Investment firms among buyers of 8,000+ acres of almonds in California bankruptcy sale
Two agricultural investment firms are among the buyers vying for a part of the more than 8,000 almond acres being sold in the wake of Trinitas Farming’s bankruptcy in California.
Trinitas Advantaged Agricultural Partners and Trinitas Farming LLC filed for Chapter 11 bankruptcy on Feb. 19 after amassing $188 million of debt.
The Oakdale-based Trinitas Farming developed and operated 17 separate almond ranches on 8,680 acres in Fresno, Tulare, San Joaquin, Contra Costa and Solano counties.
Agriculture analysts say rising interest rates, escalating production costs and the declining prices for almonds all contributed to the downfall.
The company folded before it could harvest its first crop.
Bankruptcy attorney Riley Walter said this has been a challenging time for almond growers.
“When the market started softening quite a bit, there were major shifts in ag lending,” said Walter, who represents Ceil W. Howe III, a Stratford farmer and one of the Trinitas owners.
“Banks began tightening up their loan documents; there were more restrictions and loans were scrutinized a lot more closely.”
As a result, Trinitas could not sustain the downward turn in the market and put all of its almond ranches up for sale. The unprecedented offering attracted everyone from family farmers to investment firms.
“There was this thought that investment capital in agriculture was going to slow down in the ag space,” said Landon Fernandes, an associate at Graham & Associates in Visalia. “And while some investors or institutions did get out, others are getting in.”
Bids for Trinitas ranches in California
According to recently filed court documents, the largest successful bid was submitted by Vital Farmland, an investment fund developed by Farmland LP, one of the leading asset managers in the U.S. specializing in organic farming.
Founded in 2009, San Francisco-based Farmland LP manages more than 16,000 acres with more than $300 million in assets.
Vital Farmland offered $35.6 million for three ranches in Contra Costa and San Joaquin counties.
Also submitting a bid was US Agriculture LLC, an Indiana-based investment firm that acquires and manages farmland assets.
US Agriculture bid $8 million for a ranch in Tulare County.
Other bidders include:
▪ Joe Lawrence Ribeiro Family Partnership, $8.2 million for a ranch in Tulare County.
▪ Gursewak Brar, $2 million for a ranch in Tulare County.
▪ Gary Fernandes, $3 million for a ranch in Tulare County.
▪ Scot Nagra & Kewal Singh, $6 million for a ranch in Contra Costa County.
▪ Ravindra & Naina Balupari, $2 million for a ranch in Solano County.
▪ Sukjkheet Batth, $3.6 million for a ranch in Fresno County.
▪ Jospeh P. Ratto & Linda A. Ratto 2000 Revocable Trust, $4.3 million for a ranch in San Joaquin County.
Court records also show there are back-up bids for five of the ranches with the largest being $20 million from Kalyani Jaladi for two ranches.
The results of the auction will be announced June 14 by the U.S. Bankruptcy court in San Francisco.
