EFTA01384975.pdf

Cumulative Returns (1991—June 2015) Conon:Oise Return ot jone .1(1, 2015 0991 = indexed to 1001 (1991—Jun. 20151 1.800 1400% 1490% 1.600 1400% k IA00 l2® 1200% 1000% tin 1.000 P00% 740% KO 603 533% B00% 1- 40 400% 200 200% 0 1991 1997 2003 2000 2Cris 0% FainLind SAP se%) AP441414, 44 - Fen,land — WW 2 —aPatenveds —M O% Sonny: NCREIF, SNI. Financial. U.S. farmland may serve as a hedge against both inflation and deflation with limited correlation to other asset classes We believe the farmland asset class may provide both diversification and a hedge against inflation in a portfolio of investments. The Purdue University Center for Commercial Agriculture published research on farmland values. In its analysis, the Center found that over a period of time that spanned various market cycles (1914.2011) farmland values were highly correlated with inflation with a correlation coefficient of 0.63 between land prices and the Consumer Price Index. In addition, farmland's returns to major asset classes such as the US. 10-Year Treasury and the S&P 500 Index, as noted in the chart below (based on research from The Center for Farmland Research at the University of Illinois), demonstrate farmland's potential ability to diversify a portfolio. Return Correlation with U.S. Farmland (1970 to 2012) 30.2% Gold I tiv. 10-Year Treasury (9.6%) Baa Bonds (10.0%) IIII Equity REITs (26.3%) S&P 500 (26.6%) MSCI EAFE Index (35.0%) OJIA (40.0%) (20.0%) 0.0% 20.0% 40.0% Source: University of Illinois, Center for Farmland Research. U.S. farmland performance during different interest rate environments and during recent credit shocks U.S. farmland property values have generally been increasing over the long-term, although exceptions may exist, with lower than historical debt-to-equity and debt-to-asset ratios over the past 44 years, and have risen in both increasing and decreasing interest rate environments. With less debt, farmland has been and may be more resistant to interest rate changes, credit shocks and financial recessions. During the financial crisis in MK the NCREIF Farmland Index generated robust gross cumulative gains while the S&P 500 Index and the MSCI World Index generated substantial losses. 152 CONFIDENTIAL - PURSUANT TO FED. R. CRIM P 6(e) DI3-SDNY-0085715 CONFIDENTIAL SDNY_GM_00231899 EFTA01384975