Farm Management: Budget planning hasn’t kept pace with today’s farm value, size, or complexity
Our firm, Stark & Marsh, uses benchmarking as a tool to compare farm financial performance. The average southwest Saskatchewan incorporated farm we benchmark is 4,000 acres. Between inputs, machinery and land, costs can meet and exceed $300/acre. Costs of $300/acre multiplied by 4,000 acres equals an annual expense budget of $1.2 million dollars. This number […] Read more
One more chance to sign up, as farm program deadline extended to July 2, 2019
May 1, when most producers were in the field or preparing to get there, the federal government announced the 2019 AgriStability program year enrolment deadline would be extended to July 2, 2019. The extension was in response to the canola dispute with China and gives producers a second opportunity to review their financial risk management […] Read more
Farm financial statements can offer you a lot more than just a way to keep score
If you had time to go golfing or perhaps mini-golfing last summer, you likely filled out a scorecard to track your success (or lack thereof). Keeping score allows you to track your progress and rank yourself against your competition. The golf clubs, green fees, and your time represent a significant investment and the scorecard measures […] Read more
Financial Planning: A cash flow projection is a versatile financial risk management tool
Preparing a cash flow projection as part of your annual farm budget process could provide a signal that changes are needed for the upcoming year. While it’s true farmers have no control over the weather or commodity markets, we do have control over most costs. With the exception of unpredictable pesticide decisions, annual expenses may […] Read more
Many farmers use joint ventures informally. Getting it in writing can make things simpler
Many family farms have participated in variations of revenue and/or cost sharing arrangements. A typical scenario involves family or neighbours sharing equipment and labour to minimize costs, reduce the cost of production and improve the bottom line. However, inefficiencies and disputes over the value of contributions can result from these informal arrangements. Formalizing and documenting […] Read more
