CROP INVENTORY AND CROP SALES |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| CROP INVENTORY AND CROP SALES | CROP INVENTORY AND CROP SALES Crop Inventory
Through certain of our wholly-owned subsidiaries and pursuant to management agreements with third-party operators, we currently manage (i) a 2,409-acre property (consisting of two farms) in Kern County, California, including 2,293 acres of almond and pistachio orchards, and (ii) a 165-acre farm in Umatilla County, Oregon, including 135 acres of wine grape vineyards.
As of June 30, 2026, and December 31, 2025, we had incurred approximately $6.5 million and $1.7 million, respectively, of growing costs related to crops to be harvested during 2026. These costs primarily relate to irrigation, pest management, fertilization, and labor and have been capitalized as crop inventory. Crop inventory is stated at the lower of cost or net realizable value. As the related crops are harvested and sold later in 2026 and throughout 2027, the associated costs will be recognized as cost of sales. We expect to incur additional costs related to harvesting and post-harvest handling, which will likewise be expensed to the cost of sales at the time of sale.
Crop Sales
Revenue from the sale of crops and the related cost of sales for the three and six months ended June 30, 2026, are shown in the following table (dollars in thousands):
(1)Reflected as a line item on our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.
(2)The majority of this revenue relates to a grower partner bonus associated with the 2025 pistachio crop, which was recognized when the amount became determinable and collectible. The related growing costs for this crop were previously expensed during the three months ended December 31, 2025.
(3)Reflective of a change in estimate, as the actual water and utility usage during the 2025 crop year was lower than previously estimated.
In addition, during the six months ended June 30, 2026, we completed the harvest of the remaining orange crop on a farm in St. Lucie County, Florida, following the early termination of the prior tenant’s lease. The results of these operations are included in the table above. We did not recognize any crop sales revenue or related costs during the three or six months ended June 30, 2025.
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