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IonE Projects Agricultural Supply Shortage


Institute on the Environment projects that world faces a looming agricultural crisis with yield increases insufficient to keep up with projected demand

Calgary, Canada, June 22, 2013 --(PR.com)-- According to a study from the Institute on the Environment (“IonE)” at the University of Minnesota published in PLOS ONE: “Crop yields worldwide are not increasing quickly enough to support estimated global needs in 2050…Previous studies estimate that global agricultural production may need to increase by 60-110% to meet increasing demands and provide food security. In the current study, researchers assessed agricultural statistics from across the world and found that yields of four key crops - maize, rice, wheat and soybean- are increasing at rates between 0.9 -1.6 percent every year. At these rates, production of these crops would likely increase 38-67 percent by 2050, rather than the estimated requirement of 60-110 percent. The top three countries that produce rice and wheat were found to have very low rates of increase in crop yields.

"Clearly, the world faces a looming agricultural crisis, with yield increases insufficient to keep up with projected demands," says IonE director Jon Foley, a co-author on the study. "The good news is, opportunities exist to increase production through more efficient use of current arable lands and increased yield growth rates by spreading best management practices. If we are to boost production in these key crops to meet projected needs, we have no time to waste."

Stephen Johnston, founder of Agcapita reports that "Farmland continues to appreciate as we predicted when we launched our first fund in 2008. We believe that research such as this performed by IonE supports over view that agricultural commodity prices will continue to be strong due to fundamental supply and demand issues in addition to nominal price support in the form of expansive monetary conditions.”

Agcapita’s series of farmland funds continue to show great appeal to conservative investors concerned with inflation and the volatility of their existing public equity investments. Farmland has similar inflation hedging qualities to gold but with an ongoing cash yield that gold lacks. Farmland returns exhibit low volatility and this combined with the high absolute returns from farmland equate to a favorable Sharpe ratio. Agcapita’s funds directly hold diversified portfolios of farmland in western Canada, and in particular in the highly price competitive province of Saskatchewan. Investors are provided with the comfort of a direct investment in farmland combined with a model of front-end loaded cash rents. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for "food, feed and fuel" will continue to move crop prices higher over the long-term. Agcapita is one of Canada's most experienced farmland fund managers, launching its first fund in Q1 2008 and opening Agcapita Farmland Fund IV to investors with a $20 million RRSP offering in April 2013.

This news release may contain certain information that is forward looking and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words "anticipate," "expect," "may," "should" "estimate," "project," "outlook," "forecast" or other similar words are used to identify such forward looking information. Those forward-looking statements herein made by Agcapita, if any, reflect Agcapita's beliefs and assumptions based on information available at the time the statements were made (including, without limitation, that (i) the demand for agricultural commodities will continue to grow at a pace that is unlikely to be matched by growth in agricultural productivity, and (ii) investment demand for tangible assets such as agricultural commodities and farmland will continue to increase for the foreseeable future). Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material. Factors which could cause actual results or events to differ materially from current expectations include, among other things: risks associated with the ownership and operation of farmland, including fluctuations in interest rates, rental rates and vacancy rates; general economic conditions; local real estate markets; supply and demand for farmland; competition for available farmland; weather; crop diseases; the price of grain and other agricultural commodities; changes in legislation and the regulatory environment; and international trade and global political conditions. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release (if any), which is given as of the date it is expressed herein. Agcapita's undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.
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Agcapita Partners
Karim Kadry
+1-587-887-1541
Contact
www.agcapita.com

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