Pouring millions of dollars into First Nations agriculture on the Prairies would improve the quality of life in many communities, says the president of an investment company planning to do just that.
Sprott Resource Corp. of Toronto has announced a $27.5 million investment to manage millions of acres of First Nations farmland on the Prairies and create one of the largest farms in Canada.
The company, which focuses on natural resource investments, acquisitions and joint ventures, said it intends to build a long-term profitable agricultural business in partnership with First Nations.
Read Also
Organic farmers urged to make better use of trade deals
Organic growers should be singing CUSMA’s praises, according to the Canadian Chamber of Commerce.
The result, One Earth Farms Corp., is expected to farm a minimum of 50,000 acres of crop and grassland in its first year and grow to more than a million acres.
“Not only is it potentially financially rewarding, but one that is very personally fulfilling,” Sprott president Kevin Bambrough said at a news conference in Saskatoon March 26.
“It’s a chance to change communities, change a way of life, to build and develop programs that will help build generational wealth for First Nations …. We believe that the opportunities associated with this new venture are unprecedented in the agriculture industry.”
One Earth president Larry Ruud of Vermilion, Alta., will co-ordinate farming on 17 First Nations bands in Saskatchewan and one in Alberta in the first year.
More western Canadian bands have contacted One Earth Farms in recent weeks about joining the project.
Local farmers already lease most First Nations land, but it’s possible One Earth will manage more of this land as leases expire or farmers retire.
“That’s their call. We’re not asking for all of their land,” said Ruud, a partner in the accounting firm Meyers Norris and Penny and a Viterra board member.
“In some cases they’ve got very good relations with their renters they wish to keep. In other cases they’re looking to make changes. People have to remember they own the land. At the end of the day, it’s their decision …. I know that some segments of the industry will be upset by this. I get that, and yet the flip side is it’s their land. They have high levels of unemployment and they have a long history of wanting to get involved in agriculture. It should be no surprise to anybody.”
Ruud said most of the farmland will be custom farmed in the first year, but this will decline as employees and managers gain more experience.
“This is a huge undertaking. We are not under any illusions that we are going to do everything in one year. We are not fools,” Ruud said.
“There’s no question the majority of our land going forward after this year will be operated from within our own team from people that have gone through our training program or have been hired.”
One Earth Farms signed a memorandum of understanding March 25 with the Saskatchewan Indian Institute of Technologies, the College of Agriculture and Bioresources at the University of Saskatchewan and the First Nations Agriculture Council of Saskatchewan to develop technical and academic training for First Nations farm workers.
Sprott Resources chair Eric Sprott will donate $1 million to the University of Saskatchewan to create a scholarship fund for aboriginal students to study agriculture.
Bambrough said building employment and training opportunities for First Nations people on their own land is a vital component of the project.
“It’s unfathomable to me that the situation exists. It’s long overdue,” said Bambrough, who expects the farm to employ about 250 workers.
Ruud said the project can potentially answer two questions that he has been asked many times during his 20 years of travelling on the Prairies: who is going to farm the land and where’s the money going to come from.
Farming can’t continue to be built on debt financing, he added.
“When you combine the opportunity to bring in a population base that desires to be trained and employed in this industry and has an interest in it and a passion for it, combined with equity in this land, instead of piling on more debt, I think it’s a tremendous positive for the industry.”
Ruud said Sprott Resources is in an excellent financial position. It has committed $27.5 million this year to kick start the farm and has $75 million in physical gold and silver and $150 million in cash on hand
“They are well capitalized.”
Ruud said the combination of crop diversification and geographic diversification will help minimize the risk. Cattle will be phased in during 2009.
“This is something that hasn’t been done before. Is it a pipe dream? I don’t think so,” he said.
“Is it going to be easy? Of course not. If it was easy everyone would be doing it. We will encounter hurdles. We know that.”
Blaine Favel, president One Earth Resources Corp. and former grand chief of the Federation of Saskatchewan Indian Nations, has been appointed director of One Earth Farms and chair of One Earth Farms GP Corp., which will manage the limited partnership through which First Nations’ land will be leased and farmed.
Fred Siemens, former president of the Winnipeg Commodity Exchange, will be chief operating officer of One Earth Farms.
Sprott will act as chair of One Earth Farms.
