Ag corporation refused funding

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Aboriginal farmers may be harvesting only dreams this year as the Manitoba Indian Agriculture Development Corporation hits financial bottom.

Until MIADC clears its debts, the Aboriginal Capital Corporation, and the Department of Indian Affairs will withhold funding that goes toward providing operating loans to more than 150 grain, cattle, and wild rice farmers in the province.

A series of investments gone sour left the loans company without funds for its clients, who have since withdrawn their support for the board.

Disgruntled farmers are refusing to pay back loans until the board issue is resolved, increasing MIADC's debt by approximately $900,000.

The bulk of MIADC's debt results from its interest in Wapose, Inc., a rabbit meat processing plant in Swift Current, Sask. MIADC bought the company in 1992 and converted loans into shares, investing more than $2 million. The plant went into receiver-ship and MIADC was left without enough funds to provide operating loans.

But the corporation could be back in business within two years, said Archie Sharpe, with the Aboriginal Capital Corporation.

"If they divest themselves of their assets, they will have enough. (MIADC's) portfolio is probably valued at $7.5 million," said Sharpe.

The assets include a wild rice plant, real estate, a fleet of vehicles for extension workers, and office equipment.