ABILP Insiders Claim Publicly Traded Farmland Partners, Inc. Is Successor Entity to Midwest Farmland and American Farmland Partners and Its Formation Violates the Terms of a 2010 Agreement

/EINPresswire.com/ -- CHICAGO, IL--(Marketwired - December 21, 2015) - In an attempt to protect previous Midwest Farmland and American Farmland Partner's investors, the Agri Business Investors Limited Partnership is seeking members of the legal, financial and investment community. 

Agri Business Investors Limited Partnership is the owner of 5.5 million American Farmland Partners Corporation stock warrants, an entity believed to be a predecessor to publicly traded Farmland Partners, Inc. Those stock warrants, if recognized and converted, represent a 31% stake in Farmland Partners, Inc. based on the current number of outstanding shares. A 2010 American Farmland Partners Corporation Founders Buy Out Agreement strictly prohibits the formation of any additional corporations, partnerships, divisions, spin offs or other entities without including previous investors. The warrant agreement also states that the American Farmland Partners Corporation stock warrants will be binding on any successors or assigns of AFPC. 

According to a criminal complaint filed in the Eastern District of Wisconsin, Midwest Farmland and American Farmland Partners are described as investment schemes designed with the express purpose of defrauding investors. 

Midwest Farmland and American Farmland Partners founders deny these allegations and claim that recently released discovery documents prove that some of the alleged victims in the Midwest and American Farmland Partner scheme colluded against the defendants in the criminal complaint and absconded with the company's proprietary business model without authorization, excluding some investors. 

Agri Business Investors general partner T. Allen Dyer says, "A Memorandum of Interview and other evidence documents a number of the alleged victims actually discussing their intention to move Midwest and American Farmland Partners business model forward as Farmland Partners, Inc as far back as 2011, and also discussing the possibility of excluding previous investors." 

Dyer continues, "It is bold, to say the least, but there is an incredible amount of money involved here. The current value of family owned farmland in the US approaches 2 trillion dollars." 

The farmland investment arena has cooled a bit due to lower commodity prices and the resulting lower returns on farmland. Still, farmland excels as an investment alternative. Total returns on farmland have averaged well over 10% for decades, with almost no volatility. A growing world population, an increased demand for grains worldwide, and a diminishing supply of productive farmland ensure the long term growth and income of this emerging asset class. 

Investors contemplating investing in Farmland Partners, Inc. or in taking this company's operating partnership units or stock as payment for their farms, are being asked to exercise due caution, as forthcoming litigation may significantly affect this company's future performance and/or ability to meet its contractual obligations. 

Agri Business Investors Limited Partnership general partner, T. Allen Dyer says, "As a starting point, we suggest that potential investors and farmers check the discrepancies between the Company's purported history and that of the State of Colorado Secretary of State's filing of summaries for American Agriculture Corporation and Pittman Hough Farms LLC. On the company's website, chairman Paul Pittman claims to have been president of American Agriculture Corporation and Pittman Hough Farms LLC since 2008. 

The State of Colorado filing summaries document the fact that Mr. Pittman's statements are factually impossible, as these entities were not even formed until July 28, 2012 and November 28, 2012, respectively. By contrast, the American Agriculture Corporation LinkedIn pages states that the company was formed in 1999 and has between 11 -50 employees."

The business models are identical. Midwest Farmland Partners, American Farmland Partners and publicly traded Farmland Partners all use a combination of publicly traded partnership interests and stock, along with cash, to make acquisitions, and all were to use Milwaukee-based investment bank, Robert W. Baird, for the initial public offering. "That is not, by any means, the extent of similarities," assures Dyer. 

According to Dyer, "This information supports no immediate conclusion, but we are reviewing publicly traded Farmland Partners, Inc., FPI NYSE historical online footprint, and connections back to Midwest Farmland and American Farmland Partners. Our investors deserve to participate fully in the business model we helped to develop and fund."

"It is a wonderful business model which can provide farm families with liquidity, succession and estate planning benefits, while still allowing them to continue participating in the future income and appreciation of their farms and of other farms owned by Farmland Partners, Inc. This is accomplished, depending on structure, with little or no current tax liability, while still allowing the farmer to earning a living growing crops. This model can provide an entire generation of family farmers with an alternative to selling outright, but it must be run ethically and with the farmers' best interests at heart." 

"Given the pace at which Farmland Partners is making acquisitions, our nation's food security could be at risk. American farmers produce 40% of the world's corn. If profits are the driving factor here, we could see America's heartland burned up and rendered unproductive," says Dyer. 

"We have already seen California's farmland significantly damaged, perhaps forever, by climate change and drought," claims Dyer. 

"Midwest farmland, by contrast, is naturally rain-fed, and is more valuable and desirable because of its proximity to grain processing facilities and transportation infrastructures. It is some of the most valuable land on the planet." 

"Productive farmland isn't productive by accident," continues Dyer. 'It takes a great deal of work and expense to maintain that productivity. If Farmland Partners, Inc. is not run ethically and responsibly, the company could be putting short term profitability in front of farmers' ability to maintain that land and their own profitability." 

"Not paying previous investors who funded the development of the business model, fibbing about the company's chronology on a public website and in Securities and Exchange Commission filings, seems like a troubling start." 

Dyer says "We will see what type of character these folks have. If it was an oversight or an overly aggressive attempt to get this powerful business model working, OK. If our investors get paid and the business makes the necessary adjustments that need to be made so that the company has alternative, deeper sources of revenue, that's a step in the right direction. Farmers can't be bled dry with big rent obligations just so the company can meet an earnings target. The ground will suffer. Its productivity will diminish, along with the value of the underlying asset."

"This model was developed over a decade, with a great deal of thought and research. This alternative path to liquidity would be extremely attractive to an entire generation of farmers. Therein lies the danger. We could turn around and see Farmland Partners owning a substantial portion of this county's arable land, and because of improper management, we may find ourselves with an inability to feed our growing population, depending on who and how Farmland Partners, Inc. is managed." 

"If our investors don't get paid and if we don't see alternative sources of revenue added, we may see the world's fastest growing farmland REIT crippled by lawsuits and legal expenses. Management's time and attention will be devoted to addressing these lawsuits, just as they have disclosed in the 'risk factors' section of their offering memorandum." assures Dyer. 

Advisory Board Members will assist these companies in charting direction, making suggestions that should help contain costs, develop business opportunities, and will introduce the Company to valuable clients, investors, and suppliers. They will offer fresh opinions, that can only come from unbiased third parties, who may see things that management and board members might not see, being isolated and involved with the businesses on a day-to-day basis. 

The Agri Business Investors Limited Partnership cordially invites anyone interested in becoming an Advisory Board Member to submit their resume for consideration to: 

T Allen Dyer 
Agri Business Investors Limited Partnership
AgriBusinessLP@gmail.com 

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