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.
Tag Archives Income
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
‘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
Woman, mid-60s, has successful farm and tax planning opportunities
It makes sense for her to take advantage of lower tax brackets while she can
A woman we’ll call Teresa, who farms two sections of grain in southeastern Manitoba, is 63. She works through a farm corporation worth $1.4 million and has personal farmland worth $1.75 million. The breakdown: she has non-farm assets of $419,000, savings of $400,000 plus a TFSA with assets of $100,000, and other savings of $800,000. […] Read more
Tax strategy raises income for couple in mid-life
The issue is financial efficiency
A couple we’ll call Harry, 50, and Margie, 49, own three sections in central Manitoba. They have a mixed farm operation producing hay and grains. They estimate their farm, machinery and inventory is worth $3.5 million. They need $84,000 a year after tax to maintain their way of life. The problem is getting that money […] Read more
Farm cash receipts up in 2020
Crop receipts and direct payments up, livestock slightly lower
MarketsFarm — New data from Statistics Canada on Tuesday showed Canadian farm cash receipts went up in 2020, despite the COVID-19 pandemic, on the strength of rising crop prices and exports. The total value of farm cash receipts in the country totalled $71.7 billion in 2020, an 8.1 per cent increase from the previous year. […] Read more
Bibeau not considering closing AgriInvest accounts
Minister wouldn't order farmers to pull funds
Federal Agriculture Minister Marie-Claude Bibeau is not considering ordering producers to withdraw from their AgriInvest accounts. “Not in this way. All the options are on the table for the future, but I’ve never considered asking them to withdraw, to empty their accounts, to face COVID-19,” she said in an interview Friday. Bibeau had previously expressed […] Read more
Farm Financial Planner: Estate planning with an out-of-date will
Passing the farm to the next generation when Dad’s will doesn’t mention the kids
A woman named Ruth, 65, and her late husband Max, who recently passed away at 66, farmed 1,600 acres in Manitoba’s Interlake region for the last four decades. Ruth continues their mixed farming operation with 800 acres of grain and the remainder in pasture and hay for what was, before they sold them, a small […] Read more
Editor’s Column: The farm income news is not good news
What exactly is “realized net farm income”?
The news app on my phone keeps bringing up more worrying headlines about agricultural trade problems that will lead to lower farm prices. Twitter is full of grim photos of durum headed out before its time and canola crops with bare patches. I won’t write here that, as of the end of June, crops in […] Read more
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
Writing those monthly paycheques
Are we farmers paying ourselves as much as we’re paying our hired help?
The paycheques have been signed for another month and it brings to mind the joke about the tax man and the farm owner/operator having a conversation about wages: “I need a list of your employees and how much you pay them,” demanded the agent. “Well,” replied the farmer, “there’s my farm hand. I pay him […] Read more
Cyber-Savvy Farmer
