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Agricultural Benefits Agreement

“The overall goal of a CFA is to improve business efficiency by improving business performance. Even though the use of entrepreneurs in agriculture has long established itself as an effective business model, both parties are opening up new possibilities through the implementation of a CFA and are fully invested in the business while retaining their individual identity as a full-fledged business. This also applies to new entrants who wish to develop existing farms without having to finance the purchase or lease of land. Last year, the Canadian government and eighteen First Nations successfully concluded negotiating agreements in Treaty #8 to resolve their agricultural claims. Tim continues: “CFAs are different from more traditional agreements such as Farm Business Tenancies, which many partners may be opposed to due to more favourable contractual constraints. We see that this type of agreement is attractive to landowners who have additional businesses, such as livestock or diversification projects, given that the reduced working capital can be redirected to other areas of their business in order to eventually increase profitability and reduce risk. “As agribusiness begins to navigate unfamiliar waters in response to challenges and potential changes in state support, H&H Land &Estates begins to move away from more traditional farming structures. It is important that CFAs are managed in the right way to ensure that the landowner is able to meet personal benefits and capital tax requirements. While the Contract Farming Agreement offers many advantages, it is highly recommended to consult a professional before an agreement begins. It is important that a CFA agreement also means that the landowner remains actively involved in the management of farms, which will allow him to maintain his status as a “farmer” and continue to receive and apply for the basic premium scheme and environmental liability rules. Subsequently, this will change, with the new Agriculture Act pointing out that financial support to farmers will likely be determined by the Environmental Land Management Scheme (ELMS). “Farmer” is the landowner who has used the services of another contractor, known as a “contractor”, who carries out agricultural activities over a given period of time. It is a flexible agreement, determined by the needs of the parties involved and providing an ideal platform for a mutually beneficial joint venture.

The most important principles are this: Members of the K`atl`odeeche First Nation near Hay River, N.W.T., are voting this week on how to manage a $28.3 million farm benefit agreement. These comparisons, made through partnership and dialogue, included financial compensation for previous damages related to unfilled contractual promises of agricultural benefits, in accordance with contractual #8. These jointly developed agreements have been approved by First Nation members in community votes over the past year. Members will vote on Wednesday. The results are expected to be released on Thursday. The resolution of claims is one of many steps in reconciliation with First Nations and helps create a better future for all. K`atl`odeeche First Nation Chief Roy Fabian supports a plan in which 645 K`atl`odeeche members living both on and off reserve would each receive US$15,000 – although 160 members have to wait until they turn 19…

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