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EFTA01384967

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The process for acquiring farmland varies in certain ways from the process for acquiring other types of commercial real estate such as office buildings, shopping centers and apartments. The due diligence for farmland property acquisitions may include analysis of factors like soil attributes that are less relevant or possibly irrelevant in evaluating other types of real estate. Further, the process also varies depending on the crop type. For example, farmland for commodity row crops, which may be purchased from an auction and close in a very rapid amount of time, typically takes less time to acquire (typically 60.90 days) than permanent crop farmland, which is a more fragmented, less publicized market that may require a longer period of time to negotiate and close (typically 90-1N) days). In acquiring the IS properties in our portfolio, we have reviewed approximately 300 additional properties through the date of this prospectus that we elected not to pursue based on diligence, an inability to agree on acceptable terms, another bidder or other reasons, yielding an acquisition rate of approximately 6%. The historical duration from preliminary discussions through closed acquisition for our properties has varied from several weeks to almost one year, and we estimate the duration is most often within a range of 60 to 120 days. Recent Acquisitions As of June 30, 2015, we had executed a purchase and sale agreement with the seller of a California mature permanent crop farm for an agreed upon sale price of $19.6 million. The farm consists of approximately 619 gross acres, with approximately 510 tillable acres planted with pistachios, and has two on-site wells, which are the farm's primary water source. This farm was an off-market property and was sourced by our Agricultural Sub-Adviser using its local presence and deep relationships. We acquired the property, Kingfisher Ranch, on August 21, 2015. We had also executed a purchase and sale agreement with the

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