Land Access for The XY Hemp Corporation

March 25, 2015 The XY Hemp Corporation completes a significant step in our business plan: signing the crop share agreement with Breadroot Farms.

The crop share agreement is a hybrid between a traditional crop share contract and a production agreement. This flexibility has allowed us to craft a truly unique partnership with our organic producers, Hélène Tremblay-Boyko and Al Boyko. We are growing 60 acres of hemp this summer and sharing input costs and profits from the sale. This structure allows The XY Hemp Corporation to share risk, costs and access mentorship from experienced organic producers.

As young professionals, C and I have limited experience with agriculture. An 8-month co-op term at the B.C. Ministry of Agriculture exposed me to different land access arrangements for young farmers. These alternative models of land access include incubator farms, land linking, co-operative farming and farmland trusts. Breadroot farms is actively searching for young agrarians to take over sustainable operations on their farm through land linking initiatives such as FARMLink. Al and Hélène have also set aside land for a farmland trust called Farmland Legacies. Our joint venture is a blend of land linking and co-operative farming.

Star Spangled (Future) Hemp Field on Breadroot Farms, SK
Star Spangled (Future) Hemp Field on Breadroot Farms, SK

In exchange for a land rental fee, a 30% share of seed sales and reimbursement for machinery operations, Breadroot Farms is providing The XY Hemp Corporation with 60 acres of pristine organic land and the mentorship of organic farmers with over 20 years of experience growing field crops in Saskatchewan. The location is perfect for hemp seed sales: close to the Manitoba border where the majority of hemp processing occurs.

Al and Hélène have grown a wide variety of field crops, but have never grown hemp. C and I were able to apply for a license to grow industrial hemp from Health Canada with permission from Breadroot farms. This application has been received and processed and we anticipate our license to be issued at the end of April, 2015. We have also accessed the support of Larry Marshall, an experience organic hemp farmer in Northern Saskatchewan. With these three incredible resources, C and I will learn so much about farming this summer.

The crop share agreement is the first contract on a series that sets our dreams into motion. Our next major milestone will be a production contract with a seed buyer. The XY Hemp Corporation and Breadroot Farms are currently reviewing several contracts and are very excited to move forward together!

-K

P.S. My pitch video is still up for votes online, please watch and give it a little “heart”

Pitch It! Plan It! Build It!

Start-up companies need lots of support, from our friends and family who understand why we are working late and always on the phone, to the incredibly valuable advice offered to young entrepreneurs. This week, The XY Hemp Corporation is meeting and working with start-up accelerators in Victoria and Edmonton for additional support.

The Innovation Centre for Entrepreneurs (ICE) at the University of Victoria has been an excellent resource during the development of our business plan. After an initial intake meeting, we were directed towards Lean Stack, an online platform that helps entrepreneurs define their products and markets more clearly. These one-page descriptions of our products and customers are perfect for showcasing where we are now, and where we want to be in five years.

We are  participating in a few pitch and plan competitions through ICE this spring. My video submission for PitchIt! is online now, so please watch it and give me a little “heart” so The XY Hemp Corporation can win $500. I will be presenting the elevator pitch live for a panel of judges on March 31st, for another cash prize of $300. These funds will help C and I travel to Saskatchewan this summer to work with Breadroot Farms.

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ICE entrepreneur coach, Robin Milne, has been absolutely amazing. He has helped get my pitch and plan together by providing advice, resources, and letting me just talk things out. Recently, he helped to edit a short company description to submit to TEC Edmonton. The submission was successful and we have an initial meeting with TEC Edmonton Thursday March 19. The XY Hemp Corporation is looking to access the support of a larger start-up accelerator, and TEC Edmonton is the best in Canada!

TEC Edmonton was named the number one start-up incubator in Canada and the number three university business incubator in North America in 2014.  We are most interested in the services provided by the business development, technology management and entrepreneur education teams. TEC Edmonton is an ideal partner as we move beyond the pilot and expanded production phase and into processing industrial hemp. The TEC Venture prize is also an amazing opportunity for start-ups to access capital for expansion, and we hope to be able to compete in that competition after we have solidified our processing goals.

We are extremely grateful for the support we have already received, from Breadroot Farms, Larry Marshall and ICE, just to name a few! With their help we have developed a viable business case for 2015 that will be presented at the ICE PlanIt! competition on April 2nd. If we are successful in that competition, The XY Hemp Corporation will win $5000, which will contribute to our input costs and the transportation of hemp seeds to the commercial buyer. Farming is uncertain and more capital will give us more flexibility when responding to growing conditions this summer. We are very excited to work with ICE to pitch it and plan it, and hope to work with TEC Edmonton in the future to build our dream.

-K

P.S. link to PitchIt! video is: http://uvicpitchitonline.hscampaigns.com/ . Remember to click the little heart!