Note 8 - Subsequent Event

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE

8

– SUBSEQUENT EVENT

On

July 31, 2019,

SoCal Hemp JV LLC, a Delaware limited liability company in which the Company holds a

50%

beneficial interest (the “JV”), entered into a lease agreement (the “Agreement”) with the Company whereby the JV will cultivate industrial hemp on up to

9,600

acres at the Company’s agricultural property in eastern San Bernardino County, California (“Cadiz Ranch”).  Under the terms of the Agreement, the JV will initially lease

1,280

acres at the Cadiz Ranch and will also hold options to lease up to

8,320

additional acres by

2022.

  The Agreement will have an initial term of

five

years and the JV will have the option to extend the term for

three

successive periods of

five

years each.  In consideration for the lease arrangement, the JV will provide the Company an annual rental payment equal to

$500

per acre of leased property, subject to periodic CPI adjustment.