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Regional Comparison of Farmland Values

regional map nov2011

Farmland Prices on the Canadian Prairies

value-of-farmland-graph sm nov2011

Farmland - Gold with Yield

Farmland is gold with yield - it's highly correlated with inflation, but it produces income every year.

Assiniboia Farmland LP - Pricing NAV History

At Inception $25.000
Dec 31, 2008 $26.030
June 30, 2009 $26.531
Dec 31, 2009 $30.300
June 30, 2010 $30.414
Dec 31, 2010 $31.470
June 30, 2011 $40.120
Oct 31, 2011 $41.479
Dec 31, 2011 $39.617
Jan 31, 2012 $43.485

Assiniboia Farmland LP - Distribution History (per Unit)

Dec 31, 2008 $0.3125
Jun 30, 2009 $0.3125
Dec 31, 2009 $0.4275
Jun 30, 2010 $0.3125
Dec 31, 2010 $0.4275
June 30, 2011 $0.1000
Dec 31, 2011 $0.4790
Why Invest In Farmland?

 

 
 

Why Invest in Farmland Why Saskatchewan Farmland?
 
Intro to Assiniboia Farmland LP Assiniboia Farmland LP Financial Reports
How to Buy or Sell Units Assiniboia Farmland LP News Releases
Assiniboia Farmland LP - SEDAR Filings Assiniboia Farmland - Distribution and Pricing NAV History

 

Fundamentals of farmland investment

  • 9.4% average annual rate of return to owners of farmland in Saskatchewan (1972–2003).1
  • Stable, income producing asset.
  • An excellent hedge against inflation: “during the period from 1941 to 2002, average farmland values increased by almost two percent more than the average rate of inflation over that time period”.2
  • Impossible to steal.
  • In limited supply, and decreasing.3
  • Fundamental to life.
  • Relatively low risk – the standard deviation of annual rates of return on farmland is lower than for the stock market.
  • Real hard asset – it won’t go to zero.

Lower the risk profile of your portfolio without lowering the return on investment. Large pension funds and institutional investors are beginning to place their money in farmland. Why shouldn’t you?

Farmland is a conservative, stable, income producing investment with inflation protection.

  1. See Efficient Investment in Saskatchewan Farmland pdf_button by Marvin J. Painter PhD, Associate Professor, College of Commerce, University of Saskatchewan. A summary pdf_button is also available.
  2. Hancock Agricultural Investment Group (HAIG), a division of John Hancock, the US investment management division of Manulife Financial.
  3. For example, Wisconsin lost almost 500,000 acres of farmland between 1997 and 2002.