All told, be very cautious about your expenditures for this year. Try to save on expenses wherever you can. Be extra-careful about new capital expenditures such as machinery, buildings, land and major equipment.
Shifts in the cash crop economics outlook for 2025
Farm Business Management: The bottom line is, be very cautious about your expenditures for this year
Challenges for 2024 cash crop economics
Cash flows must be managed carefully against rising costs and falling commodity prices
As we embark on a new production year, there are several new challenges. A recent Canadian Federation of Agriculture (CFA) report says “the cost of critical farm inputs such as fuel, fertilizer, feed, machinery, pesticides, land and labour has increased dramatically. “When coupled with high inflation, interest rates and a price on carbon for essential […] Read more
‘Cash is king:’ what does that really mean?
Among other meanings, it refers to the strength of your business' cash flow
We’ve all the heard the expression “Cash is king.” It’s a catchy phrase, but what does it really mean and how can we practically apply that concept on farms today? I submit what “cash is king” really means is to have money available to pay ongoing farm expenses such as crop inputs, wages, loan payments […] Read more
Tips to achieve financial harmony with family and lenders
Consider the five C’s of small business lending as an evaluation tool for a loan
This past winter, I attended two conferences in Alberta related to farm business management. One was the annual conference of Farm Management Canada (FMC) held in the beautiful Rocky Mountains at Canmore, and the other was the annual Alberta Farm Advisor Update presented by the Canadian Association of Farm Advisors (CAFA), which was held in […] Read more
Look before you leap… into new purchases for the farm
Careful planning is necessary with today’s high interest rates
If you are considering a sizable new purchase, hopefully the title has piqued your interest and you will read on. My purpose with this article is to encourage you to carefully consider several important points before you make any significant new purchases. With the present high interest rates, which may rise even more, careful planning […] Read more
Get your farm finances on track to reduce stress
Tips to help get you out of financial trouble and improve your mental health
Mental health among farm families is much written and talked about in the media these days — and rightly so. Over the last couple of years, western Canadian farmers have been hit by record-setting droughts and other hardships while they cope with the lingering effects of the pandemic. In Alberta, there was an excess of […] Read more
How to build a robust farm business plan
Now that you’ve got a strong farm team, it’s time to focus on the farm business plan
In my previous article for Grainews, I explained how team building is important on farms in today’s complex agricultural environment. It’s vital all members of the team have input into the overall farm business plan and have at least some of their individual needs met. A team with a common understanding of the intent and […] Read more
How to build a strong farm team
To achieve a cohesive working unit involves collaboration, communication and compromise
In my close to 20 years in farm business consulting, I have worked with many farm families or extended teams. Something I have seen many times is there is not a strong emphasis on building the overall goals for the farm at the same time as trying to meet the needs of the individual members […] Read more
Succession plans: address the underlying issues
How to begin or become unstuck
Many articles have been written about farm succession or farm transition as it is more recently called. I think it’s time to look at some of the underlying reasons why this can be a difficult process. I base my comments on my work as a farm business and transition consultant for 17 years as well […] Read more
Do you really need all that machinery on your farm?
Hidden profit robbers, Part 3: Unused machinery, too much diversification could be affecting your profitability
In this series of articles, I looked at various profit robbers on the farm and how to address them. In Part 1, I examined the biggest offender — machinery depreciation — and how sneaky it is, since it’s a hidden cost that doesn’t affect your cash flow. To minimize this cost, I suggested you consider […] Read more
Cyber-Savvy Farmer
