Farmland is an asset class that traditionally shows less volatility than other investment options. Highlighting its stability and track record of positive returns, Ontario farmland has only realized decreases in value 6 times in the past 50 years – less than the S&P 500, TSX, and 10-Year US Treasuries.
Food security, changing climate trends, improving technology, geopolitical uncertainty, inflation and increasing scarcity of highly productive farmland are factors that support an outlook for this unique real estate asset class to continue its track record of sound performance.
Investors have found it difficult to participate in the farmland asset class because of its unique and innate qualities that are not widely understood by investment firms and the necessary industry relationships that are foraged though experience in the agriculture sector.
Soil types, productive capabilities, cropping options, and management practices are just some of the variables that impact the value of farmland. Keystone Farmland’s team understands these variables and leverages industry relationships to find high quality farmland and use industry-leading evaluation processes before acquisition.
Keystone Farmland vets progressive, established, and skilled farmer operators before partnering in long-term lease agreements, thereby providing tenants financial incentive to take a long-term management approach to the farmland which preserves and increases the value and marketability of the asset.
