We are very pleased to pass along the results of the Farm Credit Canada Farmland
Values Report. According to Farm Credit Canada the average value of farmland
in Saskatchewan increased by 9.1% during the first half of 2012. FCC reported
that "The latest increase is part of a trend that shows farmland values
have been rising in the province since 2002. In the two previous six-month
reporting periods, farmland values increased by 10.1% and 11.6%, respectively..."
Once again, we view the FCC results as affirmation of our core investment
premise that while all farmland should experience growth in a strong agricultural
commodity market, Saskatchewan should outperform other prairie markets as it
must close a fundamental discount - the evidence for this is that while SK
appreciated 9.1% in the first half of 2012, its neighbour AB appreciated 5.7%.
Stephen graduated from London Business School and is the founder of one of
Canada's largest farmland investment funds, Agcapita, and Petrocapita Income
Trust an energy investment fund. Petrocapita and Agcapita are built around
the core premise that the world is in a bull market in commodities driven by
inflation and a step-change increase in demand and, accordingly, that investments
with direct or indirect exposure to commodities in a politically stable environment
such as Canada will provide above average returns. Agcapita holds a diversified
portfolio of farmland and Petrocapita holds a diversified portfolio of low
risk, producing energy assets.
Stephen has over 15 years experience as a fund manger - working for organizations
such as the European Bank for Reconstruction and Development, Societe Generale
and Baring Brothers. Stephen has appeared on Business News Network and CBC
News and been quoted in such media outlets as Fortune, the Financial Times
and The Globe and Mail.
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The opinions, estimates, projections and other information contained herein
are not intended and are not to be construed as an offer to sell, or a solicitation
to buy any securities, including any exempt market securities, nor shall such
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advice or as a recommendation to enter into any transaction. Please contact
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