Building

a

Canadian

farmland

portfolio

using

factor

analysis.

A Canadian portfolio of farmland, raw acre weighted by province, generated a benchmark return of approximately 8% over the last decade on an unlevered basis. Based on Veripath analysis, a suitably reweighted portfolio could have outperformed this by as much as 50% with minimal change to the risk profile.

Veripath’s proprietary portfolio construction model utilizes a number of factors including those below to reweight each provincial acre allocation:

– Productivity adjusted pricing
– Sharpe ratio
– Correlation to inflation
– Up/down return profile
– Market liquidity
– Average farm leverage levelsView Full Report