Stephen Johnston, a partner in Agcapita, which specializes in farmland investment, said farmland has become a popular investment vehicle partially because the market is stable for the most part. “Farmland is not very volatile as far as price changes go,” he said. It provides a compound annual increase in return of about 11 percent on the Prairies. The two most important factors in determining the value of a parcel of land are its productivity and the operating margins it can generate. While farmland has been seen as an investment for many years, especially in the United States, it’s still a fairly novel idea in Canada, Johnston said.