Investment outlook piece describing the Feed the World Theme. This will help to provide you with some insight in how to invest to take advantage of forth coming trends.

1. INVESTMENT STRATEGY GROUP
MICHAEL HALLORAN, CFA
Strategy Analyst
Janney Montgomery Scott LLC
MARK LUSCHINI
Chief Investment Strategist
Janney Montgomery Scott LLC

2. INVESTMENT STRATEGY GROUPINVESTMENT STRATEGY GROUP 1
As part of our Outlook 2013, we are highlighting several themes that are impacting the U.S. and global economy: Global Infrastructure;
The U.S. Energy Renaissance; and Feed the World. These themes have major investment implications and should play a key role in
future market returns. In this piece, we are focusing on Feed the World.
The global economy faces a major challenge in order to feed the world over the coming decades. The global population is expected to
increase to over 9 billion people by 2050, representing 2.3 billion more people to feed. In addition, economic development in the
emerging markets could produce 3 billion more middle-class consumers in the next 20 years, compared with 1.8 billion today. These
consumers have better diets and consume more calories and meat, which requires more land per calorie to produce. Compounding
the challenge, global growth in crop yields has been slowing since the 1970s and is now weaker than population growth.
Agriculture is the largest user of water globally, accounting for 75% of water usage. A serious discussion of agriculture necessarily
involves a discussion of global water resources, where it is likely to be costly and difficult to increase supply.
This agricultural challenge will require tremendous strides in productivity that can only be obtained by innovative technology, advanced
machinery and communication equipment, supply chain optimization, and implementation of agricultural best practices around the
world. Required capital investment estimates range from $870 – $990 billion per year, up from today’s $560 billion per year.
Many companies highlighted in this report are global leaders at improving agricultural productivity, and will play critical roles over the
coming decades in order to safely and adequately feed the world. They should represent solid investments for investors with long-term
time horizons.
We hope you find this report useful and informative for your investment needs.

3. INVESTMENT STRATEGY GROUP 2
0
20
40
60
80
100
1980 1990 2000 2010 2020 2030
0
1000
2000
3000
4000
1980 1990 2000 2010 2020 2030
0
2000
4000
6000
8000
1980 1990 2000 2010 2020 2030
Real GDP $ trillion• According to the United Nations, food production must increase 70% by 2050 to feed
the expected global population of more than 9 billion people. This amounts to an
estimated 2.3 billion more people to feed. To put this in perspective, we will need to
produce the same amount of food over the next four decades than we produced over
the past 8,000 years.
• The demand for food is expected to grow as a result of both population growth and
rising incomes. In the last 10 years alone, global population has increased 13% and
global incomes have grown by 29%. During this same period, global crop area
harvested has grown only 8%.
• The growth of India and China is historically unprecedented and is happening at
about 10 times the speed at which the United Kingdom improved average incomes
during the Industrial Revolution—and on roughly 200 times the scale. In India,
estimates show calorie intake per person could rise by 20% over the next 20 years,
and China’s per capita meat consumption could increase by 40% to 75 kilograms
(165 pounds) a year (and still be well below U.S. consumption levels).
• Worldwide, more than one in six people are malnourished. The World Bank
estimates that increases in food prices in the second half of 2010 pushed 44 million
people into poverty. In addition, about 884 million people lack access to safe water.
• Increasing water supply is likely to be costly and difficult. Sources of freshwater are
already under stress. Lakes are drying up in many parts of the world, and rivers often
dry up before they reach the ocean because of overconsumption of their water.
Water pollution has also rendered a portion of surface water unusable. For example,
21% of available surface water in China is unfit for agriculture.
Food (Cereals only) Million tonnes
Water Cubic Kilometers

4. INVESTMENT STRATEGY GROUP 3
• Assuming current yield improvements, the supply of cropland
over the next 20 years may need to increase by as much as
250% relative to the past 20 years. This is due to demand for
food and feed, a declining rate of growth in yields, and the use
of biofuels increasing incremental land demand.
• Land degradation, climate change, and the loss of arable land
due to the expansion of the world’s cities could remove
significant additional cropland from production over the next 20
years.
• The two main drivers of higher water demand are historic
underinvestment in supply and accelerated growth in water
withdrawals. Water withdrawals are likely to increase by more
than 40% between now and 2030.
• Increased agricultural output would account for 65% of
incremental water demand, growth in water-intensive
industries an additional 25%, and municipal demand the
remaining 10%.
Additional supply of water and land required would
have to accelerate over next 20 years, assuming
today’s productivity levels.
Incremental &
Replacement
Supply
(1990 – 2010)
Incremental &
Replacement
Supply
(2010 – 2030)
Percentage
Increase
Water (cubic
kilometers)
900 2,150 139%
Land (million cropland
hectares)
63 220 249%
Numbers represent incremental supply plus replacement rate and do not tie to total demand.
Analysis assumes that agricultural yields per hectare improve at 1% per annum and that
agricultural water productivity (i.e., crop-per-drop) increases at 0.8% per annum.
Source: Janney ISG; FAO; McKinsey Global Institute

5. INVESTMENT STRATEGY GROUP 4
• Large scale farms account for an estimated 70% of global
land under cultivation. Increasing their yields could
account for 65% of the potential improvement in the
yields on cropland as a whole over the next 20 years.
Additional benefits can be obtained by increasing the
yields on smallholder farms.
• Improving best technology adoption in both developing
and developed countries’ large-scale farms would greatly
enhance productivity. Improved mechanization ,as well as
optimizing genetic variety and farming practices, can
significantly boost yields.
• Investing in farming practices (such as machinery to
support precision farming) and in the basic infrastructure
for getting goods from farms to market is critical for
improving productivity, and requires better access to
capital.
• Reducing food waste in the value chain could deliver
significant productivity gains. Optimizing processing,
packaging, distribution, storage, and transportation are
major opportunities.
Productivity improvements could more than offset the expected
increase in land demand, and offset 60% of expected water demand.
Base case demand assumes that yields per hectare improve at 1% per annum and that agricultural water productivity
(i.e., crop-per-drop) increases at 0.8% per annum (in line with recent historical trends).
Source: Janney ISG, McKinsey
4500
6350
5100
1250
2010 2030 Base
Case
2030
WATER
(Cubic Kilometers)
Demand Productivity Improvement
1535 1260
1260
470
2010 2030 Base
Case
2030
LAND
(million cropland hectares)
Demand Productivity Improvement

6. INVESTMENT STRATEGY GROUP 5
• Reducing land degradation and restoring degraded land offers
the potential to reduce yield loss.
– Technology and machinery play a major role.
• Improved irrigation techniques represent the second-largest
opportunity to reduce the global consumption of water after
improving crop yields. Advanced irrigation techniques can
improve yields by 15–30%, while reducing the water required
by 20–60%.
– Machinery and fertilizers play a key role in enabling advanced
irrigation techniques.
• More than 80% of available, arable land is in countries with
infrastructure issues.
– Improving global infrastructure is critical for productivity.
• Historical rates of land and water productivity have lagged
other sectors of the economy.
– Technologies like the digital revolution that has accelerated
productivity growth across the wider economy could have a similar
impact on land and water.
Significant capital investments required to Feed the World:
Average annual capital expenditure requirement, 2010–2030
($ billion, constant 2010 dollars).
2010 Capital
Expenditure
Supply
Expansion
Scenario
Improved
Productivity
Scenario
Water 270 615 470
Land 310 375 400
Source: Janney ISG; McKinsey

7. INVESTMENT STRATEGY GROUPINVESTMENT STRATEGY GROUP
9.3
8.4
7.4
6.8
5.5
4.3
2.9
2.1
1.7 1.5
0
1
2
3
4
5
6
7
8
9
10
1860 1880 1900 1920 1940 1960 1980 2000 2020E 2040E
Global Arable Acres per capita
Source: United Nations
Withaccess to wateran increasingly importantconstraint on
incrementalagricultural production,maximizing productivityon
existingacreage hasbecome a keyfocusin the farming industry.
The upshot? Makersof technologies
thatenable farmerstomaximize yield
shouldsee strongdemandgrowth.

8. INVESTMENT STRATEGY GROUPINVESTMENT STRATEGY GROUP
Growth in Productivity of the U.S. Farm Sector
-0.52
0.02
-0.08
0.69
0.11
1.63
-1
-0.5
0
0.5
1
1.5
2
Labor Capital Land Materials Total
Inputs
Output
Annual Growth Rates Between 1948-2009
(in %)
Farm Inputs
Source: USDA
0
20
40
60
80
100
120
140
160
180
200
1901 1916 1931 1946 1961 1976 1991 2006
U.S. CornYield
(bushels per acre)
Source: USDA
AG All U.S.
1.7% 3.2%
Share due to:
Non-Labor Inputs 11.8% 54.1%
Labor Hours -34.2% 23.7%
Labor Quality 5.6% 8.8%
Growth in TFP 116.8% 13.4%
Avg. Annual Output
Growth:
The tremendous growth in the output of the U.S. farm sector is well-documented, but less attention is typically paid to the factors driving the significant yield improvements. According to a
study by the USDA, total factor productivity (technological advancements and farming best practices) was the main driver of increased U.S. agricultural production between 1960 and 2004.

9. INVESTMENT STRATEGY GROUPINVESTMENT STRATEGY GROUP
Genetically-enhanced seeds experienced tremendous growth the past 10 years as the penetration rate of precision ag is not far behind it. With farmers in emerging markets yet to fully
embrace these advancements, and U.S. farmers in the early innings of technology utilization, adoption of technology in the agriculture industry remains a compelling growth driver.
Precision Agriculture Adoption and Seed Usage
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2005 2010
PrecisionAgricultureAdoption
(% of corn acres using technology)
Some Technology Used
Yield Monitor Used
Yield Map Created
Source: USDA
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
2000 2005 2010
Use of Insecticide & Herbicide Resistant Seeds
GMO Herbicide Resistant BT Insecticide Resistant
Source: USDA

10. INVESTMENT STRATEGY GROUP 9
Company Name Ticker
Forward
P/E
Earnings
Growth
Dividend
Yield Credit Rating Notes Coverage
Staples - 12.0% of S&P 500
These staple companies operate all along the agricultural value chain, from fertilizers and farm fields to the grocery isle and dinner table.
ARCHER-DANIELS-MIDLAND CO ADM 13.61 10.00 - A Major global manufacturer and processor of agricultural commodities. S&P
BUNGE LTD BG 9.51 9.33 1.55 BBB- Major global agribusiness and food company with integrated operations. S&P
CHIQUITA BRANDS INTL CQB 16.35 4.00 - B Leading international distributor of high-quality fresh and value-added produce. J
CALAVO GROWERS INC CVGW 20.37 11.50 2.18 - Global leader in avocado industry and a provider of value-added fresh food. J
DOLE FOOD CO INC DOLE 21.48 6.50 - B World’s leading producer of fresh fruit and vegetables, including value-added products. J
FRESH DEL MONTE PRODUCE INC FDP 15.70 5.00 1.58 NR Vertically integrated producer and marketer of fresh and packaged fresh-cut produce. J
TYSON FOODS INC-CL A TSN 12.08 8.50 1.15 BBB One of world's largest meat protein firms, products include beef, chicken and pork. S&P / CS
Energy - 10.8% of S&P 500
Energy fuels the entire supply chain for agriculture and water. Exploration & Production companies are responsible for finding oil & gas for the future.
EOG RESOURCES INC EOG 19.37 10.97 0.53 A- Large independent E&P company with Bakken Shale oil growth exposure. S&P / CS
CONOCOPHILLIPS COP 11.30 5.55 - A One of the largest independent E&P companies in the world. S&P / CS
SPDR S&P OIL & GAS EXP & PR XOP - - - - Equal-weighted basket of 71 E&P companies.
VANGUARD ENERGY ETF VDE - - - - Cap-weighted basket of 169 companies across entire Energy sector.
Industrials - 10.0% of S&P 500
Machinery firms play a critical role in improving the productivity of agriculture and water usage.
AGCO CORP AGCO 9.94 9.67 0.18 BBB- Global manufacturer of a wide range of agricultural equipment. J / S&P / CS
CATERPILLAR INC CAT 12.60 10.33 2.34 A Enables much of the heavy infrastructure lifting across the globe. S&P / CS
DEERE & CO DE 10.33 9.25 2.15 A Among the world’s largest providers of agricultural equipment J / S&P / CS
LINDSAY CORP LNN 15.52 13.33 0.53 - Leading global manufacturer of advanced irrigation systems. J
VALMONT INDUSTRIES VMI 14.39 17.35 0.58 BBB Leading global manufacturer of advanced irrigation systems. J / CS
INDUSTRIAL SELECT SECT SPDR XLI - - - - Broad exposure to 62 U.S. based industrials. GE is largest holding.

11. INVESTMENT STRATEGY GROUP 10
Materials - 3.5% of S&P 500
Advanced seed technology and fertilizers are critical for improving farm land yields.
AGRIUM INC AGU 9.74 13.00 1.61 BBB Global provider of advanced fertilizer and crop protection products. CS
DU PONT (E.I.) DE NEMOURS DD 14.52 7.70 3.04 A Global leader in seed technology, crop protection, and food packaging. S&P / CS
MONSANTO CO MON 22.15 14.36 1.33 A+ MON's seeds, biotechnology products, and herbicides improve farm productivity. S&P / CS
MOSAIC CO/THE MOS 14.95 8.00 1.43 BBB Major global producer of phosphate and potash based crop nutrients. S&P / CS
POTASH CORP OF SASKATCHEWAN POT 14.40 7.50 1.99 A- Integrated fertilizer and related industrial and feed products company. S&P / CS
Information Technology - 18.2% of S&P 500
Technology firms are enabling advanced infrastructure development and playing a key role in improving agriculture and water productivity. They are also developing the advanced wireless and wireline communications
networks that will help optimize the global food chain.
ITRON INC ITRI 14.97 3.83 - BB Provides energy and water management solutions for nearly 8,000 utilities worldwide. J / S&P / CS
TRIMBLE NAVIGATION LTD TRMB 18.73 14.00 - - Turning farm into factory thru high-tech positioning and communication devices. J / S&P
ISHARES S&P NA TEC-MUL N IF IGN - - - - Broad exposure to telecom equipment, data networking and wireless equipment stocks.
Telecom - 2.9% of S&P 500
Advanced communication infrastructure systems are required to optimize the global food chain.
AMERICAN TOWER CORP AMT 37.43 21.34 1.21 BB+ Largest independent N.A. tower operator, also in South America and India. S&P
VODAFONE GROUP PLC-SP ADR VOD 11.31 3.29 - A- Leading global provider of international wireless telecommunications services. S&P / CS
ISHARES S&P GLBL TELECOMM SE IXP - - - - Broad exposure to global telecom with a solid dividend yield.
Utilities - 3.2% of S&P 500
Utilities play a key infrastructure role in the agriculture and water supply chain and will be critical for improving productivity.
AMERICAN WATER WORKS CO INC AWK 18.33 7.27 1.85 A- Largest investor owned water utility provides service to 5% of U.S. population. J / CS
AES CORP AES 9.69 9.50 0.65 BB- World's largest independent power producer operates in 27 countries. S&P
CONSOLIDATED WATER CO-ORD SH CWCO 20.63 13.00 2.78 - Global developer of seawater desalination plants and water distribution systems. J
ISHARES S&P GLOBAL UTILITIES JXI - - - - Broad exposure to global utilities.
Definitions:
Forward P/E - Current stock price divided by EPS consensus estimate for the next four quarters.
Earnings Growth Estimate - Mean broker estimate of the compounded annual growth rate of the operating eps over the company's next full business cycle (typically 3-5 years).
Dividend Yield - Trailing 12 month dividend per share divided by share price
Credit Rating - Rating assigned by Standard & Poor's to the long term obligations of the issuer if repaid in the local currency of the issuer.

12. INVESTMENT STRATEGY GROUP 11
Fund Symbol Description
iShares MSCI
Global Agriculture
Producers ETF
VEGI
Holds 132 companies that provide exposure to the global agriculture industry and tracks the MSCI
ACWI Select Agricultural Producers Investable Market Index. The index looks to track companies that
derive a majority of total revenue from early-phase agricultural production. Roughly 40% of VEGI’s
assets are U.S. holdings. Monsanto (MON), Potash (POT), Deere (DE), and Archer Daniels Midland
(ADM) are major holdings. VEGI has a favorable 0.39% expense ratio.
Market Vectors
Agribusiness ETF
MOO
Offers global exposure to the agriculture industry by investing in 53 companies that sell agricultural
equipment, chemicals, and seeds, such as Monsanto MON, Potash POT, and Deere DE. Tracks the
Market Vectors Global Agribusiness Index. Large and liquid product with a fee of 0.55% annually.

13. INVESTMENT STRATEGY GROUPINVESTMENT STRATEGY GROUP
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herein, and does not constitute investment advice by Janney Montgomery Scott LLC or its affiliates. Decisions to buy or sell a stock should be based on an investor’s
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The information provided in the list has been obtained or derived from sources believed by Janney Montgomery Scott LLC to be reliable. Janney Montgomery Scott LLC,
however, does not represent that this information is accurate or complete. Any opinions or estimates contained in this report represent the judgment of the Investment
Strategy Group of Janney Montgomery Scott LLC at this time and are subject to change without notice. The opinions and estimates do not necessarily represent the
viewpoint of Janney Montgomery Scott LLC, its Research Department or any other group or employee associated with Janney Montgomery Scott LLC or its affiliates, and
may differ from opinions or estimates of Janney Montgomery Scott LLC, including its Research Department, and its affiliates. Janney Montgomery Scott LLC or its affiliates
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includes only companies that receive research analyst coverage from either Janney Montgomery Scott LLC’s Research Department or a research provider whose research
is available to Janney Montgomery Scott LLC Financial Advisors and that also currently pay a dividend to shareholders. Thus, the universe of potential companies that
could be included in this representative list is narrower than the total universe of public companies.
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quarters. ―Growth Rate %‖ is an estimate of the compounded annual growth rate of the operating earnings per share over the company’s next full business cycle (typically 3
to 5 years). ―Dividend Yield‖ refers to the trailing 12-month dividend per share divided by share price.
Past performance is no guarantee of future performance, and future returns are not guaranteed. There are risks associated with investing in stocks such as a loss of
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12