Strong Seed Support For Fertilizer Plant
It’s still early on, but it looks like “Project N” is gaining momentum.
Farmers of North America is leading an effort to build a producer-owned nitrogen fertilizer plant somewhere in western Canada.
“We’ve already had just over 900 farmers sign up and contribute their seed capital money,” says Bill Martin, FNA’s Vice President of Grain Handling, Marketing and Transportation.
FNA has created a standalone business, called FNA Fertilizer Limited Partnership, for producers interested in investing in the plant. They’re aiming to sell a thousand seed capital units at $1,000 a piece to raise funds to complete the required legal, engineering and environmental work.
Martin says he believes “Project N” is the most exciting agriculture venture in Western Canada in the last 50 years.
“It will have a dramatic impact on their operating costs by giving them the ability to produce and more properly manage their fertilizer costs,” he says. “They’ll also be getting an opportunity to participate as shareholders in what we anticipate will be a quite profitable venture.”
FNA has been hosting meetings with producers in Saskatchewan and Alberta over the past two weeks. Several producer meetings are scheduled to be held in southern Manitoba in the coming days.
BMO Capital Markets has been retained to serve as the strategic advisor for development of the plant. Work is underway on developing an equity investment package for farmers, as the plan is to begin raising equity capital this fall. The plant could be operational by 2016 or 2017.