One Earth Farms!

[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.

[poorboy]

The real deal maker or breaker in this will be the natives. Most natives seem to make deals and then change their mind and the local laws do not seem to apply. Take the 25000 acres that is supposedly being farmed by one earth farms that had tenants on it with contracts. A normal person would have to honor those contracts, but not the natives.

City of Calgary has made several signed deals with the local TsuTina band for roads. The band keeps changing the deal, even when it is signed. Everyone is scared to instill local law and order on the native bands because of perceived injustices that happened years ago.

I have no doubt in my mind that one earth farms will be able to bypass the CWB and haul all their wheat into the USA and pick up 10-50% more money than local farmers can.

How about branded food. A farm of that size and capitalization should be able to brand name bread, cereal, meat, etc.

I seriously doubt that one earth farms could rent land, pay management salaries, wages, and returns to investors if it operates just as a normal family farm. I am sure they are looking at some sort of massive vertically integrated operation. And if they are in need of some cash, the gov't can't say no to the natives, so they will get support payments that the rest of agriculture will not see.

[Hopperbin]

On this deal with one earth he or one earth have no land ownership. But I do see your point of one earth screwing up a local supplier. But like I heard once before large farms produce less grain per acre. That is a plus for you. Larry Rudd will not get his hands dirty and he does not have to. He makes money with his mouth. Since some farmers do use advisers then why not one earth, especially them. Larry joined forces with Meyers Norris Penny so he could have access to all the farmers books that deal there. If an adviser would really like to show his stuff what better way than to manage a real farm. Gonna be a whole lot different than comparing 1000 farms and telling 10 of them that hire you what to do. But I am sure after looking at all the farmers books at MNP he does know a few things that will be good for one earth. They only farmed 13000 acres last year, what will they farm this year?