We believe that farmland is an excellent long-term investment.  Over the last fifteen years farmland returns have exceeded stock and bond market returns with up to 60% less risk.  In general, farmland is a low risk/high return asset and a strong inflation hedge - Financial Characteristics.

In addition, we believe we are entering a period of unprecedented demand for crops due to the combined requirements for “food, feed, and fuel”. 

• Food: The global population continues to grow requiring each acre of farmland to produce more food every year – Food Demand
• Feed: As the middle class in China and India expands, large numbers of people switch to a high meat diet which in turn increases the demand for crops as feed for livestock – Diet Improvement
• Fuel: Government biofuel targets are diverting massive amounts of crops for conversion into transport fuels – Biofuel Demand
  

The question then arises whether farmland productivity growth can keep up with this massive new demand for crops? The recent increases in the price of agricultural commodities and the relentless decline in crop stockpiles appears to be predicting that this will be difficult – Productivity Gap.

Believing that farmland is a sound investment, why invest in Canadian farmland? The answer is straightforward and compelling.  We think that Canadian farmland and in particular Saskatchewan is an attractive combination of high quality land, good infrastructure and some of the lowest per acre prices in the world – Saskatchewan Farmland.