Understanding Pangea’s Model
In practice, Pangea and local farmers create joint ventures in which the equipment used to farm both Pangea's and the farmers' land is shared.
Objectives
Four Objectives for Rethinking Agriculture
Promote the Profitability of the Joint Ventures
Our Commitment
Pangea is committed to prioritizing crops that provide added value. Growing diversified and high-quality, higher-yielding products for human consumption, sometimes organic, provides increased profitability and gives our farming partners the opportunity to live well from agriculture. In addition, Pangea’s model brings additional acreage for economies of scale.
In Practice
Pangea innovates by bringing new crops that are favourable to certain regions and climates. In addition, Pangea is currently conducting various initiatives, in collaboration with partner organizations to develop products for human consumption that are typical to Quebec.
Supporting Young Farmers
Our Commitment
We are committed to developing over 70% of our partnerships with young farmers (i.e. 40 years old and under). The support we provide these young farmers in terms of mentorship, reference tools, and support from our team of professionals will help establish successful agricultural entrepreneurs.
In Practice
Currently, nearly 80% of Pangea's farming partners are young farm operators. In comparison, in Quebec, barely 15% of farmers involved in row crops are under 40 years of age.
Maximize Regional Economic Benefits
Our Commitment
Pangea and its farming partners are committed to buying the vast majority of goods locally, including equipment, inputs, and professional services (lawyers, accountants, agronomists, etc.) needed for agricultural operations.
In Practice
Our local purchasing policy has generated, since 2012, more than $37 million in economic spin-offs in the areas where Pangea is present.
Respect the Principles of Sustainable Development
Our Commitment
Pangea is committed to the principles of sustainable development and ESG. This is first demonstrated in the management of its farmland and its cultural practices through the gradual introduction of sustainable production and a special attention to soil health and quality. This commitment also manifests at the social level, as Pangea offers its farming partners the opportunity to live well from agriculture and promotes a harmonious co-existence with the projects and actors already locally present in rural areas.
In Practice
At the social level, Pangea’s model is intended to enable our farming partners to live well from agriculture. They retain full ownership of their farmland and of the appreciation from said land. Farming partners receive leasing revenues as they rent their farmland to the joint venture. They also receive their share of the profits from the joint venture and are paid for contract work. Their sources of income are therefore diversified and spread out on an annual basis, which helps them to live well from their passion and contributes to regional dynamism.
By partnering with Pangea, farmers can cultivate more farmland and bring it to its full potential. They benefit from economies of scale, reduce their indebtedness, and have access to state-of-the-art equipment.
Pangea's model brings:
- The creation of a joint venture with little to no debt
- An optimal operating size with quality acreage
- Sources of income that are diversified and spread out on an annual basis
- Access to purchasing power on inputs and equipment
This is how farmers and their families can make a good living from farming.
Pangea Farmland
Pangea prioritizes the purchase of farmland suitable for row crops that would benefit from improvement works to make them more productive. Pangea Farmland thus provides joint ventures with quality farmland.
Pangea is committed to investing annually to gradually level and drain 100% of the joint venture farmland in production in order to restore its full agronomic potential.
Pangea Farming Operations
Pangea is committed to providing agronomic support and innovative, effective management tools to collect agricultural data from joint ventures.
Pangea Trading
Pangea offers new opportunities for local farmers to sell their crops by developing large grain centers in rural areas.
Pangea Processing
Pangea is aiming for the establishment of primary processing centers in rural areas, which will enable the development of regionally produced food products, in addition to creating employment for skilled labour.
Pangea Innovation
At the heart of Pangea’s model are the innovation and diversification of agriculture in Quebec and Ontario. Several projects for the introduction of new crops are currently underway and these will have benefits for the entire agricultural sector.
Land Upgrade Program
Precision Farming
Cultures Céréalières Lapointe Grain Center
Primary Processing Facilities in Lac-Saint-Jean
New crops
Our Eight Differentiators
An Action Plan geared towards Operational Efficiency
- Land Improvement and Upgrade
- Creating a Business with Little to No Debt
- Achieving Optimal Operating Size
- Improved Operational Efficiency
- Focus on Higher-Yielding Commodities
- Access to Purchasing Power
- Improved Marketing
- Access to New Technologies
Land Improvement and Upgrade
Pangea purchases farmland for agricultural production, at its agroeconomic fair value. By mandating two independent, licensed appraisers, we ensure paying the real market value of the property. If another farmer in the area is competing, we withdraw our offer immediately.
Once the purchase is completed, levelling, drainage, and pH and organic matter corrections are carried out by the joint venture for the farmland to reach its full agronomic potential.
This practice makes it possible to:
- Reach operational efficiency which is at the basis of Pangea's model
- Start seeding earlier and harvest later (which extends the growing season)
- Cultivate a greater variety of crops thanks to the extended season
Creating a Business with Little to No Debt
Pangea is a partner in equity, not in debt, unlike most agricultural financing options.
Our farming partners are not tied to monthly repayments of principal and interest on a debt.
Achieving Optimal Operating Size
The size of an optimal farm operation in row crops – approximately 2000 acres – allows for better use of the capital invested in equipment.
For example, the purchase price of a combine harvester is spread over 2000 acres, compared to 400 acres in the case of a medium-sized farm.
Improved Operational Efficiency
Upgrading the land with leveling and drainage primarily maximizes operational efficiency and also reduces the number of isolated plots or fields, resulting in an optimal use of machinery.
Focus on Higher-Yielding Commodities
Pangea’s model favours crops that provide additional value to the farmer. Crops for human consumption or higher-yield crops are sold at a higher price than those for animal consumption.
Access to Purchasing Power
The purchasing power associated with the group, whose purchases are carried out locally, represents significant savings on input costs (seeds, fertilizers) as well as on equipment.
Purchases are made locally, while benefiting from the discount of the supplier's parent company; the local supplier benefits from the volume effect of the transactions.
Improved Marketing
Pangea provides its joint ventures with storage capabilities (silos, grain centers) to improve operational efficiency and sell commodities in a timely manner to optimize marketing.
Regional grain centers represent additional outlets for local farmers.
Access to New Technologies
Integrating new technologies into farming operations improves farmers' quality of life and increases safety in the performance of their tasks. The farmer benefits from the support of technology for precision work and can focus on operating the equipment rather than on driving it.
The use of precision technologies (GPS-guided self-propelled sprinkler) makes it possible to remain at the forefront of preserving the environment by using equipment and technologies that avoid over-fertilization.
Testimonials
Proud, Involved and Satisfied Partners
