METHODOLOGY

Peak Soil Indexes® (PSI) is dedicated to constructing accurate and timely indexes derived exclusively from marketplace transactions. The indexes are designed to be useful and not limited to a historical reference, offering no value to the decisions or urgencies of today. PSI indexes reflect current market prices and can be used to resolve and address current concerns. The indexes are published on a weekly or monthly basis, with all indexes scheduled for weekly updates in 2017.

Indexes were initially constructed with exclusive use of arms-length transactions. In April 2016 all indexes evolved to a new SALT™ (Strategic Arms Length Transactions) methodology. SALT™ was adopted too maximize observations, improve usability and provide greater design flexibility.

With the exception of Minnesota, which utilizes a proprietary productivity index, each index is also nominalized around a well-respected, market accepted productivity rating. The nominalization process recognizes and adjusts for variances in land quality sold over a specific period. The index value is unambiguous and representative of the nominal productivity rating. Additionally, the standardization process effectively allows for an equivalent value determination for any parcel based on soil quality or yield per acre.

Indexes are constructed using either 30 or 60 day running sales data, with all indexes quoted in price per acre values. The average price is determined through a proprietary linear regression model that equates transaction prices of various land qualities. Indexes are specifically published every Wednesday and the last business day of the month, with no publication released three business days prior to or after the month end posting.

OUR COMMITMENT

Extensive research, analysis and review go into every Peak Soil index. Each index is uniquely constructed around available data to satisfy marketplace needs. The indexes are designed with unequaled reliability, timeliness and functionality, while pursuing uncompromising accuracy. Methodology and structure are under constant review, with a continued search for design optimizations. With the same diligence applied to efficiencies, PSI pursues structuring uncompromising, responsible indexes. Peak performance with maximum protections is expected from every product. Furthermore, unlike most indexing boutiques, PSI offers supporting tools to enhance use of its indexes. AccuAcre, a one of its kind analytical toolkit, provides sophisticated analysis of PSI indexes and farmland in general. PSI keeps its focus on future needs of the agricultural and investment communities, pursuing the development of new products that can further the financialization of farmland.

Additional information, including methodology is available to parties who obtain a licensing agreement with Peak Soil Indexes®.