GFM Network News

Many of today’s family farms are growing — in both acres and family members.

How joint ventures may help you achieve your business goals

This farm operating structure could work for farmers looking to lower costs, retiring corporate landowners or extended family farms

Mike Babcock, the new coach of the University of Saskatchewan Huskies men’s hockey team, has options about how to structure his team to win. The system or style the team plays is a function of the resources at the coaches’ and managers’ disposal. Financial resources along with the evaluation of personnel lead to the right […] Read more

Improved cost of production budgets can improve management decisions.

Is there a right way to calculate farm cost of production?

It depends on whether you’re budgeting or performing an investment analysis

“Know your cost of production” is an annual farm advisor’s rallying cry. This is still good advice with ever-rising costs and uncertain revenue. How exactly should you calculate cost of production when there seems to be different approaches throughout the industry? More specifically, what should you include and not include? To answer that question, it […] Read more

It’s important that best management practices like budgeting and cash flow projection keep pace as your farm expands.

Superforecasting: When politics meet farm financials

Farm Management: Use financial forecasts for long-term business planning

Forecasting is all around us. From the weather to next year’s kindergarten enrolment to the U.S. presidential election. No matter how accurate past forecasts are, many seek out new information to make decisions. Anticipating what the future might hold helps with preparedness and planning. Philip Tetlock and Dan Gardner researched and co-authored the book Superforecasting: […] Read more

These are stressful times we’re living in. Make sure to take advantage of the help that's out there.

Farming through the coronavirus

Seven farm business continuity tips

During this time of uncertainty, there are actions you can take to mitigate the financial impacts of COVID-19. The following seven business continuity tips may help you navigate this uncharted territory. 1. Talk to your banker and accountant Your banker and accountant are working through this together with you. A good relationship and communication will […] Read more

Is your farm doing cash, accrual, or no budgeting?

Is your farm doing cash, accrual, or no budgeting?

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

The production and inventory information required for AgriStability should be tracked regardless of your enrolment in the program.

AgriStability enrolment deadline extended

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

Your farm financial scorecard

Your farm financial scorecard

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

Bags Of Money On A Canola Field

The case for making cash flow projections

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

Formalizing your farming joint venture

Formalizing your farming joint venture

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