U.S. farmland The US. farmland investment industry represents more than $2.7 trillion of farmland property. We believe that the US. has strong agricultural advantages in its topography and geographic position. Its varied climatic regions allow for the production of a wide variety of agricultural crops, and its central position between industrial centers in Asia. Europe, Canada and South America make it a favorable location for trading. Additionally, unlike many developing nations, the U.S. is a politically stable nation with well-developed infrastructure for transportation and export of crops through established railways and ports; as well as the financial resources (such as investor capital and government support through crop insurance) to sustain its agriculture industry, giving the U.S. a comparative advantage even when the U.S. is not the lowest-cost producer. Market Opportunity Farmland as an asset class The U.S. farmland investment industry is large and well diversified by commodity groups. As a dominant producer and exporter of key agricultural crops, the U.S. is a leader in agricultural trade. We believe an investment in U.S. farmland can be seen as a hedge against inflation, as farmland value may continue to appreciate regardless of the inflationary environment. Global trends of increasing wealth and population arc expected to continue, which should increase demand for farmland and agriculture products. Meanwhile, we believe additional factors that should increase farmland values such as supply constraints due to decreasing arable land, water concerns and urbanization of emerging markets arc likely to persist. The U.S. is a world leader in the agricultural industry Crops harvested are broadly categorized into row crops and permanent crops. In general, due to the structure of leases, row crops generate lower cash yields and exhibit less variability of rental return, while permanent crops generate higher cash yields and exhibit greater