Farming land REIT Farmland Partners, the nation’s largest farm REIT by acreage, has purchased an Illinois farm for $3 million.

The corn and soybean farm in Rock Island County includes 346 tillable acres, and its three-year, cash-rent lease is expected to yield a 4 percent annual return in addition to asset appreciation.

“Tenants are some of our best sources for acquisition leads, and this deal is a prime example of how effective that referral base can be,” Paul Pittman, FPI’s Chairman and CEO, said. “We have a long-standing relationship with the tenant who first alerted us to this farm. He will be renting this property and has proven himself to be a top-notch producer who cares for the land.”

Sam Woodrow, a farm manager for FPI who oversaw the transaction, said the farm was attractive to the Company because of its location and record of productivity.

“We have a significant presence in the area and own four other farms nearby. Together, these properties represent a large collection of fertile Mississippi River bottom farmland,” he explained. “The strong lease terms we negotiated reflect that presence and the local relationships we’ve built.”

The Company has now amassed a nearly contiguous block of land in the area totaling approximately 5,620 acres, which is farmed by a single tenant.