$10,000 ASSETS CURRENT ASSETS INTERMEDIATE ASSETS TOTAL LONG TERM ASSETS LIABILITIES CURRENT LIABILITIES TOTAL INTERMEDIATE LIABILITES LONG TERM LIABILITES Cash Grain Prepaid inputs Machinery Breeding stock Land Buildings $1,000,000 $100,000 $600,000 $150,000 $800,000 $150,000 $2,210,000 Operating loan Term loan Mortgages $350,000 $50,000 $200,000 $600,000 Last weekend we were out to see Jimmy Bond race his […] Read more
Plan To Die Another Day
Calculating Debt Coverage
In January, the local banker Hans Immapocket asked many of our clients in the Grainews community for an updated net worth statement and income tax or financial statements in order to renew the operating line of credit for the next year. We do not want our clients to simply provide the bank with a number […] Read more
All About Efficiency
The easiest way to identify which expenses may offer the most opportunity to improve the operating expense ratio is to list the five largest expense items and challenge yourself to make improvements on these costs. In January, the local banker Hans Immapocket asked many of our clients in the Grainews community for an updated net […] Read more
Who Owns Your Assets?
75% 85% Traditional Leverage Thresholds Enterprise Dairy Cereal/Oilseed Special Crops Hogs (Stable Contract) Hogs (No Contract) Beef Low Risk 80% 75% 80% 100% Medium 50-75% 70-85% 60-80% 50-75% 65-80% 85-100% High Risk <50% <70% <60% <50% <65% <85% In January, the local banker Hans Immapocket asked many of our clients in the Grainews community for […] Read more
Ratios Uncover The Good, Bad And Ugly
Through the month of January, many of our clients in the Grainews community received a request from the local banker, Hans Immapocket, for an updated net worth statement and income tax or financial statements. The banker wants these statements in order to renew the operating line of credit for the next year. Rather than just […] Read more
Why Chisler Pays More Interest
Most institutions now use financial models to quantify risk, which in turn determines the premium or discount to the interest rate. Charlie Chisler and his sister in law Terry Tightwad found themselves arguing over interest rates last week and who had gotten the better deal. Charlie operates a 3,500-acre grain farm and Terry operates a […] Read more
A Good Deal For Both Sides
Billy and Boss have never been in a dispute and they know nothing of each other’s finances. However they both have complementary interests — Boss needs cash and Billy needs a return on his investment. My elevator agent often demonstrates a win-win situation to me when I get screwed with dockage and grade! But a […] Read more
What To Do With Extra Cash
The general rule of thumb when prepaying debt is that if you are trying to cut costs, pay down the highest-interest-bearing debt that doesn’t carry any prepayment penalties. Al Worknoplay came in to us in mid-January and said, “Gentlemen I got a problem and it’s unlike anything I’ve ever had before.” Our ears perked up […] Read more
How To Put AgriInvest To Work
With the winter meeting season in full swing, we found ourselves shoulder to shoulder with local farmer Billy Bottnpaidfor expecting to swap stories about fast cars and grumpy wives. Instead, we started talking about his recent experience with his AgriStability and AgriInvest accounts. His story got us thinking about how AgrIinvest should best be put […] Read more
More EFP Money For Upgrades
Items such as fertilizer bins traditionally depreciate relatively slowly and if they are funded at 75 per cent of the cost, the impact on the balance sheet will be positive for quite a while. EFP PROVINCIAL CONTACTS ALBERTA SASKATCHEWAN MANITOBA The Alberta Environmental Farm Plan Company Toll-free information line 1-866-844-2337 Web site www.AlbertaEFP.com Provincial Council […] Read more
Cyber-Savvy Farmer
