024 92 
2025 62 
2026 62 
2027 62 
Thereafter 693 
Total undiscounted lease payments 1,103 
Less: imputed interest (479)
Present value of lease payments $ 624 
(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 Condensed Consolidated Statement of Operations and Comprehensive Income) of approximately $23,000 and $14,000 during the three months ended March 31, 2022 and 2021, 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.