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PR - Equity Financing And Investment, Opportunities In Canadian Primary Agriculture

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  • Painter, Marvin

Abstract

This study shows that for the period 1990 – 2007, international portfolio investment performance was significantly improved with the addition of Canadian farmland. Farmland in Canada is considered relatively low risk, enters the efficient portfolios at low risk levels and adds the most financial improvement to low and medium risk portfolios. Compared to T-bills and long bonds, farmland has higher risk and yield, but lower risk than stocks. Compared with stocks, farmland has income yields and risk that are similar or better than dividend yields and risk on stocks while farmland has capital gain yields and risk that are usually lower, on average, than stocks. The low and negative correlation of farmland yields with stocks and bonds make it a good candidate for portfolio diversification benefits.

Suggested Citation

  • Painter, Marvin, 2009. "PR - Equity Financing And Investment, Opportunities In Canadian Primary Agriculture," 17th Congress, Illinois State University, USA, July 19-24, 2009 345514, International Farm Management Association.
    • Handle: RePEc:ags:ifma09:345514
    DOI: 10.22004/ag.econ.345514
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    File URL: https://ageconsearch.umn.edu/record/345514/files/09_Painter.pdf
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    References listed on IDEAS

    as
    1. Painter, Marvin, 2006. "The Financial Benefits to Investors in a Canadian Farmland Mutual Fund," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2006, pages 1-9.
    2. Libbin, James D. & Kohler, Jeremy D. & Hawkes, Jerry M., 2004. "Does Modern Portfolio Theory Apply to Agricultural Land Ownership? Concepts for Farmers and Farm Managers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2004, pages 1-12.
    3. Libbin, James D. & Kohler, Jeremy D. & Hawkes, Jerry M., 2004. "Financial and Real Estate Investments in Mixed-Asset Agricultural Portfolios," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2004, pages 1-11.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Agricultural Finance;

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