National Farm Business Advisor (FBA) Database
The National Farm Business Advisor (FBA) Database is now live and accepting registrations!
As part of the Growing Forward initiative, the Canadian Farm Business Management Council has created a national online database of farm business advisors and consultants.
Farm advisors and consultants can use this website to advertise their professional services to the agricultural community on a national scale.
Advisors will be able to create a personal profile and update their information at anytime, including:
- Location
- Preferred language(s)
- Professional affiliations
- Services provided and areas of specialty
- Designations/Credentials
- Biographical information – background, experience, etc.
- Photo (optional)
- Contact information
- Link to personal or organization’s website
To register, visit www.farmcentre.com/farmadvisors and click Register Now.
For the first year (September 2009-2010), registration to the online listing will be free of charge. In subsequent years, advisors will be subject to a $50 fee for a 12-month listing. Banner space on the Farm Advisory Services pages is available to individual advisors only. Banner space is available to associations and corporations on Farmcentre.com by purchasing CFBMC membership for your association or corporation.
As an additional service to farmers, advisors, and the agricultural community at large, the National FBA Database includes a listing of farm business advisory associations and organizations with web links, along with a glossary of terms, acronyms and designations. The database also includes resources and publications to help farmers better understand farm advisory services and how to choose the right advisor.
Industry Transition—Planning for the Future
Workshop for Industry
Lower prices and rising costs have reduced margins placing significant financial pressure on hog producers. This has many producers contemplating the future direction of their farm business. Related industries are also affected and are becoming more invested in their cus-tomer’s business operations. Making decisions for a farm business is a challenge and in-dustry partners need to be aware of the current market conditions, what options producers have available to them and how to handle the stress of this growing industry decline. This 3 hour breakfast workshop provides information, planning tools, and resources to use in the farm decision making process.
Who Should Attend? Hog industry players including feed representatives, veterinarians, lenders and those in the agri-business.
Topics Include:
- Managing in Uncertain Times
- Markets – Impacts and Implications
- Making Choices – Assessing Options
- Farm Business Planning
- Resources
- Federal Hog Transition & Loan Programs
When: December 16th, 2009
Where: Arden Park Hotel, 552 Ontario Street, Stratford ON.
Registration/Breakfast: 7:30-8:30am ($15.00 fee payable at the door)
Session: 8:30-11:30am Pre-registration Required (space is limited):
1-877-424-1300 (Agricultural Information Contact Centre)
Specify workshop location.
Brought to you by:
OMAFRA, The Centre for Rural Leadership and Ontario Pork
Attention Farmers: Don’t miss your local Quest for New Farm Value – Value Plus™ Workshop this fall/winter.
Are you looking for or do you have a business idea for your farm? Not sure how to make your idea a reality? Local Stakeholders along with the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) are offering up to 10 Quest for New Farm Value – Value Plus™ workshops throughout the province this fall and winter.
Over 2 days, the participant will identify their specific value-added idea, put their idea into action, evaluate market channels, learn the importance and components of a business plan, explore how to finance the stages of the business and manage risk. Workshop leaders include Ontario farm business owners, entrepreneurs and advisors who will share lessons learned and best practices.
Since launching the workshops in 2007, the Quest for New Farm Value workshops continue to receive positive feedback from participants who are looking to implement business ideas that are marketable, profitable and contribute to the long term viability of the farm operation”, says Dorene Collins with the Business Management Unit of the Ontario Ministry of Agriculture, Food and Rural Affairs.
Here’s what some of last year’s participants shared about the workshop:
“Invaluable – well worth the investment – very supportive and nourishing opportunity being with experienced like minded people”
“Great information on planning your business from start up to exit including growth opportunities”
“Wow, this was really well done … One of the best seminars I’ve been to”
“Great course and many valuable contacts and ideas were gained”
Limited to only 25 registrants per location, interested participants are encouraged to register as soon as possible. Through the generous sponsorship of the Canadian Farm Business Management Council, OMAFRA and local stakeholders, the 2 day course is being offered at a low rate of $75 per participant. Registration includes 2 fun-filled days of learning, work-book, related print resources, refreshments and lunch.
To register for a workshop nearest you visit: www.ontario.ca/agbusiness or call 1-877-424-1300.
For workshop details contact: Dorene Collins at dorene.collins@ontario.ca or call 1-519-826-3166
This training opportunity is eligible for cost-share funding through the Growing Forward Business Development for Farm Businesses program. For more information on program requirements, please visit
www.omafra.gov.on.ca/english/about/growingforward/busdev.htm or call
1-877-424-1300.
Workshops scheduled to date:
| LOCATION | Day # 1 | Day # 2 |
| Sudbury | November 27, 2009 | November 28, 2009 |
| Peterborough | January 30, 2010 | February 6, 2010 |
| Haldimand County | January 30, 2010 | February 6, 2010 |
| Middlesex County | February 22, 2010 | March 1, 2010 |
| West Carleton, Kinburn | February 23, 2010 | March 2, 2010 |
| Huron/Perth Counties | February 24, 2010 | March 3, 2010 |
| Alfred – French Language | March, 2010 | March, 2010 |
Proposed Harmonized Sales Tax (HST) Benefits for Ontario’s Farmers
Starting July 1, 2010, Ontario’s Retail Sales Tax (RST) would be converted to a value-added tax structure and combined with the federal Goods and Services Tax (GST) to create a single, federally administered Harmonized Sales Tax (HST).
It is estimated that Ontario farmers will save about $30 million annually under the HST on items that are currently not exempt from the RST. Farmers would continue to pay no tax on the majority of inputs purchased such as feed, seed, fertilizer, farm equipment and machinery, which are currently point of sale tax-exempt.
Under the HST, Ontario’s farmers would no longer pay sales tax on many items such as trucks, light vans and parts, furniture, lawnmowers, computers, freezers and other equipment. This would put Ontario farmers on a more level playing field with farmers in others provinces that have harmonized sales taxes.
The HST would follow the same rules and structure as the GST. Farmers who are currently remitting their GST paperwork would continue to do so and continue to receive input tax credits on any applicable purchased farm inputs. For additional information you can find an Infosheet on the OMAFRA website (pdf infosheet)
Programs for Ontario Hog Producers
Hog Industry Loan Loss Reserve Program
The Hog Industry Loan Loss Reserve Program (HILLRP) assists the pork industry to deal with immediate short-term cash-flow pressures. It is designed to increase access to credit for eligible producers currently producing hogs in Canada and who can provide a business plan which demonstrates that the business is or can be viable and has a reasonable prospect of repaying the loan. For more information visit the Agriculture and Agri-Food Canada website.
Hog Farm Transition Program
The Hog Farm Transition Program is a $75 million initiative designed to help eligible producers by providing payments to those who agree to set aside all hog production in their enterprise for a minimum of three years.
The program is open to all hog producers that were in the business of hog production as of April 1, 2009 and are willing to set aside their entire hog production facilities for a minimum of three years. For more details visit the Canadian Pork Council website
Growing Forward Business Development for Farm Businesses
Business Development for Farm Businesses: A customized program just for you
The recently launched Business Development for Farm Businesses program incorporates self-assessment and action plan development with a range of cost-share advisory services and skills development opportunities.
Growing Your Farm Profits workshops are the entry point to the Business Development for Farm Business program. Set in a relaxed atmosphere where personal and financial details are not required to be shared, the workshop teaches you how to do a self-assessment of your business. Identifying your business strengths and planning needs will allow you to take the next steps: developing an Action Plan and receiving sign-off from your GYFP workshop leader. Location of a Growing Your Farm Profits Workshop near you.
The cost share components of the program include:
Farm Financial Assessment – hire a Farm Financial Advisor who will work with you to complete an assessment that will identify choices that you can make to reach your profitability goals.
Agriculture Skills Development cost-share – access farm-related courses and training opportunities that can help your farm business become more viable.
Advanced Business Planning services provide cost-share funds to work with a consultant to build an Advanced Business Plan that focuses on business management goals.
Business Plan Implementation cost-share program can help you implement items identified in your advanced business plan.
As part of the commitment by Canada’s federal, provincial and territorial governments under Growing Forward, the Business Development for Farm Businesses program, developed by OMAFRA, delivered by the OSCIA, can equip you with innovative tools that can help you be competitive in your business. To get started, visit www.ontariosoilcrop.org and sign up for a Growing Your Farm Profits Workshop in your area today!
Growing Forward, a federal-provincial-territorial initiative.
2009 Farm Tax and Business Seminars
The Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) presents the annual Farm Tax and Business Seminar for Professional Advisors. The seminar is offered in 11 locations across the province during the month of October. The seminar is offered as a Webinar for those interested in attending the seminar via the web.
The seminar is an excellent opportunity for accountants, lawyers, lenders and other financial professionals to update their knowledge of tax, business and legal matters related to agriculture and farm business activities. The topics this year include:
- Farm Family Business Structures: Partnerships and Corporations
- OMAFRA Business Update
- Legal – Conflict Resolution – Practical Strategies for Avoiding Court
- Farm Tax Update
- Growing Forward Programs—Business Risk Management and Best Practices Programs Update
The locations and dates are:
| Dates and Locations | |||
| Week 1 | Guelph | Tuesday, October 27, 2009 | |
| Ingersoll | Wednesday, October 28, 2009 | ||
| Hanover | Thursday, October 29, 2009 | ||
| Week 2 | Alliston | Kemptville | Tuesday, November 3 , 2009 |
| Stratford | Belleville | Wednesday, November 4, 2009 | |
| London | Peterborough | Thursday, November 5, 2009 | |
| Week 3 | Hamilton | Wednesday, November 10, 2009 | |
| Chatham | Thursday, November 12, 2009 | ||
The registration fee is $150 per person on or before October 19, 2009 and $180 per person after October 19, 2009.
For complete agenda, speaker and registration information, including a registration form, visit the OMAFRA Business Development website under conferences and workshops at www.ontario.ca/agbusiness or call the OMAFRA Agricultural Information Contact Centre at 1-877-424-1300.
Iowa Study Says 30 Percent of Farmers Plan to Never Retire
The following article is an excerpt from a Iowa State University news release. What it tells me is that the next generation entering the farm business should be talking with their parents about their “retirement” and what that word really means to them. There is absolutely no problem if a parent never wants to retire. That is their decision to make. But what does retirement mean to them? Is it being able to drive the tractor when they feel like it and not drive when they don’t? Or does it mean maintaining control and management right to the end? If the latter then the next generation should know up front. This is a conversation that needs to occur as soon as the child makes a commitment to the business, not 10 or 15 years later. I have witnessed that conversation at year 10 or 15 and believe me, it’s not usually the answer the child wants to hear.
AMES, Iowa – Retirement is something many long for with plans of traveling, more family time or relaxation in mind. But for the majority of Iowa farmers, full retirement is hardly considered.
According to the new publication, “Iowa Farmers Business and Transfer Plans” (PM 2074) by Ethan Epley, Michael Duffy and John Baker of the Beginning Farmer Center at Iowa State University, only 23 percent of Iowa farmers plan on retiring, and 30 percent say they never will. These statistics are part of the findings from the International Farm Transfers Study done in 2000 and 2006. It focused on the transfer of intangible assets and produced results that didn’t surprise Baker.
The study is a replication of a previous Farm Succession Survey written by Professor Andrew Errington of the University of Plymouth, England. In 1999, Errington, Baker and Duffy formed a research partnership that allowed Baker and Duffy to conduct Errington’s study in Iowa in 2000. Six years later, in 2006, they replicated it and began to analyze the data and feedback.
According to Baker, for every 10 farmers that want to get into farming, only one is getting out. Additionally, more than 70 percent haven’t identified a successor despite the high interest in the occupation, because for many, farming is more than simply a career. It’s a lifestyle that retirement will completely disrupt.
“Retirement is seen as not only a loss of occupation, but also a loss of a way of life,” the publication states. Beyond the wills, estates and trusts that determine the future of land and physical assets are things like labor, management and decision-making power that also must be handed down. This reality makes the process and idea of retirement more complicated and less appealing to those whose entire lives have been about farming. However, Baker urges farmers to reconsider.
“Farmers need to develop a retirement plan and also be willing to retire,” he said. “We have to think about what this means to rural Iowa and rural communities around the nation.” Instead of liquidation, a plan and identified successor can ensure continued sustainability and a future for young farmers, both of which excite Baker.
Growing Forward Business Development Programs
The following is a summary of the Growing Forward Business development Programs. More information can be found on the OMAFRA website or the OSCIA website.Growing Forward Business Development for Farm Businesses incorporates self-assessment and goal setting with a range of cost-share advisory services and skills development opportunities to help reach your farm business goals. Applicants must meet the program eligibility criteria and adhere to all program terms and conditions and project claim submission deadlines to qualify for cost share. All cost-share funds are available on a first come, first served basis up to the available annual funds of each year of the program Individual Ontario producers, beginning farmers, and members of a group enterprise such as a corporation or partnership are eligible to apply for cost share if they satisfy the following criteria:
The Growing Forward Business Development for Farm Businesses is delivered by the Ontario Soil and Crop Improvement Association (OSCIA). For information concerning workshop schedule or eligibility criteria please contact your local OSCIA Representative or Ontario Soil and Crop Improvement Association at 1-800-265-9751 or the OSCIA website
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Growing Your Farm Profits WorkshopThe Growing Your Farm Profits workshops are available free of charge for all Ontario producers, including farm families and farm management teams. The workshop provides a planning process and resources to maximize your farm business long-term goals. Participants are not asked to share personal or financial details with the facilitator or other participants. The two-day workshop will give you the tools needed to assess your business:
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Action Plan Review and Sign-offAfter the Growing Your Farm Profits workshop, you and your management team will be able to develop an Action Plan for your farm business, start the planning process and begin to access the resources needed to achieve your goals. Based on the needs identified in your signed-off Action Plan, the farm business may be able to access cost-share funding opportunities. As an eligible farm business you may choose to participate in one or several areas. |
Farm Financial AssessmentBased on your Action Plan, you may require access to a professional Farm Financial Advisor who will review past financial performance, analyze your current business situation, discuss objectives, and help you identify options to meet your farm business profitability goals. Note: If your business is experiencing financial difficulty you may be able to access the Farm Financial Assessment without completing the Growing Your Farm Profits Workshop. The program covers up to $2400 of eligible costs to hire an advisor to complete an Assessment. The participant pays $100. A Farm Financial Assessment includes:
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Agriculture Skills DevelopmentFarm business owners that identify the need in their Action Plan will be able to access cost-share funding to take farm related training and skills development intended to support greater farm business viability. A list of farm-related skills and training opportunities is available on the OSCIA website. Eligible participants will receive cost share funding for up to 50 per cent to a maximum of $3000. Eligible costs include:
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Advanced Business PlanningAdvanced Business Planning services are available on a cost-share basis to help meet the business planning needs specified in your Action Plan. You may work with an advanced planning consultant to focus on business management goals such as succession, marketing, diversification, expansion and/or feasibility plans. Eligible farm businesses may receive cost-share funding for up to 50 per cent to a maximum of $8000. Eligible costs are items that support the advanced business planning needs specified in the Action Plan. A list of advanced planning consultants can be found on the OSCIA website. |
Business Plan ImplementationTo help you implement elements of your Advanced Business Plan, you may receive cost-share funding assistance for one-time non-capital costs. Eligible participants will receive cost share funding for up to 50 per cent to a maximum of $3000. Eligible costs may include soft (non-capital) costs of implementing:
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Canadian Agricultural Loans Act (CALA)
The Canadian Agricultural Loans Act (CALA) is a loan guarantee program which provides loans to farmers and agricultural co-operatives.
Who can apply?
- Existing farmers
- Beginning/start-up farmers (i.e. less than 6 years of farming)
- Farmers taking over the family farm
- Agricultural co-operatives with a majority (50% + 1) farmer membership
If a purchase has already been made, a farmer has 60 days to receive funding from a lender for a CALA loan. A beginning or start-up farmer should be prepared to provide the lender with a business plan and/or an income tax form showing no farm income and/or expenses at least once in the last six years.
Agricultural co-operatives will need to be prepared to provide a current income tax return showing farm income and/or expenses from 50% + 1 of its members or a notorized attestation as to their membership.
Where to apply?
The following financial institutions offer loans under the CALA:
• Chartered banks • Trust companies • Alberta Treasury Branches • Loan companies • Credit unions • Insurance companies • Caisses populaires • Other designated organizations
Fees
The farmer must pay a fee to have the loan registered and guaranteed under the CALA. This fee is 0.85% of the amount of the loan. The lender may also charge an administration fee of 0.25% of the amount of the loan up to a maximum of $250.
What is eligible?
Eligible loan purposes include the following that must be used in the applicant’s farming operation:
- Equipment
- Building/ Construction
- Land
- Livestock
- Shares in a farming operation
Loan Amount
The maximum loan is:
- $500,000 for land and the construction or improvement of buildings.
- $350,000 for all other loan purposes.
The maximum aggregate loan limit for any one borrower is $500,000. The maximum aggregate loan limit for agricultural cooperatives, is $3 million, with the Minister’s approval.
Repayment terms
The maximum term for loans is 10 years, with 15 years for loans on land purchases.
Interest rates
Interest to be paid on a floating rate is the lender’s prime rate plus a maximum of 1%. Interest to be paid on a fixed-term rate uses a formula based on the lender’s residential mortgage rate plus a maximum of 1%.
For more information:
- Contact your financial institution
- E-mail CALA at fgp-pgf@agr.gc.ca
- Call the CALA toll-free line at 1-888-346-2511
- Visit the CALA website at http://www.agr.gc.ca/cala
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