Category: Finance

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 »

Backtracking on tax changes — what Ottawa’s updates mean for farmers

The dust is starting to settle after Finance Minister Bill Morneau’s flurry of announcements backtracking on the federal government’s proposed small business tax changes. Now that the news conferences are over and we’ve had a few days to analyze the changes to the changes, how will the updates affect farm businesses? First of all, we… Read more »

MacAulay downplays impact of proposed tax changes

Agriculture Minister Lawrence MacAulay continues to downplay the potential impact of the Liberals’ proposed tax changes, despite widespread concerns voiced by many farmers, small business owners and their accountants. The minister took 10 minutes to sit down with RealAgriculture in his office in the Confederation Building on Parliament Hill this week to discuss the tax… Read more »

Tax change answers — Part 3: Capital gains

The federal government wants to clamp down on incorporated business owners who it says are claiming capital gains when they should be reporting taxable income or dividends. A capital gain is essentially the increase in the value of a capital asset, such as farmland, above its purchase price. Under Canada’s tax system, only 50 percent… Read more »

CFA lobbies for more time and changes to government tax proposal

Members of Parliament are back at their seats for the fall sitting of Parliament, and tensions are high, with the Conservatives and NDP questioning the Liberals’ proposed tax changes announced in July. Farm groups and farmers have also been vocal in criticizing the government’s plan. “I don’t think the government realized the opposition that would… Read more »

Tax change answers — Part 1: Income splitting

There’s a reason most farms pay accountants to provide tax planning advice. Taxes are complicated. Add multiple pages of new information, unclear definitions, ‘tax cheat’ accusations, some emotional rhetoric, and it’s a challenge, even for accountants, to assess what Finance Minister Bill Morneau’s proposed tax changes could mean for an individual farm business. We’re going… Read more »

Ag minister avoids saying much on tax changes

With farmers, farm organizations, and accounting firms that work in agriculture voicing serious concerns about the federal government’s proposed tax changes, Agriculture Minister Lawrence MacAulay broke his media silence on the subject on Friday afternoon. For all of 50 seconds. The Full Story: Facing the politically dangerous choice of siding with the farm community or… Read more »

Getting crunched: Government squeezes on farms are adding up

I’m fortunate enough to get to meet all kinds of farmers. Usually when we meet, the conversation is a standard one. What’s the weather been like or how is the harvest going? Politics, just like sex and religion, is usually left out of it. Until recently. Farmers keep bringing it up in their conversations. That… Read more »

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 »