One Earth Farms

[agriman]

Wonder if Sprott knows about this blog?

I am not aware of a single example of a successful, large-scale investor-owned farm this side of the Napa Valley. Many U.S. states outlaw it. We know how the communist farming collectives worked out and what happened to the Matador Co-op Farm. This is like junk fax. If it worked everybody would be doing it. The only people who seem to be making large-scale farming work while involving a lot of people are the Hutterites and they have a slightly different business model. Farming is the ultimate individual enterprise. There is nothing else like it. All over the world farming is progressive and profitable in proportion to the freedom that farmers have to pursue their individual self interest.

We see investors buying farm land with both hands but sitting on it while the price goes up is hardly the same as working it.

Investors and investment funds do not have the tolerance for setbacks that private individual farmers must. If you have a drought or flood or frost or the market collapses you tighten your belt, take less out (or nothing) and wait for next year, or the year after that. An investor would sell out and buy gold or oil or fertilizer shares.

The sparkplug here is the Indian angle. It is very fashionable to make so-called partners out of the First Nations. A booming industry of consultants, educators, helpers, managers has developed, scooping up the money that comes from Ottawa and through the reserves. The aboriginal people are making progress in spite of everything the white man is doing to help them. Let's see how they make out with Sprott.

[cottonpicken]

Sprott does not know about this blog.

He is one of the richest canadians and manages billions of dollars.

[SASKFARMER3]

Good for him Cotton, Hes good with other peoples money and he takes his cut. Farming is different because of weather, tough to get more than your cut when a crop failure. Good luck chuck.

[bluefargo]

"We know how the communist farming collectives worked out and what happened to the Matador Co-op Farm"

No I don't know; What happened to the Matador Coop Farm. Last I heard, the farm was still going and successful. I know it had trouble a number of years ago when the time came to transfer to the next generation - as do all businesses.

The Coop farm model wouldn,t be for me but it seemed to work good for the people involved there. ( One of them was a friend of mine although I haven't seen him for a few years.)

[Zaphod]

When land goes to $5000, the gross margins will still be the same. Ditto if flax gets to $50 or wheat gets to $20. There won't be any free money in farming until you retire.

[furrowtickler]

If land goes to 5000/ac the only people who will benifit are those about to retire, everyone else will go broke keeping up with the payments/rents. Just ask the Iowa mid aged farmers, at $3 corn they are f$%#ed, with their $5000/ac land - and it rains 20 inches there every year with 2 feet of top soil. We barely have 6 inches of top soil and 6 inches of rain - think about it. Along with a month less growing season and horrible crop insurance. I've gota go before I break my keyboard in half.

[SASKFARMER3]

Yea the more I think about this, if this guy is such a genius then why not take that 24 million or more investment and buy Soybean ground in Brazil or Argentina and away you go. Simply two crops or more. Lots of land, Lots of rain etc. Oh wait maybe there good at selling the idea but didn't really think it through. I hope the Bands dont fall for this!

[classicalliberal]

My grandma told me once that they had Indians working for them to help with the sugar beet crops in the 40s and 50s and that my grandma picked up thier groceries for them and had little houses for them to stay in but they were never paid until the end of the season because if they got money, they would leave and go to the bar and be there for a few days drinking and then come back expecting their jobs which made my grandpa furious. In Australia when thier aboriginees do this they call it a "walkabout"

[classicalliberal]

Just to clarify a few points:

Larry Ruud and Fred Sieman's did indeed work for MNP in their past but no longer do because of other interest's (this being one of them)

The both left MNP in good terms.

It should not be assumed that MNP has an involvement with this planned "mega" farm.

[skhadenuf]

Wonder if there isn't a ton of government money behind this idea in some shape or form, assistance for wages, assistance for new business etc, I think this is going to be a scam to get the billions of government money the natives have just sitting there for them to use. You can see this happening with the resource deals up north companies hooking up with the natives it's a no loose for them they'll have all that gov money for anything they want as long as a handful of natives get a job and the chiefs get their cut who cares about the bottom line.

[bucket]

If I had even two million dollars clear money I might go work for a farmer just to stay busy but in no way would I wake up one morning and say yeah I will take the risk on of farming. Especially with other people's money. GM would be a better place to bet money. If sprott is so smart he could be betting on both sides of the failure/success of that enterprise and use his own money.

Remember Bernie Madoff was a genius as long as the market was going up. And now some are saying madoff was the tip of the iceberg.

That oilman from stockholm,sask tried this venture out. The only thing I remember is he got out soon and had a auction sale that made the news.

Ritchie brothers are probably already licking their chops at Sprott's venture.

[SASKFARMER3]

This one makes me really upset. Huts have a confined labour force. As long as cheap labour they can do amazing things. Once Oil and Potash increase labour costs the young leave and it fails. Simply paying an employee 75,000 a year like big unions doesn't work with 8 canola 4 wheat 3 barley etc etc. Some guys think its easy to farm on a large scale, this is a disaster in the making. I wish them luck but something doesn't make sense. Farming for 100 years has produced 2% return over the years with the exception of 1978 to 1981, yes maybe its coming again but the ones who made huge dollar took farm profit and invested it 15% or more and didn't put it back into the farm are filthy rich now. Then in rough times they expanded on the ones who purchased the 160,000.00 quarters and lost them. I think history repeats its self. Here we go again.

[cottonpicken]

That oilman got out for health reasons,they buried him a while back

[LWeber]

3. Largest ever Canadian farm auction
by Rae Groeneveld

http://www.fcc-fac.ca/newsletters/en/express/articles/20060331_e.asp#2


A crowd estimated at about 4,500 gathered near Stockholm, Sask., 85 km south of Yorkton on March 24 to witness the largest single-owner farmland auction ever held in Canada. Eighty-three quarter sections of land and all the equipment needed to farm it (as well as a large amount of rented land) were sold.

"With the amount of land and equipment that was being sold, people came from far and wide," marvelled Peter Kennedy, Manager of Ritchie Brothers Auction, which was consigned to conduct the sale.

Almost 1,700 registered bidders from seven provinces, 11 U.S. states as well as Germany and Italy attended the sale. There was also participation from more than 270 Internet bidders.

"The Americans were very strong in purchasing the rolling stock, the tractors and combines," analyzed Kennedy, who also noted two Case 8010 combines sold for over $200,000 each. The large new 4-wheel drive tractors sold for close to $200,000 also.

There were a couple of trends when the land was sold, according to Kennedy. He said the first land, which was spread out and was in separate blocks, sold to neighbours and people around the area.

"And then about a third of the way through the sale the Alberta purchaser, who acquired the 27 quarters in one shot, made his move," says Kennedy.

The sale price for most of the land ranged from $25,000 to $42,000 per quarter section (160 acres). The main home quarter, including a residence and new machine storage sheds, sold for $135,000.

The owner of the property was 45-year-old Don Gillen, who resides in Saskatoon. He had purchased the large amount of land just three years earlier. At the time, Gillen saw an opportunity in agriculture. But after the frost of 2004 and the struggle to take off a crop over such a large area in 2005, Gillen decided the risk was too much.

"After last fall I got thinking the potential of having things go a-miss was quite high. So I thought we have fairly new machinery, the land is in decent condition and may be attractive to others," explained Gillen, regarding his decision to sell out after only three years of operation.

Gillen also cited the distance between his main home and the Stockholm farm as a challenge when it came to managing the farming operations.

Overall, the auction is estimated to have generated $7.7 million dollars in sales.

___________________________________

Right-winger Don Gillen played briefly with the Philadelphia Flyers and Hartford Whalers in the early 80s. The 6'3", 215 pounder was an intimidating scorer in junior and the minors but was unable to find a niche for himself in the NHL.

Born in Dodsland, Saskatchewan, Gillen was a star in the SJHL with the Weyburn Red Wings. He was chosen 77th overall by the Flyers in 1979 after he scored 51 points and played on the second line with the powerful Brandon Wheat Kings when they reached the Memorial Cup final. He was returned to junior and scored 87 points while drawing 372 minutes in penalties.

In 1980-81, Gillen scored 30 goals for the AHL's Maine Mariners and battled the league's toughest skaters during his rookie pro season. In July, 1981 he was part of the trade with the Hartford Whalers that involved former 50-goal scorer Rick MacLeish and young prospect Ron Sutter. Gillen played 34 games with Hartford in 1981-82 then played 2 /12 seasons in the AHL with the Binghamton Whalers before retiring.
_______________________________________

[LWeber]

Can any of you guys from Dodsland or Kindersley tell me if Don Gillen died?

Cant find it on the net.

I know the family and didnt hear dick that Don died.