Manitoba agricultural entrepreneurs who need money to build or expand could look to several provincial government programs for help.
Or, they could look to the man who once controlled the coffers for the Tory government.
Clayton Manness, Manitoba’s finance minister from 1988 to 1993, recently announced Man Agra Capital Inc., a company that finds investors for promising projects.
Manness retired from politics in February 1995 after 14 years as an MLA. He said he knew there would be opportunities in helping agricultural ventures get the capital and management services they need when the Crow rail transportation subsidy ended.
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As finance minister, Manness said he looked at hundreds of projects to see if they qualified for government funding.
“I guess I developed kind of a sixth sense for that,” he said. “I honestly believe that I’m going to be able to have a little bit better batting average around recommending projects to investors.”
He’s working with another former MLA, Robert Banman of Steinbach, to attract entrepreneurs who want assistance with the regulatory quagmire often associated with getting a new business off the ground.
Manness said Man Agra will help people with business and marketing plans and assist in managing the new company in its early days, in return for some of the ownership.
Finding venture capital is “steeped in a lot of paper and presentation and many, many trips to corporate boardrooms,” explained Manness.
“A lot of entrepreneurs that I know of would just as soon not do that.”
When Man Agra finds promising projects, Manness canvasses people he knows who want to invest in agriculture, but don’t know where to put their money, including individuals and managers of institutional pension funds.
“I guess I knew a lot of them (investors) in my former role as minister of finance.”
Man Agra aims to raise at least 60 percent equity for a project. Manness said the higher than normal equity helps new businesses get better banking arrangements and lower interest payments.
So far, Man Agra has worked with a group at Elie, Man. on a $5 million flour mill. Manness would not provide details.
He is an agricultural economist by training. Before his career in government, he worked with Cargill and the Canada Grains Council.
Manness is also involved with the family grain and seed operation at Domain, Man. south of Winnipeg.
He enjoys being back in the business community without any pretenses.
“Who I was in the past doesn’t mean an awful lot,” he said.
“It’s good for a welcome through the door, but when it comes to negotiating across the table, it’s enjoyable again, we’re all equal,” he said.
“When you are a minister, it’s something a little different.”
