Agcapita is Canada's only RRSP and TFSA eligible farmland fund and is part of a family of funds with almost $100 million in assets under management. 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 created the Farmland Investment Partnership to allow investors to add professionally managed farmland to their portfolios.
Inspired Selection How To Get Into Publishingverityhawson
This document provides guidance on entering the publishing industry and outlines several key roles within publishing. It discusses editorial, design, production, sales, marketing, rights, and contracts roles. For each role, it identifies important skills and qualifications. The document encourages readers to research different types of publishers and gain relevant work experience to be competitive for entry-level publishing jobs.
The "Lost" Decade – All For Naught In The Oughts?Jeff Green
The end of the year is a natural time for reflection, and the current period is no exception. However, this year also marks the end of a decade, one that many investors would like to forget. It is also a season for looking ahead, with some degree of hope and optimism.
This document promotes the Enterprise COACH program, which aims to help managers and executives improve the performance and results of their teams. It does this through coaching materials, group coaching sessions, and a focus on areas like goals, communication, leadership, and motivation. The program is flexible and customizable for teams of any size, with the goal of helping teams become more focused, engaged, and driven to achieve better results.
Veripath has over 90,000 (2021) acres across its Canadian row-crop portfolios and its principals have been investing in the Canadian farmland space since 2007, including creating the first RRSP eligible Canadian farmland fund. Minimum and zero tillage methodologies have very high penetration in Canadian prairies (AB, SK and MB). These tillage techniques are accepted to increase carbon/biomass in the soil and are a key component of conservation/regenerative agriculture practices. Veripath portfolios have minimum and zero tillage usages levels that on average are materially higher
than baseline provincial levels
Canadian Farmland - Saskatchewan Provincial Fact SheetVeripath Partners
Saskatchewan farmland ownership regulations allow Canadian citizens and permanent residents, as well as fully Canadian-owned corporations and organizations, to own farmland without restrictions. Non-residents and foreign entities can own up to 10 acres, while partially foreign-owned entities controlled by Saskatchewan residents can own up to 320 acres. Saskatchewan accounts for 38% of Canadian farmland and major crops include wheat, canola, oats, lentils, and barley. The province has over 68 million acres of arable land and produces over 1.78 million metric tonnes of total crops annually.
Quebec has ownership regulations for farmland that deem corporations and other legal persons as residents based on majority ownership and control by Quebec residents. Non-residents can apply to purchase farmland if the land is unsuitable for cultivation or livestock, or if the non-resident intends to settle in Quebec within 4 years and become a citizen or permanent resident. The province limits non-resident purchases to 1,000 hectares per year. The fact sheet also provides key metrics on Quebec farmland, including 8 million acres of arable land representing 5% of Canadian farmland. Major crops include corn, soybeans, barley, oats and wheat.
Inspired Selection How To Get Into Publishingverityhawson
This document provides guidance on entering the publishing industry and outlines several key roles within publishing. It discusses editorial, design, production, sales, marketing, rights, and contracts roles. For each role, it identifies important skills and qualifications. The document encourages readers to research different types of publishers and gain relevant work experience to be competitive for entry-level publishing jobs.
The "Lost" Decade – All For Naught In The Oughts?Jeff Green
The end of the year is a natural time for reflection, and the current period is no exception. However, this year also marks the end of a decade, one that many investors would like to forget. It is also a season for looking ahead, with some degree of hope and optimism.
This document promotes the Enterprise COACH program, which aims to help managers and executives improve the performance and results of their teams. It does this through coaching materials, group coaching sessions, and a focus on areas like goals, communication, leadership, and motivation. The program is flexible and customizable for teams of any size, with the goal of helping teams become more focused, engaged, and driven to achieve better results.
Veripath has over 90,000 (2021) acres across its Canadian row-crop portfolios and its principals have been investing in the Canadian farmland space since 2007, including creating the first RRSP eligible Canadian farmland fund. Minimum and zero tillage methodologies have very high penetration in Canadian prairies (AB, SK and MB). These tillage techniques are accepted to increase carbon/biomass in the soil and are a key component of conservation/regenerative agriculture practices. Veripath portfolios have minimum and zero tillage usages levels that on average are materially higher
than baseline provincial levels
Canadian Farmland - Saskatchewan Provincial Fact SheetVeripath Partners
Saskatchewan farmland ownership regulations allow Canadian citizens and permanent residents, as well as fully Canadian-owned corporations and organizations, to own farmland without restrictions. Non-residents and foreign entities can own up to 10 acres, while partially foreign-owned entities controlled by Saskatchewan residents can own up to 320 acres. Saskatchewan accounts for 38% of Canadian farmland and major crops include wheat, canola, oats, lentils, and barley. The province has over 68 million acres of arable land and produces over 1.78 million metric tonnes of total crops annually.
Quebec has ownership regulations for farmland that deem corporations and other legal persons as residents based on majority ownership and control by Quebec residents. Non-residents can apply to purchase farmland if the land is unsuitable for cultivation or livestock, or if the non-resident intends to settle in Quebec within 4 years and become a citizen or permanent resident. The province limits non-resident purchases to 1,000 hectares per year. The fact sheet also provides key metrics on Quebec farmland, including 8 million acres of arable land representing 5% of Canadian farmland. Major crops include corn, soybeans, barley, oats and wheat.
- Agricultural land use in Ontario is governed by the 2005 Provincial Policy Statement which does not restrict foreign or institutional ownership of farmland.
- Key metrics about Ontario farmland include 13 million acres of arable land, which makes up 8% of Canadian farmland. The average farm size is 57 acres.
- Major crops grown in Ontario include corn at 16% of production, wheat at 16%, and soybeans at 25%.
Legislation in Manitoba allows foreign ownership of up to 40 acres of farmland unless granted an exemption. Only Canadian citizens, permanent residents, and Canadian-controlled corporations and entities can purchase unlimited amounts of farmland. Manitoba has 19 million acres of arable land, representing 11% of Canadian farmland. The major crops grown are wheat, canola, barley, oats, corn, and soybeans.
British Columbia farmland statistics:
- There are 7 million acres of arable land in BC, comprising 4% of total Canadian farmland.
- Major crops grown in BC include wheat (25%), barley (25%), soybeans (24%), and canola (23%).
- The average farm size in BC is 240 acres. Farmland in BC is regulated by the Agricultural Land Commission but there are no restrictions on institutional or foreign ownership of farmland.
Alberta has no restrictions on institutional or foreign ownership of farmland. It has 52 million acres of arable land, comprising 31% of Canadian farmland. Major crops include wheat (48%), canola (23%), and barley (23%). The average farm size is 23 acres.
Alberta accounts for 31% of Canadian farmland and produces over 1.2 million metric tonnes of crops annually. The major crops grown in Alberta are wheat, canola, and barley. The average farm size in Alberta is approximately 23 acres. Canadian citizens and companies are not restricted by foreign ownership regulations when purchasing Alberta farmland.
"Show me the incentive and I'll show you the outcome" – Veripath Farmland Funds Q4 Investor Letter: Investing in a World of Financial Repression, Negative Real Rates, Valuation “Challenges” and Inflationary Forces.
Do G7 governments have an incentive to attempt to keep inflation higher for longer and real rates lower for longer? Negative real rates across a broad spectrum of credit assets are a graphic sign that we inhabit a world of financial repression orchestrated by central banks at the formal/informal behest of sovereign borrowers. In a normally functioning market, lenders do not provide capital to borrowers for negative yields – i.e., they do not pay for the privilege of lending. It goes without saying we are not in a normally functioning market.
Veripath Research "As people in the emerging economies of India and China make the transition to western standards of
living there is an often-overlooked issue – their water
consumption is rising dramatically.
Veripath Farmland Partners Research - portfolio optimization using farmland a...Veripath Partners
A review of the Canadian farmland market over the last 30 years reveals: a farmland holding would have improved the financial performance of typical investor portfolios; realized volatility that was lower than stocks; realized returns that were greater than bonds; a low correlation to traditional financial asset returns; and most importantly domestic institutional and retail investors are clearly under-invested relative to efficient frontier analysis.
Are fiscal/monetary conditions affecting the macro thesis for Canadian farmland investments? Do publicly traded equity investments hedge all inflation regimes? Canada's debt to GDP - looming threat or irrelevancy?
- The document discusses Canadian farmland as an investment during periods of low or negative real interest rates (when inflation is higher than nominal interest rates). It finds that farmland appreciates significantly more during such periods, averaging 11.3% annual returns, compared to periods of higher real rates where returns are barely positive.
- Canadian farmland demonstrated resilience during the 2020 COVID-19 economic disruption, with appreciation of 3.6-8% across provinces.
- Soft commodity prices have increased noticeably in recent quarters, benefiting Canadian farmland and food producers.
This newsletter discusses recent economic and monetary policies that have led to rising government debt and money printing. It summarizes the history of past currency failures in France and Germany when governments excessively issued paper currencies. The author argues that current policies of unlimited deficit spending and money printing will not lead to lasting prosperity and will end in economic problems. The newsletter recommends investing in assets that benefit from emerging market growth, reduce counterparty risk, hedge inflation, and have inelastic demand to improve portfolio returns in this environment.
Equicapita Announces Acquisition of Majority of CCMETVeripath Partners
Equicapita Income Trust and Equicapita Income LP (collectively “Equicapita” or the
“Fund”) are pleased to announce the completion of the acquisition of a 70% equity ownership of CCMET
Group of Companies, a leading provider of integrated, full service materials engineering and testing
services throughout Western Canada, by an affiliate of the Fund.
Equicapita Reaches $100M in Subscribed Trust Capital Veripath Partners
Equicapita Income Trust announces it has completed the raise of $100M in subscribed preferred trust capital.
Stephen Johnston, a partner at Equicapita reports, "Equicapita is pleased to have passed the $100M mark in subscribed capital. Equicapita is part of a group of innovative Calgary based alternative funds seeking alternative investments. As managers we seek to deliver superior investment returns with lower volatility than public markets through private equity investing that combines strong underlying asset fundamentals and a disciplined value style. In practice we look for investments with: established macro drivers (typically in the form of a favourable supply/demand situation) and: a margin of safety (in the form of discounted asset prices, ability to acquire cash flow cheaply). To date, we have successfully deployed capital in multiple investment strategies via a group of funds – in farmland, SME PE, energy and non-bank lending – and currently have approximately $300M in unlevered AUM.
Agcapita is pleased to announce that Agcapita Fund IV has launched. Agcapita Fund V is a $20 million offering and is the only RRSP eligible farmland investment vehicle in Canada. If you would like to receive information about Agcapita Fund V please feel free to contact us at Fund5@agcapita.com or register online at the Agcapita website.
Stephen Johnston, co-founder of Agcapita, commented "Agcapita believes that prices of Canada farmland, in particular Saskatchewan farmland, are discounted to world averages for a tonne of productive capacity. Part of our investment premise is that this gap will close and with the attention that Canadian farmland is receiving from investors it can obviously happen quite quickly. It is this "margin of safety" return driver that attracted us to Canada and Saskatchewan in the first place.”
Investigating the Long Run Relationship Between Crude Oil and Food Commodity ...Veripath Partners
"Crude oil price is believed to be one of the factors that affect food commodity prices. It is an
agricultural production input, therefore the prices of fertilizer, fuel and transportation are affected by the crude oil prices directly, and subsequently they influence the production of grain commodities. There is another dimension to how oil prices can affect food commodity prices, and it is from the derived demand for biofuels. With rising oil prices, demand for biofuels increase and the production
of these fuel is highly dependent on the availability of agricultural feed stocks. So it is primarily because of the above two dynamics that I want to investigate if there is a long term relationship between crude oil prices and food commodity prices. This is an important issue in present times because of the rising prices and volatility in the oil and food commodity markets. I will try to examine if there exist a cointegrating relationship between crude oil price and food commodity price for the period between 1980 to 2011. The food commodities selected are maize, rice, soybean and wheat. Time Series econometric techniques were applied to find our results. The Engle-Granger Co-integration test revealed that there is long run relationship between crude oil prices and maize, soybean, wheat. But, rice prices were not found to be cointegrated. I also carried out the traditional Granger Causality test to check whether causality exist between the two prices. We find that there is unidirectional causality, with only crude oil prices ‘Granger causing’ each of the four food commodity prices. The reverse was not true, as crude oil prices were not found to be influenced by price of food commodities. So from our results we can confirm the significance of oil prices and the impact it has on the food commodity prices."
VBA Journal: Farmland, Reaping the Reward of IlliquidityVeripath Partners
Farmland is an asset class that provides a legal claim on land, and the agricultural produce that is grown on that land, in perpetuity. The returns from farmland are like those of a perpetual bond, with the proviso that operational farming returns show high volatility, being largely driven in the short term by climatic conditions and commodity prices. Bonds are typically priced at between 20 and 50 times returns, which is consistent with farmland price multiples. In contrast, equities in a moderate growth sector generally trade at a price to earnings ratio of approximately 10, making farmland look less attractive if perceived as a stock. Like other real assets farmland is protected against inflation, as is farm production. Farmland is thus similar to an inflation-protected perpetual bond with a variable yield, where both principal
and coupons are protected against currency depreciation.
Agcapita Update – Canadian Growing Season Lengthens 2 Weeks Over Last 50 Year...Veripath Partners
According to a recent Bloomberg article: "Corn is the most common grain in the U.S., with its production historically concentrated in a Midwestern region stretching from the Ohio River valley to Nebraska and trailing off in northern Minnesota. It had been ungrowable in the fertile farmland of Canada’s breadbasket. That is changing as a warming climate, along with the development of faster-maturing seed varieties, turns the table on food cultivation. The Corn Belt is being pushed north of what was imaginable a generation ago. Growing seasons on the Canadian prairie have lengthened about two weeks in the past half-century.
The document is Farm Credit Canada's 2013 Farmland Values Report. It summarizes the average changes in Canadian farmland values from January to December 2013 on a provincial and national level. The key findings are:
- The average value of Canadian farmland increased 22.1% in 2013, the highest national increase since 1985. Saskatchewan saw the highest provincial increase at 28.5%, followed by Manitoba at 25.6% and Quebec at 24.7%.
Agcapita Update - Canadian Farmland Values Increase 22% in 2013Veripath Partners
On Monday, April 14th, 2014 Farm Credit Canada ("FCC") released its 2013 analysis of farmland price trends across Canada by province. In all provinces, farmland values either increased or remained stable. Saskatchewan experienced the highest average increase at 28.5%, followed by Manitoba at 25.6% and Quebec at 24.7%.
Agcapita Farmland Fund I is pleased to announce that the sale of its farmland portfolio, originally acquired for $8.5 million, closed on January 10th, 2014 for $18 million.
Agcapita co-founder Stephen Johnston commented “my partners and I are extremely pleased with the returns generated by the sale of the Fund I portfolio and believe they represent a validation of the Agcapita investment premise. We are particularly pleased that we generated these returns with minimal use of leverage in keeping with our overall philosophy to actively reduce risk and return volatility for our investors.”
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
- Agricultural land use in Ontario is governed by the 2005 Provincial Policy Statement which does not restrict foreign or institutional ownership of farmland.
- Key metrics about Ontario farmland include 13 million acres of arable land, which makes up 8% of Canadian farmland. The average farm size is 57 acres.
- Major crops grown in Ontario include corn at 16% of production, wheat at 16%, and soybeans at 25%.
Legislation in Manitoba allows foreign ownership of up to 40 acres of farmland unless granted an exemption. Only Canadian citizens, permanent residents, and Canadian-controlled corporations and entities can purchase unlimited amounts of farmland. Manitoba has 19 million acres of arable land, representing 11% of Canadian farmland. The major crops grown are wheat, canola, barley, oats, corn, and soybeans.
British Columbia farmland statistics:
- There are 7 million acres of arable land in BC, comprising 4% of total Canadian farmland.
- Major crops grown in BC include wheat (25%), barley (25%), soybeans (24%), and canola (23%).
- The average farm size in BC is 240 acres. Farmland in BC is regulated by the Agricultural Land Commission but there are no restrictions on institutional or foreign ownership of farmland.
Alberta has no restrictions on institutional or foreign ownership of farmland. It has 52 million acres of arable land, comprising 31% of Canadian farmland. Major crops include wheat (48%), canola (23%), and barley (23%). The average farm size is 23 acres.
Alberta accounts for 31% of Canadian farmland and produces over 1.2 million metric tonnes of crops annually. The major crops grown in Alberta are wheat, canola, and barley. The average farm size in Alberta is approximately 23 acres. Canadian citizens and companies are not restricted by foreign ownership regulations when purchasing Alberta farmland.
"Show me the incentive and I'll show you the outcome" – Veripath Farmland Funds Q4 Investor Letter: Investing in a World of Financial Repression, Negative Real Rates, Valuation “Challenges” and Inflationary Forces.
Do G7 governments have an incentive to attempt to keep inflation higher for longer and real rates lower for longer? Negative real rates across a broad spectrum of credit assets are a graphic sign that we inhabit a world of financial repression orchestrated by central banks at the formal/informal behest of sovereign borrowers. In a normally functioning market, lenders do not provide capital to borrowers for negative yields – i.e., they do not pay for the privilege of lending. It goes without saying we are not in a normally functioning market.
Veripath Research "As people in the emerging economies of India and China make the transition to western standards of
living there is an often-overlooked issue – their water
consumption is rising dramatically.
Veripath Farmland Partners Research - portfolio optimization using farmland a...Veripath Partners
A review of the Canadian farmland market over the last 30 years reveals: a farmland holding would have improved the financial performance of typical investor portfolios; realized volatility that was lower than stocks; realized returns that were greater than bonds; a low correlation to traditional financial asset returns; and most importantly domestic institutional and retail investors are clearly under-invested relative to efficient frontier analysis.
Are fiscal/monetary conditions affecting the macro thesis for Canadian farmland investments? Do publicly traded equity investments hedge all inflation regimes? Canada's debt to GDP - looming threat or irrelevancy?
- The document discusses Canadian farmland as an investment during periods of low or negative real interest rates (when inflation is higher than nominal interest rates). It finds that farmland appreciates significantly more during such periods, averaging 11.3% annual returns, compared to periods of higher real rates where returns are barely positive.
- Canadian farmland demonstrated resilience during the 2020 COVID-19 economic disruption, with appreciation of 3.6-8% across provinces.
- Soft commodity prices have increased noticeably in recent quarters, benefiting Canadian farmland and food producers.
This newsletter discusses recent economic and monetary policies that have led to rising government debt and money printing. It summarizes the history of past currency failures in France and Germany when governments excessively issued paper currencies. The author argues that current policies of unlimited deficit spending and money printing will not lead to lasting prosperity and will end in economic problems. The newsletter recommends investing in assets that benefit from emerging market growth, reduce counterparty risk, hedge inflation, and have inelastic demand to improve portfolio returns in this environment.
Equicapita Announces Acquisition of Majority of CCMETVeripath Partners
Equicapita Income Trust and Equicapita Income LP (collectively “Equicapita” or the
“Fund”) are pleased to announce the completion of the acquisition of a 70% equity ownership of CCMET
Group of Companies, a leading provider of integrated, full service materials engineering and testing
services throughout Western Canada, by an affiliate of the Fund.
Equicapita Reaches $100M in Subscribed Trust Capital Veripath Partners
Equicapita Income Trust announces it has completed the raise of $100M in subscribed preferred trust capital.
Stephen Johnston, a partner at Equicapita reports, "Equicapita is pleased to have passed the $100M mark in subscribed capital. Equicapita is part of a group of innovative Calgary based alternative funds seeking alternative investments. As managers we seek to deliver superior investment returns with lower volatility than public markets through private equity investing that combines strong underlying asset fundamentals and a disciplined value style. In practice we look for investments with: established macro drivers (typically in the form of a favourable supply/demand situation) and: a margin of safety (in the form of discounted asset prices, ability to acquire cash flow cheaply). To date, we have successfully deployed capital in multiple investment strategies via a group of funds – in farmland, SME PE, energy and non-bank lending – and currently have approximately $300M in unlevered AUM.
Agcapita is pleased to announce that Agcapita Fund IV has launched. Agcapita Fund V is a $20 million offering and is the only RRSP eligible farmland investment vehicle in Canada. If you would like to receive information about Agcapita Fund V please feel free to contact us at Fund5@agcapita.com or register online at the Agcapita website.
Stephen Johnston, co-founder of Agcapita, commented "Agcapita believes that prices of Canada farmland, in particular Saskatchewan farmland, are discounted to world averages for a tonne of productive capacity. Part of our investment premise is that this gap will close and with the attention that Canadian farmland is receiving from investors it can obviously happen quite quickly. It is this "margin of safety" return driver that attracted us to Canada and Saskatchewan in the first place.”
Investigating the Long Run Relationship Between Crude Oil and Food Commodity ...Veripath Partners
"Crude oil price is believed to be one of the factors that affect food commodity prices. It is an
agricultural production input, therefore the prices of fertilizer, fuel and transportation are affected by the crude oil prices directly, and subsequently they influence the production of grain commodities. There is another dimension to how oil prices can affect food commodity prices, and it is from the derived demand for biofuels. With rising oil prices, demand for biofuels increase and the production
of these fuel is highly dependent on the availability of agricultural feed stocks. So it is primarily because of the above two dynamics that I want to investigate if there is a long term relationship between crude oil prices and food commodity prices. This is an important issue in present times because of the rising prices and volatility in the oil and food commodity markets. I will try to examine if there exist a cointegrating relationship between crude oil price and food commodity price for the period between 1980 to 2011. The food commodities selected are maize, rice, soybean and wheat. Time Series econometric techniques were applied to find our results. The Engle-Granger Co-integration test revealed that there is long run relationship between crude oil prices and maize, soybean, wheat. But, rice prices were not found to be cointegrated. I also carried out the traditional Granger Causality test to check whether causality exist between the two prices. We find that there is unidirectional causality, with only crude oil prices ‘Granger causing’ each of the four food commodity prices. The reverse was not true, as crude oil prices were not found to be influenced by price of food commodities. So from our results we can confirm the significance of oil prices and the impact it has on the food commodity prices."
VBA Journal: Farmland, Reaping the Reward of IlliquidityVeripath Partners
Farmland is an asset class that provides a legal claim on land, and the agricultural produce that is grown on that land, in perpetuity. The returns from farmland are like those of a perpetual bond, with the proviso that operational farming returns show high volatility, being largely driven in the short term by climatic conditions and commodity prices. Bonds are typically priced at between 20 and 50 times returns, which is consistent with farmland price multiples. In contrast, equities in a moderate growth sector generally trade at a price to earnings ratio of approximately 10, making farmland look less attractive if perceived as a stock. Like other real assets farmland is protected against inflation, as is farm production. Farmland is thus similar to an inflation-protected perpetual bond with a variable yield, where both principal
and coupons are protected against currency depreciation.
Agcapita Update – Canadian Growing Season Lengthens 2 Weeks Over Last 50 Year...Veripath Partners
According to a recent Bloomberg article: "Corn is the most common grain in the U.S., with its production historically concentrated in a Midwestern region stretching from the Ohio River valley to Nebraska and trailing off in northern Minnesota. It had been ungrowable in the fertile farmland of Canada’s breadbasket. That is changing as a warming climate, along with the development of faster-maturing seed varieties, turns the table on food cultivation. The Corn Belt is being pushed north of what was imaginable a generation ago. Growing seasons on the Canadian prairie have lengthened about two weeks in the past half-century.
The document is Farm Credit Canada's 2013 Farmland Values Report. It summarizes the average changes in Canadian farmland values from January to December 2013 on a provincial and national level. The key findings are:
- The average value of Canadian farmland increased 22.1% in 2013, the highest national increase since 1985. Saskatchewan saw the highest provincial increase at 28.5%, followed by Manitoba at 25.6% and Quebec at 24.7%.
Agcapita Update - Canadian Farmland Values Increase 22% in 2013Veripath Partners
On Monday, April 14th, 2014 Farm Credit Canada ("FCC") released its 2013 analysis of farmland price trends across Canada by province. In all provinces, farmland values either increased or remained stable. Saskatchewan experienced the highest average increase at 28.5%, followed by Manitoba at 25.6% and Quebec at 24.7%.
Agcapita Farmland Fund I is pleased to announce that the sale of its farmland portfolio, originally acquired for $8.5 million, closed on January 10th, 2014 for $18 million.
Agcapita co-founder Stephen Johnston commented “my partners and I are extremely pleased with the returns generated by the sale of the Fund I portfolio and believe they represent a validation of the Agcapita investment premise. We are particularly pleased that we generated these returns with minimal use of leverage in keeping with our overall philosophy to actively reduce risk and return volatility for our investors.”
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Unlock Your Potential with NCVT MIS.pptxcosmo-soil
The NCVT MIS Certificate, issued by the National Council for Vocational Training (NCVT), is a crucial credential for skill development in India. Recognized nationwide, it verifies vocational training across diverse trades, enhancing employment prospects, standardizing training quality, and promoting self-employment. This certification is integral to India's growing labor force, fostering skill development and economic growth.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
South Dakota State University degree offer diploma Transcriptynfqplhm
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5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
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https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
2. Summary
By virtue of more than a decade of low and often negative real interest
rates coupled with increasingly rapid monetary growth, the economies of
the developed world have been increasingly skewed towards consumption
rather than production. Unfortunately, consumption is the destruction
of capital – by definition it represents the diversion of resources from
productive purposes. Both the private and public sectors have been
indulging in this protracted debt fuelled consumption spree. Savings rates
have plunged and fiscal deficits have expanded. Each year it requires a
larger and larger amount of additional debt to create each additional unit
of GDP – on the order of $4 of incremental debt to $1 of incremental GDP.
Why? Because on average, we are incurring debts that do not create
offsetting cash generating assets. At some point governments in the
increasingly indebted, consumption oriented and aging economies of the
west are going to be faced with an unpalatable set of options:
– Tax
– Shrink Contents
– Default 3 Monetary Authorities Ignoring
– Inflate Asset Inflation Again?
3 Banks’ Duration Challenge
Not surprisingly, the governments of the world seem intent on continuing
to inflate as they desperately force feed the markets consumption-oriented 3 US Federal Duration Challenge
programs in place of stagnant private sector demand. An interesting fact is 4 US Federal Outlays
that for the last decade in the US, private sector job growth has been absent 4 Do Gold Prices Signal Inflation?
and all net job growth has been in government or state dependent sectors.
We are facing massive “political inflation” as well as monetary inflation. 6 30 Years of Western
Consumption
The problem arises that all state spending requires that capital is first taken 6 Money Supply Growth =
out of the hands of the private sector via taxes, borrowing or inflation, then Inflation
deployed in typically loss-making (capital destroying) activities. The net 6 Demographics are Destiny
result is that the growing government spending and deficits are setting the
stage for much greater problems in the future. Rather than allowing private 7 Just How Fast is the Global
sector savings to replenish the pool of capital our governments are going Money Supply Growing?
further into debt to finance policies that at best can only serve to pull future 8 Quick News
consumption into the present.
1
3. To reiterate, what western economies need is more capital, not more
consumption. There is no way to create capital other than through savings
and hard work – a message to which our governments are reluctant to
listen. Printing money seems alluringly easy at first, but it does not create
capital, and worse, the inflation it creates ultimately causes long lasting
harm to the production structure of the economy.
I believe that in the current expansionary monetary environment there are
several important themes investors should consider:
1) Reduced Returns on Investments Tied to Developed Market Growth:
If current trends continue I believe the western economies could be
entering a period of low real growth if not outright stagnation as debt
levels are reduced and the capital base rebuilt. If this is the case,
investments that depend on developed market growth will be exposed
to a reduced demand profile and therefore reduced returns on the
whole.
2) Inflation: Real yield will continue to be scarce as governments seek
to suppress interest rates at the expense of exchange rates. Arguably
in such an environment inflation hedging investments should generate
superior returns.
3) Higher Returns on Investments Tied to Developing Market Growth:
While the developed markets seem poised for sub-trend growth, this
does not appears to be the case for the developing markets – China
in particular. With high savings rates, large domestic pools of capital
and favorable demographics these markets appear to be in a period
of sustained expansion. Of course for the foreseeable future, direct
emerging market investments will continue to be volatile and carry
significant and difficult to quantify political risk. We believe, therefore,
that the better way to invest in emerging market growth is to invest in
the things that emerging markets require – particularly commodities –
but where the investment premise is expressed in politically stable parts
of the world. For example, energy and agriculture in western Canada.
Regards
Stephen Johnston – Partner
2
4. Global Macro Update
Monetary authorities ignoring asset
inflation again?
The worlds monetary authorities are clearly ignoring “The average maturities of new debt issuance by
the rapid reflation in risky liquid assets and focussing Moody’s-rated banks around the world fell from
on CPI measures as their inflation yardsticks. The 7.2 years to 4.7 years over the last five years,”
net result will be a growing disconnect between according to the Financial Times - “the shortest
the speculative and real economies. This feels like average maturity on record. That means banks will
a replay of the residential real estate bubble, where face maturing debt of $10,000bn between now
ostensibly low consumer inflation measures allowed and the end of 2015, or $7,000bn by the end of
central banks to ignore massive asset price inflation. 2012, according to Moody’s.” It was the mismatch
Are we storing up another financial crisis as the between short-term financing and long-term loan
real and speculative economies seem to be rapidly portfolios that caused the banking system to collapse
diverging again? as underlying collateral values returned to historic
norms. If the banking system cannot roll its financing
Banks’ Duration Challenge requirements out to longer durations problems are
sure to re-surface as commercial real estate comes
The banking sector is facing a serious financing under pressure over the next 24 months.
challenge ahead. They need to borrow larger
amounts and at longer durations and they will be us feDeral Duration Challenge
competing with the US government to do so (see US
Federal Duration Challenge). The US government has an emerging duration
problem in its borrowings states Bob English of the
Precision Report, “A full 35% of the current Treasury
Chart 1: average Maturity of MooDys debt portfolio ($2.5 trillion) matures by the end of
rateD gloBal DeBt issuanCes FY2010 and must be rolled over, in addition to the
16.0 3,000,000
new debt that must be issued to cover the estimated
14.0 FY2010 deficit of $1.25 to $1.75 trillion.” Chris
2,500,000
Rupkey, economist at Bank of Tokyo-Mitsubishi
Average Maturity (Years)
Debt Issued (USD MIL)
12.0
2,000,000
10.0 states that “the budget deficit, while not expanding,
8.0 1,500,000
6.0
is still at levels unimaginable a few years ago,” …
1,000,000
4.0 “With receipts on the weak side, the Treasury will
2.0 500,000 have its work cut out for it when it comes to financing
0.0 0 the government’s flood of red ink” particularly at
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
longer durations.
Avg Maturity Per Year Face Amount of Wholesale Funding Issued
MTN share of Total Wholesale Funding System Average
Source: Moodys
3
5. Global Macro Update (continued)
us feDeral outlays
This chart from the St Lois Federal Reserve provides with Governor Mullins of what would happen if the
a glaring visualization of the magnitude of the Treasury sold a little gold in this market. There’s an
unfolding US government spending spree and the interesting question here because if the gold price
deficit it is fueling. The Federal deficit to GDP is at broke in that context, the thermometer would not
levels not seen since WWII and in absolute terms be just a measuring tool. It would basically affect
never seen before. the underlying psychology.” Greenspan was clearly
advocating direct intervention in the gold market
to reduce the traditional inflation signaling nature
Chart 2: feDeral net outlays versus of gold. If gold prices are indeed managed (as far
feDeral reCeiPts as possible) in a fashion akin to other exchange
3,600,000
rates, when gold is appreciating in a large number
3,200,000 of currencies is it time to pay attention? We believe
2,800,000 gold’s recent behavior is signalling an ongoing
(Millions of Dollars)
2,400,000 attempt at simultaneous competitive devaluation
1,600,000 (or global “race to the bottom”) as gold increases
1,200,000 in relative value against most currencies - evidence
800,00 that most governments are actively debasing their
400,00 currencies. Gold recently moved to 8-month highs
0
against the Euro, Swiss Franc and Canadian Dollar, it
-400,00
1895 1910 1925 1940 1955 1970 1985 2000 2015
also moved to news records versus the Indian Rupee
FYON ET FYFR
and Chinese Yuan.
Source: St. Louis Federal Reserve (shaded areas indicate
US recessions)
Chart 3: gloBal golD inDex
300
Do golD PriCes signal inflation? 275
250 Gold in top 10 currencies (weighted by GDP)
200 Gold in US Dollars
Think about this quote from Greenspan at the May 175
18, 1993 Fed meeting. The market price of gold 150
125
was increasing at the time and Greenspan, the then 100
Chairman of the Federal Reserve, said: “I have one 75
50
other issue I’d like to throw on the table. I hesitate 25
to do it, but let me tell you some of the issues that 0
-25
are involved here. If we are dealing with psychology, ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09
then the thermometers one uses to measure it have
Source: Bullion Vault
an effect. I was raising the question on the side
4
6. Global Macro Update (continued)
According to BullionVault.org, the price of gold
Chart 5: golD inflation aDjusteD PriCe
recently broke its previous high weighted against the
world’s top 10 currencies by GDP and further that
$2,000 an ounce
gold has beaten all other asset classes so far this
decade. Central banks have been net sellers of gold
for many years but this is changing.
1,500
Are global central banks, particularly those of the
emerging economies that run large US$ current 1,000
account surpluses beginning a move out of US$
reserves into gold? China, India and Russia all
certainly have been increasing their holdings. 500
unadjusted
‘75 ‘80 ‘85 ‘90 ‘95 ‘00 ‘05
Chart 4: Central Bank golD reserves
(thousanD tons) Source: Bloomberg, Bureau of Labor Statistics, World
Gold Council
30
Through Sept. 2009
28
Chart 6: golD reserves (tons, seP 2009)
26
United States 8,966
24 Germany 3,757
Int’l Monetary Fund* 3,326
Italy 2,703
22
France 2,695
China 1,162
20 Switzerland 1,147
‘00 ‘05 ‘09 Japan 843
* Adjusted to
Source: Globe and Mail Netherlands 675
reflect recent
Russia 627 sale of 220
India* 615 tones to India
European Central Bank 553 by the I.M.F.
Source: Bloomberg, Bureau of Labor Statistics, World
Gold Council
5
7. Global Macro Update (continued)
30 years of Western ConsuMPtion Money suPPly groWth = inflation
The consistent trend over the last three decades has Chart 8 shows US money of zero maturity (“MZM”).
been decreasing bond yields. MZM technically equals M2 plus all money market
funds, minus time deposits and in essence measures
the supply of financial assets redeemable at par on
Chart 7: us 30 year t-BonD yielD demand – a good reflection of overall US money
(nov 2009) supply. Do you see any deflation in this chart?
145
140
135
130
125
120
115
Constantly Decreasing Interest Rates
110
105 Chart 8: MZM Money stoCk
100
95
90
85 10,000
80
75
9,000
70 8,000
(Billions of Dollars)
65
7,000
60
6,000
55
5,000
50
4,000
45
3,000
40
2,000
35
1,000
0
30
1950 1960 1970 1980 1990 2000 2010
25 Source: St. Louis Federal Reserve (shaded areas indicate
81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
US recessions)
Source: Stockcharts.com
DeMograPhiCs are Destiny
US interest rates have been decreasing by
approximately 1.0% every 4 years and as the price The 19th century belonged to the UK, the 20th century
of money or debt becomes less expensive more belonged to the US and it appears that the 21st
is consumed. The steady interest rate decline is century will belong to China. A consistent theme in
a product of a deliberate monetary policy that has the emergence of a new global power is a large and
driven consumption and on a larger scale driven growing pool of domestic savings with a focus on
asset prices as the financial sector intermediates investing in the capital base of the economy rather
increasingly profitable but risky speculative activities. than increasing consumption and a population of
What happens when this trend reverses? young workers.
6
8. Global Macro Update (continued)
The world’s western economies find themselves The US government is now in the position of
heavily in debt with deteriorating demographics. increasing its liabilities four times faster than its
It has been said that “demographics are destiny’. tax receipts. At some point governments in the
Unfortunately, our governments are attempting to fix increasingly indebted, consumption oriented and
our problems by accelerating the very policies that aging economies of the west are going to be faced
got us into this mess in the first place. with an unpalatable set of options:
– Tax - higher taxes are politically impractical
in the face of stagnant growth
Chart 9: us governMent oBligations – Shrink – reducing the size of government is
(trillions of us$) politically impractical in the face of large and
influential state sectors
Medicare – Default - possible but inflation, at least initially,
Social Column is much less noticeable
Trust Funds Total
Valuation Security A Total
Date Unfunded
A, B, D Unfunded US Debt
US Gov. – Inflate – printing money is almost invariably
Unfunded Obligations the preferred option for cash strapped
Obligations Obligations
Obligations
governments
2009 $15.1 $88.9 $104.0 $10.7 $114.7
2008 $13.6 $85.6 $99.2 $9.2 $108.4 The US Federal Reserve recently disclosed that it
2007 $13.6 $74.3 $87.9 $8.6 $96.5
purchased half of the newly issued US Treasuries
in the second quarter of this 2009, and of course it
2006 $13.4 $70.5 $83.9 $8.1 $92.0
made these purchases with newly printed money - it
2005 $11.1 $68.1 $79.2 $7.6 $86.8 appears “inflate” is the path that has been chosen.
2004 $10.4 $61.6 $72 $7 $79.0
Source: Sprott Asset Management just hoW fast is the gloBal Money
suPPly groWing?
The US federal funding gap is growing at rapid rate. According to Mike Hewitt at Dollardaze.org the global
Over the last 6 years: money supply (M0) continues to grow rapidly. M0 is
referred to as the monetary base, or narrow money
– Unfunded obligations increased by and is composed of notes and coins in circulation
approximately 50% from US$79 trillion and in bank vaults. M0 is the most conservative
to US$114.7 trillion; but measure of money supply growth. Interestingly
– Receipts increased by only approximately the largest currencies are growing at some of the
12%. most rapid rates showing that this is truly a global
phenomenon and not an artifact of just US actions.
7
9. billion in October from a year earlier, and corporate
Chart 10: y-o-y inCrease in M0 (us$ tax receipts last month were a negative $4.5 billion
equivalent as of august 2009) on the government’s books... Over the past week,
the Treasury auctioned a record $81 billion in its
quarterly sales of long-term debt. The Treasury’s
us$ us$ Per debt-management director... told a meeting of bond
Country %
Billions Capita market participants last week to anticipate another
US 10.50% $81 $268 year of government debt sales of $1.5 trillion to $2
trillion...”
EU 13.40% $126 $252
Australia 11.20% $4 $182 November 13 - Bloomberg (Bob Willis): “The trade
UK 8.40% $7 $111 deficit in the U.S. widened in September by the most
in a decade, reflecting rising demand for imported
Canada 6.80% $3 $96 oil and automobiles... The gap grew a larger-than-
S Korea 15.60% $4 $74 anticipated 18% to $36.5 billion, the highest level
since January... Imports climbed 5.8%, the most
Mexico 14.90% $5 $43
since March 1993, to $168.4 billion. The figures
China 11.50% $52 $39 reflected a $4.1 billion increase in imported oil as
Brazil 11.10% $5 $24 the cost of a barrel of crude climbed to the highest
level since October 2008 and volumes also rose...
India 18.60% $23 $20
Exports rose 2.9% to $132 billion, the most this
Source: Mike Hewitt Dollardaze.org, Agcapita estimates year, propelled by sales of civilian aircraft, industrial
machines and petroleum products.”
November 11 - Financial Times (Nicole Bullock):
quiCk neWs “Some of the same financial troubles that have
pushed California toward economic disaster are
November 12 - Bloomberg (Vincent Del Giudice):
wreaking havoc in nine other states and posing
“The U.S. budget deficit widened in October from
a threat to the nascent recovery, according to
a year earlier, reaching a record for that month...
research... ‘California’s fiscal problems are in a league
The excess of spending over revenue widened to
of their own,’ says Susan Urahn, managing director of
$176.4 billion last month, compared with a deficit
the Pew Center on the States... ‘but the Golden State
of $155.5 billion in the same month a year earlier...
is hardly alone.’ Arizona, Florida, Illinois, Michigan,
Spending for October declined 2.7% from the same
Nevada, New Jersey, Oregon, Rhode Island and
month a year earlier to $331.7 billion, and revenue
Wisconsin join California as the most troubled US
and other income fell 17.9% to $135.3 billion...
states... For residents, fiscal problems have meant
Individual income tax collections fell 29% to $61.2
8
10. higher taxes, layoffs of state workers, longer waits for
public services, more crowded classrooms and less
support for the poor.”
November 12 - Bloomberg (Darrell Preston): “U.S.
states, which are closing $250 billion of budget
deficits, will be forced to grapple with diminished
revenue until at least 2012, a survey of fiscal
officials found. The only thing that kept states from
‘draconian’ spending cuts has been $135 billion of
funding under President Barack Obama’s economic
stimulus package, according to a report from the
National Governors Associations and the National
Association of State Budget Officers. Revenue fell
7.5% in fiscal 2009, forcing states to close budget
gaps of $72.7 billion. ‘These are the worst numbers
we’ve ever seen,’ said Scott Pattison, executive
director of the budget directors group... ‘States have
been forced to lay off and furlough employees, raise
taxes, drain rainy day funds and sharply cut state
spending.’”
9
11. DisClaiMer:
The information, opinions, estimates, projections and other materials
contained herein are provided as of the date hereof and are subject to
change without notice. Some of the information, opinions, estimates,
projections and other materials contained herein have been obtained from
numerous sources and Agcapita Partners LP (“AGCAPITA”) and its affiliates
make every effort to ensure that the contents hereof have been compiled or
derived from sources believed to be reliable and to contain information and
opinions which are accurate and complete. However, neither AGCAPITA
nor its affiliates have independently verified or make any representation or
warranty, express or implied, in respect thereof, take no responsibility for
any errors and omissions which maybe contained herein or accept any
liability whatsoever for any loss arising from any use of or reliance on the
information, opinions, estimates, projections and other materials contained
herein whether relied upon by the recipient or user or any other third
party (including, without limitation, any customer of the recipient or user).
Information may be available to AGCAPITA and/or its affiliates that is not
reflected herein. The information, opinions, estimates, projections and other
materials contained herein are not to be construed as an offer to sell, a
solicitation for or an offer to buy, any products or services referenced herein
(including, without limitation, any commodities, securities or other financial
instruments), nor shall such information, opinions, estimates, projections and
other materials be considered as investment advice or as a recommendation
to enter into any transaction. Additional information is available by contacting
AGCAPITA or its relevant affiliate directly.
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