By Lynda Kiernan-Stone
May 9, 2023
Excerpt from Article:
Following a string of acquisitions building out their farmland holdings, Canada’s Veripath Farmland Partners announced the launch of an RRSP-eligible (Registered Retirement Savings Plan) farmland investment vehicle to provide access to the farmland investment class to a broader portion of Canadian investors.
“Based on historical performance data, farmland as an asset class may provide small and medium-sized investors with inflation protection, consistency in returns, and portfolio diversification benefits,” said Stephen Johnston, managing director, Veripath Partners.
Johnston explained the benefits of such a strategy to GAI News, saying, “The advantage is that an RRSP eligible fund allows Canadian investors to put a farmland holding into their tax deferred federally regulated retirement pension accounts. Contributions to RRSP are only taxed on gains on withdrawal so they provide a material tax benefit.”
“Our new RRSP-eligible, open-ended investment vehicle allows a broad range of Canadian investors to benefit from farmland’s characteristics and do so in their RRSP accounts.”