“I ended up with this idea of a true partnership that injects capital into the farm to enable growth while maintaining the land base control with the farmer,” Faulkner says. “The farmer still owns the portion of land he or she can afford, and any profit and capital appreciation that is created by the partnership is shared equitably by the farmer and the investor.”
Often, farmers have the expertise but not the funds to grow and improve their farming operations. Furthermore, the increasingly capital-intensive nature of farming deters younger generations from becoming farmers. By partnering with Canadian farmers to invest in land, inputs and equipment, and enhance the viability and sustainability of operations, Area One Farms Fund V is helping to improve farmland and farm operations, making farming a good option for the next generation
“We are proud to invest in our Canadian farmers through a $15 million investment in Area One Farms. Farmland has shown historical resilience through multiple economic cycles and market disruptions. In addition to potential inflation-hedging characteristics, farmland can improve the overall performance of a portfolio due to its low correlation with traditional financial assets.
Our fund investment in Area One Farms includes 27 farm partnerships, supporting 46 farm families and sustaining 71 full-time jobs. The focus of the fund is to help farmers expand their operations in a stable, committed partnership. Profitability and capital appreciation created by the partnership is a win for both investors and farmers.”
