It’s often difficult for producers to save money outside of the farming operation. Farming requires intensive cash flow management techniques, especially if producers are trying to expand their operations. However, it can be important to try to be diversified and have savings for rainy days. Contributing to a Registered Education Savings Plan, Tax Free Savings […] Read more
Ag Finance — page 2
Government programs help you save money
Return on investment for farms about more than numbers
Everyone wants the best possible return on their investments. To achieve that, we first need to determine what the actual investment is that we want a return on. Next, we need to define the return we want and determine how we’re going to measure it. For a business, this is straight forward. Take the profit […] Read more
Beer culture reaches the farm
EDMONTON, Alta. — When Shane Groendahl goes to a party, he likes to slap down a growler of his Blindman Brewing beer and announce that it is what beer should taste like. It’s that passion for brewing beer, the taste of craft beer and the enthusiasm that has Albertans switching from drinking traditional beers to […] Read more
U.S. asks for arbitration on COOL damages
The United States has decided to ask the world trade organization for arbitration over the amount of damages Canada claims has been caused by mandatory country or origin labelling. Canada asked the WTO to impose retaliatory tariffs of more than $3 billion annually on key U.S. exports due to damages caused by COOL. “Canada is […] Read more
RRSPs can make retirement easier
Planning for retirement can be the last thing on a farmer’s mind. The value of the farm and investments that have accumulated over the years quite often leaves little concern about the ability to fund one’s retirement. However, discussions about succession planning or not selling off farm assets can complicate the issue. Using a Registered […] Read more
Keep track of medical expenses to apply for tax credit
Most family farms have med-ical emergencies and ex-penses. There’s often nothing that can be done to get around the financial burden. However, there may be opportunities to recover some of the outlay through your taxes. Understanding these opportunities and keeping good records can save you money. All amounts paid for eligible medical expenses over a […] Read more
Family gift may be more trouble than it’s worth
What happens in a family of four children when three of the children have left the farm and one stays to help nurture and grow the asset? In the succession plan do they all get a proportional value of the farm or does the child who has remained on the farm receive more to reflect […] Read more
Organizational development important for family farms
Managing a farm business’s workforce is as important as managing production and marketing. Employees’ responsibilities are typically defined by what they do, who they report to, and for managers, who reports to them. Over time, these definitions are assigned to positions in the organization rather than to specific individuals. The relationships among these positions can […] Read more
Analyzing capital structure enables better investment decisions
There are several things to look for when analyzing farm profitability. Gross margin and the farm’s spending on labour, power and machinery are obvious measures, but this week I want to talk about land, building and finance (LBF), which focuses on the capital structure of the business. Rental costs of land and buildings, interest costs […] Read more
Combining operations can help families simplify and save
Do you and your family members operate your own individual farming operation? Are your operations interconnected due to combined input purchases, shared or jointly owned assets or shared lending agreements? If this is the case, it could be of value to consider simplifying operations through the transfer of your assets into one entity. That’s not […] Read more
