Concentration Risk

3 Months Ended

Mar. 31, 2017

Note 3—Concentration Risk

Credit Risk

For the three months ended March 31, 2017 and 2016, the Company had no tenant concentrations with revenue greater than 10% of total revenue. If a significant tenant, representing a tenant concentration, fails to make rental payments to the Company or elects to terminate its leases, and the land cannot be re-leased on satisfactory terms, there could be a material adverse effect on the Company’s financial performance and the Company’s ability to continue operations.

Geographic Risk

The following table summarizes the percentage of approximate total acres owned as of March 31, 2017 and 2016 and rental income recorded by the Company for the three months ended March 31, 2017 and 2016 by location of the farms:


	Approximate %				Rental Income(1)
	of total acres				For the three months ended
	As of March 31,				March 31,
Location of Farm(2)	2017		2016		2017		2016
Corn Belt	31.6	%	30.9	%	46.3	%	28.6	%
Delta + South	18.3	%	22.6	%	9.7	%	11.7	%
High Plains	19.3	%	23.7	%	9.9	%	17.4	%
Southeast	26.5	%	22.8	%	17.2	%	42.3	%
West Coast	4.3	%	—	%	16.9	%	—	%
	100.0	%	100.0	%	100.0	%	100.0	%

(1)

Due to regional disparities in the use of leases with crop share components and seasonal variations in the recognition of crop share revenue, regional comparisons by rental income are not fully representative of each region's income producing capacity until a full year is taken into account.

(2)

Corn Belt includes farms located in Illinois, Michigan, and eastern Nebraska. Delta + South includes farms located in Arkansas, Louisiana, and Mississippi. High Plains includes farms located in Colorado, Kansas, western Nebraska, and Texas. Southeast includes farms located in Florida, Georgia, North Carolina, South Carolina, and Virginia. West Coast includes farms located in California.