“It’s unbelievable the amount of cases that have come through our organization in the last year and a half,” said Jonathan Neutens, head of agriculture at ATB Financial and one of the speakers at the CrossRoads Crop Conference in Calgary earlier this year. “I don’t know what the percentage would be, but it’s large.”

From phishing emails to cheque fraud to AI voice cloning, criminals are finding more creative and sophisticated ways to steal money and personal information.

Neutens said the issue involves “all of the banking world.” Financial institutions are introducing tougher safeguards, he noted, pointing to measures like two-factor authentication that requires two separate, distinct forms of identification to prevent thieves from gaining access to online banking accounts.

In response, criminals are getting more creative. They’re going beyond phishing emails and smishing text message scams, both of which impersonate legitimate sources to trick people into revealing sensitive data such as passwords or credit card numbers.

“We’ve had (cases) that occur where someone does a Google search for ATB, clicks on the top link, and the top link happens to be a fraudulent website that looks exactly like ATB’s. And you put in your information, you log in and they’ve got you, and then all they have to do is log into your account and change contact information so they get the two-factor authentication versus you, and then they can start firing up electronic payments.”

Tips

People should double check the source of emails and texts, said Neutens.

“Sometimes the email address or the website address, it might only have one letter that’s different.”

One good practice is to directly type the correct URL for your financial institution into the address bar on your browser to conduct online banking, he said. It is also wise to be wary of emails and texts claiming to be from legitimate sources.

That may mean making an independent phone call to the source to confirm the legitimacy of the message if there are any doubts. Phishing emails can look exactly like those of someone familiar, such as a supplier, which could be due to the supplier’s email being hacked, said Neutens.

“And if their email is hacked, (criminals) watch for the conversation style or what have you, and eventually they send you an email and they say, ‘oh, by the way, you need to change payment to this account, and click on this to make the payment.’”

Clicking that link allows the scammer to watch as people go through the motions of online banking and two-factor authentication. That information is now theirs.

ATB is working to improve its ability to detect fraudulent transactions more quickly by increasing the number of staff devoted to the problem, said Neutens. But if someone gets login information and changes a two-factor authentication, “there’s really nothing we can do about that, because they’ve got it from you in some way, shape or form.

“We can’t stop that because that’s outside of our systems and outside of our control. And then they come in and they log in like it’s you. How is the banking system going to know the difference?”

Cheques are risky business

The biggest source of fraud is cheques, Neutens said, and it’s a growing problem. One of the more interesting scams targets people who send cheques through the mail.

“They’ve written a cheque to someone like John Deere or whatever, like to a supplier, and that cheque gets stolen … a new cheque is done up basically using that bank account information with the same dollar amount, but to a different payee, so when the cheque clears, the customer sees the cheque clear and thinks it’s cleared until the supplier calls him and says, ‘hey, when are you going to pay me?’”

Such crimes have cost some producers tens of thousands of dollars, said Neutens.

“It’s pretty often that farmers can cut a cheque to someone for $40,000, $50,000 or $60,000, and so yeah, we’ve had that.”

Modernizing the funding and payment system by moving away from cheques would be the easiest part of the solution to implement, and producers should stop using cheques if possible, Neutens said.

“They’re just too risky these days, so if you move away from cheques, do that and get into your online and EFTs (electronic fund transfers) and all that kind of stuff with two-factor authentication.”

He also pointed producers to resources on offer from financial organizations to help train clients in recognizing scams and avoid getting caught in one.

The top threats you might face online 

Criminals use a variety of methods to steal or corrupt personal or financial information stored online. These include:

Phishing: One of the most common types of cyber fraud. Hackers use fake emails or text messages that trick users into sharing personal information such as bank details. 
Malware: Malicious software such as a virus that can destroy, damage or exploit computers or computer systems.
Worms: Malicious software that replicates itself and spreads from computer to computer. Unlike viruses, worms do not need to be attached to a computer program to do damage. They work silently and infect the device without the user’s knowledge.
Ransomware: Cyber criminals use this to lock a device or steal information. They then demand a ransom to restore access or return the information. Payment is usually demanded as a crypto currency such as Bitcoin.
Spyware: Spyware is malicious software that infiltrates a device and monitors activity. Criminals can then steal logins, passwords and credit card information.
Trojan horse viruses: Code or software that looks legitimate but can take control of a computer.
Distributed denial of service attacks: Occurs when hackers attempt to make a website or computer unavailable by flooding it with internet traffic.
(Source: The Productivity Group)

– This article was originally published at the Manitoba Co-operator.

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It is amending the Feeder Associations Guarantee Regulation. The changes raise individual and joint membership loan limits, excluding advances, to $3 million from $2 million.

Cattle prices have increased 25 per cent since the start of the year and are expected to keep rising. Alberta’s livestock producers are in greater need of easily accessible, low-interest capital backed by a government guarantee, the government said in its announcement.

Alberta’s Feeder Associations Loan Guarantee Program helps local, producer-run cooperatives get competitive financing.

The post Loan limits get beefed up appeared first on Alberta Farmer Express.

“We know that farmers are very stressed, but we also know that business planning can help,” said Heather Watson, executive director of Farm Management Canada.

“The farmers who do have and follow a written business plan are able to sleep at night. They’re able to manage under greater amounts of stress because they have an idea of where they’re going.”

That’s especially true now with global upheaval disrupting supply chains and markets, Watson said at the virtual Ag in Motion conference in mid-July.

“If there’s any silver lining to all of this, it’s perhaps a greater appreciation for the farms that were ready to turn on a dime,” she said. “They’re seeing opportunity, whereas others are struggling to survive. I would hope that the situation we find ourselves in today is an indication that we need to invest in business management practices.”

Canada’s top farmers have already done that and are reaping the rewards, she added.

“Adopting business practices like planning has been proven to increase profitability,” she said, citing her organization’s recently updated Dollars and Sense study. “The difference between the bottom performing farms and the top performing farms was measured at 525 per cent — another very good reason to invest in business planning.”

Those with written business plans are more likely employing other best management practices, including record-keeping, budgeting, benchmarking, and training.

Still, only 21 per cent of farms surveyed by Farm Management Canada indicated they’re regularly following a business plan, while 48 per cent said they rarely or never do. Adoption rates for other business practices have also gone down in recent years.

“A lot of times we’ll see that farmers turn to business practices when times get tough,” said Watson. “It’s been relatively good for farmers the last five years, but now a switch has flipped.”

No one can say how the pandemic will play out, but business planning isn’t about “predicting the future.”

“It means preparing for whatever may happen — looking at the risks and opportunities out there and how you can position yourself to respond to them,” said Watson.

“So no matter what happens, you’ve got some sort of guiding path to get you through the good times, the bad times, and everything in between.

“It can be your trusty sidekick when stress runs high and times get tough and decision-making might become clouded.”

Planning for known risks can help prepare for those “you don’t see coming,” said Rob Hannam, president of Synthesis Agri-Food Network.

“We’re much better prepared as business owners and managers to respond because we’ve got a bunch of potential solutions already figured out,” said Hannam, who also spoke at Ag in Motion. “That act of planning really makes us better prepared.”

He pointed to companies that had already developed an online component to their business.

“They were much better prepared to respond when COVID occurred, and some have taken advantage of that, building market share or lowering their cost of doing business by moving to more online systems,” he said.

“Some businesses are taking advantage of those opportunities, and farms can do that, too.”

But farmers tend to think that, since they’re succeeding without a plan, there’s no point in investing in one.

“Are you really succeeding? In what way? And could you be more successful with a business plan?” asked Watson.

“We all know we do better with goals — you manage what you measure,” added Hannam. “The activity of planning is gold. Every farm business can do that.”

But it needs to be part of “your everyday activities so that it comes to mind more often,” said Watson.

“It’s not something you pay an adviser to do and then it sits on the shelf. It’s something you’ve come together as a farm team to decide what you want your future to look like.

“Your plan can provide that road map to success.”

The post Now is the second-best time to create your business plan appeared first on Alberta Farmer Express.

“How do you feel confident you’re paying the least amount of tax possible? It’s tough,” said Carman Praski, business development representative at Farm Business Consultants.

At the recent Ag in Motion virtual conference, Praski offered his Top 12 tips for reducing taxes.

First, decide if cash or accrual accounting will work best for your operation.

Recording income and expenses only when the cash is received or paid is pretty simple, he said.

“It’s easy to determine when a transaction has occurred, and you can track how much cash you have at any given time,” he said. “And since transactions aren’t recorded until cash is received or paid, your income isn’t taxed until it’s in the bank.”

But if a lot comes in one year — say if you’re forced to sell inventory — then your tax bill can soar.

Accrual accounting (recording income and expenses even if no money has changed hands) gives you a better picture of them during a set time frame — but tracking cash flow is vital.

“You definitely want to talk to a tax professional to find out if cash or accrual accounting is best for your farm operation,” said Praski.

Second, keep good records — and not just because you’re required to do so by law.

“Your best defence against an audit is good records,” said Praski.

“If you don’t maintain good records and are audited by Canada Revenue Agency, you could be charged with fines and other penalties.”

Keeping good records means saving sales invoices, bank deposit slips, receipts, contracts, cash purchase tickets, cheque stubs — basically anything that will support your expense claim on your tax forms.

“If you don’t have receipts, keep in mind that CRA could disallow all or some of your claims,” he said, adding that records should be kept for at least six years, ideally in a digital format so they don’t get lost or faded with time.

“It’s a good idea to spend 30 minutes every month to categorize your receipts. Take them out of your shoebox, your glove compartment, your wallet — wherever they might be hiding — and organize them to keep them manageable throughout the year.”

Next, explore all available tax deductions.

“Farm owners and ag producers often miss claiming legitimate farm business expenses,” he said.

The list is a long one: building and land maintenance, power and property tax bills, and rent; machinery expenses like fuel, oil, repairs, licences, and insurance; inputs such as feed supplements, bedding, fertilizer, seed, and pesticides; and professional expenses like bank, insurance, legal, and accounting fees.

Mileage is another expense that should be tracked — No. 4 on Praski’s list.

“If you want to claim vehicles expenses, you need to keep track of your mileage with a mileage log,” he said, adding there are apps for that.

“You’ll need to note each business trip, the destination, the reason for the trip, and the distance travelled by your vehicle throughout the entire year. If you don’t, CRA may disallow your expenses.”

Next, use the livestock tax deferral provision if you can.

“If you were affected by drought or flooding, for example, and forced to sell part of your breeding herd, the livestock tax deferral provision lets you defer a portion of your sales to the following year,” he said.

If you’ve reduced your breeding herd by at least 15 per cent but no more than 30 per cent, you can defer 30 per cent of your income from net sales. If it’s more than 30 per cent, you can defer 90 per cent of your income from net sales.

“All amounts deferred under this program may be carried forward until your region is no longer designated a drought or excess moisture area.”

No. 6 is to take advantage of deferred cash grain tickets.

“The deferred cash purchase ticket lets you report your income in the year after the grain is delivered,” said Praski. “This is a great way to reduce how much you’re getting taxed in the current year.”

Opening a tax-free savings account will also save you in taxes. The current TFSA contribution limit is $6,000, but unused amounts carry forward. And while contributions aren’t tax deductible, any investment income earned in a TFSA is tax free.

Contributing to a registered retirement savings plan — Praski’s eighth tip — is tax deductible, however.

“You do receive immediate tax relief and tax sheltered growth, and you won’t be taxed on the money until you withdraw it,” he said.

“So you should contribute to an RRSP when you have a high income and then withdraw from it when you’re retired since you’ll likely have a lower income.”

While you’re at it, open a spousal RRSP as well to even out the tax load in retirement. (But don’t go over your personal contribution limit and since money in a spousal RRSP stays in the spouse’s name, “make sure you have a good relationship.”)

In the 10th spot is timing capital gains and losses.

“Let’s say you sold farmland or farm property early in the tax year and incurred a capital gain. You could choose to recognize capital losses toward the end of the year to offset that capital gain.”

If your farm property meets certain conditions, you might also want to look at your lifetime capital gains exemption. “The lifetime capital gains exemption could spare you from paying taxes on some or all of your capital gains. It’s best to talk to a tax professional to find out if you qualify for that capital gains exemption.”

Next, develop a risk management plan and explore risk management programs like AgriStability and AgriInvest.

“It’s good to look at things over the years, such as cash flow planning, profit margin opportunities with your production, controlling expenses, and even using insurance strategies as well, to help with your farm operation,” he said.

And finally, consider incorporation.

“There are many advantages, but also some disadvantages,” he said.

Incorporating limits your liability, extends the life of your farm business beyond your death, reduces your corporate tax rate (assuming your taxable income is below $500,000), and allows you to “choose the most tax-efficient way to pay yourself.”

However, it means extra expenses and more paperwork, and closing down a corporation can be more of a headache.

And again, consult with an accountant or adviser before making the call.

That’s good advice any time you’re trying to save money on your taxes, Praski said.

“Why not get a second opinion on your financial health to make sure you’re getting all the tax credits you’re entitled to?” he said.

The post Top 12 tax-saving tips for your farm appeared first on Alberta Farmer Express.

The funds will be used for a series of “industry-driven, college-led” projects to develop, evaluate and demonstrate smart ag technology.

“Our goal is to provide beta testing research that will support small to medium enterprises and help technology developers commercialize products that producers will use and gain value from,” said Joy Agnew, the college’s vice-president of applied research.

The first projects under the program are already underway, including a field-scale evaluation of an optical spot spray technology. It will look at factors such as travel velocity, stubble conditions, and spray setting on chemical use reduction, spray efficacy, and crop yield over several growing seasons.

The Natural Sciences and Engineering Research Council of Canada has contributed $2 million, and the non-profit Canada Foundation for Innovation has contributed $946,000, with the remaining cash and in-kind contributions coming from eight industry partners.

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The marketing council provides oversight to the province’s seven agricultural marketing boards and 13 commissions.

It is accountable for more than 70 regulations related to the production and marketing of over 20 agricultural commodities – more than half of Agriculture and Forestry’s total regulations.

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But it’s not as good as it sounds, even if you have been indulging in some of what is suddenly the province’s third-largest cash crop.

Net farm income in Alberta in 2019 was just north of $671 million — which is well above the 2018 figure of $301 million, according to StatsCan’s latest farm income report. But it is also far behind the roughly $2 billion seen in each of the previous two years.

And what’s more, the figure for total crop receipts has been distorted by cannabis production in the province. A category called “cannabis seeds, vegetative plants and flowering tops” was introduced for 2018 but had no meaningful impact on farm income figures that year. But the total for 2019 in Alberta soared to $563 million — pushing it into third place behind canola ($2.4 billion) and wheat ($1.9 billion, not including durum).

Nationally, farm net cash income was $12.95 billion, up six per cent overall. But there was a lot of variation by province, with Manitoba and Saskatchewan seeing drops, Ontario a small rise, and B.C. and Quebec joining Alberta in seeing large increases (in percentage terms).

“It’s a mixed story for sure depending on the sector (of agriculture), depending on the province and so forth,” said J.P. Gervais, Farm Credit Canada’s vice-president and chief agricultural economist.

And the numbers, of course, don’t reflect the impact of the pandemic — which has hit the livestock industry hard and created massive labour problems for the fruit and vegetable sector, but has had far less impact (so far) for grain and oilseed producers.

Since COVID-19 hit, farm groups have stepped up efforts to get additional aid.

The Canadian Federation of Agriculture asked Ottawa for $2.6 billion, warning in April that “without immediate assistance from the federal government, the Canadian agriculture sector cannot ensure our domestic food supply will remain secure for the immediate and long-term benefit of all Canadians.”

So far, Ottawa has pledged just $252 million and federal Agriculture Minister Marie-Claude Bibeau says farmers need to use money already provided through existing programs — particularly the $2.3 billion in their AgriInvest accounts — before expecting more aid.

However, the U.S. government has already budgeted $23.5 billion in ad hoc farm subsidies as part of its $2-trillion COVID aid program, and legislators are working on getting more.

Those subsidies help American farmers and make it harder for Canadian farmers to compete, said Bill Campbell, president of Keystone Agricultural Producers, Manitoba’s main farm group.

“Do you want agriculture and rural communities?” he said. “If you’re not going to support us in times like this then just let us know and we’ll get by, but there ain’t going to be many of us.”

But not all farmers agree more aid is needed, especially for Prairie grain farmers.

“Maybe sometime we will, but right now things aren’t that bad,” said Kevin Hursh, a Saskatchewan consultant and columnist who farms near Cabri.

“Out here a lot of our costs are down — fertilizer and fuel,” Hursh said. “And many commodities (prices) are as strong or stronger than last year. I don’t see any COVID effect there.”

Farm income has fallen the past couple of years, but after a string of good years, he said.

“Since 2008 we’ve had a pretty good run, but when you’re in a good run you think it will continue forever and when it drops off from there you think you’ve got a problem,” Hursh said. “It’s not that it’s an easy game. It’s highly capital intensive. The people in the game I think are looking at the potential for a really good year this year. Oftentimes there’s… an overriding issue and this year COVID is there, but grain prices (are steady to higher), grain is moving… I think we should thank our lucky stars in the grain industry and hope the good luck continues.”

After recently sharing his views in The Western Producer, Hursh said for every two emails criticizing his stance, he received five agreeing with him.

Gervais is also optimistic that grain producers will do well this year.

“In prices I see a little bit of upside, but not too much,” he said. “If we could get some decent volume that’s where we could see a good year from a crops receipts standpoint.”

But StatsCan’s report also showed expenses continue to march upwards — rising by more than $2.8 billion to hit $53 billion nationally and approaching $12 billion in Alberta after rising by $846 million in 2019.

“It’s overall expenses I believe that are challenging overall profitability,” Gervais said. “We had tremendous growth all the way up to 2014 and then we have been stagnant in terms of overall cash receipts, and yes, overall operating expenses have continued to grow… Expenses have been going up and that’s what has been challenging profitability for sure.”

The post Not the best of times, but farm income rose in 2019 appeared first on Alberta Farmer Express.

The terminal recently loaded 16,313 tonnes of grain on 167 new high-capacity hopper cars — 10 per cent more grain than on a 147-car train last summer.

The train was the largest “origin grain unit train” in CP Rail history, said Keith Creel, the railway’s president and CEO.

The train was loaded in under 14 hours and took less than four days to reach the Alliance Grain Terminal in Vancouver, Paterson Grain said in a news release.

The post The grain trains just keep getting bigger appeared first on Alberta Farmer Express.

“From a pandemic standpoint, the farm really hasn’t felt it. It’s kind of business as usual,” said Evan Shout, chief financial officer of the 22,000-acre grain operation in southern Saskatchewan.

“We probably came out of this a little bit better than we thought we would.”

The key was having a management plan in place, which the management team used to draw up a list of issues they might encounter.

“We run 24-hour shifts during seeding, so for us, making sure we had enough people in place was a big must,” said Shout. “Before the pandemic hit, we were tight (on employee numbers), but once we had a few people come to search us out because they were without a job, it definitely helped us a lot.

“Everything leads back to people. We could have all the big data and technology we want, but without having good people to run it, it just doesn’t work.”

They also took advantage of some unexpected upsides.

“Some of the things that have shaken out because of the pandemic have actually probably bolstered our bottom line for the current year,” said Shout.

“We’re in some negative times here, but there’s a lot of ways farms can utilize this current environment and actually turn it into a positive.”

For example, when fuel prices fell because of reduced demand, Hebert Grain saw it as more than an opportunity to fill up its fuel tanks.

“Don’t get me wrong — we filled our tanks, but then we went out and hedged the fuel price,” said Shout. “We didn’t have to outlay any cash, and we got to take advantage of the low fuel costs.”

Another “huge one” was the drop in interest rates.

“We changed our whole debt structure this spring and took advantage of interest rates,” said Shout. “When the interest rate started dropping, all you had to do was ask the banks, and they were just happy you were even interested in making a repayment, so they were willing to work with you on interest rates and other items.

“If a farm hasn’t restructured their debt or at least gone to their bank to make changes to their interest, I’d say they’ve fallen behind.”

They’ve also made changes to their marketing plans to reduce risk.

“We were a little more risk averse because obviously we don’t know the impacts it’s going to have,” he said. “Right now, the stock market goes up and down without any rhyme or reason, so when it comes to commodity prices, we’re probably a little more sold this year than we have been in the past just to secure that profit margin.”

Their thinking about crop insurance changed somewhat, too.

“We probably made a little more decisions toward an insurance product that covered both market and yield just because we weren’t sure what the markets were going to do,” said Shout.

“Don’t get me wrong, I like having yield coverage, but in a year with a pandemic, I don’t know the market, and I don’t think anybody really has an idea of where we’re heading. We wanted to make sure we were at least insured against a massive adjustment to our margins.”

Many farmers know Hebert Grain Ventures because of the speaking sideline of managing partner Kristjan Hebert, who is an advocate of the five per cent rule — targeting a five per cent increase in production and income for each bushel produced, while trimming costs by five per cent.

The operation cut inputs costs by buying them early this spring (with plans to buy next year’s fertilizer this summer if prices stay low). But they didn’t cut back on the inputs themselves, Shout emphasized.

“A lot of guys, in a year where they’re fearful, will really pull back, but the first place they go is to inputs. But that has the biggest detriment to your gross revenues. The last place you want to slow down is on inputs.

“That’s been our belief right from the start — if we’re going to cost cut, it’s definitely not going to be on inputs.”

Rather, the key is having a solid plan, he said.

“I know some big farms that don’t have a management plan in place and some small farms that do, and it definitely shows, especially in a year where you have this kind of issue,” said Shout.

“By having a sound management plan in place, you can roll with the punches a little easier.”

New technology has made it easier to find savings, he added, but the best route to higher profits is having a team of skilled advisers.

“To get a sound management plan in place, you’re not going to be able to do it by yourself,” said Shout. “In agriculture, we’re really rugged individuals — everybody wants to run their own ship, and they think they can either succeed or fail by themselves.

“But this is a big industry and we have a lot of risk — weather, markets, pandemics — so make sure you’re using the best advisers out there.”

It’s simply a matter of trying to be prepared, he said.

“You’ll find in times of crisis, a lot of people tend to go to the negative, and that’s one thing we don’t do,” said Shout.

“We’d rather find solutions than sit there waiting for government to give us a handout or waiting for the environment to change. We’d rather be out ahead of it.”

The post Planning for success can also help you in a time of crisis appeared first on Alberta Farmer Express.

“It opens the value chain from the agricultural side,” said Joel Beatson, whose organization joined Alberta Greenhouse Growers Association in requesting greenhouses, nurseries and garden centres be classed as essential businesses.

“There are various levels of greenhouses and nursery centres that are wholesale only. They need garden retailers whether they are independent or large-box-style retailers to be able to sell that product.

“It was important to keep that value chain open.”

Most businesses in this sector do 80 per cent of their sales in spring.

“It’s not like the product can just be held for six months and sold again,” said Beatson. “The product literally becomes compost. Being closed at that time just isn’t feasible.”

Greenhouses started growing bedding plants and flower baskets in February.

“All of that money and labour has been spent in terms of potting, planting and growing and everything up to that point — if the market got completely closed down, that would be a massive problem,” he said. “Our growers are farmers, but not in the traditional sense that the general public understands.”

As well, consumers need gardening centres to be open too, given the sharp rise in interest in growing your own food, he added.

“We’re monitoring what is happening right across North America,” said Beatson. “That food security idea is incredibly strong and being adopted by consumers. You’re going to see more people starting to grow some food at home this year.”

Given the number of novice gardeners, he expects there will be “varying levels of success.” But even if their veggie harvest is minimal, people will be getting exercise and alleviating some of their stress, he said, adding it’s also an activity most homeowners can safely do on their own property.

Gardening centres and retail nurseries will follow the same procedures as grocery stores — limiting the number of customers in the retail area, reconfiguring their setup to ensure social distancing, and frequently cleaning high-touch areas.

His association has been in contact with its North American counterparts to share best practices while the Alberta Greenhouse Growers Association has offered webinars for store owners.

“We’re trying to provide really good education and resources and options so people can operate safely,” he said.

Many small independent garden centres have quickly adopted an online business model, said Beatson.

“Some of these people are seasonal and really small,” he noted. “Maybe they’re only open three months a year. So having an e-commerce website is not high priority, but they’ve actually shifted.

“I’ve been really impressed with Alberta’s ability to try to adjust.”

Many of the garden centres are looking at online booking, so customers can schedule a time to pick up their order.

The Alberta Greenhouse Growers Association has about 150 members while Landscape Alberta has about 300 members.

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