An Alternative Funding Model for Agribusiness Research in Canada

DOI: 10.4236/as.2015.69093   PDF   HTML   XML   3,865 Downloads   4,312 Views   Citations

Abstract

Canadian governments have moved towards a matching funding model for agricultural research. Agricultural organizations can take advantage of this if Canadian Controlled Private Corporations are established to fund research through matching grants, tax credits and investments. A low risk options strategy is presented which uses index options and is a diagonal put spread where an in-the-money put is bought which expires in 1 to 2 years and out-of-the-money puts are sold which expire monthly. In summary, “A small Canadian Controlled Private Corporation can, for a $100,000 up front initial investment, generate at least $100,000 annually in research funding, in perpetuity”.

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Dale, A. and Currie, E. (2015) An Alternative Funding Model for Agribusiness Research in Canada. Agricultural Sciences, 6, 961-969. doi: 10.4236/as.2015.69093.

Conflicts of Interest

The authors declare no conflicts of interest.

References

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