We are very pleased to pass along the results of the Farm Credit Canada Farmland Values Report. According to Farm Credit Canada the average value of farmland in Saskatchewan increased by 9.1% during the first half of 2012. FCC reported that "The latest increase is part of a trend that shows farmland values have been rising in the province since 2002. In the two previous six-month reporting periods, farmland values increased by 10.1% and 11.6%, respectively..."

Once again, we view the FCC results as affirmation of our core investment premise that while all farmland should experience growth in a strong agricultural commodity market, Saskatchewan should outperform other prairie markets as it must close a fundamental discount - the evidence for this is that while SK appreciated 9.1% in the first half of 2012, its neighbour AB appreciated 5.7%.