U.S. citrus group Limoneira Company (NASDAQ: LMNR) and Cadiz Inc. (NASDAQ: CDZI) have announced an expansion to their existing agricultural development agreement with an additional 200 acres of lemon trees. 

According to a release, Limoneira has acquired the lemon trees and associated irrigation lines from Cadiz and one of its leasing tenants for approximately US$1.2 million.

"We are excited to expand our agreement with Cadiz and increase our lemon tree acreage in California," Limoneira president and CEO Harold Edwards says in the release.

"This acquisition complements recent investments we have made in Chile and Arizona and is in line with our long-term growth strategy to add productive agricultural properties to our portfolio and leverage our core competencies."

Limoneira now has the right to plant up to 1,480 acres of lemons over the next three years at the Cadiz Ranch operation in the Cadiz Valley. Expectations are for the trees to be productive from 2017.

"We are pleased that we have the opportunity to expand our relationship with Limoneira as part of our commitment to cultivating sustainable agricultural practices in the Cadiz Valley," CEO of Cadiz Tim Shaheen says.

"With its longstanding history in the California market Limoneira has tremendous expertise in growing and marketing lemons and shares our commitment to best agricultural practices."

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