Members of the K`atl`odeeche First Nation near Hay River, N.W.T., will vote this week on how to manage a $28.3 million agricultural services agreement. „The overall goal of a CFA is to improve business efficiency by improving the company`s performance. Although the use of contractors in the agriculture sector has long established itself as an effective business model, both parties are opening up new opportunities by introducing a CFA and investing fully in the business while preserving their individual identity as a separate company. This also applies to newcomers who wish to expand existing farms without having to finance the purchase or lease of land. The farmer is the landowner who has taken the services of another, known as a „contractor“ and who is engaged in agricultural activities for a certain period of time. It is a flexible agreement, determined by the needs of the parties involved, which provides an ideal platform for a mutually beneficial joint venture. The main principles are the most important: last year, the Government of Canada and 18 First Nations made successfully negotiated comparisons in the treaty #8 to resolve their agricultural benefit claims. As the agricultural industry begins to navigate uncharted waters in response to the challenges and potential changes in public assistance, H-H Land-Estates is beginning to see many businesses moving away from more traditional agricultural structures. It is essential that CFAs are properly managed to ensure that the landowner is able to meet the capital tax benefit requirements, both personally and capital tax requirements. While Contract Farming Agreement offers many benefits, it is urgently reported that professional advice is sought before an agreement begins. It is important that a CFA agreement also requires the landowner to continue to be actively involved in the management of farms, which ensures that he retains his „farmer status“ and that he can continue to receive and apply for the basic payment scheme and environmental protection schemes.
This situation will change later, as the new Agriculture Act stresses that financial assistance to farmers is probably determined by the Environmental Land Management Scheme (ELMS). Tim continues: „CFAs are different from more traditional agreements such as Farm Business Tenancies, which many partners may be reluctant to do because of increased contractual constraints. We see that this type of agreement is attractive to landowners who have other businesses, such as livestock or diversification projects, because reduced working capital can be redirected to other areas of their business to potentially increase profitability and reduce risk. These agreements, concluded through partnership and dialogue, included financial compensation for past damages related to non-binding contractual commitments to agricultural benefits under the Treaty.8 These joint agreements have been approved by First Nation members in community votes over the past year. With changes in the agricultural landscape, such as. B the progressive argument of the UK government`s current system for supporting farmers through the basic premium scheme and environmental protection systems, the environmental initiative in the form of the Environmental Land Management Scheme (ELMS).