Soil quality indicators show “dramatic improvements” for Canadian farmland


CALGARY, ALBERTA, CANADA, December 19, 2022 / — In a report produced by Agriculture Canada, soil quality indicators for Canadian farmland have shown considerable to dramatic improvement over the last 30 years due primarily to the widespread adoption of no-till farming practices.

A summary of the soil quality indicators measured in the report are as follows:

Soil Quality indicators

Overall soil quality has seen considerable improvements over the last 30 years, primarily attributable to improvements in land management practices, such as increased adoption of reduced tillage and no-till practices, and the reduction in area under summerfallow in the Prairie Region.

The Soil Erosion Indicator has shown dramatic improvements since 1981, primarily due to the reduction in tillage erosion in the Prairie Region as well as a reduction in erosion from wind and water.

The Soil Organic Matter Indicator has shown dramatic improvements since 1981, primarily due to the reduction in summerfallow and intensive tillage in the Prairie Region – practices which had historically degraded the soil.

The Soil Salinization Indicator has also shown dramatic improvements since 1981. These improvements are largely attributable to a 7-million-hectare decrease in summerfallow area, and a 4.8-million-hectare increase in the area of permanent cover.

(Source: Environmental Sustainability of Canadian Agriculture: Agri-Environmental Indicator Report Series – Report #4)

Stephen Johnston, managing director with Veripath Partners, said:

“Western Canadian zero-till farmland portfolios capture material amounts of carbon and are suitable for investment firms with ESG mandates looking for inflation hedging strategies.”

Who is Veripath?

Veripath is a Canadian alternative investment firm focusing on farmland. Veripath believes that there are a number of factors that are supportive of the Canadian farmland investment premise, a few of which are highlighted below:

• Value: Canada has some of the most competitively priced farmland in the developed world – particularly on a productivity adjusted pricing basis.

• Diversification: Farmland exhibits low correlation to traditional stock/bond investments so can improve portfolio risk diversification.

• ESG: Western Canadian zero-till portfolios capture material amounts of carbon.

• Inflation Hedging: Farmland has historically had strong inflation/stagflation hedging capabilities and outperformed in real terms during periods of low real rates/high inflation.

• Demand: Farmland is a non-volatile way to capture the anticipated incremental demand coming from population growth and growing demands for food, feed, fuel and water globally.

• Veripath divides the Canadian market into two separate geographies of ~84M acres each in order to streamline and simplify farmland ownership regulatory compliance. Veripath Farmland (UR) LP invests in all of Canada (excluding SK and MB) and Veripath Farmland LP invests just in SK and MB. The two sister Funds have the same terms and fee structures.

Disclaimer: This document is for information only and is not intended to provide the basis of any credit or other evaluation, and does not constitute, nor should it be construed as, an offer to sell or a solicitation to buy securities of Veripath, the Funds or any other entity, nor shall any part of this document form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. No reliance should be placed on the completeness of the information contained in this document. This document is not intended to be a comprehensive review of all matters concerning Veripath. Prospective purchasers of this investment opportunity may be provided with formal offering documents and will need to be qualified for investment prior to making any investment. No person has been authorised to give any information or to make any representation not contained in such formal offering documents. No securities regulatory authority or regulator has assessed the merits of the proposed offering or reviewed any of the offering documents. This investment opportunity is speculative and involves a high degree of risk. There is a risk that any investment made will be lost entirely or in part. Only prospective investors who do not require immediate liquidity of their investment and who can afford the loss of their entire investment should consider this investment. This document may contain forward-looking information and statements (collectively, “forward-looking information“) within the meaning of applicable securities laws.

Veripath Farmland
Veripath Farmland Fund
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