News
This is the start of something BIG
By Cassandra Kyle, The StarPhoenix
March 27, 2009 - A Canadian investment firm believes it has created what may become Canada's largest farm through an arrangement with several Prairie-based First Nations.With an initial investment of $27.5 million, Sprott Resource Corp. (SRC) launched One Earth Farms Corp. Thursday in Saskatoon. The company will lease First Nations land on which it will grow crops, raise livestock and employ aboriginal workers.
At least 18 First Nations in Saskatchewan and Alberta, which together hold more than one million acres of land, have agreed to lease portions of their properties to One Earth, which plans to start seeding this spring.
With Canada's largest farms totalling between 60,000 and 80,000 acres, One Earth could become the nation's largest farm within the year, said Kevin Bambrough, president and CEO of SRC.
"We can be the biggest farm in Canada and one of the biggest public corporate farms in the world if we execute properly on the strategy, if the First Nation people are as committed to this as I believe the team is that put this together, because we've got the capital," he said.
One Earth is not releasing the names of the First Nations it has signed lease agreements or letters of intent with; however, three bands spoke of their involvement with the company during Thursday's announcement. The Little Black Bear First Nation located near Fort Qu'Appelle has leased 22,000 acres to One Earth while the Thunderchild First Nation, located east of Lloydminster, has leased more than 56,500 acres to the company. The Muskowekan First Nation south of Wynyard has also leased lands to One Earth.
"We are going to approach it like a business . . . in terms of making sure from our cattle operations to our grain operations we're using the highest quality of inputs and that we're producing the highest quality products and managing the business in the most efficient way possible to generate the best margins possible and that will benefit all the First Nations involved in it," Bambrough said.
PROMISING OPPORTUNITY
Assembly of First Nations National Chief Phil Fontaine, who was in attendance at One Earth's launch, called the partnership between the company and the First Nations a historic, watershed moment. The company is expected to create at least 250 full- and part-time jobs that are to be filled by First Nations employees. For aboriginal youth, Fontaine said, One Earth is providing a promising opportunity for a future in farming.
"This represents a significant development," he said. "It's about partnerships. It's about the private sector and First Nations getting together to transform our community and in the process create real opportunities, create wealth, create jobs -- it's all very positive."
To help with training for the jobs that will come with the expansion of the company, One Earth has signed a memorandum of understanding with the Saskatchewan Indian Institute of Technologies (SIIT), the college of agriculture at the University of Saskatchewan and the First Nations Agriculture Council of Saskatchewan to work toward the development of technical and academically focused training programs.
Not everyone, however, is happy to hear about the start-up of the large-scale farm. The National Farmers Union (NFU), which supports family farms, questions the sustainability of what is set to be a massive operation.
NFU executive secretary Terry Pugh added the organization has concerns about SRC looking at agriculture as another natural resource to be exploited.
"Sprott is an investment company whose main investments have been in oil and gas and mining and they are getting that wealth from natural resources. Is agriculture just another natural resource to be mined from the soil? I don't think it is," Pugh said.
One Earth's business plan, meanwhile, begins with growing grain and raising cattle on the leased acres. Within the next month, work will begin on seeding acres in Saskatchewan, said Larry Ruud, CEO of One Earth.
Cattle will be brought into the mix during the next six to nine months, he said, adding One Earth will operate only in Saskatchewan this year, expanding to Alberta, Manitoba and possibly British Columbia in 2010. Additional First Nations are expected to sign lease agreements with the company during the next three weeks.
Despite start-up costs, One Earth may still be able to return a profit in 2009, Ruud said.
SRC, which trades on the Toronto Stock Exchange under the symbol SCP, had its share value rise five cents, or 1.85 per cent, to $2.75.
