OUR MISSION

Peak Soil Indexes aims to construct responsible, timely, robust indexes derived from actual farmland sales. These indexes provide a look into the real trends of farmland prices, rather than opinion, furthering transparency of prices.

OUR VISION

The democratization of farmland starts with our market accepted, responsible indexes. These acknowledged benchmarks allow for derivative development that benefits both the agricultural and investment communities and pave the way for farmland’s financialization.

Financializing Farmland

With each passing day, the investment community becomes more intrigued with farmland as an asset class. Investor interest became apparent during the commodity super cycle and has continued to grow ever since. However, attempts to satisfy the demand have thus far been insufficient.

That same time period also witnessed an increasing investor preference for passive investment products. Growth continues with new ETF innovations consistently being released. Unfortunately, with few big picture themes remaining, products are launched from obscure indexes representing increasingly thinner sections of the broader market.

PSI, using precision ag and GPS/GIS technologies, is financializing farmland with cutting edge index constructions. The indexes allow for the development of investment products for a strategic commodity, whose significance can be likened to oil. To some, farmland is the source of our very existence. Thomas Jefferson, the third President of the United States, said “civilization itself rests upon the soil.” Farmland, with but a few inches of valuable topsoil, is the gold of the future.

Unlike other commodities, farmland has never been intertwined with the financial marketplace. Access to the commodity has always been restrictive and complex. Hedging tools and analytics for in-depth relative value analysis are not available as for other commodities. However, big data and artificial intelligence now allow for the engineering of products that can satisfy marketplace needs. PSI uses today’s advances to structure benchmark indices suitable for varying types of ETP constructions.

Determining a Fair Market Value (FMV) for farmland is daunting by itself. A lack of liquidity and transparency in the cash marketplace contribute to that difficulty. Investing in a derivative or a physical purchase should be supported with confirmatory analytics. PSI has recently taken its efforts to a granular level where a FMV for individual parcels of ten acres or greater is determined. We provide tools for better informed investment decisions from the parcel level to the exchange traded product.

Transactional and AI derived indexes are the foundation to the financialization of farmland. Indexes provide the needed benchmark or reference point for a known spot market price. Peak Soil furnishes the only indexes specifically designed for derivative development. Exchange traded and OTC products can now be structured to offer investors convenient access to the commodity.

Why Farmland Indexes?

Farmland has become an increasingly popular asset class, yet burdensome to own.
Many investors are currently unable to take advantage of farmland's attractive investment attributes. Financial, legal, operational and other deterrents all discourage ownership.
An investment in farmland is generally long term in nature and lacks real liquidity.
Farmland has attractive investment features; it has a low correlation to other asset classes and high correlation to inflation.
Increased liquidity encourages participation from a broader user base.
There are limited alternative investments to physical ownership.
No adequate hedging tools are available for those with market exposure.
Farmland has constructive long term investment features similar to those found in other strategic commodities.
Tangible investments with a capped downside and liquidity are in demand.
Current farmland indexes are questionable. A legitimate index using reliable, recorded documentation derived from an objective methodology is needed.
Farmland indexes can be tailored to specific geographic regions and soil characteristics.
A commodity with both interested buyers and sellers.
Benchmark farmland indexes provide the foundation for product development.