Revenue Recognition

12 Months Ended

Dec. 31, 2019

Note 2—Revenue Recognition

For the majority of its leases, the Company receives at least 50% of the annual lease payment from tenants either during the first quarter of the year or at the time of acquisition of the related farm, with the remaining 50% of the lease payment due in the second half of the year. Rental income is recorded on a straight-line basis over the lease term. The lease term generally includes periods when a tenant: (1) may not terminate its lease obligation early; (2) may terminate its lease obligation early in exchange for a fee or penalty that the Company considers material enough such that termination would not be probable; (3) possesses renewal rights and the tenant’s failure to exercise such rights imposes a penalty on the tenant material enough such that renewal appears reasonably assured; or (4) possesses bargain renewal options for such periods. Payments received in advance are included in deferred revenue until they are earned.

As of December 31, 2019 and 2018, the Company had $0.1 million and $0.2 million, respectively, in deferred revenue. The Company did not have any unamortized below market leases as of December 31, 2019 and 2018, respectively.

The following represents a summary of the rental income recognized during the three years ended December 31, 2019:


	Rental Income Recognized
	For the year ended December 31,
($ in thousands)	2019		2018		2017
Leases in effect at the beginning of the year	$	45,977	$	37,434	$	12,593
Leases entered into or amended during the year		2,142		13,751		30,363
	$	48,119	$	51,185	$	42,956

Future minimum lease payments from tenants under all non-cancelable leases in place as of December 31, 2019, including lease advances, when contractually due, but excluding tenant reimbursement of expenses and lease payments based on a percentage of farming revenues, for each of the next five years and beyond as of December 31, 2019 are as follows:


($ in thousands)	Future Rental
Year Ending December 31,	Payments
2020	$	31,328
2021		19,774
2022		9,833
2023		5,171
2024		2,440
2025 and beyond		25,033
	$	93,579

Since lease renewal periods are exercisable at the option of the lessee, the preceding table presents future minimum lease payments due during the initial lease term only.