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Farmland Omega Ratio

A review of the Canadian farmland investment market over the last 10 and 20 years reveals: a farmland holding would have generated omega ratios substantially above one for return thresholds of 0% and 5%. As for a return threshold of 10% omega ratios were substantially above one in the 10-year period while ranging between 0.3 and 0.55 for the 20-year period. Even with relatively high nominal return thresholds Canadian farmland can be reasonably expected to meet or exceed return expectations.