RecoA nice reco by Jason Hamelin:
" Sprott Resource Corporation
A less known method to invest in agriculture and one of my favorite is the Sprott Resource Corp (TSE: SCP or SCPZF), run by well-known precious metals investor and fund manager Eric Sprott. In addition to agriculture, the company has exposure to gold, energy and uranium, making it a diversified play.
Current Investments
Orion Oil and Gas Corporation: CAN$105.1 million invested / 78.9% ownership
Waseca Energy: CAN$44.2 million invested / 81.3% ownership
One Earth Farms: CAN$27.5 million invested / 67% (80% fully diluted)
One Earth Oil & Gas: CAN$11 million invested / 91% ownership
Stonegate Agricom: CAN$26.0 million invested / 54.3% ownership
Gold Bullion: CAN$75.4 million invested in 2008/09 /100% ownership
Coles Hill uranium project in Virginia / 20% ownership
In addition to these current investments, which have all appreciated significantly, Sprott has one completed investment in PBS Coals, which they bought for US$55 million and sold for CAN$240.7 million. If this type of track record continues, an investment is Sprott Resource Corp should prove very lucrative to your portfolio.
The agriculture part of this play that we are focusing on comes from both Stonegate Agricom (TSE: ST) and One Earth Farms. Stonegate is in the fertilizer business and is currently focused on the development of two potentially world-class, long-life phosphate deposits, the Mantaro Phosphate Project located in Peru and the Paris Hills Phosphate project located in Idaho. Stonegate is confident that the two deposits have sufficient size and grade and are in the right locations to become strategic, cost-effective sources of phosphate supply for major fertilizer producers. The Company intends to conduct definition and exploration drilling to confirm and expand estimates of NI 43-101 compliant mineral resources and reserves in the deposits and then complete feasibility studies leading to a decision to proceed with extracting and processing of phosphate and both of their properties have proven historical merit. This far Sprott’s option agreement totaling $53,000 has turned into a mark-to-market gain of over $100 million in just a few short years. Stonegate’s stock is up 160% in the last six months.
The second and more interesting agriculture investment from Sprott is One Earth Farms. One Earth is slated to become the largest farm in Canada and one of the largest farms in North America in 2011. It’s also positioned to be one of the largest farms in the world in the coming years. Sprott Resource Corp. first invested in One Earth Farms in 2009 and has invested $37.5 million for a 72.7% (80% fully diluted) ownership position.
One Earth Farms has synergistic cattle and grain operations. Its real goal is to become a fully integrated farm operation and change the typical farming model. Instead of the farmer buying retail and selling wholesale, One Earth has scaled to be able to buy wholesale and is working on a model that will allow the company to capture some of the retail margin by partnering with food processors or retail outlets. There are very few corporate farms in which to invest around the world and with rapidly rising food prices, an improved business model and backing by Sprott, One Earth seems on track for great success. The company is currently privately owned and does not trade on any exchange, so buying Sprott Resource Corp is your only option, other than private placement if you qualify, to get exposure to One Earth.
Sprott CEO Kevin Bambrough recently discussed the One Earth investment stating:
One Earth Farms is, in our minds, the only way you can invest in Canadian farming in a large way. That’s because it is in partnership with the First Nations groups of Canada, which are federally regulated and permitted to allow public companies and foreigners to lease land. Typically, non-First Nations lands in Manitoba and Saskatchewan are restricted under provincial law from public company ownership or leasing or foreign participation.
I think that One Earth Farms is a company that ultimately will be highly valued and coveted by three different types of investors. First, large pension funds might find it very desirable for the inflation protection it could provide pension fund holders. Also, I think that the sovereign wealth funds and the Ag ministries of the world that are trying to get food security for their nations would find this to be very strategic. Lastly, we feel it would be valued by ordinary institutional and retail investors if it were publicly listed."
the complete article:
How to invest in agriculture
https://www.goldstockbull.com/articles/how-to-invest-in-agriculture/