MESSAGE FROM KEN
Dear friends,
I’m excited about theopportunity to workwith old friends andmeet new people as　Director of Acquisitionsfor HAIG. As thisnewsletter describes, there are a　number of ways that we can worktogether to further our mutual business　objectives in the　production agriculturesector. As a buyer of high-quality　cropland, orchards and vineyards for　our managed investment accounts,HAIG is expanding its focus across　industries and geographic regions.We can help you structure a new　acquisition or a sale lease-back of an　existing property to help meet your　integration needs, while　freeing up　capital to improve your balance sheet　or expand other aspects of your　business. In some cases, we can　even assist you with the development　of permanent plantings. Please take　a minute to read through this initial　newsletter and then call or e-mail me　with your comments, impressions,　and questions. I look forward to　speaking with you and meeting you.
Kenneth Warlick　P.O. Box 78500　Charlotte, NC 28271-7035　
(704) 604-2988617-210-8616 fax　kwarlick@hnrg.com

The Hancock Agricultural Investment　Group (HAIG) is enhancing its sourcing　strategy for U.S. farmland investments. With　the addition of Kenneth Warlick in the newlycreated　role of Director of Acquisitions, HAIG　seeks to complement and expand its current　acquisitions program to meet the needs of its　growing client base. (See complete write-up　on Warlick on page 4.) Currently, most　acquisitions are sourced through HAIG’s U.S.　property manager, Farmland Management　Services (FMS) and their network of farm　managers, tenants, brokers and other contacts.　This network will continue to source properties　for HAIG clients.　

Develop Strategic Alliance Partners　
In his new position, Warlick will call directly on　integrated agribusinesses and owner-operators in　an effort to develop “strategic alliance” partners　with these entities in a number of industries,　Acquisitions Summer 2007 | Vol. 1, Number 1 Update　HAIG Expands　Acquisition Resources　including wine, produce, fruit, nut, grain and　natural/organic food sectors, among others.

The Strategic Alliance Works as Follows:
(see diagram next page)

HAIG acquires properties for its client　accounts

Strategic partner leases property from or　manages property for HAIG

HAIG client receives income from cash　lease or crop sales

Strategic partner retains crop (if leased) or　a management fee (if directly operated)

Strategic partner maintains control of the　land resource without affecting its balance　sheet or improves balance sheet with sale　of previously owned property

　This makes strategic partner’s capital　available for other operations

HAIG clients benefit from high-quality,　well-managed investments