Category: Finance

Ag ministers reach deal on new framework dubbed the “Canadian Agricultural Partnership”

Agriculture ministers from across Canada say they reached an agreement in St. John’s today on the core elements of the next agriculture policy framework, which will be called the “Canadian Agricultural Partnership.” CAP is a five-year $3 billion federal-provincial-territorial funding agreement that will replace the current framework, known as Growing Forward 2, which expires at the… Read more »

MYFB — Ep. 25: Steering through business risk and financial risk (and what’s the difference?)

Risk — a four letter word that drives farmers crazy. As farmers, our chances of success are greatest when we know the risks we’re exposed to and hav emitigated risks that are in our control. To help us dive deeper into the topic of risk – specifically business risk and financial risk – RealAgriculture’s Shaun… Read more »

Canadian net farm income grew 7.6% in 2016: StatsCan

StatsCan has released its net farm income report for 2016 and the results may surprise you considering the livestock and commodity market that producers faced. According to the report, revenue held fairly stable while it was declining operating expenses that allowed net farm income to rise. A full breakdown of the report, including provincial comparisons,… Read more »

Ottawa extends consultation on potential elimination of deferred cash tickets

The federal government is extending the comment period for its proposal to potentially eliminate the deferred cash ticket option for grain sales. The department of finance, on Tuesday, announced the consultation period that was originally scheduled to end May 24th will remain open beyond seeding season, until July 24. When delivering a listed grain (such… Read more »

MYFB — Ep 24: Can break-even be your worst case scenario?

If when you think of risk in farming you think only of uncontrollable things, like the weather and global trade, or only crop price slides, you’ve likely missed an opportunity to take a more proactive approach to risk management. While it’s easy to get overwhelmed by ‘what if’ scenarios and all the different forms of… Read more »

Poll: Do You Use Deferred Cash Tickets To Manage Taxes?

The federal government is proposing the elimination of deferred cash purchase tickets for grain sales — a tool used by farmers to manage cash flow for tax purposes from one year to the next. When delivering a listed grain (such as wheat, oats, barley, rye, flaxseed, or canola), producers have long had the option of asking… Read more »

Ag Minister Announces Changes to FCC’s Young Farmer Loan Program

Agriculture Minister Lawrence MacAulay announced changes to Farm Credit Canada’s Young Farmer Loan program in Ottawa on Wednesday. FCC will double the amount of credit available to individual farmers under the age of 40 — raising the maximum to $1 million from $500,000, said the minister. The ag lender will also lower the minimum down-payment… Read more »

Effective Use Of Financial Tools Already At Your Fingertips — David Derwin

Borrowing at 0% interest is about as good as it gets. When only 20% of producers are using available cash advance programs, like the one administered by the Canadian Canola Growers, you have to question why more farmers are not taking advantage of effective borrowing programs. According to David Derwin, of PI Financial, only 5 to 10%… Read more »

Buying Land? You Need a Plan — An Agricultural Excellence Conference Preview

For farmers, buying land can be the biggest business decision you make. It’s also a tremendously emotional decision that many famers make without fully considering all the ramifications, explains Alberta Agriculture farm financial specialist Rick Dehod. “Is it a need or a want?” asks Dehod, who says many times buying land is what farmers want,… Read more »

Farming is a Changed Game — Terry Betker on Measuring Your Farm’s Success

What’s your farm’s liquidity? If you know, do you think it’s enough? Could you be missing out on opportunities because of a lack of liquidity? Access to working capital, or liquidity, is just one measure of a farm’s business that can be an indicator of how competitive a farm can be, says Terry Betker, president and… Read more »

MYFB — Ep. 23: Four Elements of a Well-Crafted Farm Business Plan

The finding is staggering. A recent IPSOS Reid poll found that certain farms achieve five-times higher return on assets because of one key element. Perhaps more surprising is how accessible this element of a farm business is — it’s a written business plan. That number is impressive, but even more striking is the associated finding that… Read more »

American Ag Producer Confidence Index Drops to New Low, Says DTN

It wasn’t that many years ago that corn and soybean growers were riding the wave of $7 corn, high land rent, and applying all the groceries to every acre. In 2016, that wave of optimism has disappeared as suggested in the DTN / Progressive Farmer Ag Producer Confidence Index (ACI) results. The recent survey produced a… Read more »

Deep, Dark Ag Banking Secrets…From an Ex-Banker

For 32 years, Rob Hall worked in agricultural banking in Ontario – sometimes at the very top of the food chain, and always on the management side of the desk. Now, he’s switched sides. He’s on the farmer’s side. And he’s eager to talk in plain language. In February, Hall launched BankSpeak, a business finance… Read more »

Private Member’s Bill Aims to Ease Tax Burden on Family Farm Transfers

A private member’s bill tabled in the House of Commons last week aims to reduce the tax burden of intergenerational transfers of farms that are incorporated. “My bill would end a blatantly unfair situation that puts business people, farmers, and fishing vessel operators at a disadvantage when they want to pass their business on to… Read more »

MYFB — Ep 17: Where Is Your Farm At Risk?

When thinking about risks to your farm, what comes to mind? Weather and market risks are usually at the top of the list, but there are many other areas where a farm business may be exposed. These risks are often unrecognized because nobody’s taken the time to go through an exercise of assessing risks and determining… Read more »