March 25, 2015 The XY Hemp Corporation completes a significant step in our business plan: signing the crop share agreement with Breadroot Farms.
The crop share agreement is a hybrid between a traditional crop share contract and a production agreement. This flexibility has allowed us to craft a truly unique partnership with our organic producers, Hélène Tremblay-Boyko and Al Boyko. We are growing 60 acres of hemp this summer and sharing input costs and profits from the sale. This structure allows The XY Hemp Corporation to share risk, costs and access mentorship from experienced organic producers.
As young professionals, C and I have limited experience with agriculture. An 8-month co-op term at the B.C. Ministry of Agriculture exposed me to different land access arrangements for young farmers. These alternative models of land access include incubator farms, land linking, co-operative farming and farmland trusts. Breadroot farms is actively searching for young agrarians to take over sustainable operations on their farm through land linking initiatives such as FARMLink. Al and Hélène have also set aside land for a farmland trust called Farmland Legacies. Our joint venture is a blend of land linking and co-operative farming.
In exchange for a land rental fee, a 30% share of seed sales and reimbursement for machinery operations, Breadroot Farms is providing The XY Hemp Corporation with 60 acres of pristine organic land and the mentorship of organic farmers with over 20 years of experience growing field crops in Saskatchewan. The location is perfect for hemp seed sales: close to the Manitoba border where the majority of hemp processing occurs.
Al and Hélène have grown a wide variety of field crops, but have never grown hemp. C and I were able to apply for a license to grow industrial hemp from Health Canada with permission from Breadroot farms. This application has been received and processed and we anticipate our license to be issued at the end of April, 2015. We have also accessed the support of Larry Marshall, an experience organic hemp farmer in Northern Saskatchewan. With these three incredible resources, C and I will learn so much about farming this summer.
The crop share agreement is the first contract on a series that sets our dreams into motion. Our next major milestone will be a production contract with a seed buyer. The XY Hemp Corporation and Breadroot Farms are currently reviewing several contracts and are very excited to move forward together!
P.S. My pitch video is still up for votes online, please watch and give it a little “heart”