Area One Farms

[farming101]

NP. I remembered something about a falling out between the two and dug up those news articles
Not anywhere near Northgate but understand the terminal there is doing alright

[Rareearth]

Is there usa grain going into that terminal?

[farming101]

I dunno. Doubt it. There is a Viterra/General Mills plant 2.5 mile S across the line

[helmsdale]

Good God if thing craters it's going to make the 80s look like a minor road bump.

It drives me to see all these latest schemes marketed as nearly risk free solutions to all our ills. Anonymous private equity investors in farmland... what could possibly go wrong?

You thought IC was driving your new local BTO? With as little as 10% down(word on the street) you can send all your neighbors on permanent vacation.

I shake my head. Perhaps I'm too cynical and can't see the benevolent "hand up" in this deal.

2-3 years is all it took. 19,000+ acres all up for sale. ALOT of it only held for 1 year, still more for 2, and the other stuff maybe 3-4 years.

They gobbled up land like it was going out of style. Broke renovated pasture. SPENT SPENT SPENT on infrastructure. 60x100 heated shop, 70-80x200? cold storage. ~500,000bu of shiny flat bottom storage, 100,000bu of galvanized hopper storage, ~3000mT of brand new epoxy lined fert storage.

Traded the 2 year old Claas combines on brand new JDs this year. LOTS of shiny JD paint.

A vastly expanded feedlot.

It can now all be yours!

[helmsdale]

The Mantra direct from their website...

THE ERA OF THE SMALL FAMILY FARM IS BEHIND US
Farms need to grow to stay on the map and working with the bank to get bigger is getting harder to pull off.

We believe in keeping farms and families together, and we’re working with farmers across Canada act on opportunities that allow them to quickly expand their operations without debt

This "small family farm" is still standing... The massive cash burning behemoth? She's likely going to hang alot of creditors.

[seldomseen]

Sounds like the same crap Pike management would spew but on a grander scale. We all know what happened to them!

[MBgrower]

The smell of money is better than the smell of paint.

[farmaholic]

The smell of money is better than the smell of paint.

And both together is even sweeter!

Everyone who has shiny paint isn't broke or operating on the edge.
There are some well heeled farms out there.
New paint is my reward for paying off land early and farming with used equipment and pulling wrenches on it for decades.
If I had plans of quitting I would be using up the early big depreciation of the "current" machinery I have and then bowing out with an auction of a good used line of equipment and renting out land.

[Crestliner]

Is Area One Farms in trouble or going out of business?

[helmsdale]

Is Area One Farms in trouble or going out of business?

No... I resurrected this thread I started last year for context. One of their progressive farmers that they "partner with", is liquidating WELL AHEAD of their intended 10 year horizon.

Couple of average year crops, max inputs, and gargantuan capital outlays are sinking a splashy operation.