The FAO Food Price Index (FFPI) data recently released showed an uptick in inflation.
CALGARY, AB, CANADA, January 22, 2021 /EINPresswire.com/ — The FAO Food Price Index (FFPI) data recently released showed an uptick in inflation. According to the FAO the “FFPI averaged 107.5 points in December 2020, up 2.3 points (2.2 percent) from November, marking the seventh month of consecutive increase. Except for sugar, all sub-indices of the FFPI registered modest gains in December, with the sub-index of vegetable oil again rising the most, followed by that of dairy, meat and cereals. For 2020 as a whole, the FFPI averaged a three-year high of 97.9 points…”. (1)
Veripath believes that “increases in food price inflation may in part be driven by the large increase in the global monetary base that has taken place since the onset of the pandemic and which appears set to continue unabated. Fiscal deficits in G7 countries have increased at unprecedented rates and have been largely funded through central bank bond buying programs – direct monetization in other words. It remains to be seen whether this uptick in food inflation is a temporary or the beginning of a change in baseline inflation rates on the back of highly expansionary monetary policy”.
Veripath operates as a pair of funds – Veripath Farmland LP, which is structured to own farmland in Saskatchewan and Manitoba only; and Veripath Farmland (UR) LP, which is structured to own farmland across the rest of the country. By having two separate vehicles, Veripath simplifies and streamlines compliance with the various provincial regulatory environments.
The funds also have open-ended, evergreen structures, rather than the traditional fixed term. With this approach, Veripath allows shorter- and longer-duration holdings to exist side-by-side, enabling investors, rather than management, to make the decision as to what holding period best fits their portfolio design requirements.
Who is Veripath: Veripath is a Canadian alternative investment firm. Members of Veripath’s management team have decades of farmland, private equity, and private credit investment experience and manage over 70,000 acres of Canadian row crop farmland. Veripath implements its farmland strategy in a way that seeks to preserve as far as possible farmland’s low-volatility return profile – the attribute that generates a material portion of Canadian farmland’s superior risk adjusted return profile. Veripath does this by seeking to minimize operational, weather, geographic and business-related risks – and capture the pure return from land appreciation. Canadian zero-til farmland portfolios may also be a useful addition to ESG driven mandates combining superior risk adjusted returns with environmental benefits. For more information on Veripath please feel free to register online at www.veripathfarmland.com or call 587-390-8267.
Disclaimer: This article is only an expression of our opinions on the subject matter set forth herein and includes information from, or data derived from, public third party sources including commentaries, articles, industry publications, reports and research papers. Veripath has not independently verified the accuracy, currency or completeness of any of the information and data contained in this article which is derived from such third-party sources. While we have a good-faith belief in the accuracy of what we write, all such information is presented “as is,” without warranty of any kind, whether express or implied. The use made of the commentary set forth in this article is solely at the risk of the user of this information. This article is intended only as general information presented for the convenience of the reader and should not in any way be construed as advice of any kind, investment or otherwise.
Source: EIN Presswire