Farmland Partners Inc

JPMorgan warns that fertilizer shortages could trigger a total global food supply crisis in 2027, with rising fertilizer prices potentially lifting global food inflation temporarily to 4-5%. Senior global economist Nora Szentivanyi expects the impact to appear after a considerable delay, as the Middle East supplies roughly 42% of global urea exports and 27% of ammonia exports, and the Iran conflict and closure of the Strait of Hormuz have disrupted those supplies. Nitrogen fertilizer prices rose between 25% and 50% from late February to April, and damaged fertilizer plants could take up to four years to restore. Ukraine's agricultural exports fell about 75% year over year during the first two weeks of August, and Ukrainian strikes have closed major grain terminals at Russia's Novorossiysk port. The USDA's July 2026 forecast shows food prices could jump as much as 12.3%, which would add about $98 a month to a household spending $800 monthly on groceries.

Farmland Partners reported quarterly funds from operations of $0.04 per share, beating the Zacks Consensus Estimate of $0.03 per share and marking an FFO surprise of +33.33%. Revenues for the quarter ended June 2026 came in at $9.4 million, surpassing the consensus estimate by 3.04% but down from $9.96 million a year ago. The company has now topped consensus FFO and revenue estimates in each of the last four quarters. Shares of Farmland Partners have lost about 1.4% since the start of the year, underperforming the S&P 500's gain of 8.5%. Ahead of the release, the estimate revisions trend was unfavorable, translating into a Zacks Rank #4, or Sell, for the stock.