Saskatchewan Wheat Pool

In 1996, Saskatchewan Wheat Pool embarked on a strategy for growth and diversification by significantly expanding its asset base. This expansion brought with it many new costs, especially new fixed costs such as interest and depreciation. They failed to achieve the new revenues needed to support the higher fixed costs and consequently, found themselves in financial distress. In 2000, Mayo Schmidt was brought in as CEO to turn the company back to profitability. His strategy was to sell off all non-core assets and focus on the core businesses that built the company; grain handling and supplying farm inputs. 2004 would be a crucial year for Saskatchewan Wheat Pool.Publicly traded co-operative, Business strategy, Financial distress, Agribusiness, Crop Production/Industries,

Efficient Investment in Saskatchewan Farmland

Farm Management,

Canadian Farmers' Adaptation to Declining Commodity Prices

The five major agricultural producing provinces are compared in terms of farm labour and management incomes, return on investment to farm capital, total farm family income, and farm family net worth. In each province, comparisons are made with non-farm incomes, investment returns and net worth levels. The results show that farm family incomes in Canada are much better today than 30 years ago, returns on farmland investment are very comparable to average stock market returns, and average farm family net worth is significantly higher than the average for all families. The conclusion is that Canadian farmers have adapted well to declining commodity prices mainly by being adapters of and investors in new technologies, allowing them to increase farm size (increased cost efficiencies) and by diversifying their income sources to include more off-farm income.Farm Labour and Management Income, Return on Invested Farm Capital, Real Commodity Prices, Farm Family Income, Off-Farm Employment, Farm Family Net Worth, Farm Management, Labor and Human Capital,

The Portfolio Diversification Impact Of A Farmland Real Estate Investment Trust

An analysis of Canadian farmland risk and return on investment shows that a Farmland Real Estate Investment Trust (F-REIT) would have been a reasonably good investment over the past 35 years. Investors who desire either low or high risk portfolios would not have benefited from an F-REIT investment. However, investors in the medium risk category could have improved the financial performance of their portfolios by including an F-REIT investment. The financial gains from F-REIT result from a level of risk that is lower than REITs and stocks, an expected yield that is greater than for bonds, and a low correlation with other financial asset returns. The benefit for the agricultural market is that F-REITs inject new equity by purchasing land from retiring farmers and leasing to farmers who want to expand. The benefit for the non-farmer investor and institutional investors is improvement in overall portfolio financial performance

Modelling the impact of toxic and disturbance stress on white-tailed eagle (Haliaeetus albicilla) populations

Several studies have related breeding success and survival of sea eagles to toxic or non-toxic stress separately. In the present investigation, we analysed single and combined impacts of both toxic and disturbance stress on populations of white-tailed eagle (Haliaeetus albicilla), using an analytical single-species model. Chemical and eco(toxico)logical data reported from laboratory and field studies were used to parameterise and validate the model. The model was applied to assess the impact of ∑PCB, DDE and disturbance stress on the white-tailed eagle population in The Netherlands. Disturbance stress was incorporated through a 1.6% reduction in survival and a 10–50% reduction in reproduction. ∑PCB contamination from 1950 up to 1987 was found to be too high to allow the return of white-tailed eagle as a breeding species in that period. ∑PCB and population trends simulated for 2006–2050 suggest that future population growth is still reduced. Disturbance stress resulted in a reduced population development. The combination of both toxic and disturbance stress varied from a slower population development to a catastrophical reduction in population size, where the main cause was attributed to the reduction in reproduction of 50%. Application of the model was restricted by the current lack of quantitative dose–response relationships between non-toxic stress and survival and reproduction. Nevertheless, the model provides a first step towards integrating and quantifying the impacts of multiple stressors on white-tailed eagle populations

Sustainable Land Values and Price Premiums for North American Farmland

This paper analyses current farmland prices in five US states and five Canadian provinces to assess whether and to what extent there are current price premiums for ‘‘irrational exuberance’’ and non-farm influences such as urbanization, hobby farms, commercial development and other non-farm uses. It appears that the farmland market in North America is in a boom period, showing significant premiums for irrational exuberance. If interest rates continue to be low and commodity prices return to higher levels, these premiums could get even larger in the next few years. However, if inflation and interest rates rise while commodity prices remain lower, we may see a significant farmland price correction

Canadian Farmers' Adaptation to Declining Commodity Prices

The five major agricultural producing provinces are compared in terms of farm labour and management incomes, return on investment to farm capital, total farm family income, and farm family net worth. In each province, comparisons are made with non-farm incomes, investment returns and net worth levels. The results show that farm family incomes in Canada are much better today than 30 years ago, returns on farmland investment are very comparable to average stock market returns, and average farm family net worth is significantly higher than the average for all families. The conclusion is that Canadian farmers have adapted well to declining commodity prices mainly by being adapters of and investors in new technologies, allowing them to increase farm size (increased cost efficiencies) and by diversifying their income sources to include more off-farm income

The impact of management skills on farm incomes in Canada

This study assesses the reported farm income crisis in Canada and uses farm financial data to illustrate the importance and impact that management skills and practices have on farm income and net worth. For grain and oilseed farms, large farms produce higher revenues per hectare and achieve economies of scale on operating expenses, interest and depreciation, making them significantly more profitable than smaller or average sized farms. The higher profits associated with large farms are partly returns to good farm management. While farmland investment returns are competitive with stock and bond markets, grain and oilseed farm labour and management returns are not competitive with provincial average wages and salaries. On average, Canadian grain and oilseed farm families have less disposable income to spend today but have considerably more wealth than their non-farm family neighbours. The higher wealth level for farm families makes it increasingly difficult for governments to acknowledge a farm crisis and increase farm subsidies