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Farm bankruptcies down, but not out – just different

Winnipeg | CNS Canada – Fewer farms means fewer bankruptcies but with that simple equation comes the realization that the size and tone of those bankruptcies in North America is growing. “They are larger, the amount of debt is greater, the fact that we’re not seeing a higher number doesn’t mean there isn’t considerable distress […] Read more

Add one more harvest worry to the list — the prospect of higher taxes. But experts say a personal pension could reduce that hit and provide a host of other benefits.

Worried about federal tax changes? There’s an alternative, say experts

Federal Liberal bid to close ‘loopholes’ will increase taxes on most 
farm corporations, but there’s a way to avoid that hit

Reading Time: 3 minutes Proposed federal tax changes aimed at ‘income sprinkling’ and other tax reduction measures used by corporations — including those owned by farmers — have ignited a storm of controversy. But there are “a lot of other tax strategies” that farmers can use, say financial planning experts. In July, federal finance officials announced proposed changes to […] Read more


With interest rates on the rise, is it time to lock in?

With interest rates on the rise, is it time to lock in?

Variable rates have been a winner for decades, but a fixed rate is an option worth considering

Reading Time: 2 minutes Is it time to lock into a fixed long-term mortgage? “Since 1975, the majority of the time the variable interest rate has been the better option and has saved producers money,” said provincial farm financial specialist Rick Dehod. However, the Bank of Canada recently increased its prime rate by a quarter of a percentage point […] Read more

Forget supply and demand or logistics — tax considerations may soon determine when Prairie farmers sell their grain if deferred grain cash tickets are scrapped.

Scrapping deferred cash tickets could ‘screw up’ grain-marketing system

It’s not just farmers who will be hurt if Ottawa axes tax break — 
the entire grain sector will be dramatically affected, says MNP

Reading Time: 4 minutes Removing the deferred cash ticket system won’t just hit farmers at tax time — it could also affect the entire supply chain, interrupting the flow of grain to international markets. “If they take this deferred cash ticket system away, you’re going to have farmers refusing to move grain when we need it to move,” said […] Read more



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[...]
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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.[...]
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Up your odds of getting a loan

Reading Time: < 1 minute Alberta Agriculture is encouraging producers to make use of a three-part fact sheet on obtaining financing. Successful loan applications have many elements, said new-venture specialist Kathy Bosse. “Asking for funding is not unlike a job interview,” she said. “Be prepared to address holes or weaknesses in your plan to show you also recognize obstacles but[...]
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Nominate a local charity for a $2,500 grant

Reading Time: < 1 minute Applications are now open for the Farmers Grow Communities program, which allows farmers to nominate their favourite local charity for a $2,500 grant. Over the last five years, the Monsanto Fund has given out nearly $1 million to more than 300 rural charities. Almost any non-profit organization based in rural Canada is eligible. Past winners[...]
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Four common foreign exchange myths

Four common foreign exchange myths

Gwen Paddock, senior director, agriculture at RBC is a specialist in agribusiness. Since earning her B.Sc. with a major in agriculture economics she has been working with agriculture clients. A farmer at heart, Paddock was raised on a beef cow-calf farm outside Guelph, Ont.