The Canada Pension Plan has signed an agreement to acquire the assets of Assiniboia Farmland LP, a fund that owns farmland in Saskatchewan, for $128 million.

The deal is expected to close in January. Founded in 2005, Assiniboia owns about 115,000 acres of Saskatchewan farmland, one of the largest investable farmland portfolios in Canada.

The land mainly produces wheat, barley and canola.

It was only last year that CPP launched its agricultural investment program, initially targeted at buying farmland in Canada, the U.S., Australia, New Zealand and Brazil.

"“Farmland is an attractive asset class that has historically delivered stable, risk-adjusted returns and the global outlook for agriculture in general is positive due to increasing demand for agricultural products," CPP's senior vice-president of private investments André Bourbonnais said in a statement.

The Canada Pension Plan Investment Board manages $192 billion in assets that will at some point pay benefits for 18 million Canadians.