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
Ag Finance
Organizational development important for family farms
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
It’s truly an art form to get more done with less work
No one told Jean-Martin Fortier and Maude-Hélène Desroches that small-scale organic market gardening was endless hours of backbreaking work for low pay. “Our first role model was a French Canadian guy we worked for who was farming in northern New Mexico,” says Fortier. “He worked hard but made a lot of dough. People lined up […] Read more
Get the most from your investment
A key motivation in farm business management is increasing shareholder or owner value. This is accomplished by sustaining profit over the years and leaving as much of it as possible in the business. A farm can increase its value through capital appreciation of land and quota. There is also an accumulation of machinery and buildings, […] Read more
Understanding cost per acre ensures profitable expansion
Producers spend a lot of money on labour, power and mach-inery. Management has the most control over this category of expenses. When analyzed together, it can give producers a clear picture of the real cost per acre of their operations. Unfortunately, many operators still wrongly believe that these costs — especially machinery, which is often […] Read more
Getting away for winter can have tax implications
Making the short trip to a sunshine state to avoid the cold Canadian winter does not seem like such a bad idea for western farmers. Since last summer, these “snowbirds” may have found it tempting to extend their stay in the sun because of the news that the U.S. Senate is considering changing immigration legislation. […] Read more
Power of a mission statement — and why to put it in writing
Is a mission statement just a bunch of nice-sounding words or could it be useful on your farm? Ontario farmers Dale and Marianne Donaldson have one, and six “values” to go with it. Here’s the tale behind the one that states: Recognize the truth even if it is difficult to accept. Dale Donaldson was 24 […] Read more
Louis Dreyfus, in overhaul, changes CEO after only a year
By Gus Trompiz PARIS, April 25 (Reuters) – The chief executive of commodities giant Louis Dreyfus is stepping down in a surprise move after just one year, leaving the group to seek a new CEO as it overhauls corporate structure to more closely resemble a public company. Louis Dreyfus is the “D” of the so-called […] Read more
CN, CP Rail profits could leave sour taste for farmers
By Solarina Ho April 22 (Reuters) – Canada’s two largest railroads reported stronger-than-expected profits on Tuesday, results that could prompt fresh criticism from farmers already unhappy with the handling of a massive crop backlog during one of the harshest winters in decades. Canadian Pacific Railway Ltd. and Canadian National Railway Co. have come under enormous […] Read more
