Calgary, Canada, September 21, 2013 --(PR.com
)-- According to the report UK farmland prices rose by 1.8% in the April-to-June quarter to reach an average price of £6,421 per acre. Knight Frank revealed that they received offers of over £10,000 per acre for a farmland on an estate in the west of the country.
Knight Frank also highlighted the differing fortunes of farmland and gold, which are often classed together as "safe haven assets," and which some commentators see as showing price correlations. However, gold prices tumbled by some 20% during the April-to-June quarter.
The report states that for a number of years gold has been the only mainstream asset to outperform farmland, but over the short-term this situation has been reversed.
The findings of the consultancy match Agcapita’s strong believe that fundamentals are in favor of Farmland investment. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for "food, feed and fuel" will continue to move crop prices higher over the long-term Further.
Agcapita’s series of farmland funds continue to show great appeal to conservative investors concerned with inflation and the volatility of their existing public equity investments. Farmland has similar inflation hedging qualities to gold but with an ongoing cash yield that gold lacks. Farmland returns exhibit low volatility and this combined with the high absolute returns from farmland equate to a favorable Sharpe ratio. Agcapita’s funds directly hold diversified portfolios of farmland in western Canada, and in particular in the highly price competitive province of Saskatchewan. Investors are provided with the comfort of a direct investment in farmland combined with a model of front-end loaded cash rents. Agcapita Farmland Fund IV has launched in April 2013 with a $20 million offering. Agcapita is the only farmland investment fund eligible for registered plans (RRSP, TFSA, RESP etc.). Fund IV is open to investors in BC, Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland and accredited investors in Quebec. If you are interested in finding out more about the Fund IV offering please feel free to email us on firstname.lastname@example.org
This news release may contain certain information that is forward looking and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words "anticipate," "expect," "may," "should" "estimate," "project," "outlook," "forecast" or other similar words are used to identify such forward looking information. Those forward-looking statements herein made by Agcapita, if any, reflect Agcapita's beliefs and assumptions based on information available at the time the statements were made (including, without limitation, that (i) the demand for agricultural commodities will continue to grow at a pace that is unlikely to be matched by growth in agricultural productivity, and (ii) investment demand for tangible assets such as agricultural commodities and farmland will continue to increase for the foreseeable future). Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material. Factors which could cause actual results or events to differ materially from current expectations include, among other things: risks associated with the ownership and operation of farmland, including fluctuations in interest rates, rental rates and vacancy rates; general economic conditions; local real estate markets; supply and demand for farmland; competition for available farmland; weather; crop diseases; the price of grain and other agricultural commodities; changes in legislation and the regulatory environment; and international trade and global political conditions. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release (if any), which is given as of the date it is expressed herein. Agcapita's undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.