Canadian farms are fundamental to our nation’s economy, prosperity, and independence. There are an estimated 190,000 farms in Canada. They employ over 250,000 people in rural communities and support an agri-food system that employs over two million people, or one in nine Canadians. The agri-food system generates around 7% of Canadian GDP ($140 billion). Most farm produce is exported: Canada dominates global wheat, canola, mustard, flaxseed, lentils, peas, and maple product markets. Agriculture and food product exports amount to $90 billion a year, supporting our trade balance with the rest of the world and the strength of our currency. Canadian farms also supply the food we eat. Farmers promote environmental sustainability as they are stewards of biodiverse ecosystems, home to thousands of species.
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Area One
The other option to renting farmland
“If what you need is equity for growth or a way to grow where you also own part of it, as opposed to building it on rented land, we are your very best option.”
Investment model offers opportunity for farm expansion
“I ended up with this idea of a true partnership that injects capital into the farm to enable growth while maintaining the land base control with the farmer,” Faulkner says. “The farmer still owns the portion of land he or she can afford, and any profit and capital appreciation that is created by the partnership is shared equitably by the farmer and the investor.”
HAVE YOU EVER CONSIDERED AN EQUITY PARTNER?
“Want to expand your farm for the next generation? Want to buy out some of your landlords? Want to work your way out of a difficult financial situation? A Canadian company called Area One Farms partners with producers to meet these sorts of objectives.”
FARM EXPANSION WITHOUT BREAKING THE BANK
Area One Farms provides growth equity for farm expansion. Area One Farms works with 25+ Canadian farm families to expand their operation to accommodate growth for their children, buy out parents, and complete land improvement projects.
Watch our presentation at Farm Management Canada’s Agriculture Excellence Conference here.
AN EQUITY MODEL FOR FARM EXPANSION IN CANADA
Joelle Faulkner, Founder and CEO presented at the Canadian Federation of Agriculture’s Virtual Annual General Meeting last week, where she discussed Area One’s equity models for farm expansion in Canada.
AREA ONE FARMS MODEL – SCALE FARM AND IMPROVE LAND
Joelle Faulkner, Founder and CEO sat down with the Growing The Future Podcast to talk about investing in, and supporting successful Canadian farms, and how the Area One Partnership model helps farmers scale and improve their operations sustainably.
Having trouble finding cash to grow the family farm? Area One Farms may be able to help
“The challenge is the cost for that next generation to get into the business, especially if their parents are still farming,” Holt said. Farmers tend to be asset rich, but cash poor, which poses a challenge because of the upfront investment, including the cost of land and equipment, associated with expanding today’s multi-million dollar farms, he added.
Why Canada cultivates a great low correlation asset class
Advisors seeking an asset class with low correlation to the market need to look no further than one of Canada’s greatest assets – it’s land. Joelle Faulkner, CEO of Area One Farms, provides financing, private equity and growth capital to the farming community.
Area One Farms invests alongside farmers to help them expand, build sustainable operations
“With Joelle, we work as a partnership,” said Mr. Cole, whose farm comprises 8,000 acres of grain production plus pasture for cattle. “It works very well because we understand each other, we know which side each of us is good at and we can make it work to make us both better.”