Agcapita Farmland Fund III – Saskatchewan Farmland Values Increase21.7% in 2011, 1.8% per month.FOR IMMEDIATE RELEASE, ATT...
unprecedented demand for "food, feed and fuel" will continue to move cropprices higher over the long-term. Agcapita is one...
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Agcapita Farmland Fund III - SK Farmland Values Up 21% in 2011

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"In the second half of 2011, farmland values in Saskatchewan increased an average of 10.1%, the highest average increase across Canada. This followed gains of 11.6% and 2.7% in the previous two reporting periods, continuing the decade-long trend of price increases that began in 2002.

In Saskatchewan, farmland values increased by an average of 1.8% per month in 2011. The results in Saskatchewan, which has 40% of Canada’s arable land, appear to mirror what’s occurring in the United States, where double-digit increases in farmland values have been reported in several corn and soybean states. The ongoing strength of commodity prices combined with a land market that had historically increased at a slower rate than in other areas of the country are two contributing factors to the current value increase.

The rising values are also attributed to good seeding and harvest conditions in most areas of the province, coupled with low interest rates. Areas that had been flooded out or experienced minimal sales in 2010 saw resurgence in sales activity in the latter part of 2011. However, areas that experienced flooding in the spring of 2011 had limited sales in this reporting period."

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Transcript of "Agcapita Farmland Fund III - SK Farmland Values Up 21% in 2011"

  1. 1. Agcapita Farmland Fund III – Saskatchewan Farmland Values Increase21.7% in 2011, 1.8% per month.FOR IMMEDIATE RELEASE, ATTENTION INVESTMENT EDITORS–April 18, 2012 -CalgaryAccording to the recently released report on farmland values issued by FarmlandCredit Canada "In the second half of 2011, farmland values in Saskatchewanincreased an average of 10.1%, the highest average increase across Canada.This followed gains of 11.6% and 2.7% in the previous two reporting periods,continuing the decade-long trend of price increases that began in 2002.In Saskatchewan, farmland values increased by an average of 1.8% per month in2011. The results in Saskatchewan, which has 40% of Canada’s arable land,appear to mirror what’s occurring in the United States, where double-digitincreases in farmland values have been reported in several corn and soybeanstates. The ongoing strength of commodity prices combined with a land marketthat had historically increased at a slower rate than in other areas of the countryare two contributing factors to the current value increase.The rising values are also attributed to good seeding and harvest conditions inmost areas of the province, coupled with low interest rates. Areas that had beenflooded out or experienced minimal sales in 2010 saw resurgence in salesactivity in the latter part of 2011. However, areas that experienced flooding in thespring of 2011 had limited sales in this reporting period."Agcapita’s series of farmland funds continue to show great appeal toconservative investors concerned with inflation and the volatility of their existingpublic equity investments. Agcapitas analysis shows the risk of inflationincreasing hence a continued interest in farmland investments. Farmland hassimilar inflation hedging qualities to gold but with an ongoing cash yield that goldlacks. Farmland returns exhibit low volatility and this combined with the highabsolute returns from farmland equate to a favorable Sharpe ratio. Agcapita isone of Canadas most experienced farmland fund managers, launching its firstfund in Q1 2008.Agcapita’s funds directly hold diversified portfolios of farmland in westernCanada, and in particular in the highly price competitive province ofSaskatchewan. Investors are provided with the comfort of a direct investment infarmland combined with a model of front-end loaded cash rents. Agcapita is partof a family of alternative investment funds with a focus on generating commodity-linked returns and with over $100 million in assets under management. Agcapitabelieves farmland is a safe investment, that supply is shrinking and that
  2. 2. unprecedented demand for "food, feed and fuel" will continue to move cropprices higher over the long-term. Agcapita is one of Canadas most experiencedfarmland fund managers, launching its first fund in Q1 2008.This news release may contain certain information that is forward looking and, byits nature, such forward-looking information is subject to important risks anduncertainties. The words "anticipate", "expect", "may", "should", "estimate","project", "outlook", "forecast" or other similar words are used to identify suchforward looking information. Those forward-looking statements herein made byAgcapita, if any, reflect Agcapitas beliefs and assumptions based on informationavailable at the time the statements were made (including, without limitation, that(i) the demand for agricultural commodities will continue to grow at a pace that isunlikely to be matched by growth in agricultural productivity, and (ii) investmentdemand for tangible assets such as agricultural commodities and farmland willcontinue to increase for the foreseeable future). Actual results or events maydiffer from those anticipated or predicted in these forward-looking statements,and the differences may be material. Factors which could cause actual results orevents to differ materially from current expectations include, among other things:risks associated with the ownership and operation of farmland, includingfluctuations in interest rates, rental rates and vacancy rates; general economicconditions; local real estate markets; supply and demand for farmland;competition for available farmland; weather; crop diseases; the price of grain andother agricultural commodities; changes in legislation and the regulatoryenvironment; and international trade and global political conditions. Readers arecautioned not to place undue reliance on any forward-looking informationcontained in this news release (if any), which is given as of the date it isexpressed herein. Agcapitas undertakes no obligation to update publicly orrevise any forward-looking information, whether as a result of new information,future events or otherwise.###Agcapita’s funds directly hold diversified portfolios of farmland in westernCanada, and in particular in the highly competitive province of Saskatchewan.Investors are provided with the comfort of a direct investment in farmlandcombined with a model of front-end loaded cash rents. Agcapita is part of afamily of alternative investment funds with a focus on generating commodity-linked returns and with over $100 million in assets under management. Agcapitabelieves farmland is a safe investment, that supply is shrinking and thatunprecedented demand for "food, feed and fuel" will continue to move cropprices higher over the long-term. Agcapita is one of Canadas most experiencedfarmland fund managers, launching its first fund in Q1 2008.

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