DENVER (Business Wire) -- Farmland Partners Inc. (NYSE: FPI) announced Saturday that it purchased 291 acres of farmland in Schuyler County, Illinois, for $2.16 million. FPI won the property during an auction held on November 29.

“We continue to hunt for prime farmland that can be purchased at a good price. We prioritize properties that are close to other FPI farms because it creates efficiencies and drives strong rental rates,” said Paul Pittman, FPI’s Chairman and CEO. “This acquisition checks both boxes and is located near another of our row crop farms.”

The newly acquired property is leased to the same tenant who rents FPI’s nearby farm. The farmland is expected to generate good rental income for the company in addition to asset appreciation. Agricultural land in Illinois has averaged 5.7% in annual appreciation since 1970, according to recent data from the U.S. Department of Agriculture.

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland. They make loans to farmers secured by farm real estate. As of the date of this release, the company owns and/or manages approximately 195,000 acres in 19 states, including Illinois and Missouri. We have approximately 26 crop types and more than 100 tenants. The company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes. This would commence with the taxable year ending December 31, 2014.