COMMITMENTS AND CONTINGENCIES Operating Obligations In connection with a lease amendment we executed on one of our Oregon farms in May 2017, we committed to providing up to $1.8 million of capital for anticipated improvements on the farm, including irrigation upgrades and the planting of new blueberry bushes, which improvements are expected to be completed by December 31, 2020 . As stipulated in the lease amendment, we will begin earning additional rent on the cost of the improvements as the funds are disbursed by us at an initial annual rate of 6.5% , which rate is subject to annual escalations and market resets. As of September 30, 2018 , we have expended or accrued approximately $921,000 related to this project. In connection with the lease we executed upon our acquisition of our two North Carolina farms in June 2017, we committed to providing up to $300,000 of capital to support additional plantings and infrastructure on the farm, which improvements are expected to be completed by June 30, 2019 . As stipulated in the lease agreement, we will earn additional rent on the total cost of the improvements as disbursements are made by us at a rate commensurate with the annual yield on the farmland (as determined by each years minimum cash rent per the lease). As of September 30, 2018 , we have expended or accrued approximately $166,000 related to this project. In connection with the follow-on lease we executed upon our acquisition of a 1,884 -acre farm in Florida in August 2017 (which had a commencement date of February 24, 2018 ), and as amended on March 23, 2018, we committed to providing up to $2.5 million of capital for certain irrigation improvements on the farm, which improvements are expected to be completed by December 31, 2018. As stipulated in the follow-on lease agreement, we will earn additional rent on the total cost of the improvements as disbursements are made by us at a rate commensurate with the annual yield on the farmland (as determined by each years minimum cash rent per the lease). As of September 30, 2018 , we have expended or accrued substantially all of the $2.5 million commitment related to this project. In connection with the lease we executed upon our acquisition of a 361 -acre farm in California in August 2017, we committed to providing up to $4.0 million of capital to fund the development of additional vineyard acreage on the farm, which development is expected to be completed by March 31, 2020. As stipulated in the lease agreement, we will earn additional rent on the total cost of the improvements as the funds are disbursed by us at an initial annual rate of 6.0% , which is subject to annual escalations. As of September 30, 2018 , we have expended or accrued approximately $1.0 million related to this project. In connection with a lease amendment we executed on one of our Oregon farms in May 2018, we committed to providing up to approximately $250,000 of capital for certain irrigation improvements on the farm, which are expected to be completed by June 30, 2019. As a result of this project, the lease amendment provides for additional, fixed rental payments that are subject to annual escalations. As of September 30, 2018 , we have expended or accrued approximately $31,000 related to this project. In connection with a new lease we executed on one of our California farms in June 2018, we committed to providing capital for certain irrigation improvements on the farm. These improvements are expected to cost approximately $425,000 and are expected to be completed by December 31, 2019 . To date, we have not expended or accrued anything related to this project. In connection with the lease we executed upon our acquisition of five farms totaling 5,630 acres in Collier and Hendry Counties, Florida, in July 2018, we committed to providing up to $2.0 million of capital for certain irrigation improvements on the farms throughout the term of the lease, which expires on June 30, 2025 . While no specific plans for such improvements have been developed yet, if and when any capital is deployed by us, as stipulated in the lease agreement, we will earn additional rent on the total cost of the improvements as disbursements are made by us at a rate commensurate with the annual yield on the farmland (as determined by each years minimum cash rent per the lease). To date, we have not expended or accrued anything related to this project. In connection with a new lease we executed on one of our California farms in July 2018 (which lease commenced on November 1, 2018), we committed to providing up to $75,000 of capital for certain irrigation improvements on the farm, which are expected to be completed by December 31, 2018 . As of September 30, 2018 , we have not expended or accrued any costs related to this project. Ground Lease Obligations In connection with two farms acquired on June 1, 2017, through a leasehold interest, we assumed two ground leases under which we are the lessee (with the State of Arizona as the lessor). During the three and nine months ended September 30, 2018 , we recorded approximately $12,000 and $36,000 , respectively, of lease expense (included as part of Property operating expenses on the accompanying Condensed Consolidated Statement of Operations) as a result of these ground leases. Future minimum lease payments due under the terms of these leases as of September 30, 2018 , are as follows (dollars in thousands): Period Estimated Minimum Lease Payments Due (1) For the remaining three months ending December 31: 2018 $  For the fiscal years ending December 31: 2019 47 2020 47 2021 47 2022 30 2023 30 Thereafter 31 $ 232 (1) Annual lease payments are set at the beginning of each year to then-current market rates (as determined by the State of Arizona). The amounts shown above represent estimated amounts based on the lease rates currently in place. Litigation In the ordinary course of business, we may be involved in legal proceedings from time to time. We are not currently subject to any material known or threatened litigation.