Sell calves early or hold them until spring

Sell calves early or hold them until spring

Market Update: Big U.S. calf crop will hit the market in November and December

Alberta fed cattle prices were hovering in the range of $143 to $145 in mid-August. The market has been trending lower since the first week of May when the fed market reached up to $197. Despite the softer selling prices, feeding margins remain in positive territory. Break-even pen closeout values are near $135 for August; […] Read more

Off-farm investing is intended to spread risk and produce alternative income. Investing spare cash 
from farm profits in an agricultural commodity is not really diversifying.

Investing: taking risks in the new economy

Old economy, new economy. Finding safe off-farm investments in a perilous world

It is the question closest to the hearts and digestions of most investors: How long can the good times last? The tech-heavy NASDAQ Composite index was up 26.3 per cent for the 12-month period ending June 7, 2017. Canada’s S&P/TSX Composite Index rose a modest 7.7 per cent in the same period, restrained by flagging […] Read more


In their plan to retire from their successful career as farmers, Jurgen and Frieda will include their grandson Herb in their succession plan. Herb has been doing much of the farm work for half a decade. Jurgen and Frieda’s son and daughter have off-farm careers, and don’t wish to farm.

Farm Financial Planner: Succession can skip a generation

This couple will hand the farm over to a grandson, keeping preferred shares for income

In western Manitoba, a couple we’ll call Jurgen, 73, and Frieda, 71, have farmed for the last 52 years. Jurgen inherited the home farm of 320 acres in 1972. The farm grew slowly. Jurgen and Frieda expanded the farming by renting land and buying parcels as they became available. At present, the couple has 2,000 […] Read more

Guarding Wealth: Signs of future risk in the stock market

Guarding Wealth: Signs of future risk in the stock market

U.S. government initiatives are raising returns on government and corporate bonds

In the early days of the Clinton administration, Democratic Party strategist James Carville opined that, after death, “I’d like to come back as the bond market. That way, I could intimidate everybody.” Bond prices determine bond yields and yields determine the weight of public debt — how fast taxes can pay it down, how affordable […] Read more


wheat and U.S. currency

Riding on the U.S. dollar rollercoaster

Swings in the price we pay for the U.S. dollar will impact profitability on your farm

Since the Board Room Bully took over in Washington in November, promising to revitalize the U.S. economy and provide more jobs and opportunities for Americans, we have seen a change in attitudes in the markets. Just after the election, we saw the U.S. dollar index jump to historic levels, based on hopes that Trump’s plans […] Read more

Consumer spending favours beef market

Consumer spending favours beef market

Market Update: Food prices have been down, so shoppers have more money for beef

The fed and feeder cattle markets continue to hold value despite the year-over-year increase in beef production. Alberta packers were buying fed cattle in the range of $175 to $177 in late April. Wholesale beef prices have been surprisingly strong as beef demand continues to exceed expectations. Major economic indicators are fairly encouraging which should […] Read more


Farm Financial Planner: A smooth transfer on the way to retirement

Farm Financial Planner: A smooth transfer on the way to retirement

Planning smooth generational transfer to six children keeps Manitoba farm in the family

A couple we’ll call Jack and Susan, ages 56 and 54, respectively, farm 2,240 acres in central Manitoba. The third generation of their family to farm in Manitoba, they began three decades ago with 640 acres and expanded by renting an additional 1,600 acres of cropland. About 15 years ago, they incorporated their grain production […] Read more

AGCO is in the process of purchasing the forage division of Lely Group.

AGCO buys forage group Lely

AGCO adds European forage equipment manufacturer

In a mid-march press release, AGCO announced that it has reached an agreement in principle to acquire the forage division of Lely Group. Lely’s forage division manufactures balers and loader wagons in Europe, primarily for that market. The deal is expected to close by the fourth quarter of 2017. However, it’s still subject to regulatory […] Read more


Guarding Wealth: Keeping your financial portfolio stable

Guarding Wealth: Keeping your financial portfolio stable

How much risk do you want in your portfolio, and will risk bring you higher returns?

Choosing stocks and bonds is in some ways like picking the petals off a daisy. The choice: will it be regular income or capital gains (hopefully)? Some investment assets pay regular income. In this category are conventional bonds that promise annual or semi-annual interest payments and dividend-paying stocks that make no firm promises but that […] Read more

What is the cattle futures market saying?

What is the cattle futures market saying?

The combination of cash and futures market numbers will point the way

I’ve received numerous calls over the past month from cow-calf producers and backgrounding operators in regards to a marketing strategy for their individual operation. In four previous articles I’ve discussed the feeder cattle futures market and the historical relationship between the cash and futures market. I analyzed basis levels and discussed using the basis and futures for […] Read more