GFM Network News





While recent rains have helped some and raised hopes of a decent harvest, many Alberta producers are struggling financially. Experts say every producer should understand their options, whether that’s increasing their operating loan, deferring debt payments, taking a cash advance, or having AgriInsurance and AgriStability coverage.

Struggling with cash flow? Take a second look at these farm lending programs

Giving yourself some financial breathing room can make your operation stronger — and reduce your stress

Hammered by dry weather and trade upheaval, many Alberta producers are struggling with cash flow. And more will be in the months ahead. But there is help out there. “It’s important for producers to know that there are more options out there than they may realize,” said Don Anderson, Farm Credit Canada’s senior vice-president of […] Read more

When it comes to cash flow, ignorance is dangerous

Tighter margins make it that much easier to find yourself caught short when bills come due

The new year is a good time to review your marketing plans and cash flow projections, says a provincial farm financial specialist. “Cash is the lifeblood of a business, but with so much emphasis usually put on profitability, it can be easy to overlook this fact,” said Rick Dehod. “Poor cash flow management can drive […] Read more


Your banker should be a trusted adviser and partner in your business, said lender Trish Booy.

Take these tips to the bank the next time you need a loan

When deciding whether to approve financing, lenders will look at the four Ms — money, markets, materials, and management

If you want to build a bad relationship with your banker, buy your combine on your credit card. “They hate that,” deadpanned Trish Booy, agriculture business development manager at BMO. “There’s a very big difference between short-term financing and long-term financing. Depending on where you are and what you’re going through, your financing needs are […] Read more

With bills coming due, will you be forced to empty your bins 
before you would like to?

Will the money come in fast enough this fall?

Make a list of bills coming due, expected crop sales, and make use of cash advances, says market expert

With grain prices down sharply this year, a marketing plan is especially critical, says a provincial crop market analyst. “First, assess your financial position,” said Neil Blue. “Start with a quick cash flow, which is the money inflow compared to money outflow. List the amounts and timing of bills, loans, and personal living expenses to […] Read more


It’s time to slip back into the office and review cash flow

It’s a long time until harvest revenue flows, 
so you need to manage your cash wisely 
over the summer

Now that cattle are being put out to pasture and old-crop inventory is known, it’s important to review your cash flow projections and your marketing plans, says a provincial farm financial specialist. “Cash flow projections are critical, especially in the summer months,” said Rick Dehod. “There isn’t much revenue coming in until harvest, but the […] Read more

The decline in grain prices means more farmers — like these producers at an auction in Manitoba in 2014 — are buying used instead of new. Freeing up cash flow is critically in a commodity downturn, says financial expert Kim Gerencser.

Producers need to banish bad habits as margins become slimmer

Producers need to sock away some cash as we head into a downward cycle

In the tale of the ant and the grasshopper, only the forward-thinking ant survived — and the same may be true for Canadian farmers as they head into the next downward cycle. “This next business cycle could potentially do to grain farmers like BSE did to cattle operators,” said Kim Gerencser, president of Growing Farm […] Read more


That work you hate pays very well

If you’re still running the farm on a cash basis, you’re tying one hand behind your back

Nearly three decades ago, a study of farmers’ work priorities found — to no one’s surprise — that record-keeping ranked well behind field work; buying and selling machinery and crops; and equipment repair. Only 16 per cent hired outside help for record-keeping, 50 per cent did it themselves and 20 per cent named their spouse […] Read more

StatsCan says the average Alberta family spent $9,300 on food in 2013 — the third-highest expense after shelter and transportation.

The cost of living may be a lot more than you think

Cash flow is king in any business, and farmers need to factor 
in family living costs when preparing their business plans

Now that the 2015 crop is off, it is important to review cash flow projections and marketing plans. That process involves budgeting for family living expenses — a number that may shock you. “In the last five years, family living costs have increased substantially due to inflation and good farm margins,” said Rick Dehod, a […] Read more