ESG/Impact Investing supports the success of agriculture in Canada.
An investment in AgriRoots is an ESG/Impact Investment that has far-reaching implications – not only for the diversification of your financial portfolio, but directly for the Canadian agricultural community as well.
At AgriRoots, we fundamentally support ESG best practices:
Within the agricultural community, Environmental Stewardship is generally built into the ethos of farming best practices. Our Canadian farm operators understand that the land must be farmed responsibly to ensure its ability to support crop production for future generations as well as to provide food security for today.
Social Responsibility at AgriRoots comes in a variety of forms. Not only do farm and agri-business operators help to ensure food security in Canada and around the world, but by investing in AgriRoots, you provide the ability for us to keep farming families on family farms through financial restructuring, succession planning, capital expansion, and other opportunities.
Through the work we do and the services we provide to farm and agri-business operators, we ensure that Good Governance is built into the various financial strategies that we create for our clients. This ensure best business operational practices are instituted and carried on for ongoing operational success in the future.
Ultimately, the AgriRoots objective and business model is to provide an organized national funding solution for debt opportunities that fall outside the parameters of Schedule 1 debt funders and to work co-operatively with Schedule 1 funders to improve the flow, cost, and allocation of capital to the agricultural sector.
Investing in AgriRoots offers a compelling risk/reward ratio.
The AgriRoots lending model is based on rigorous traditional underwriting and due diligence standards with Schedule 1 Financial Institutions’ lending parameters in mind.
Our lending niche is the provision of bridge financing to active agricultural enterprises including:
- Assisting new entrants into agricultural production who haven’t developed a track record to qualify for traditional financing
- Assisting existing active farming operations to restructure and stabilize financial performance to transition them back to traditional financing.
Our highly diversified portfolio of farm mortgages, with conservative loan to value ratios, provides a compelling risk/reward profile compared to other investment vehicles – including direct ownership or equity positions with 100% exposure / leverage to changes in value of the underlying asset. At AgriRoots, our exposure is managed through conservative lending parameters.
Our weighted average Loan to Value (LTV) averages 55%. Funds invested are well secured against declines in farmland values, and our debt portfolio is secured by mortgage charges on farmland and buildings.