Annual Report 2023: Agricultural Farmland - Avenue Living Asset Management Skip to content

Agricultural
Farmland

Since Avenue Living launched its first Agricultural Land Trust (ALAL) in 2016, the case for investing in farmland has become even more clear. From inception, ALAL has grown to manage $187 million in assets in Saskatchewan. ALAL, which invests in productive farmland throughout the region, includes varied terrain that produces a range of crops including grains, pulses, and canola — crops that exhibit strong potential to meet global demand from fast-growing import-dependent nations. The Avenue Living Agricultural Land Trust has a fixed sunset date within the next year. To replicate our success in the agricultural space, we launched a new fund in late 2022, Tract Farmland Partners LP (Tract). This new fund will give investors a way to keep benefitting from our experience with Saskatchewan farmland, and our active management capabilities.

$ 0 M+
Assets Under
Management
0
Farms

0 K
Acres Under
Management
0 %
Annualized return
since inception (Class A)

Investment Strategy

ALAL and Tract Farmland Partners LP both target legacy-run assets. The funds consolidate productive agricultural farmland, with Avenue Living owning the land and not undertaking farming operations directly. The funds’ ownership holds the ability to acquire farmland through approvals granted by the Farmland Security board. This allows existing operators to improve margins and free up capital for operational needs rather than asset needs.

“We’ve witnessed a massive change in people’s awareness and interest in the agricultural space over the past 3 years, and we’re very excited to be part of that wave. I believe that there’s no other form of real estate where the tenant and the landlord are so aligned. Our tenants are financially motivated to look after the land like it was their own as that is how they maximize crop yields.”

– Leif Snethun

CEO, Avenue Living Agricultural Land Trust
& Tract Farmland Partners LP

Returns

C$180,000

C$160,000

C$140,000

C$120,000

C$100,000

2017

2018

2019

2020

2021

2022

Calendar
Returns

2019

0 %

2020

0 %

2021

0 %

2022

0 %

Annualized
Returns

1 Year

0 %

3 year

0 %

5 year

0 %

Inception

0 %

Note: Fund returns are based on Class F Trust Units.  Figures presented as at September 30, 2023

Fund Returns

C$220,000

C$200,000

C$180,000

C$160,000

C$140,000

C$120,000

C$100,000

2016

2017

2018

2019

2020

2021

2022

2023

Calendar Returns

2019

9.29%

2020

8.55%

2021

13.16%

2022

13.38%

Annualized Returns

1 Year

12.61%

3 year

16.74%

5 year

16.24%

Inception

12.44%

Note: Fund returns are based on Agricultural Land Trust Class A Trust Units. Figures presented as at November 30, 2023

$213 Million+

ASSETS UNDER MANAGEMENT​

86,000+

Acres

94

Farms

This data is the aggregated amount between both partnerships. See details below.

Fund Returns

C$220,000

C$200,000

C$180,000

C$160,000

C$140,000

C$120,000

C$100,000

2016

2017

2018

2019

2020

2021

2022

2023

Annualized Returns

1 Year

12.61%

3 year

16.74%

5 year

16.24%

Inception

12.44%

Note: Fund returns are based on Agricultural Land Trust Class A Trust Units. Figures presented as at November 30, 2023

$213 Million+

ASSETS UNDER MANAGEMENT​

86,000+

ACRES

94

Farms

This data is the aggregated amount between both partnerships. See details below.

Fund Returns

C$220,000

C$200,000

C$180,000

C$160,000

C$140,000

C$120,000

C$100,000

2016

2017

2018

2019

2020

2021

2022

2023

Annualized Returns

1 Year

12.61%

3 year

16.74%

5 year

16.24%

Inception

12.44%

Note: Fund returns are based on Agricultural Land Trust Class A Trust Units. Figures presented as at November 30, 2023

Key Facts

Case Study

Pre-capex

Opportunity

This property presented the opportunity to increase the amount of farmable land through land reclamation, making it more attractive to current and prospective tenants. Clearing trees and other obstacles allows a tenant to operate the land and their machinery more efficiently resulting in lower operating costs for the tenant while increasing their yield.

This synergistic investment also increases the value of the land, because its value is largely driven by the revenue it generates per acre.

POST-capex

What We Did

We implemented a 3-year bush-clearing program that led to an additional 550 farmable acres.

We invested $163,680 to push trees and clear land, bury tree piles, backfill holes, and disc rental to get the land ready for seeding. Additional clearing of trees and brush is set to take place in 2023 to further increase the farmable acres of this property.

Key Acquisitions

Interactive Map

Hover over numbers to view
key acquisitions

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