GIC Executive Briefing
June 22, 2021 Confidential Information An investment in the fund involves a high degree of risk. There can be no assurance that the Fund’s investment strategy will be achieved. The investor could lose all or a substantial portion of an investment. See the last page of this material for important disclosures regarding the Fund.
Ceres Farms Summary Ceres Farms invests in U.S. Rowcrop Farmland and leases land to top farmers
AUM
$1,038 Million
Offices
South Bend, Indiana
Focus
U.S. Row & Specialty Crop Farmland
Strategy
1. Acquire farms below market value 2. Make Improvements 3. Lease to Top Farmers
Holdings
466 Properties / 147,842 Acres / 10 States
Tenants
140 Family Farmers
Disclosure: Past Performance Is Not A Guarantee Of Future Results Source: Ceres Farms LLC
2
Top 5 Corn & Soybean Producers, Exporters & Importers Corn Top 5 Corn Producers
Top 5 Corn Exporters
Top 5 Corn Importers
(MMT; 2016-2020 Average)
(MMT; 2016-2020 Average)
(MMT; 2016-2020 Average)
400,000
400,000
400,000
350,000
350,000
350,000
300,000
300,000
300,000
250,000
250,000
200,000
200,000
250,000 200,000 150,000 100,000 50,000
150,000
150,000
100,000
100,000
50,000
50,000 -
-
-
United States
United States
China
Brazil
E.U.
Brazil
Argentina
Ukraine
Argentina
China
European Union
Mexico
Japan
European Union
Vietnam
Soybeans Top 5 Soybean Producers
Top 5 Soybean* Exporters
(MMT; 2016-2020 Average)
(MMT; 2016-2020 Average)
Top 5 Soybean* Importers (MMT; 2016-2020 Average)
140,000
140,000
140,000
120,000
120,000
120,000
100,000
100,000
100,000
80,000
80,000
80,000
60,000
60,000
60,000
40,000
40,000
40,000
20,000
20,000
20,000
0
0
Brazil
United States Argentina
China
India
0
Brazil
United States Argentina
Paraguay
Canada
China
E.U.
Mexico
Indonesia
Thailand
* Soybean exports and imports include Soybean Meal and Soybean Oil. Argentina Tariff structure supports domestic processing industry Source: USDA PSD Database
3
Corn & Soybean Consumption The United States and increasingly China are the dominant consumers of both Corn and Soybeans
Top 10 Soybean Consuming Countries
Top 10 Corn Consuming Countries 1,400,000 1,200,000
Rest of World
Rest of World
350,000
Canada
300,000
Thailand
250,000
Argentina
Indonesia
Vietnam
1,000,000 Japan
800,000
Egypt
Vietnam
200,000
Mexico
600,000
India
150,000 India
Mexico
400,000
100,000 Brazil
Brazil
200,000
50,000
European Union
European Union
2021/2022
2020/2021
2019/2020
2018/2019
2017/2018
2016/2017
2015/2016
2014/2015
2013/2014
2012/2013
2011/2012
2010/2011
2009/2010
2008/2009
2007/2008
2006/2007
2005/2006
2004/2005
2003/2004
United States
2002/2003
United States
0
2001/2002
China
2000/2001
2021/2022
2020/2021
2019/2020
2018/2019
2017/2018
2016/2017
2015/2016
2014/2015
2013/2014
2012/2013
2011/2012
2010/2011
2009/2010
2008/2009
2007/2008
2006/2007
2005/2006
2004/2005
2003/2004
2002/2003
2001/2002
2000/2001
0
China
Note: Soybean Consumption is the combination of Soybean Meal and Soybean Oil by weight Source: USDA PSD Database
4
Trade Flows North and South America, and to a lesser extent the FSU, are the breadbaskets of the world, supplying Corn, Wheat and Soybeans to the rest of the world, particularly East Asia Net Value of Imports (Exports) -- Corn, Wheat & Soybeans1 (2014-2018 Average; Billion USD) East Asia Southeast Asia North Africa Middle East European Union-28
South Asia Sub-Saharan Africa Oceania Former Soviet Union-13 North America South America -$80.0
-$60.0
-$40.0
-$20.0
$0.0
$20.0
$40.0
$60.0
Source: USDA FAO Note: Soybeans include Meal and Oil
5
Corn & Soybean Yield and Yield Growth While yields are improving, they are doing so at ever-declining rates as acreage expands into ever-less productive regions
Soybean 30-year Global Yield and Yield Growth
Corn 30-year Global Yield and Yield Growth 2.50%
6.00
2.00%
5.00
3.50
1.60%
3.00
1.40%
2.50
1.20%
4.00
1.50%
2.00
3.00
1.00%
1.50
2.00 0.50%
1.00 0.00 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
0.00%
Yield (MT/ha)
Annual % Growth (trendline)
1.00% 0.80% 0.60%
1.00
0.40%
0.50
0.20%
0.00
0.00% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
7.00
Yield
Annual % Growth (trendline)
Source: USDA PSD Database
6
Crop Prices – Long Run Global demand growth continues to outpace yield growth … … requiring additional acreage over time
Output = Capacity (Acreage) x Productivity (Yield) Soybean Demand and Yield (trailing 3-year average)
Corn Globl Demand and Yield (trailing 3-year averages)
Demand
Yield
1.00
Demand
2019/2020
2020/2021
2017/2018
2018/2019
2015/2016
2016/2017
2013/2014
2014/2015
2012/2013
2010/2011
2011/2012
2008/2009
2009/2010
-
2006/2007
2020/2021
2018/2019
2019/2020
2016/2017
2017/2018
2015/2016
2013/2014
2014/2015
2011/2012
2012/2013
2009/2010
2010/2011
2007/2008
2008/2009
2005/2006
2006/2007
2003/2004
2004/2005
2001/2002
2002/2003
-
2.00
2007/2008
200
3.00
2005/2006
400
4.00
2003/2004
600
5.00
2004/2005
800
400 350 300 250 200 150 100 50 -
2001/2002
9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00
1,000
2002/2003
1,200
Yield
Source: USDA PSD Database
7
Crop Pricing Crop prices are cyclical like any commodity … there is either too much or too little supply
Price History - Corn, Soybeans & Wheat (Continuous Nearby Futures) 12
30
10
25
8
20
6
15
4
10
2
5
0
0
Corn
Wheat
Soy
Source: Bloomberg, CME
8
U.S. Arable Land Arable land has been declining for decades in the face of urbanization
U.S. Arable Land (million acres) 500 450 400 350 300 250 200 150 100 50
1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
-
Source: UN FAO
9
Ceres Sustainable Food & Agriculture Private Equity Ceres SFA invests in emerging private companies across four verticals
AUM
$30 Million
Offices
Boston, Massachusetts
Strategy
Emerging Companies with Proven Technologies providing Sustainable Solutions to Major Supply Chain Problems.
Verticals
1. Indoor Growing (3 Portfolio Companies) 2. Water & Waste (1 Portfolio Company) 3. Aquaculture (1 Portfolio Company) 4. Specialty Beverage (3 Portfolio Companies)
Disclosure: Past Performance Is Not A Guarantee Of Future Results Source: Ceres Partners LLC
10
Sustainable Local Farming – The Future of Produce Sustainability Impact of Just Phase 1:
Less Water
Fewer Miles
Pesticide Free
Locally Grown
- 0 chemical pesticides or herbicides - Eliminates 500,000 truck miles annually, saving 1,250 tons of carbon
- Reduce water consumption by 95% - Produces as much as 150 acres of fieldgrown lettuce in CA/AZ - Eliminates over 300,000 pounds of food waste annually
3.5 Acres of Fully Automated Production South Bend, IN