Who Owns Big Sky Farms?

[Oscar]

Who Owns Big Sky Farms?

Published in the Western Producer on November 10, 2005

http://www.producer.com/free/editorial/ ... ers&sto=16


Who owns Big Sky farms? The 16-page, first edition of The Big Sky Bugle did not make that clear.

The Fraser Institute classifies Big Sky Farms as a Saskatchewan crown corporation.

The Taxpayers Federation criticized the huge government investment in Big Sky Farms.

Richard Truscott, writing for the federation, said it best: “At least for once the pigs at the trough are real pigs.”

The Saskatchewan Business magazine lists the owners of Big Sky Farms as Crown Investment Corporation, Crown Capital and others. That “others” list appears to include Saskatchewan Government Growth Fund I, SGGF II and the Saskatchewan Opportunities Corporation. In fact, it is unclear if there is any significant investment in Big Sky that does not come from government or government related funds. There are some minor investors and there are questions about how their investments were made.

Does anyone know whether the government has guaranteed any Big Sky loans?

Is there a good reason for our government to invest in one farm when most independent family farms are struggling to survive? Have independent hog farmers paid taxes to subsidize their competition? Even large corporate farms like Quadra, financed with venture capital, cannot compete in a business environment where one player has access to tax dollars for growth capital.

Remember when SPI was a single desk seller marketing hogs for 12,000 Saskatchewan farmers who were producing hogs? There is no more single desk selling but SPI is still going strong. It promotes itself as “a full service hog marketing agency dedicated to maximizing returns for pork producers across the Canadian prairies.” Saskatchewan Business magazine lists SPI in its top 100 companies. The major shareholder? Big Sky Farms.

There are countries in the world where state owned farms are the norm and farmers are peasants working for the government. These countries do not pretend to operate in a free market economy and they call their form of government communism. Surely in this country we still believe in the private ownership of farms. In fact, The Big Sky Bugle states that the company has built its success on a foundation that includes “the wonderful people who carry on the entrepreneurial spirit of our forefathers”.

So who owns Big Sky Farms? Perhaps we’ll find out in the second edition of The Big Sky Bugle.

Elaine Regier
Laird, SK

[Oscar]

Sent to the Saskatoon Star Phoenix for publishing on May 5, 2008

To the Editor,

…knowing when to dismount!

Like their predecessors, and inspite of their pre-election rhetoric to the contrary, the Sask Party now finds itself entangled in the unspeakable obscenity of pig factories (mega hog barns) and dollars continue to flow to support this drowning industry.

We produce millions more hogs than the market can handle and, since the USA is awash in their own hogs, it doesn’t want ours. So, in order to reduce our herds by 10%, the Sask Party is kicking in $440,000 to grind up the culled hogs – not for the commercial food system, but for the province’s Food Banks!

Plus, they’re handing over another $3.7 million lifeline to their favoured Crown Corporation, Big Sky Farms Inc., Saskatchewan’s largest hog producer, to add to our current $30.5 million investment this outfit!

Meanwhile, Stomp Farm hog producer is operating under bankruptcy protection and many other independent, smaller operations have seen the light and have closed their barns - the industry is collapsing!

Yet, here we are, faithfully forking over our tax dollars (again) to keep Big Sky afloat and popping out hogs from its 35 barns….in hopes that sometime in the dim and uncertain future, they will begin making money. This is outrageous!

How long would any ordinary company continue to operate in such an irresponsible fashion?

Another question: when one realizes one is riding a dead horse, how long does it take before one actually dismounts?


Elaine Hughes
Archerwill, SK

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Environmental charge cuts Investment Saskatchewan profit

http://www.cbc.ca/canada/saskatchewan/s ... ml?ref=rss

Last Updated: Tuesday, April 29, 2008 | 11:02 AM CT CBC News

Profits are down at Investment Saskatchewan, the Crown corporation that invests in various business ventures — partly as a result of environmental provisions related to the pulp and paper industry.

According to Investment Saskatchewan's 2007 annual report, released Monday, the company had net income last year of $11.5 million, compared with $72.9 million in 2006.

The decrease was partly as a result of a $24.1-million provision for environmental costs related to property formerly owned by Prince Albert Pulp Company Ltd. (PAPCO), a Crown corporation taken over by Weyerhaeuser in the 1980s. Weyerhaeuser's Prince Albert pulp and paper operation closed in 2006.

Also hurting the bottom line was a $15-million writedown of the province's investment in a hog business, Big Sky farms. More government money is earmarked for the same farm this year — $3.7 million.

READ MORE AT:

http://www.cbc.ca/canada/saskatchewan/s ... ml?ref=rss

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Hog loan deemed unfair

http://www.producer.com/free/editorial/ ... ws&sto=000

May 1, 2008
Western Producer By Sean Pratt Saskatoon newsroom

Hog producers who have either gone out of business or are in danger of that fate are outraged that the Saskatchewan government is propping up the province's largest hog operation with a sizable loan.

The Western Producer has learned that Victoria Park Capital, the company that manages the assets of Investment Saskatchewan, has approved a $3.7 million loan to Big Sky Farms Inc.

Saskatchewan enterprise and innovation minister Lyle Stewart said the commitment has been made but the money had not been dispersed as of April 23.

He expected some part of the loan would be made available to Big Sky in the near future.

_____ CORRECTION _____

This story originally stated Stomp Pork had closed. In fact, Stomp Pork continues to operate under bankruptcy protection.

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"I'm pleased with Victoria Park Capital's decision not to let the thing fold. We don't want the taxpayers to lose their investment," said Stewart, adding that the province wants to get out of the hog business as soon as the sector turns around and there is a buyer for their 62.9 percent share in Big Sky.

Vaughn Crone, a former hog farmer from the Moose Jaw, Sask., area, said he suspected the province must have been keeping Big Sky afloat because everybody else in the industry has been struggling, including Stomp Pork, Saskatchewan's second largest operation, which filed for bankruptcy protection in April.

Crone said he is appalled that more government money is being funneled to Big Sky but he doesn't blame the ruling Saskatchewan Party.

He points the finger squarely at the NDP, which through Investment Saskatchewan committed $17.3 million to Big Sky. Another $9.1 million was invested by Crown Life, which was partially owned by Investment Saskatchewan.

The Big Sky asset was worth $30.5 million on Investment Saskatchewan's books as of Dec. 31, 2007, down $15 million from a year earlier.

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Sask Party inherited 'foolish' loan: Stewart

http://www.producer.com/free/editorial/ ... ws&sto=003

May 1, 2008

Western Producer By Sean Pratt Saskatoon newsroom

The ruling Saskatchewan Party says it is not to blame for picking favourites in the hog industry.

Saskatchewan enterprise and innovation minister Lyle Stewart said his government is extending a $3.7 million loan to help keep the province's largest hog operation afloat, but it was the former NDP government that made the initial investment in Big Sky Farms Inc.

"We think this is clearly an investment that was foolish," he said.

"We don't think the government should have been picking winners and losers and we certainly don't think that there was ever any appetite among the public to be a majority shareholder of any company, much less one as risky and cyclical as a hog company."

Staff of NDP opposition leader and former premier Lorne Calvert were contacted, but said Calvert was unavailable for comment.

According to Investment Saskatchewan's 2007 annual report, the province has a 62.9 percent ownership in Big Sky valued at $30.5 million, $15 million less than it was worth at the end of 2006.

Stewart said the province wants out of the hog business but now is not a good time to be looking for a buyer.

The government is protecting its investment in Big Sky until the hog cycle turns around and it can get better value for its asset.

The minister empathized with other hog producers who are disturbed that they have been forced out of business while their competition gets a loan.

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