Companies launch the Ceres - Sprott Institutional Farmland Fund to provide institutional investors the opportunity to participate in the North American farmland investment market.
A company that once billed itself as the largest corporate grain farm in the country is no longer growing crops in Western Canada.
A fund founded by former Canadian prime minister Paul Martin has put its money behind a venture aimed at becoming the country's largest farm, aiming to farm at least 50,000 acres within its first year.
The model of owning farmland and operating it suits long-term, low-risk investors, with most investments so far being from institutions. The downside is that farmland investments provide little chance of a quick exit, unlike more liquid holdings.
According to Steve Yuzpe, the CFO of Sprott Resource, ongoing population growth, dwindling arable land, water issues, even the falling yield productivity delivered by genetically modified seeds will be the big drivers for continued record demand—pushing food prices ever higher.
Eric Sprott's hunger for commodities may have wavered since last year's price collapse took a hefty strip off revenues at Sprott Inc., his money-management business. However, the legendary hedge-fund manager is still placing bets on at least one commodity: grain.