The myriad factors affecting farm profitability and competitiveness ultimately affect the value of agricultural assets, land, and lending risk. We distill complicated data and policy outcomes to actionable insights, helping clients value agriculture and water assets, assess field-level risks, and evaluate the potential impacts on their portfolio.
Water and Climate Risk
Economic water risk measures how changing water supply availability, cost, policies, regulations, climate, and market conditions affect farming and lending financial outcomes. Water scarcity–due to climate, policy, and hardening demand–is increasing across the west, and in many regions the industry hardest hit is agriculture. Water risk has downstream effects on the entire agricultural supply chain and consumers, and cannot be measured with a single index. We work with clients to evaluate how water risk affects their portfolios and the value of potential assets.
Commodity and Resource Valuation
We know the value of water, really. Our technical approach focuses on the market fundamentals that drive the value of water – cutting through the sensational headlines and gimmicky indices. Our suite of economic models and data allows us to develop ranges of values under future conditions – in response to changing policy, laws, and water availability. We work with our clients to tailor our analysis to conditions that affect their assets, providing robust due diligence assessments.
Commodity Market Assessments
Resource availability, inputs costs, and changing domestic and export demand affect the markets for crops. We work with clients to develop industry baseline assessments and outlooks under changing conditions, supporting buyer price negotiations and strategic industry planning. Market assessments provide a data-driven basis for evaluating the impact of changes from higher production costs to supply chain bottlenecks, labor shortages, and drought.