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
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
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?’
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
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
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 […] Read more
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 […] 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
Tips on securing business financing
Reading Time: < 1 minute Understanding how a lender evaluates your application can help you be successful when applying for financing. To help with this, Alberta Agriculture and Forestry has a new fact sheet entitled Get the Loan You Need. “This information will help give business owners an edge in securing the financing they need to develop their business,” said […] Read more
Deadline extended for cash advances
Applications will be accepted until March 2017
Reading Time: < 1 minute Farmers unable to harvest their 2016 crops may be eligible for a cash advance under a revised application deadline. The Canadian Canola Growers Association will accept new seeded cash advance applications until March 2017. “This deadline change applies equally to farmers already enrolled in the 2016 program, as well as those who are applying for […] Read more
Drought-hit tax deferral zones named
In some areas, this is the second year in a row where a lack of feed forced the sale of breeding stock
Reading Time: 2 minutes The federal government is offering ranchers in parts of Alberta hit by drought deferrals on their 2016 income tax from breeding livestock sales. The areas include Clearwater, Lethbridge, Mountain View, Red Deer, Rocky View, Vulcan and Wheatland counties; the municipal districts of Bighorn, Foothills, Pincher Creek, Ranchland and Willow Creek; the Municipality of Crowsnest Pass; […] Read more