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Natives, Bay Street form country's biggest farm

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    Natives, Bay Street form country's biggest farm

    Natives, Bay Street form country's biggest farm
    Bay Street unites with native leaders to create super-sized corporate farm
    JOE FRIESEN

    From Thursday's Globe and Mail

    March 26, 2009 at 4:49 AM EDT

    The image of the typical farmer handed down through our national mythology is not that of an investment banker in a suit, nor is it that of a native chief in traditional dress.

    But in Saskatoon today, Bay Street investors and a group of chiefs from Saskatchewan and Alberta will formally announce the unlikeliest of marriages, one that will make them the most influential farmers in all of Canada, with a super-sized one-million-acre operation that could rival the largest corporate farms in the world.

    Under the plan, 17 native bands will lease their land at market value to a new entity called One Earth Farms Corporation, which will focus on sustainable, environmentally responsible land use, hire and train aboriginal workers, and provide first nations an equity stake in the company.

    The project is being funded with $27.5-million from Toronto-based Sprott Resources Corp.

    Its founder, investment guru Eric Sprott, will also donate $1-million to the University of Saskatchewan to create a scholarship fund for aboriginal students to study agriculture.

    The farm will be spread in pods of about 20,000 acres across a huge territory, and will encompass both cattle ranching and grain and oilseed cultivation. The 17 bands involved have all signed letters of intent to work with One Earth Farms, but not all of the one-million acres will be signed over in the first year.

    Still, with even the largest Canadian farms in the range of 20,000 acres, One Earth will instantly be among the biggest players in the country's $40-billion farm sector.

    "There's tremendous opportunity in partnering with first nations," Sprott Resource CEO Kevin Bambrough said.

    "I can't believe the situation has gone on as long as it has, that no one has taken advantage of the opportunity."

    With bands in Manitoba and British Columbia eager to sign on, the venture could double in size in the months ahead, the company said. It would not release the names of its 17 signatories, but they include the Little Black Bear, Muskowekan and Thunderchild bands.

    Most of the land for the project is already being used for agriculture.

    Blaine Favel, a Harvard MBA and former Saskatchewan grand chief, is a company director who grew up on a farm on the Poundmaker reserve.

    "I view this on a continuum of first nations agricultural ambition," he said. "When they signed treaties, first nations people wanted to be on the land because they had to transition away from the buffalo. When some of them had success, obstacles were put in their way by government. But Indians have always tried to farm."

    Agriculture was mentioned in all of the numbered treaties signed by the Crown on the Prairies, but as historian Sarah Carter has shown, federal Indian agents pursued a policy that restricted natives to peasant subsistence farming.

    They weren't permitted to use labour-saving devices and were restricted from selling their grain on the open market, forcing many out of farming.

    Mr. Favel said the exclusion continues. Most bands lease land to non-native farmers who own property nearby, rather than work it themselves.

    It's a policy that has contributed to catastrophically high unemployment on many reserves, as very few natives are employed in the farm sector, and hasn't generated much return for the bands, he said. Some bands have been paid criminally low rents - in one case $9 an acre when the market price was $60, he said.

    Chief Dale Awasis of Saskatchewan's Thunderchild First Nation said his band will sign over 56,000 acres to One Earth.

    He has been renting the land out for years, but isn't happy with the way it has been treated.

    Renters may not have the long-term interests of the soil at heart, he said, and can push it too hard to extract nutrients, leaving it ruined for future harvests.

    "A lot of us are economically deprived, yet we have a lot of resources - land and human resources. Individually we've had a hard time starting projects in the past," Chief Awasis said. "Some people are saying Indians can't do it, but I'm pretty well versed in proving people wrong."

    The project is expected to provide 250 jobs for native people across the Prairies. But a backlash is expected from local farmers. Already, an editorial in western newspapers has lamented the rise of One Earth as a massive corporate farm.

    "There is going to be backlash. In every one of these cases, someone is already farming that land and they're going to be concerned. They're not going to be able to farm that land," Mr. Bambrough said.

    "But I look at it as what is the greater good here? The greater concern is why are first nations having these higher unemployment rates, in desperate need of assistance, not getting access to training or job opportunities on their own land? This is just long overdue."

    Larry Ruud, president of One Earth, said the company will benefit from numerous economies of scale.

    As the largest buyer in the Canadian market, it will be able to negotiate favourable prices for expensive inputs such as fertilizer, seed and chemicals. It will also be able to move labour and equipment across the prairies at seeding and harvest time, and will have crops in several growing areas, which provides some protection against bad weather.

    "The potential is huge," Mr. Ruud said.

    #2
    I didnt know this was their plan.

    Sounds like they just changed the meaning of train wreck to something worse.

    Comment


      #3
      So much for any leverage over the equipment dealers this spring/summer, just when I thought they might have some stagnate equipment on the lot. The Bands wouldn't have much or any, so I imagine the dealers will be happy as punch, again.

      Comment


        #4
        I'll just put it this way last year one side of the fence 100 plus bushels an acre, the other side maybe 15 ( though there was about 15 bushels an acre of wild buckwheat) I literally have a front row seat to this. Though properly manged they have an amazing divesity of land and could have a world class operation you have to seed before June 15th to make it a reality.

        Comment


          #5
          But how are they going to generate profits, or will it become a government basket case? Who will manage this ? This could be a real money pit. The start up cost alone would be immense. I wish them luck as they will need it.

          Comment


            #6
            Whats 100 dollar an acre loss across a million acres?
            Oh yea,A LOT.

            Comment


              #7
              Professors indians finacial gurus=a very interesting reality series on t.v

              Comment


                #8
                hmmmm...i wonder if they will be big enough an operation that they might be exempt from selling through the CWB??? i think because they will be govt funded for the most part (in reality)...the government will want the product marketed in the most profitable freemarket manner possible...vs

                Comment


                  #9
                  Grains grown on native land by natives will bypass the cwb, just wait and see. This is much bigger than first thought.

                  Comment


                    #10
                    If I were managing all those lands, I would make sure the company was already enrolled in AgriVest for the coming year, and had a special computer program to set up for the payments coming in for each pod of land; and I would also make sure that I managed the educational training grants already gentlemans'-agreement-pre-approved by both levels of governments; and then I would make sure that I was familair with tax exemptions considerations, including native taxation and gen-coops taxatopn rules, etc;, and then I would make sure that I was preplanning to have CWB election ballots specially delivered to the administrators,with the rearranged boundaries increasingly surrounding the pods for greater voting representation; and then I would work closely with the CWB to demand better representation of the voter-shareholders, and ....well I' just cannot write it all down as I tire. Parsley.

                    Comment


                      #11
                      And the clause stating

                      "Managment will be paid according to the schedule and scale I have devised,, in full, before any other other payments are sent to anyone else.Period."

                      would be firm. Very firm.I like simple language, right, hopper? Pars

                      Comment


                        #12
                        Just the goverment with what im sure will be another failed idea not to mention no good to the avrage farmer

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                          #13
                          I feel sorry for the natives, this is a bad bad deal. Listening to the pathetic news conference their dreaming in technicolor. Their using some guys I know to do the custom seeding and harvesting. HA HA HA. They will be buying in June and July equipment. Farm progress should be fun. They cant tell us how many acres they really have, because they dont know. It went on and on. What a pathetic bunch. One note our reserve told these guys to take a flying leap. They said they have seen this before and have good renters in place. The one guy was out a few years ago trying to get leases for potash that's underground. And this BS about farmers paying 60 dollars an acre and farmers near buy trying to rent the land for 9.00. Yea Moose jaw land vs land that hasn't been seeded for 10 years (ITS THE SAME HA HA HA). They can buy in bulk and sell in bulk. HM some one is going to do the paper work for nothing. Yea that's a good one. Also on bulk buying 20.00 a ton on fert .40 cents an acre on glyphos. Their going to make huge money. Their accountants will tell them for a few years. Some one is selling some good BS with this and unfortunately some reserves bought in.

                          Comment


                            #14
                            Reminds me of when they had a band farm in my area in the late 70's. This lasted a few years. They got money for cattle they were to buy. Well they supposedly bought 1,500 head, but no cattle anywhere. They were paper cows as we called them. Nice to get loans and grants on 1,500 head. Machinery was bought, but only a few people ran them. Wheels started falling off 4 wheel drives, motors started to blow up from lack of service, equipment got shot up, big wages were paid out to phantom workers and on and on. Yup they were gonna show everyone how to farm.

                            Comment


                              #15
                              The one reserve that pledged acres has very few acres that are actually seedable. The last one has the cultivated acres but the company didn't go into detail on how many were pledged. Something is very fishy with this new venture. He also said they would be profitable in 2009, HA HA HA HA, what about a frost like 2004, 2002, Yea were going to use the best genetics, nutrients etc. (basically give it every thing). Yea that should be a nice balance sheet. Then because their a start up farm they have to go with area average for Agra stability till they build up their own margins. Again accountants dont make good farmers. Because its not about basic revenue minus expenses. Again I am not against this venture but I see the native bands comming out of this hurt again.

                              Comment

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