John Massocca: That’s helpful. And then kind of more big picture, I mean given some of the stress we have seen in the California market, you have had some bankruptcies. Are you seeing distressed maybe acquisition opportunities, things where you have corporate farmers that are in a lot of trouble or maybe even with all the risks associated with the current operating environment in California, it makes sense for you to acquire assets?
David Gladstone: Well, we haven’t seen that many good purchases. There have been some huge bankruptcies, not us, not our people, but some people that we have seen going under, and they have been fire sales. We have seen one or two small farms that might be fire sales, but it really has not had the impact yet that you would expect, because many of these farmers are if you want to say it the right way, are just small businesses. And small businesses, especially in this environment, probably are impacted much more than large businesses because of the interest rates. We have farms that people will lend us money on. That’s not a problem for us. The agricultural banks are constantly talking to us about borrowing more money. And they love us because we have always paid our debt.
So, as a result, we have not had the problem of the lack of money. We had the problem of the cost of money. And that’s true for all the small business people. If you look at small business America, the rates where they are today, including all the inflationary things that are going on, have hurt small businesses more than large businesses. If you are a big business, you have huge amounts of money that you are holding on to. So, John, I don’t know how to tell you how to judge that. We all spend, I mean I lie awake at night trying to say to myself, how is this quarter going to be, it’s a moving target of trying to figure out what’s going to happen in California. Florida is probably more stable than California, so we are glad of that because we have a lot of land in Florida.
And as you know, the dirt doesn’t go away. Somebody will use it to farm at some point in time, and that’s the good news. The bad news is you just don’t know when some farmer is going to be able to step up and rent more property and grow more food. The government needs to slow down the inflation rate because all the inputs go up. But it doesn’t necessarily flow through to the farmer, I mean the person who is buying those products in this grocery stores. We had an odd situation in that a lot of the grocery stores were increasing the price of some of our products, but they weren’t passing it on to the people who are growing them. So, you had the grocery stores making more money and people who were selling were not making more. And given how fragmented all of these industries are, I mean there are really tons of people that are in all of these areas.
You would think that they would have some pressure on the grocery stores, but they don’t. And so the grocery stores really decide what they are willing to pay for things. And of all the things that grocery stores worry about is, do they have the product? If somebody produces the strawberries and sells it to them, they are happy. They are just not willing to give up more money to get that certainty. It’s happening a little bit more now that some of the farms aren’t there competing with other farms, but it’s still not a one-to-one kind of ratio. I don’t know, John, did that help you?
John Massocca: No, that’s really helpful color. I appreciate it. And that’s it for me. Thank you very much.
David Gladstone: Okay. Latonya, I don’t think we have any more questions, do we?
Operator: No more questions, back to you for closing comments.
David Gladstone: Well, we are disappointed. We like people asking questions because we get to answer those, and hopefully it helps everybody understand the business we are in. And that’s the end of this conference, and we thank you all for calling in.
Operator: Thank you. This does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.
