Wednesday, January 26, 2011

One Earth Farms Corp. (The New-Old Farm)

With previous posts looking at the issues around global challenges in food production, and opportunities to invest in the agricultural sector - potash, equipment, transport [rail], etc.  Joshua Brown The Reformed Broker posted a good look at this subject in the fall 2010.  


I remember hauling horses down to California and driving through miles upon miles of massive agricultural operations along the way.  Potatoes.  Corn.  Cattle Feed Lots.  Farming became, some by necessity, large corporations.  And I suppose one could make a very good argument for McCain being a more fully integrated farming business.  For many of those that have had farming in their families for generations, some now just lease the land out to these amalgamations that 'manage' the operations component of farming - take on the risk and gain the reward when things go well.  The landowner gets a basal revenue.


With climate change, burgeoning population, developing nations, pressures on global food security and supply have become more apparent.  Ag sector focussed entities are providing direct investment, to generate the necessary productivity, fight disease and fuel innovation.  Sprott Asset Management has established One Earth Farms Corp. managed through their Sprott Resource Corp. as another alternative for agricultural sector investment interests.  The performance of these vehicles will be interesting to watch over the next years.



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