It’s probably wise to tread carefully when talking about wealth and agriculture, considering weather challenges and fluctuating pricing for crops and livestock. However, in spite of the challenges, many farmers have accumulated significant wealth over the years. By assessing the source of this wealth, producers can make better decisions about their business, particularly decisions about […] Read more
Stories by Terry Betker, PAg
Managing debt to increase cash flow
The excess moisture in many parts of the Prairies this year could hurt the farm income of many producers. It’s easy to forget during tough times that there are options to help mitigate the impact of adverse weather or fluctuations in the marketplace. And although you can’t control the weather or interest rates, you can […] Read more
Farm management must be aligned with growth
Farmers should not attempt to manage a 15,000 acre farm the same way they would manage a 1,500 acre operation.However, at what point should the management systems change: at 5,000 acres, at 7,875 acres?The answer depends on each farm’s individual situation. There is no one specific increase in size that mandates a certain change.The management […] Read more
Outside input can help farmers plan, manage risk
It might be an odd time to talk about advisory boards, given that farmers are focused on seasonal production pressures. However, with the season comes a lot of time in a truck or tractor to think and plan. Farms continue to increase in size and complexity as they face narrow margins and greater risk. Strategic […] Read more
Balance sheet vital when measuring performance
More farmers are measuring financial and production data to analyze business performance. They use the information to make management decisions about production, marketing, investment choices and debt. On average, farm margins are thin and sometimes nonexistent, so it’s important to use performance data to put management decisions on a solid footing. Relying on the alternative, […] Read more
Farms urged to establish and use advisory boards
More farmers are showing interest in establishing formal advisory boards. It’s common and, depending on organizational circumstances, sometimes mandatory to appoint a board of directors for medium to large scale businesses. However, it is uncommon in farming. The board’s function is well understood, although there can be variability in roles and responsibilities. A fundamental objective […] Read more
Would you buy your business? – Perspectives on Management
Treating a farm as a business makes for a great lifestyle, but farming as a lifestyle often results in a poor business. A management axiom states that businesses are built to be sold, but farms are not typically sold as businesses. The assets are sold separately, assuming an arm’s length sale. But let’s assume that […] Read more
Key performance metrics bring discipline to business plan
Plans are essential to getting most projects done in an efficient manner, whether it be building a house or seeding a crop. Plans must be updated as the project develops to account for changing circumstances. Planning is easy when the tasks are immediate and concrete but become harder when the goal is long term, such […] Read more
Keep caution flag up on interest rate expenses – Perspectives on Management
There has been a lot of discussion in the past few months about the potential rise in interest rates. As of now, that’s all it’s been, a discussion, as interest rates continue to hover at historical lows. It is important to keep in mind that familiar warning signs indicate that this could change. I recently […] Read more
Gather management resources to help business grow – Perspectives on Management
Not that long ago, farmers were expected to be able to do everything on their farms. Their broad skill sets and abilities were directly connected to their strong sense of independence. Things are changing, however, and while the foundation of multiple management skills still exists, it is far less common. There is a truism in […] Read more
