20141009

Page 1

THURSDAY, OCTOBER 9, 2014

VOL. 92 | NO. 41 | $4.25

Extract science A new process can remove phosphorus from waste water. | P. 82

Boar ban? Conservation group wants wild boars to be annihilated | P. 39

SERVING WESTERN CANADIAN FARM FAMILIES SINCE 1923

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WWW.PRODUCER.COM

TRAILS IN THE SUNSET

A farmer harvests a field near a lone grain elevator south of High River, Alta. SEE OUR 2014 HARVEST PHOTO FEATURE STARTING ON PAGE 26. |

MIKE STURK PHOTO

GRAIN MARKETING | BUYOUT

FNA reveals plans to buy control of CWB Farmers to regain stake in sector | Newly built Genesis Grain & Fertilizer could use CWB assets SASKATOON NEWSROOM

A Saskatoon-based organization is hoping prairie farmers will open their wallets and throw their support behind a plan to acquire a controlling share in CWB. Representatives from Farmers of North America used town hall meetings last week to share details of how they plan to acquire a controlling share in CWB. FNA chief operating officer Barrie Mann told about 20 producers attending an Oct. 3 meeting in Davidson, Sask., that his organization has established a new company, Genesis Grain & Fertilizer, that will buy and sell grain and give farmers a muchneeded ownership stake in Western

TIRED OF EXCESS GRAIN HANDLING MARGINS DISGUISED AS “BASIS”?

Canada’s highly profitable grain handling sector. Genesis will also distribute fertilizer produced at a manufacturing plant that FNA is planning to build at Belle Plaine, Sask. Construction of the fertilizer plant is also being financed by farmer investments, but it would operate as a stand-alone company. Genesis will be involved in fertilizer distribution, grain origination and at some sites, farm input sales. For the purpose of grain origination, CWB’s existing assets would be an ideal fit for Genesis. In essence, farmers who invest in Genesis would be buying into a multi-facetted company with a grain handling component that is tied to the acquisition of CWB assets.

Farmer ownership is a key element of the Genesis proposal. To get the new venture off the ground, FNA plans to sell shares to qualified farmers for $1,000 per unit. Investors must be farmers and would be required to meet pre-established investment criteria. Shares will be sold in blocks of 10, meaning a minimum investment of $10,000. Mann said FNA is hoping to raise as much as $380 million through the offering. Ideally, $20 million will be in place by mid-October, although Mann said that target date could be moved back if necessary. FNA has organized 90 meetings in farming communities across the West.

The meetings, which continue this week and next, are aimed at sharing information about Genesis and gauging investor interest. Producers who attend the meetings are asked to submit non-binding expressions of interest, giving promoters an idea of how much money they might be willing to invest. A full list of meeting dates and locations is available on FNA’s website at www.FNA.ca. I n D av i d s o n , m u c h o f F NA’s pitch was focused on the value of CWB assets, the merits of farmer ownership and the steps that might be involved in acquiring a controlling share in the former wheat board. SEE FNA BIDS ON CWB, PAGE 2

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Joke’s over. Grab some of that “basis” back for yourself. Call or go online to learn how you can join hundreds of farmers who are already participating in a uniquely farmer majority-owned fertilizer distribution and grain handling business.*

FNA.CA/GRAIN 1-877-362-3276

* Participation is limited to accredited investors or those that are otherwise exempt. You do not need to be an FNA Member to participate.

u|xhHEEJBy00001pzYv%:, OCTOBER 9, 2014 Return undeliverable Canadian addresses to: Box 2500, Stn. Main, Saskatoon, SK. S7K 2C4 The Western Producer is published in Saskatoon by Western Producer Publications, which is owned by GVIC Communications Corp. Publisher: Shaun Jessome Publications Mail Agreement No. 40069240

BY BRIAN CROSS


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