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AGinvest is an Ontario farmland investment manager and provider of capital financing for farmers.
It was formed to raise capital to buy, optimize and manage premium Ontario farmland. They currently work with 25 farm partners across 6,400 acres and have $100 million in assets.
The ability to invest with AGinvest is limited to accredited investors who are Canadian residents. There is also a high minimum investment of $150,000 Canadian dollars.
- Access to Farmland, which has strong track record
- Focus on Ontario Farmland
- As of 2021, 4 year compound annual growth rate (CAGR) is now sitting at 18.02%
- Accredited Investors Only
- Limited to Canadian Residents
- High minimum investment of $150,000 Canadian dollars
Founders of AGinvest Farmland Properties Canada are on a mission to preserve farmland now and into the future.
Without question, there is a growing demand for large-scale agricultural production as the world’s population continues to soar. At the same time, the world loses thousands of arable acres each year to urban development, soil degradation and water shortages. Climate change is yet another challenge to running successful farms with maximum production.
Preserving farmland is important as the demand for food continues to increase each year. The increased demand leads to strong appreciation. Therefore, farmland can be a great opportunity for investors.
In this article, we take a deep dive into Ontario farmland and provide a complete AGinvest Farmland review.
AGinvest Farmland Review: Highlights
- Limited to Accredited Investors Only
- Investors must be Canadian residents
- Minimum investment of 150,000 Canadian dollars
- Farmland investment platform dedicated to Ontario farmland
- Management fees of 1.25% – 1.75%
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What Is AGinvest?
AGinvest is an Ontario farmland investment manager and provider of capital financing for farmers. It was formed to raise capital to buy, optimize and manage premium Ontario farmland. They currently work with 25 farm partners across 6,400 acres and have $100 million in assets.
The company got started in 2016 with its first investment in Canadian farmland. Since its inception, the company has established itself as a top investment platform for those looking to get started with Canadian farmland.
Why Farmland In Ontario?
Ontario farmland, in particular, is extremely well-positioned both geographically and logistically, to help supply the planet’s increasing demand for high quality, fresh food.
The company targets farmers primarily in Southwestern Ontario because the region has:
- Healthy, rich soil deposited in the region during the last glacial period
- Access to unlimited fresh water supplies through most of the Great Lakes basin
- Major urban markets in the surrounding areas that have a high demand for fresh market produce
- An extended frost-free growing season with ample heat for growing 200 plus staple crops
- Consistent rainfall throughout the growing season means there is little need for costly irrigation systems
- Outstanding locations and infrastructure that can quickly access ports to the global market
- Highly educated workforce able to plan and manage farm operations efficiently
Ontario Farmland Historical Returns
The historical performance of Ontario farmland during periods of high inflation makes it a solid asset.
Ontario farmland has historically provided outstanding returns with less volatility than the S&P500 and other widely followed indexes. As of December 2016, Ontario farmland delivered an annual total return of 10.8% over a 25-year period.
AGinvest can diversify your investment portfolio with Ontario farmland. Land is one of the oldest asset classes out there. You can earn money through an increase in value of the land and also from annual cash rent paid by the farmers.
With the exception of just 5 years, farmland values in Ontario have risen steadily in the past 70 years.
Recently, businesswire published a piece on the returns for AGinvest. Including 2021 figures, the 4 year compound annual growth rate (CAGR) is now sitting at 18.02%.
How Do Farmers Benefit From The Investments?
AGinvest helps farm families:
- Help them quickly achieve scale
- Generate reliable annual income
- Make effective long-term plans on decisions such as land use and equipment purchases
- Create exceptional tax efficient strategies
- Find solutions to make their farming operation more profitable
- Reduce debt, some of which can be accumulated over decades
- Provide transitions for the wave of farmland transfers from generation to generation
What Are The Requirements For Investing In AGinvest?
The initial minimum investment in the AGinvest Farmland Company is $150,000 Canadian dollars.
If you are either a Canadian citizen or permanent resident of Canada, and an accredited investor as defined in the Securities Act (Ontario), you are eligible to invest in the AGinvest Farmland Company.
The Management Fee is as follows:
|Share Class||Amount Invested||Annual Fee|
|B||$1,000,000 To $5,000,000||1.50%|
What Is The Land-Share Exchange Program?
AGinvest leaders have found that improving and protecting the productivity of a farm is essential for long-term sustainability and value.
AGinvest works with progressive farm operators using a grower’s agreement. Its Land-Share Exchange Program is an operational partnership that offers Ontario farmers a way to own and run their farm while having the liquidity that contributes to their long-term success.
AGinvest’s Land-Share Exchange Program gives farmers the flexibility of partial farm liquidity now, and partial or full liquidity in subsequent years. For example, they could request 60% cash and 40% shares in return for their current property. They can then use the proceeds to buy new equipment, increase their acreage or even invest outside the farm.
Receiving shares defers their tax liability on capital gains to a later date. The taxes saved are then invested back into Ontario farmland in a professionally managed portfolio that continues to earn attractive returns.
Ownership of shares in an AGinvest Farmland Fund provides successors with a unique tax strategy. Each shareholder retains their eligibility for a lifetime capital gains exemption and significant tax savings if and when they choose to sell.
- Investors are supporting family farms so they can be passed down from generation to generation. They are part of a solution to feeding the world’s explosive population growth now and in decades to come.
- AGinvest raises capital specifically to increase the value of Ontario farmlands.
- Its founders come from a farming background. The company is led by people who have spent a lifetime working on and servicing Ontario farms. They use this hands-on knowledge in every aspect of the company.
- 4 year compound annual growth rate (CAGR) is now sitting at 18.02% as of 2021.
- The initial minimum investment in the AGinvest Farmland Company is $150,000 Canadian dollars.
- You must be a Canadian citizen or permanent resident of Canada
- Management fees are higher than some other farmland investments, however returns generated by AGinvest have been higher as well.
- The website has a wide range of “filler” blog content. One video is described as making the farmland more tillable.
- Manufacturers get free plugs in videos. Yes, they mention John Deere, but also dozens of other equipment companies.
AGinvest Farmland Review: Conclusion
Investing in farmland is without question a noble move to help solve the rising demand for food across the globe.
AGinvest founders have done their homework before selecting Ontario, Canada, as the target point for their operations. There are significant advantages to Ontario farms, including fertile soil, reasonable temperatures and access to water sources.
An extensive Land Share-Exchange Program spells out exactly how the partnership with farmers works.
Investors need to have deep pockets, as the minimum is $150,000. Returns will be made through a rise in value of the land, as well as yearly rental income from the farmers.