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
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
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
Margins are tight — will you be able to squeeze out a profit this year?
Management specialist Dean Dyck says have a break-even budget, buy inputs early, and forget about machinery purchases
Reading Time: 3 minutes The weak Canadian dollar and a drop in prices are going to make it tough for crop producers to make a profit this year. Tough, but not impossible, says a provincial farm business management specialist. “You can make a profit this year,” said Dean Dyck. “I took a look at the four major crops in […] Read more
What if interest rates went up here?
An immediate hike isn’t likely, but the U.S. move could signal future changes
Reading Time: < 1 minute Recent changes in U.S. interest rates could have a ripple effect for Alberta producers, says a provincial analyst. In mid-December, the U.S. Federal Reserve — the country’s central bank — announced it was lifting its key rate by a quarter-point to a range of 0.25 per cent to 0.5 per cent. The long-expected move put […] 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
Cash flow really is king when growing your farm
Tighter margins have upped the danger level for farms that have expanded or just getting started
Reading Time: 2 minutes Cash is the lifeblood of a business, but with so much emphasis on profitability, this can be easily overlooked, says Rick Dehod, farm financial specialist with Alberta Agriculture and Rural Development. “Of course, the bottom line is important, but poor cash flow management can drive a growing and/or profitable company out of business,” said Dehod. […] Read more