IDEAS home Printed from https://ideas.repec.org/p/ags/ifma09/345514.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/345514/files/09_Painter.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.345514?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    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. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Painter, Marvin J., 2011. "PR - Improving Investment Diversification: Is Farmland As Good As Gold? (p396-405)," 18th Congress, Methven, New Zealand, 2011 345588, International Farm Management Association.
    2. Painter, Marvin J., 2013. "PR - North American Farmland Investment Performance Assessment Using E-V Analysis, CAPM And Value At Risk," 19th Congress, Warsaw, Poland, 2013 345689, International Farm Management Association.
    3. Painter, Marvin J., 2013. "Gold, black gold, and farmland: should they all be part of your investment portfolio?," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 2(2), pages 1-13, January.
    4. 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.
    5. Li, Xin, 2016. "The Farmland Valuation Revisited," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(2), pages 1-14, April.
    6. 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.
    7. Tóth, M. & Lančarič, D. & Piterková, A. & Savov, R., 2014. "Systematic Risk in Agriculture: A Case of Slovakia," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(4), pages 1-9, December.
    8. repec:ags:aoeisl:170464 is not listed on IDEAS
    9. 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.
    10. Kabir, Md. Jahangir & Cramb, Rob & Alauddin, Mohammad & Gaydon, Donald S., 2019. "Farmers’ perceptions and management of risk in rice-based farming systems of south-west coastal Bangladesh," Land Use Policy, Elsevier, vol. 86(C), pages 177-188.
    11. Painter, Marvin J., 2010. "Equity financing and investment opportunities in Canadian primary agriculture," AFBM Journal, Australasian Farm Business Management Network, vol. 7(1), pages 1-8, October.
    12. Painter, Marvin J., 2015. "Assessing the Required Risk Premium for North American Farmland Investment," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2015, pages 1-19.
    13. Williams, John & McSweeney, Peter & Salmon, Robert, 2014. "Australian Farm Investment: Domestic and Overseas Issues," Papers 234408, University of Melbourne, Melbourne School of Land and Environment.
    14. Toth, Marian & Lancaric, Drahoslav & Piterkova, Andrea & Savov, Radovan & Rabek, Tomas, 2014. "Measuring Systematic Risk Of Unquoted Agricultural Farms," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(1), March.

    More about this item

    Keywords

    Agricultural Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifma09:345514. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifmaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.