In a December 15, 2020 article in the Xinhau News “China’s hog production to fully recover in H1 next year” – it was stated by China’s Ministry of Agriculture and Rural Affairs that the hog production in China is expected to fully recover in the first half of 2021.(1)
“By the end of November 2020 the inventory of live pigs and breeding sows has reached over 90 percent of the levels seen in normal years,” said the Ministry.(1)
According to Carmon Blacklock, VP of Investments and Operations at Veripath Farmland Partners “The rebound in China’s hog market should be bullish for soybeans and canola prices. We are now seeing canola over $13/bushel – prices we have not seen for 4 or 5 years”.
“The increase in the prices of soybeans and canola should provide an additional source of real upward pressure on Canadian farmland prices via improved margins for farm operations and the ongoing process of farm consolidation as farmers compete to expand their land bases” stated Mr. Blacklock.
Veripath operates as a pair of funds – Veripath Farmland LP, which is structured to own farmland in Saskatchewan and Manitoba only; and Veripath Farmland (UR) LP, which is structured to own farmland across the rest of the country. By having two separate vehicles, Veripath simplifies and streamlines compliance with the various provincial regulatory environments.
The funds also have open-ended, evergreen structures, rather than the traditional fixed term. With this approach, Veripath allows shorter- and longer-duration holdings to exist side-by-side, enabling investors, rather than management, to make the decision as to what holding period best fits their portfolio design requirements.
Who is Veripath: Veripath is a Canadian alternative investment firm. Members of Veripath’s management team have decades of farmland, private equity, and private credit investment experience. Veripath implements its farmland strategy in a way that seeks to preserve as far as possible farmland’s low-volatility return profile – the attribute that generates a material portion of Canadian farmland’s superior risk adjusted returns. Veripath does this by seeking to minimize operational, weather, geographic and business-related risks – and capture the pure return from land appreciation. Canadian zero-til farmland portfolios may also be a useful addition to ESG driven mandates combining superior risk adjusted returns with environmental benefits. For more information on Veripath please feel free to register online at www.veripathfarmland.com or call 587-390-8267.
Disclaimer: This article is only an expression of our opinions on the subject matter set forth herein and includes information from, or data derived from, public third party sources including commentaries, articles, industry publications, reports and research papers. Veripath has not independently verified the accuracy, currency or completeness of any of the information and data contained in this article which is derived from such third-party sources. While we have a good-faith belief in the accuracy of what we write, all such information is presented “as is,” without warranty of any kind, whether express or implied. The use made of the commentary set forth in this article is solely at the risk of the user of this information. This article is intended only as general information presented for the convenience of the reader and should not in any way be construed as advice of any kind, investment or otherwise.