Blood Tribe Agricultural Project (1991) BTAP Update-Summer 2017
BTAP - A Legacy of Economic Independence Since the beginning, the ancestors of the Bloods have relied on the land to sustain them, food gathered from the body of Mother Earth has been their source of life. Through the generations, since time immemorial they have had this strong connection to the land. This has been incorporated into the culture and ceremonies of the tribe and is celebrated each year in their spiritual and cultural beliefs. In recent times, changes have occurred in how the land is providing for the people globally, and agriculture has become necessary for the survival of humankind. The Bloods have been impacted greatly by these changes.
Chief Shot Both Sides and Percy Creighton - Opening of St Mary Dam , 1950
Board of Directors -Hank Shade – President -Lance Tail Feathers Vice-President -Kyla Crow –Secretary-Treasurer -Kirby Many Fingers -Marcel Weasel Head -Chief Roy Fox – Ex-Officio
During the early years of reservation life, the Bloods accepted the agricultural lifestyle easily, Red Crow himself encouraged farming and ranching. In 1925, it was recorded by the Indian agent that the Bloods were becoming prosperous and were growing their own food through agriculture. The land continued to provide for the Bloods. In the 1940’s, agriculture was progressing rapidly in Southern Alberta and irrigation was introduced. Farmers needed water to sustain their irrigated farms and ranches. In 1950 the St. Mary Dam was completed and the Bloods were promised water for their own future irrigation development. Due to resource restrictions. this development did not occur until 1991. Under a tripartite arrangement between the Federal and Provincial governments and the Blood Tribe, funding was made available to create an irrigation system for the reserve. The Blood Tribe Irrigation Project (BTAP) was launched by the tribe. It provided new opportunities for economic growth. BTAP has been the economic flagship for the tribe since 1991 and has generated much needed revenue, and created employment for members of the tribe. It has utilized and developed the richest resources of the Bloods, their land and water. Despite the numerous challenges faced by BTAP, it continues to be the leading economic venture.
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Blood Tribe Agricultural Project (1991) BTAP Update-Summer 2017
Oki Kainaiwa Neestowaakook Makiinima. On Behalf of our Council, Board Members and Staff, I welcome you to our Open-House at BTAP. We want to show and inform you about the decisions that we have made towards the recovery of our Blood Tribe Agricultural Project and to assure you that we are all determined to work towards it’s complete success through proper planning and hard work. I commend our Council, Board, staff and all our employees in the hard work that you have been involved with over the past few months and the improvements that have occurred towards a quick turnaround. We appreciate the understanding and commitment that our business partners and farmers have also made towards the total success of BTAP including our subsidiary operations and we welcome our continued partnerships with trustworthy business people. Throughout the course of my political and business leadership, I have discovered and developed true business friendships with certain people who have assisted our Tribe and other Indigenous nations and I am proud to say that Dal McCloy - Iitoomee Bottaa - is certainly one of those real people. We reached out to him and others to assist us with our recovery and he and others such as Blair Wright have certainly helped in ensuring that we have a profitable and successful operation. I want to thank Levi, our General Manager, our staff and workers and co-management personnel for your hard work and re-commitment towards the complete recovery and success of our BTAP which I have always had so much pride in. We personally sacrificed and spent many years in developing this historic irrigation project and I and others gave our total commitment towards its complete business success including the employment of many of our people. Kainaiwa we still have a great opportunity to prove that our Tribe are leaders in the indigenous business sector and that a profitable BTAP will lead us towards true financial sovereignty. Thank you Makiinima Chief Roy Fox
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Blood Tribe Agricultural Project (1991) BTAP Update-Summer 2017
CHAIRMANS MESSAGE
HANK SHADE Oki, on behalf of the Board of Directors and Management we send greetings from the Blood Tribe Irrigation Project and we thank you for the support given to this initiative. To the staff of all divisions, your dedication and commitment does not go unnoticed. To the past Leadership, elders and Management, your continued support is greatly appreciated. Recently, BTAP reached its 25th year in operation, a milestone for the Blood Tribe. Throughout its course of operation, the project has overcome many challenges. As you know the agriculture business has many ups and downs with fluctuating market prices, unpredictable weather conditions and resource management. But BTAP has been constant in its pursuit of excellence. The timothy hay that we produce continues to be of the best quality and highly sought after in an international market. Since we have also taken the task of managing the tribe’s other agricultural economic ventures, we are seeing some successes there. Our beef is also of very high quality and proving that the Bloods can compete in these very competitive markets. This would not be possible without the continued support of the leadership and the membership of the tribe. We will continue to work hard to meet the high demands placed on us as we forge into the future. Chairman Blood Tribe Agricultural Project. HANK SHADE 4
General Managers Report Summer 2017 Oki, on behalf of the Board of Directors and staff of the Blood Tribe Irrigation Project, I extend greetings to the Shareholders, Elders and Blood Tribe membership. First off, I am honored to have the opportunity to assist the Board of Directors in their ongoing efforts to improve the Socio-economic conditions of our Nation. History tells us that the Bloods have always had ties to the land as an integral part of their livelihood, Red Crow, Mekaisto during the winter of 1879-80 witnessed the depletion of the buffalo and the need to start a new life. The Bloods willingly took to farming and were eager to provide for their families, as there were stories of accomplishments so too were challenges that our people have overcome.
Blood Tribe Agricultural Project (1991) BTAP Update-Summer 2017
lands over the years was also witnessed, what followed was a period of rapid expansion in the various divisions that eventually put the organization into a state of financial crisis. In May 2016 Chief and Council intervened and entered into a Co-Management agreement, that would develop a remedial management plan. As this report progresses the members of the BTA Co-Management group will update the status and summarize the remedial management plan. BTAP is conducting an Agriculture asset review that will support opportunity identification of new business opportunities, business planning, identifying partnership opportunities and review of internal governance and administrative systems. Source funding for this initiative has come from grants from the Government of Alberta. Our Mission statement is, “ To direct, oversee and expand Agri-business under the authority of the Blood Tribe Agricultural Project for the benefit of all Blood Tribe members.” The divisions include; - Blood Tribe Irrigation Management – includes administration, operation & maintenance, accounting, security and management: 26 staff. - Blood Tribe Forage Processing – production of densified forage product for domestic and International markets: 24 staff. - Blood Band Ranch/ Sawkee Feedlot – cow/calf operation: 3 staff. - Blood Band Farms – provides custom farming operations: 9 staff. - Mataki Farms At this time we would like to extend our appreciation to the Elders for their guidance and prayers, the Leadership for their vision and support and to the staff for their hard work and dedication.
Blood Tribe Agricultural Project (1991)
The vision our forefathers had in the cooperation with the development of the St. Mary’s dam in the 1940’s was realized in 2000 as BTAP completed Phase 6 that saw 104 centre pivots irrigating 18,380 acres. We became the largest Irrigation project in Canada and second largest in North America. In 1997 there was a natural progression in the development of the Agriculture value chain by entering into an agreement that would include provisions to supply densified forage products for domestic and export markets. The Blood Tribe Forage Processing plant was born.
Levi Blackwater General Manager. 403.737.3900 Fax – 403.737.3901 levi@btap.ca
An amalgamation of all Tribal agribusiness ventures occurred in 2007 and various attempts to farm our own 5
Blood Tribe Agricultural Project (1991) BTAP Update-Summer 2017
Blood Tribe Agricultural Projects (BTAP) Co-Management Report As of July 2017 INTRODUCTION:
Blood Tribe Agricultural Projects (BTAP) was placed under Co-Management by Blood Tribe Chief and Council at May 16, 2016 for not meeting its financial & management responsibilities. The Purpose of Co-Management of BTAP is to assist and ensure that BTAP meets its obligations through the joint management by the Blood Tribe Management Team (BTA), the Co-Management Consultant(s) and BTAP staff, working with the BTAP Board of Directors. The Group was working together towards common goals for the best interest of the Blood Tribe as a whole.
PHASE 1:
The first phase of Co-Management included the Crisis Management Phase. This phase was to identify the cash status and shortfall and the cashflow requirements for outstanding commitments and operations to year end. This phase included meeting with creditors and to determine a payment plan. Internal controls were implemented and finance processes established. Also included within the first phase was the stabilization phase, which included separating each of the business divisions, ie: Irrigation Management, Forage Processing Plant, Ranch etc, revenues and expenses to ensure proper financial records were being recorded for each division. It also included developing Headlease land rental contracts for rental payments to determine committed revenue sources flowing to BTAP. Other critical tasks were identifying cashflow revenue requirements for each of the divisions to the end of the fiscal year and identifying and remedying critical financial issues.
PHASE 2:
The second phase, which is the current position of Co-Management, has been identified as the Transition Phase. The transition phase includes: • Establishment of deficit recovery plan • Preparation of 2017-18 budgets and workplans, • Monitoring of cash and accounts payable on a weekly basis, • Providing monthly financial statements, • Monitoring budgets and workplans variances and overall cash flow • Responses and planning to address Management letter points • Inventory management and plans • Capital asset inventory and review • Intercompany reconciliations • Building Capacity • Remedial Management Plan (RMP) development and implementation • Monitoring of four year deficit recovery plan • Financial, Human Resources, Payroll, Inventory Controls and Operational Policy Development • Development/Update Operational, Financial and Human Resource Policies • Division Business Plan development
PHASE 3: Final Transition Phase of Co-Management would be to ensure that BTAP is complying with the Remedial Management Plan, which includes the Deficit recovery of all divisions within BTAP and also: • Financial monitoring during transition period – quarterly • Implement and evaluate the process, plan and capacity development for each of the divisions • Develop and implement Sub-Agreement – between BTAP Board of Directors, Chief & Council and Finance Committee • Quarterly review of financial statements and operational outcomes based on actuals and workplans • Monitor March 31, 2018 audit Prep and management letters
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Blood Tribe Agricultural Project (1991) BTAP Update-Summer 2017
OPERATIONS AND MAINTENANCE SUMMARY 2017
On April 1, 2017 BTAP’s O&M department started pre - season maintenance on pivots, pumps, and water works for start-up on May 15, 2017. We are now in our 23rd year of operations. ● Phase 1 began operating in 1994 with 11 pivots irrigating 2317.27 acres. Phase 2 (1995) 16 pivots irrigating 2510.53 acres. Phase 3 (1996) 12 pivots irrigating 2822.97 acres. Phase 4 (1997) 13 pivots irrigating 2678.76 acres. Phase 5 (1998) 18 pivots irrigating 3520.55 acres. Phase 6 (1999) 27 pivots irrigating 3500.04 acres. In year 2000 an additional 7 pivots irrigating 1030.01 acres were added. Total of 104 pivots irrigating 18,380.13 acres. ● As of April 19, 2017 the header canal has been cleaned of all debris and filling commenced with water stored overwinter in the Mokowan Ridge Reservoir. The main canal is cleaned and water will be ordered from St. Mary’s as needed.
● Flushing of mainlines and pivots started on May 1 and irrigation of forage fields commenced on May 10, five days ahead of schedule. ● O&M has 15 staff consists of 1 Electrician/Pivot Operator Foreman, 3 Pivot Operator Foreman, 1 Water Master, 1 Shop Mechanic, 1 Grader Operator, 8 Pivot Operators. O&M is supporting the Job Ready Program and has taken on 2 students from the program. We have 6 summer students from the Kainai High School Ag Program, who will be helping us out for 4 weeks. ● We encountered some leaks on Mainlines A, D, and E while filling the lines. Fittings had stretched and bolts loosened after 20+ years of service. Parts were ordered and installed in a timely fashion. ● We have 3 new lessees this year. Jerrod Mulder, Harry Groten, and Jason Pilling/ Stewart. They took over 23 forage circles, a total of 3,354.12 acres. ● Planning for pivot 7
replacement is underway as the 1st phase of pivots will be reaching 24 years of service next year. We are having to replace more gearboxes and tires as the system is aging. ● BTAP set up it’s booth at the Kainai High School Agricultural Fair on June 13th. There was a lot of interest from the students on BTAP operations.
Submitted by Phil Eagle Bear, Manager Operations and Maintanance
Blood Tribe Agricultural Project (1991) BTAP Update-Summer 2017
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Blood Tribe Agricultural Project (1991) BTAP Update-Summer 2017
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Blood Tribe Agricultural Project (1991) BTAP Update-Summer 2017
Blood Tribe Forage Plant update: Background
-In 1997, 709204 Alberta Ltd (operating as the Blood Tribe Forage Processing Plant), was incorporated under the Business Corporation Act of Alberta for the operation of a hay processing facility. -The Blood Tribe Forage Processing Plant (BTFPP) is a subsidiary company of the Blood Tribe Agriculture Project (1991) (BTAP) and is located on the Kainai Nation in Southern Alberta, Canada. -The BTFPP, along with other BTAP subsidiary companies, is in a mode of renewal and re-strategizing business operations and direction. -In 2010-2011 the BTFP stopped being a custom processing only business for other Canadian hay exporters, and since 2010/11 we control all segments of our operation: as the Producer, processor, exporter and marketer. -BTFPP’s core product is compressed Timothy & Alfalfa hay which is used for a high-fiber & protein sources. -BTFP is a Canadian Food Inspection Agency Certified Plant to ship worldwide. -We currently employ 21 employees o 4 Administration personal o 3 Field Scout o 2 mechanics o 3 Security personal o 16 Production Line Workers o 12 Harvest crew workers Hardships in 2015-16 leading up to BTAP’s Co-Management Situation -Crop year 2015 was our best year since 2010-11 in terms of the quantity and quality of forages grown and harvested on BTAP lands. The market in 2015 was strong for export timothy and due to our high grade inventory we had no trouble selling into the market. We in fact had to purchase most of our low grade timothy off-reserve to supply the low grade segment of the market. -In the spring of 2016, due to circumstances in upper management, bills were not being paid and therefore our crop input suppliers suspended our charge
accounts to acquire fertilizer, herbicide, etc. -Co-Management took over BTAP in the spring of 2016 and explored options including BTFP being shut down due the financial situation. -BTFP Manager with the help of PM Associates, the new GM of BTAP, and Olds Ag-Tech Industries (OAT) have come up with a plan to keep the plant open in a profitable manner. New Business Strategy Going Forward -The plan that was developed involved stepping back and re-examine the business as a whole and dissecting all the profit centres with in the various BTFP activities; profit centres identified as the following: -Farming – growing of the various forages products that include all agronomic activities such as fertilizing, spraying, staging, irrigating, harvesting, etc. -Processing – taking of the raw hay product and compressing in the plant using a double compression hay press and loading containers -Marketing – marketing various forage products to world markets. -Each of these profit centres must be profitable on their own and as a result the whole operation will be profitable. -The above will be the basis for the development of the business plans. -In order for BTFP to remain in business we had to make some changes for the 2017/18 year which meant giving up the Marketing side of the business for the short term. The logic behind this decision is based on the following: -Raising crops require mass amounts of capital (cash) outlays and with a limited amount of cash flow could be quite challenging as well as puts a strain on the organization due to all the dollars being tied up in hay sitting in the sheds until it’s sold. One way to alleviate cash restraints is to sell the raw hay in the stack at the shed to be paid for right away rather than waiting months down the road to be ordered, pressed, shipped, and then finally paid. -BTFP has entered into agreement with OAT to purchase all hay grown and harvested by BTFP at fair market value. Additionally, OAT will also hire BTFP to custom press all the hay produced by BTFP throughout the year. -BTFP to remain active in the marketing alongside OAT to prevent being estranged from that side of the business; BTFP plans to take over that part of the business once 10
we are in a stronger financial position. -We will continue to sell hay to the tribal members at reasonable prices. -Going into the new 2018 crop year we will re-evaluate how we did and if successful we will take over the marketing side of the business once again in a more profitable fashion. 2017 Crop Report Update -The year started out very favourable for forage production we had lots of moisture in the spring. -Fertilizer and pest control applications were on time and produced a nice crop for 1st cut harvest. -Harvest couldn’t have gone better for 1st cut; the weather was perfect for drying/ curing the hay to ideal moisture levels. This year’s harvest took about 4 days from cutting to baling due to the hot/dry weather. Normal years would be 7-10 days. -Yields were average but early which means we could be possibly taking off more cuts/harvest for the year. -The only real issue we had was due to the extreme dry and hot weather this season that caused issues with keeping up with the irrigation even though they were constantly running to contend with evaporation and wind drift. -First cut was recently completed on July 22, 2017 and 2nd cut alfalfa started on the week of July 17, 2017. We expect to be harvesting 2nd cut timothy mid to late August 2017. -Going into the upcoming hay export season looks very promising as most of what we pulled off the fields is mid-high (mostly Dairy Premium) grade Timothy and Alfalfa.
Prepared By: Cyrus Weasel Fat – BTFP Manager
Blood Tribe Agricultural Project (1991) BTAP Update-Summer 2017
Blood Band Farms has machinery that allows them to operate efficiently:
Blood Band Farms Ltd. opened their doors April 2015; that is when they began to seed. There was a “Kick-off” that took place at Blood Band Farms. As they were in collaboration with the BTATI program, it enabled Band Farms to recruit several students from the program.
(2) combines, (2) Swathers, (1) Tractor, (1) Seeder and air drill, (1) grain cart and (2) 389 Peterbilt trucks.
2015 and 2016 Farming seasons, Blood Band Farms worked along with Ben Walters and was shown the farming practices that would allow Blood Band
Farms to eventually farm on their own. 2017 Blood Band Farms will do custom farming for 3 separate farming companies. They began seeding barley near Maataakii farms April 17, 2017 for Kevin Serfas. There, they seeded 1000 acres in various locations on the North end of the reserve. They concluded their seeding efforts for Kevin on April 24, 2017. Harvest will begin early to mid-August. Next, Blood Band Farms Ltd began seeding Canola for Harry Groten. They began to seed May 1, 2017 and wrapped up May 8, 2017 with having completed 2,500 acres on the M&M fields. Again, they will begin Harvest in August. Finally, Blood Band Farms completed their seeding work for Walburger Farms from May 10, 2017 to June 3, 2017. Where 2339 acres of wheat and 199 acres of Canola was seeded on majority of Walburgers’ allotted acres. Blood Band Farms will utilize their farm equipment to assist with harvest for the 3 mentioned farmers. Weather and time will always be an issue in farming, but with the experienced staff and well maintained machinery, the goal is to harvest a total of 8,000 acres for the 2017 harvest season. 2018 planning has begun.
Blood Band Ranch and Sawkee Feedlot Currently the Blood Band Ranch and the Sawkee Feedlot have combined cattle inventory of; 594 cows, 553 calves and 31 bulls. The cattle are currently out in summer pasture and will be rotating pastures as required.
Pastures have been assessed by Lands Management to determine status of each area. Staff have also assessed the status of fences within each of the pastures and are currently repairing fences as required in order for pastures to be secure as rotating takes place. We are currently preparing for the fall calf sales as well as ensuring we have hay inventory to feed cattle over the winter months. 11
Blood Tribe Agricultural Project (1991) Phone: - 403.737.3900 Fax: – 403.737.3901 info@btap.ca