Ag-centric: How investors are seeking exposure to farmland

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Canadian farmland provides a unique investment opportunity for family offices, according to Scott vanEngen, Financial Planning Specialist with the Family Office Services team at RBC Dominion Securities:

  • Farmland offers investors a stable asset with some cash flow attached to it
  • Farmland has generally continued to increase in value over decades
  • The value of farmland has a low correlation to equities
  • Farmers typically make excellent stewards of the land
  • Farmland REITS are a way for like-minded individuals to invest in capital
  • Family offices can play an important role in encouraging next-generation young farmers

“Owners of farmland have little difficulty leasing the land they acquire.”

—Scott vanEngen, RBC Dominion Securities

 

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Sources

canadianfamilyoffices.com, Ag-centric: How investors are seeking exposure to farmland, October 6, 2023