Category: Finance

BMO launches young farmer loan program for the under 35 crowd

Citing a strong industry, but a shrinking demographic, BMO Bank of Montreal has introduced its new loan program for Canadian farmers 35 years or younger. The BMO Young Farmer program offers is aimed at helping both the person who’s already in the industry and for those who are choosing to get into agriculture, with loans of up… Read more »

Read the fine print of equipment purchase contracts: lawyer

Although not a common practice for most farmers, a lawyer is urging more farmers to consider consulting their legal advisor prior to purchasing pricey farm equipment. This advice comes after one Saskatchewan farm lost their legal battle and appeal against an ag dealership. In this specific case, James and Merrylyne Coward claimed the dealership they bought… Read more »

Mind Your Farm Business — Ep 33: When parents won’t talk about farm succession

Believe it or not, the farm transition can actually be a joyful journey. But that can only happen once three things are established: Is the business going to continue? When would you like it to continue? (starting now, or with a reading of the will) Who will lead the business in the next phase? That’s… Read more »

What’s behind recent strength in the Canadian dollar?

On Friday, the Canadian dollar rose nearly a cent relative to the U.S. dollar. The sudden ‘strength’ came from a couple of sources. First, more confidence that the Bank of Canada will continue the path gradual rate hikes; second, a weaker U.S. Dollar. Recent Canadian economic data warrants the Bank’s outlook for gradual rate increases…. Read more »

Bank of Canada increases target rate again, but questions remain on the economy and dollar

The Bank of Canada increased the target interest rate today by 0.25%, to 1.5%. This is now the fourth rate hike, amounting to 1%, since the Bank hiked rates for the first time since 2007 a year ago. Over the last year, the Bank of Canada has matched the aggressiveness of the U.S. Federal Reserve,… Read more »

Area One Farms offers two new farmland investment funds

Area One Farms, an investment firm that builds equity partnerships with Canadian farmers, has announced the launch of Area One Farms Fund IV and Fund V. The two funds will offer investors the “opportunity to invest in equity partnerships with Canadian farmers and farmland.” According to a press release, Fund IV will offer Canadian institutional… Read more »

You’re right to be terrified of the word “fair”

“Fair” must be one of the most commonly used words in the English language. It most certainly is one of the most dangerous. It gets used and thrown around with reckless abandon every day. Don’t believe me? Here’s are some examples: Farm succession: “Let’s make sure we split up the farm so it’s fair for… Read more »

American dairy farmers face large financial hurdles and doubts about their future

When you cross the Canada/U.S. border headed south, the landscape is the same, the time zone is the same, but the economics of dairy are very different. Canadians in agriculture are familiar with our domestic supply management system that aims to match supply of dairy products to demand. This control of supply through a quota… Read more »

MYFB — Ep. 30: When and why to incorporate the farm

Perhaps more contentious than the buy versus rent debate is the question of when and why to incorporate the farm. The federal government proposed sweeping changes to how taxes were calculated for corporations last summer. The changes were met with significant push-back from the farm community, as the new rules would have a significant impact… Read more »

Alberta offers free resources for crop planning and profitability analysis

If drought concerns, disease pressure, or low commodity prices have you scratching your head on crop rotation tweaks, Alberta farmers have access to two, free crop planning and profitability programs offered by the provincial agriculture department. The first program, Crop Choice$, allows farmers to input their own costs and yield expectations, and is also fully… Read more »

Farmers Edge enters the world of crop insurance

Precision agriculture company Farmers Edge has plans to disrupt the crop insurance industry, announcing an agreement with global reinsurer PartnerRe on Tuesday. The four-year deal will see Farmers Edge and PartnerRe jointly develop new agriculture insurance products based on field data that Farmers Edge already collects for agronomic reasons. “For the longest time we’ve been… Read more »

Concerns about the U.S. economy overheating and what it means for Canada

Low unemployment, major tax cuts, and looming trillion dollar deficits — the U.S. economy is hot, with growing concerns that it may be at risk of over-heating. Increasing odds of higher inflation and interest rates have stoked a pullback and volatility in the stock market after the Dow climbed to record highs in late January. The… Read more »

Building an agile and resilient farm business — AgEx ’17

Resilience is defined as the capacity to recover quickly from difficulties. Agility refers to an ability to move quickly and easily. In a farm business, resilience and agility go hand-in-hand with liquidity and working capital — the ability to put up cash in a short amount of time. “Those are the kind of metrics we… Read more »

Ottawa drops proposal to eliminate deferred cash purchase tickets

The federal government has decided to not make any changes to how it treats deferred cash purchase tickets for grain after proposing in the 2017 budget to potentially eliminate the option. Many farm groups voiced their opposition to the idea of dropping the income tax deferral mechanism during consultations held in spring and early summer…. Read more »

Where to begin with benchmarking your farm business — AgEx ’17 Preview

How often do you stop and take time to evaluate how well your farm business is performing? And how do you determine whether an area of the business is performing well or needing improvement? The first step in benchmarking a farm’s financial performance is to compare it to itself, to understand historical performance. From there,… Read more »