About 8,900 hectares of farmland around Little Black Bear First Nation will be part of the new corporate farm. (CBC)

A number of Saskatchewan and Alberta First Nations plan to lease out their farmland to a company that wants to form the largest group of corporate farms in the country.

"We're pretty excited to be part of it," said Clarence Bellegarde, chief of the Little Black Bear First Nation in southern Saskatchewan. "It's a big benefit to us."

The deal, announced Thursday morning in Saskatoon, could eventually see about 400,000 hectares of farmland across Western Canada leased by One Earth Farms Corp., which will manage the project for Toronto-based Sprott Resource Corp.

First Nations, bankers, agrologists and grain industry experts are involved in the venture, Bellegarde said

The land is owned by the First Nations, but in the past they have simply leased the land to nearby farmers and have not worked the soil themselves.

Little Black Bear will be adding about 8,900 hectares to the corporation's land.

The company plans to have about 20,000 hectares in production in its first year.

The deal also involves the Muskowekwan, Starblanket and Thunderchild First Nations in Saskatchewan, and several others in Alberta, Bellegarde said.

Thunderchild First Nation, which was the first to sign on, plans to commit 20,000 hectares for leasing.

Chief Dale Awasis sees not only immediate jobs but a chance for better stewardship of the lands.

"One Earth Farms has committed to farming our land in a manner which will help our lands to rejuvenate," Awasis said. "First Nations will have the confidence that these lands will be able to provide … for future generations of our people, and, from the perspective of One Earth Farms, healthier lands provide better crops."

As part of the deal, aboriginal farmers will be hired and trained, and the bands will get shares in the new corporation, he said.

Sprott is investing $27.5 million in One Earth Farms "to establish operations, fund working capital and support its initial growth," Sprott said in a news release.

Another part of the deal will see Sprott donating $1 million for post-secondary scholarships to encourage aboriginal people to train in the agricultural industry, Bellegarde said.