The era of the small family farm is behind us
Farms need to grow to stay on the map, and working with the bank to get bigger is getting harder to pull off.
We believe in keeping farms and families together, and we’re working with farmers across Canada act on opportunities that allow them to quickly expand their operations without debt.
Think differently: Invest in your own farm
Expanding has always been a tough proposition for farmers. Buying more land usually was done with the bank, but taking on debt puts a heavy financial burden on operations. As a result many farmers opt to rent extra land instead. But renting is also expensive, and planning can only be done as far as your rent agreement is in place. Not to mention, when you do expand you often are forced to take on larger equipment to make the extra land work. Even with a good opportunity, the result of this kind of growth always leads to debt, stress, and short-term planning.
Our partner in Alberta operating 5,000 acres with Area One Farms.
Area One Farms is a new model for farm expansion in Canada. We offer farmers a new choice in how to grow their farm.
How? We ask them to invest.
By making an equity investment into an Area One joint venture as a farm operator, you’re helping create a win-win for your farm instead of a lose-lose:
First, as an operator you get to expand quickly. Next season, you could be farming double or triple your acres.
Secondly as a partner you profit in two ways: increased returns through land appreciation and extra income from joint venture farm management fees.
The added bonus? You won’t have debt, you pay no fees, and you have a long-term roadmap to purchase the new land outright over time.
This is the financial model built to put farm operations first
Area One Farms investment model is profitable for everyone involved. However the beauty is that it takes the stress away from expansion, and let’s you focus on what you do best: farm.Our model is built to help you:
A) Ensure the legacy of your farm
Area One wants quality farmers to keep their operations. We’ve built this investment model to ensure that farmers get set up in a financial situation that stabilizes for the long-term. Not only does this help you seize opportunity, this let’s you create opportunities for the next generation.
B) Share and adopt best practices
Productive land is profitable land. We want to help you ensure the ecological sustainability of your farm, and so we’re continually pursuing new production methods and management principles that strengthen your farm from the soil up. We invest in research annually, as well as facilitate communication and coordinate best practices across all of our farm operations. When you join Area One, you join a community of producers across Canada committed to changing the face of agriculture in the 21st century.
C) Augment your decision-making ability
The larger farms grow, the bigger consequences decisions have. From equipment acquisition to marketing decisions, we support partner farms with information and tools that help you make better-informed decisions each season. To us it’s more than just acquiring land, it’s about turning that land into property that increases in productivity and profitability year over year.
Our guiding principle
We operate with one principle: an operator should always do better working with Area One Farms than they could on their own.
That means we’ve set up our model so that the farms is put first:
- We do not charge operators fees, rent, or interest.
- Operators who partner with Area One Farms earn 100% of the income and appreciation generated by their investment.
- Operators also earn income and appreciation generated by Area One Farms’ investment - and they deserve to because they manage the farm we are investing in.
Partnering with Area One Farms frees farm operators to focus on what they do best: farming.
- They can expand and remain financially stable.
- They are not hampered with the obligations that come with additional debt, or land rental fees.
- They do not need to fund additional machinery or operating costs alone, so they can use all of their equity to buy in to the operation, which means more and better land.