Tag Archives: report
New Report from Statistics Canada Confirms Agcapita’s Views on Farmland Investment
Statistics Canada’s newest raw materials report shows prices for raw fruits and vegetables have shifted dramatically over the past five years. Calgary, Canada, October 03, 2013 –(PR.com)– On Monday, September 30th, 2013 Statistics Canada released its monthly raw materials price index reflecting the prices paid by Canadian manufacturers for key ingredients. In some cases, prices for raw fruits and vegetables have shifted dramatically over the past five years. In August, the price index for fresh fruit inputs had risen by almost 15 per cent compared with August, 2008, while it had gone up by more than 16 per cent for raw vegetables over the same time period. (An index value of 100 set equal to prices in 2008 shows that by 2013, fresh fruit inputs had jumped to 114.9 and raw vegetables soared to 116.2.) Latest data shows that the price for potatoes is up 27 per cent in five years. By comparison, general inflation in Canada, as measured by the consumer price index, has risen by only 6.5 per cent over the same time period. It is worth mentioning that over the same period farmland prices in Saskatchewan roughly doubled as per Farm Credit Canada reports. The findings of Statistics Canada support Agcapita’s belief that demand for agricultural products will push farmland prices higher. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for “food, feed and fuel” will continue to move crop prices higher over the long-term. Agcapita’s series of farmland funds continue to show great appeal to conservative investors concerned with inflation and the volatility of their existing public equity investments. Farmland has similar inflation hedging qualities to gold but with an ongoing cash yield that gold lacks. Farmland returns exhibit low volatility and this combined with the high absolute returns from farmland equate to a favorable Sharpe ratio. Agcapita’s funds directly hold diversified portfolios of farmland in western Canada, and in particular in the highly price competitive province of Saskatchewan. Investors are provided with the comfort of a direct investment in farmland combined with a model of front-end loaded cash rents. Agcapita Farmland Fund IV has launched in April 2013 with a $20 million offering. Agcapita is the only farmland investment fund eligible for registered plans (RRSP, TFSA, RESP etc.). Fund IV is open to investors in BC, Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland and accredited investors in Quebec. If you are interested in finding out more about the Fund IV offering please feel free to email us on enquiries@farmlandinvestmentpartnership.com Contact Information Agcapita Partners Karim Kadry +1-587-887-1541 Contact www.agcapita.com Continue reading
Report Finds Biofuels Offer Economic Means To Meet GHG Goals
Taylor Scott International News Taylor Scott International Taylor Scott International, Taylor Scott Continue reading
Rabobank Report Finds U.S. Land Values Will Level
By Agri-Pulse staff ST. LOUIS, Sept. 19, 2013 -The era of extremely low interest rates and extraordinarily high commodity prices is drawing to a close, according to a new report from the Rabobank Food & Agribusiness (FAR) Research and Advisory group. As this trend nears an end, the prices of U.S. land values will level. “We’ll likely see lower commodity prices this year, but they aren’t going to be low enough long enough to substantially impact land values over the coming year or so,” says report author and Rabobank Food & Agribusiness Research and Advisory (FAR) senior analyst, Sterling Liddell. “In the short term, strong farmer balance sheets and high rental rates will support current levels. However decreasing commodity prices will keep the values from accelerating as rapidly as they have been.” The report, “Land Values Peaking Out-But Not Down,” finds in the medium term, the single greatest risk to U.S. agricultural land values is looming higher interest rates. Interest rates have been increasing through the first half of 2013, but based on the current Federal Reserve policy, a significant increase isn’t expected until 2014 or 2015. “We are entering an era where planning how you’re going to pay for your land is likely to become as important as planning for marketing your crop,” notes Liddell. The report forecast finds a decline in land values in the central U.S. of 15 to 20 percent over the next three years. In the Western and Southeast U.S., the decline will be less marked than in the Midwest. Corn was the leader in the commodity price boom, so as land values decrease in the Midwest, there is likely to be a general decrease across the Central U.S. as far south as Louisiana, the report explains. Rabobank also notes that while an increase in interest rates will have a similar impact on agricultural land values throughout the country, the amount of change will depend on the type of crop production and proximity to urban areas. Continue reading
