When transferring a business, especially a farm business, management transition is often the most challenging part between incoming and outgoing generations. Families often struggle with the change in roles and responsibilities and the giving up of control. The claim that tasks are often “not done the right way” is a common cry from those with […] Read more
Tag Archives Managing the Farm
Farming and the risk of insolvency: why cash is king
Grain farmers are in a time of unprecedented wealth. Increased land valuations and strong commodity prices have created a decade of compounding equity that has led many small enterprises to returns not usual in the farming industry. This being said, one factor that has not improved in the past decade is working capital. An industry […] Read more
Consider these tax issues when retiring from farming
Retiring from farming may sound like a term rarely heard but it does happen, often in many ways. Whether it’s transitioning the farm to the next generation, selling the assets of the farm slowly over time or getting out all at once, there are many things to consider from a tax perspective — all of […] Read more
Preserve your farm legacy with sound succession advice
The people and events in this column are based on real MNP clients. Chuck Addison was chilling out at the cottage by Green Lake, Sask., celebrating with his two brothers, Randy and Max. He kidded them about their bickering and how, despite themselves, they could make a good go running the family farm. After two […] Read more
A belt and suspenders: managing risk strategically
When it comes to managing risk, many producers take a belt and suspenders approach, buying multiple risk management products and hoping to ensure they’ll be all right in the future. Others forgo risk management products altogether, counting on the good times to keep coming. Astute producers land somewhere in the middle, taking a strategic approach […] Read more
Feds abandon plan to eliminate deferral option for farmers
The federal government has backed away from its proposal to eliminate the ability for Canadian farm families to manage their tax bill using deferred cash purchase tickets. Given the significant media attention that the federal government’s July 18 tax reform white paper has received, many Canadians may have forgotten the government also proposed eliminating this […] Read more
Damaged relationships: the price of a failed succession plan
I have read many articles about how lack of succession planning puts the financial future of farms at risk. They are attention grabbers and while I agree that the lack of or an ineffectively implemented succession plan can have financial implications, mostly farms survive. These same articles rarely talk about the hidden price of a […] Read more
How to protect yourself from tax scammer emails, calls
Scams and scammers have been around as long as there was money to be made and innocent people trusting enough to believe them. They have never been more prevalent with the rise of technology, social media and the increased global connectivity of the internet. As an accountant, my clients often ask about two very similar […] Read more
Solving the farm succession puzzle takes teamwork
A rule of thumb in life is that things are generally simpler than they first appear. We tend to overthink or make things more complicated than necessary. However, this is not the case when it comes to succession planning. Over the years I have come to realize that succession planning is a three-dimensional puzzle, much […] Read more
Farm labour: strategies for reducing staffing headaches
With spring around the corner, farmers are facing one of the biggest challenges of running a successful operation: finding and retaining labour. Having full- and part-time staff is becoming a necessity as the size of farms increases because of consolidation, but many producers find it increasingly difficult to fill positions. Fortunately, there are strategies that […] Read more
