One Earth Farms
Oct 3rd, 2010 by michellecheung2
Launched last year with initial $27.5-million-investment from Sprott Resource Corp., One Earth Farms now administrates 93,000 acres of farmland in Alberta, Saskatchewan and Manitoba. It aims at creating the biggest farms in the world by building stable long-term relationship with the First Nations who control 2 millions acres of land in three provinces.
Image 1
According to the Maclean’s article on 23th Sept, 2010, this second largest farm corporation is not yet profitable. Some critics point out that big farms are less flexible than smaller farms. The Fishbone diagram below summarizes the major issues that impact the early revenue of the corporation.
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However, based on the clarification made by an investor in Sprott Resource Corp, the One Earth Farms doesn’t actually own the land. Instead, it leases from the natives. Also, the labour costs and the input cost are reduced due to economies of scale. In addition, it have crop insurance and can even apply for government aid if needed. Therefore, it seems to me that One Earth Farms have the potential growth in the market.
Source of Image 1: http://www.oneearthfarms.net/