Investing in the success of agriculture in Canada
At AgriRoots, we strive to keep farming families on family farms. After all, many families have been farming their land for generations, passing down the knowledge of how to successfully work the land and operation. Knowledge – and farm success – that will potentially be lost in a corporate operation, if the land is even farmed at all.
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.
We offer compelling risk/reward profiles
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.