Providing Agricultural Investment Services With A Seasoned Team
Canadian farmland has been a powerful alternative to other more conventional real estate investments. Crop farms, located primarily in the provinces of Alberta, Saskatchewan and Manitoba, are less expensive than those found in any other G8 country and have been steadily appreciating over the past 10 years.
Total arable land inventories in Western Canada exceed 65 million acres. Of that, 46 million acres are seeded annually for just two crops, wheat and canola. It is projected that both corn and soy bean production will significantly increase over the coming years, further contributing to the improved performance forecasted in Canadian farms.
Rising commodity prices, efficient equipment and better farming techniques have also improved the performance of Canadian Crop farms. This trend is likely to continue as the world faces increased pressure on its food production abilities due to population growth and diet changes in the world’s developing countries. Other key considerations for farmland investment in Canada are as follows:
- Canada has an abundant fresh water supply
- Canadian arable land is highly productive
- Land is typically held by families and mass consolidation in ownership has not occurred
Recognizing this as an exceptional investment opportunity, Kipling created its Agriculture Investment Division. This group sources, procures and manages the farms. The Kipling Group provides the investment management expertise in the areas of Finance, Risk Management, Governance, Audit, Legal, Compensation, Reporting, Acquisitions/Dispositions, Due Diligence and Investment services, that are necessary to succeed in this field.
Great farmers cannot be hired, but they can be great partners. Our unique model, partners our investors with proven and experienced farm operators. This yields higher returns as our investors participate directly in the profits generated from operating the farm and also in the appreciation of the land values.
The key elements to our Agriculture strategy are
- Operate well run and profitable crop farms
- Partner with best in class farmers
- Assemble large tracts of land in primary markets with solid liquidity characteristics
- Implement proven risk management strategies
- Proper diversification techniques are applied to the crops and land inventories
Kipling believes that responsible and sustainable land use practises are a critical component in achieving and protecting our investment returns.
Kipling applies the highest level of oversight to manage risks. We ensure that our farm partners have the best crop insurance coverages in place at all times. Monthly, we monitor production levels, crop selling price, non-labour and direct labour expenses and the condition of other physical assets. Annually, we complete detailed operating and capital budgets as well as 5 year strategic plans and provide our clients with an operating and financial audit as performed by one of the country’s leading accounting firms.
Investing in farmland in Canada has historically been a very safe and profitable investment. The future for Kipling Agriculture and their Investors in this unique real estate initiative looks very bright and highly profitable.