Reading Time: 3 minutes Allowing for late participation in AgriStability is unlikely to help Alberta producers facing a cash flow crunch. “We’re going to be going into a period of significant cash flow shortages for farmers — maybe not all, but many,” said Tom Steve, general manager of Alberta Wheat and Barley. “Late enrolment would be fine, but is […] Read more
Late enrolment in AgriStability not much help, says Alberta Wheat
An uncertain AgriStability payout a year from now won’t help grain farmers facing cash flow issues
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
Reading Time: 5 minutes 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
Reading Time: 2 minutes 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
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
Reading Time: 3 minutes 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
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
Reading Time: 2 minutes 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
Reading Time: 2 minutes 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
Producers need to banish bad habits as margins become slimmer
Producers need to sock away some cash as we head into a downward cycle
Reading Time: 3 minutes 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
Reading Time: 2 minutes 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
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
Reading Time: 2 minutes 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
When margins are tight, you need to know where you stand
Calculating your current ratio will tell you if you’re in good shape — or if trouble is heading your way
Reading Time: 2 minutes Commodity prices and the weather have been volatile and expenses are trending upwards because of a weaker Canadian dollar — so now is a good time to review your marketing plan. “If you aren’t paying attention to your marketing plan or don’t have one, you may find yourself with a reduced margin,” said provincial financial […] Read more
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