Reading Time: 2 minutes Glacier Farmmedia — With interest rates swinging around like apes in the jungle, farmers might feel a lot of pressure to react to their debt and financing situations. Debt and financing decisions today, however, will have a long-term impact, so farmers should be tying decisions to the strategic vision for their operations, Backswath Management consultant […] Read more
Debt decisions need strategy
Take a strategic approach rather than reacting to immediate trends
Argentina to raise soy export taxes to 33 per cent from 30
Buenos Aires | Reuters — Argentina plans to raise taxes on soybean, soyoil and soymeal exports to 33 per cent from the current 30, the agriculture ministry said on Tuesday, as the government moves to increase revenue ahead of a planned sovereign bond restructuring. Ministry officials met with farm groups during the day to discuss […] Read more
Grain World: Farm consolidation key to increasing yields
Saskatoon | MarketsFarm — Consolidating farms — going from numerous small operations to fewer, but much larger, farms — is central to improving crop yields, according to grain industry observers Neil Townsend and Jason Newton. Townsend is the chief market analyst for FarmLink Marketing Solutions, while Newton is the chief economist and head of marketing […] Read more
How a major U.S. farm lender left a trail of defaults, lawsuits
Harrod, Ohio | Reuters — After completing a credit review in a half-hour phone call, a BMO Harris Bank underwriter cleared US$12 million in loans for Ohio corn and soybean producer Greg Kruger in 2013. Kruger had initially asked for a $2 million loan to build a grain elevator. But the Chicago-based bank, one of […] Read more
JBS beats estimates, refinances bank debt
Sao Paulo | Reuters — Brazil’s JBS SA, the world’s largest meatpacking company, beat analysts’ estimates for the first quarter and closed a deal to refinance the bulk of its bank debt on Monday. JBS’ net income for the first quarter, 506 million reais (C$179.45 million), was 48 per cent above analysts’ estimates, with higher […] Read more
Can your farm operation withstand ‘lean years?’
Debt-fuelled expansion during good times can put a farm at risk when times get tough
Reading Time: 2 minutes Solvency is one of the key measures when it comes to gauging financial management of a farm. “Financial risk can be broken down into three main financial management parameters — solvency, liquidity, and profitability,” said provincial farm finance specialist Rick Dehod. “Once the measure within each of these three financial parameters has been assessed, the […] Read more
Farm debt at record highs — but top lender not worried
While FCC says most farmers can handle their debt load, financial expert Merle Good says some are ‘robbing Peter to pay Paul’
Reading Time: 4 minutes Farm debt has hit a record high, bringing back some unpleasant memories of the 1980s debt crisis. But we’re not there yet, said farm business expert Merle Good. “In 1980, we had huge inflation and huge interest rates,” said Good, a longtime tax specialist with the provincial government who now runs a private consulting business. […] Read more
Read before signing the loan agreement, says expert
Reading Time: < 1 minute Agriculture is a capital-intensive business, and farmers often enter into financial agreements with lenders with the assets purchased with the loan used as security. “Unfortunately, farm business managers can fall into a pattern of simply signing documents, and not reviewing all the conditions thoroughly,” said Rick Dehod, agriculture farm financial specialist with Alberta Agriculture and […] 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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