The demand for agricultural products is growing every day, with global consumption of cereal crops expected to double by 2030. In fact, institutional investors, including pension funds and endowments, have long recognized farmland as a dynamic asset class with many attractive investment characteristics.
Among its other features, farmland investing provides investors with capital preservation, virtually zero correlation to the public markets, and a high correlation to inflation. Additionally, it has proven to be one of the least volatile investments in the alternative investment universe, posting gains in virtually every year since 1960.
Based on the "macro" thesis of "food, feed and fuel" and the "micro" thesis of Saskatchewan farmland being underpriced relative to similar farmland in the rest of the world, Agcapita's fund (which uses no leverage and "hedges" its exposure to commodity volatility by renting its farmland to farmers in pre-paid annual increments) provides investors with the ability to enjoy long-term gains without the assumption of significant risk.