Farmland Partners (FPI) said late Wednesday that it is selling 46 farms encompassing 41,554 acres of farmland to Farmland Reserve for $289 million in cash.

The deal is expected to close on Oct. 16.

The portfolio of farmlands includes properties in Arkansas, Florida, Louisiana, Mississippi, Nebraska, Oklahoma, and the Carolinas.

Farmland Partners said it will gain approximately $50 million over the net book value of the farms.

Farmland Partners President and Chief Executive Luca Fabbri said the company intends to use proceeds from the sale to reduce its debt by about $140 million, to buy back stock, to fund acquisitions, and for general corporate purposes.

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