GFM Network News


Can your farm operation withstand ‘lean years?’

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

Financial ratios cut through a sea of numbers to tell you how your business is doing.

Online tool gives snapshot of farm’s fiscal health

Analyzer uses eight numbers from the year-end balance sheet to 
quickly produce 11 key financial ratios linked to industry benchmarks

Reading Time: 2 minutes To help producers be aware of the ratios for their farm businesses, Alberta Agriculture and Forestry has a decision-making tool called the ABA Simple Farm Ratio Analyzer. Start with your year-end net worth statement (the balance sheet for 2016), which is also your opening net worth statement for 2017, said farm finance specialist Rick Dehod. […] Read more