One Earth Farms!

[cottonpicken]

What will they pay for inputs?

Who is going to get first shot at grain contracts and
delivery?

What kind of government/indian conseccions will
happen?

How much in taxes will they pay?

These guys have an angle.

[SASKFARMER3]

I agree their is something very smelly when all who farm know the risks we didnt just jump into our occupations.

[furrowtickler]

Cotton, good points.
But............
Inputs - not alot of margine left with current prices to have much of an inpact
They may get a "first shot at contracts and/or delivery" but that will depend greatly on the quality of grain/oilseeds
Conseccions will be there without a doubt
Taxes - with the peolpe involved taxes will be non-exsistant for the most part.

One must remember this western Canada, not Brazil, mother nature will still dictate what can be done large scale. Time frames are the biggest constraint larger opperations - and they vary dramatically year in and year out.
If One earth models itself from the Hutterites, they may have a shot - But too many people will demand too much return, imo.

[NISAcase]

I predict first investors loose their shirts but Iogen steps in to pick up the pieces. No mention of the carbon credits to this point to ward off the intolerable heat from CO2. I guess I am first. I will later up date you on Wilm Hosenfeld's (Movie Pianist by Roman Polanski') drinking buddies on October 17, 1944 in Warsaw ghetto of World War II clean up operation. One spends rest of his life in Russian prison and the other in Ottawa. Its good to be related to the Kings and Queens.

[NISAcase]

S3, I don't think you understand exactly how farm the current programs work.

I do not disagree with the chances of this organization making a go of it, but the over profit/loss of the entity is not what programs are based on.

Its all production and producing it as efficient as possible. As long as they have reasonable production, they will establish a margin history. Because they are a new farm, they will have start up margins based on an area calculation for the years missing. If they burn up their profit through high compensation to owners, high lease costs for equipment, high rent for land, it doesn't apply to the programs reference margin calc's.

Like I said at the beginning, I don't necessarily support what the emerging "corporate farms" are doing, however, everyone must remember that having an operation of that magnitude in your area has driven up the price of assets that you own. For those that rent, a negative impact may have happened.

The question is, someday the may bubble break and those that are close to retiring from the business need to consider getting out before this occurs.

[DogPatch]

This whole business sounds so much like Big Sky...... Think about it. How can a big CEO in Toronto run something like this and keep everyone honest and profitable. It won't work. I certainly hope they don't count on local input suppliers to bend over for them.

[Hopperbin]

I believe Larry Rudd is managing this operation. Does he not live in Western Canada somewhere? Google him he seems a busy guy.

[Hopperbin]

Any bets Elaine Fraise will be on speed dial for the cell managers?

[bucket]

Hopper

Do you think Rudd is working for free on this venture?

Do you think he would be taking an average farmers salary out of the operation?

Do you think he sat on any piece of farm equipment if the farms were short of help or harvest was late?

If not then sitting in an office pulling cash from operations, would in my view, be a drain on resources and returns.

I kmow some would say you don't have to involved to run the farm and a farm that size needs someone to manage the operation but these guys are renting most of the land they farm. That means more than likely 25% of the net is gone ot first nations. If you pay your investors 5% of their investment and then have management fees, sprott fees, now you are down to paying for fuel, fertilizer,chemical, freight (last time I checked freight took 1/3 of board grains) and labour.

If they grew any board crops they haven't produced alot of cash flow. Unless they used the "entitlement card" and bypass the cwb.

Here's another question:

Since they are one entity how much advance would they be applying for?

I hate being negative about this but I just can't see the returns on this. Sure they keep sinking money and getting money by saying they are expanding But if they were making money - would it not be self sustaining and growing on its own?

[DogPatch]

If they have to rely on 1st Nations for their labour you can be sure they won't last long.

[parsley]

Take off your farming hat, because it views the land only as ground to farm.

Put on your real estate hat, and graze thoughts.

Farm land has been cheap, compared to city lots and overpriced highrises.

Ag Land is a safe place to park big bucks. Down the road, international buyers will need to expand ag production for their expanding polulation. They will be keen to buy huge parcels from sophisticated agents. Huge agents will be keen to sell.

The new owners can send their own wayward citizens to the -30 degree landcolony, or they can hire experienced locals who will lose their current sales to that country if they aren't receptive.

Your municipal education taxes will be targeted to English as a second language schools.

Can you let your imagination run wild? Pars

[cottonpicken]

I like playing around with numbers to,pars.Youve
hit the nail on the head.

How many farmable acres in the world?
Is it 12 million square miles?
12 million sections-6-7 billion people mmmm....

And sprott ends up with a couple hundred
thousand acres?

What a dumb billionaire.