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    Do you think this will work?

    Do you think this will work?
    Personally I think somebody (pl) is in for a big surprise.


    http://www.theglobeandmail.com/servlet/story/RTGAM.20090326.wfarmcontains26/BNStory/National/home

    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
    This is interesting.

    Larry Ruud is a smart guy. He used to work for Alberta Ag but has moved on to be director of Viterra and was heading up Meyers Norris Pennys intensive livestock division. Smart people with big money behind them...a formidable combination.

    The government encourages huge corporate farms... well they just got another. This farm will qualify for CAIS benefits right off the mark, benefits that will be in the millions of dollars. The average producer like you and I can not compete.

    The challenge for these 17 bands is to work together. History has shown they cannot.

    The $27.5-million to finance this venture came from Toronto-based Sprott Resources Corp. Check out:

    http://www.sprottresource.com/corp_profile.html

    Mining interests and mega corporations like this will lease all the land in this country within 10 years unless government moves to cap support payments. It is a simple fact.

    Unless governemnt appreciates the need for owner operator, average sized producers the face of agriculture in this country will follow the model that we see here. There will simply be no place for the average sized producer in an industry along side operations like this. And the tax payer will be footing the bill through unlimited spending caps and the safety net program.

    Comment


      #3
      Larry is a good guy and neighbour. I think if this succeeds he will be a lot tougher when it is all said and done. I think it is very worthy of the effort though. If we think beef cattle producers have been living in third world conditions, try the reserve system in Canada. Any road that is self determined and leads upward is a step in the right direction (even if it fails the first time).

      Comment


        #4
        Not sure if the consumer's attention needs can be hatched or not, meant to say "catch their attention". Wasn't fully awake this morning when posting this.

        Comment


          #5
          I don't think consumers in general will be very interested. Those of us in agriculture, animal agriculture particularly, should be though. I agree with the need to be more vigilant on animal diseases and food borne illnesses but the writer loses some credibility when he mentions BSE and omits to mention Foot and Mouth. The former is essentially no risk but the latter is a huge risk. I hope the non-retired CFIA officials are more on the ball and know the difference between the two.

          Comment


            #6
            The first thing that came to my mind is what good kids farmers raise. For those involved, as long as they do it right, this could be a huge missing piece of the puzzle as far as the social problems faced today by many on reserves.

            Comment


              #7
              Interesting to read the comments about reserves. I really thought reserves was secondary and the real issue was mining interests financing primary agriculture and the implications of that.

              The reserves near me are wealthy, having many off reserve investments including the Bonnett feedlot. I am sure other reserves are not so well off. However the image of the poor native Canadian is a bit of an inaccurate stereotype, just as an image of a poor farmer would not apply to everyone.

              I have no idea what Larry Ruud would be paid in his position as President of this ag venture. However I am thinking he will make more money at that job than my entire farm. That puts a whole new light on what I am worth as a farm manager. Am I just wasting my time here on our own farm?

              Comment


                #8
                FS - Yes!!!
                So are we all.

                Comment

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