Area One Farms

[Hamloc]

Latest development is that I am about to have a new hutterite colony as a neighbor...

Sounds like a split from a colony 1.5hrs NW of here is taking on everyting south of Hwy 9, short of two or three sections.

10,000 seeded acres, plus the main yard with feedlot, significant grain storage, cold storage sheds, shop, etc. all going as one package deal.

Those that were renting bins on the real estate have been told they have till March 1, and it all has to be gone as that's the possession date.

There are really only two types of buyers for these massive operations when they decide to cash it in. Hutterites, and other investment organizations. There is no way that STO's can possibly make a play on any of it, as the seller tends to want to do a "package deal".

BACKGROUND:

The g****vine has been running thick with rumor, but I tend to believe those individuals who are on conversational basis with the owner of said corporate operation.

There was a minimum of 3 outside investors orgaized through Area One Farms, tied up in this operation, and the operation ended up in court with one of those investors, the Ontario Teachers Federation, for breach of contract. Once you've been found in breach of contract with one investor, I would imagine your other investor relations have the option to walk.

From what I've heard, the ownership believed this entire "partnership" was a license to print money. The investors bought the majority of the land and then had YOU custom farm it for them. Custom rates for seeding, sprayin, harvesting, storage, transportation, etc. They honestly felt that there was no way that they could ever lose money on such an arrangement, and I would certainly be inclined to believe them.

Is there anywhere in western canada, where you can afford to get your ENTIRE operation custom farmed, and there still be anything left over for the owner?

I would imagine that the OTF had quite the legal team, and poured through every accounting entry to find evidence of breach of contract, so that they could get out of their 10 year obligation, liquidate the holding, and realizing the capital gain..


With margins decreasing, is this sort of shit finally going to come to an end? The unbridled enthusiasm that investors had towards farmland, especially in some of the more marginal areas of western canada has done the industry a great dis-service IMHO. It has been great for those looking for the exit door, but good god, it makes it entirely impossible for STO upstarts like myself to even begin to think of competing!

Helmsdale, in the Western Producer article the claim is that you build a separate entity with Area One Farms which protects the original farm. In this particular case did the original farm survive or is it being sold as well?

[blackpowder]

When one house on the street is kept at $100, and the others through supply and demand, go to 1 & $2000, it's only a matter of time.
If insider knowledge bought up your whole RM, that's criminal.

[the big wheel]

When one house on the street is kept at $100, and the others through supply and demand, go to 1 & $2000, it's only a matter of time.
If insider knowledge bought up your whole RM, that's criminal.

Agcapital bought up more than one rm prior to the announcement of foreign money allowed

[bucket]

Agcapital bought up more than one rm prior to the announcement of foreign money allowed

AGcapital had an open door to the premier's office.....they may have wrote the legislation for the government to open it up....

[blackpowder]

Ham handed government social meddling at it's finest

[helmsdale]

Helmsdale, in the Western Producer article the claim is that you build a separate entity with Area One Farms which protects the original farm. In this particular case did the original farm survive or is it being sold as well?

Main yard is going... some parcels are not included in the sale though. Will know definitively in spring I suppose.

[furrowtickler]

Anyone remember Sprott ? Just another example of wealthy investors that were “too big to fail” that packed er in after reality kicked in.

[flea beetle]

Anyone remember Sprott ? Just another example of wealthy investors that were “too big to fail” that packed er in after reality kicked in.

And they were farming during arguably some of the best years in farming. If these corporate entities can't make it during the good times, they never will.

[LEP]

Main yard is going... some parcels are not included in the sale though. Will know definitively in spring I suppose.

It's a big risk to have a massive investment in infrastructure and equipment only to have it sold to the Hutterites who are DIYers.

[LEP]

Neither are good and you can thank Mr Wall and his band of flunkies that the inside track on foreign ownership laws being changed bought up land for next to nothing in today’s terms and flipped it after the laws were changed. Destroying many young farmers hopes of ever starting or continuing. Biggest insider trading scam ever but not many in the media understood the big picture of what was happenning a few scums benefitting themselves at the cost of an entire industry.

Actually the NDP changed the foreign ownership laws that allowed Canadians to buy. Saskparty eventually changed to restrict pension plans but it was your buddies in the NDP that set it up to start with.

Don't let facts get in the way of your rant though.