Posts Tagged ‘profitable farm’

Being Smart with Your Personal Wealth Bubble

Monday, May 9th, 2011

Mother’s day is less than a week away, but you still have time to get her the book she needs. I have done a lot of work this winter with women and money seminars and “Who gets the farm and when ?” sessions with farm families.

Here’s what I have observed:

People are overwhelmed by the complexity of succession planning and they don’t know where to start.

Finances are a major barrier, especially  people’s fear of the income stream after farm transitions, not being enough to meet the lifestyle plan for the next 2 decades.

Farm folks who have ploughed all of their financial resources back into the farm asset bubble may not have put any funds into what Alberta’s Merle Good calls the “personal wealth bubble.” Folks with a personal wealth bubble have more flexibility in planning for the successor’s needs since they don’t need all their lifestyle income from the farm cash flow. Continue reading Being Smart with Your Personal Wealth Bubble »

Farmers with Beautiful Office Make More Money!

Friday, February 11th, 2011

Winter is a great time to get rid of that terminal case of piles in your farm office. Someone once said that “clutter is a delayed decision”. My business consulting friend Stuart Morley of Ontario, wrote me a story from his observations in Africa, that I think might be an encouragement to you. My new office is making me more money with better systems in place. Beauty does create energy, so get to work after you read Stuart’s observations:

As a city kid, growing up in Africa I spent my holidays with friends who lived on farms. The farmers seemed to be the ones with cars, planes and tractors unlike us poor city folk. I figured all farmers were rich so I decided I would become a farmer.

However I was a little taken aback during my third year of my agricultural degree to find most farmers lived pretty poor. Some died rich but few lived and died rich. It was the early days of computers and to save costs for farmers and give us a project we needed for college we persuaded a group of about 30 farmers to give us their financial records and in return we would tell them how they were doing compared to the average. It kept the professor happy we had a project and we liked the idea of experimenting with computers plus on a hot day the only room that was air-conditioned was the computer room.

Once we overcame the usual concerns about confidentiality we found the farmers not only liked to see how they were doing but now wanted to visit the farms of those who were doing better than the average. Some wanted to see these farms because they suspected those doing better meant they were not counting all their costs and others wanted to find the secrets of how others were doing better. Continue reading Farmers with Beautiful Office Make More Money! »

Breaking Up is Hard to Do…Firing Your Advisors

Tuesday, January 18th, 2011

In March I spent time with 70 farmers in Alberta who were seeking new ideas on how to do a some tough things right, like transferring the farm to the next generation. One of their biggest challenges is finding an financial advisor, tax specialist and legal professional who they can trust. They are wondering if they are being well-served by their current team of advisors, as some folks are not getting clear answers to their questions, and sometimes don’t know what questions to ask !

The song says “breaking up is hard to do…and I know, I know that  it is true…” I think is it hard to fire your advisors, because we live in small towns, have to drive further for more options, and we are a loyal bunch. Continue reading Breaking Up is Hard to Do…Firing Your Advisors »

Managing your Marriage in the Muck

Friday, December 17th, 2010

As I write this on September 3rd, we are stalled with a large harvest due to bothersome rains. Those of you with more muck than crop are saying “wish I even had a harvest.” And the farmer from Margo Saskatchewan with 12,000 unseeded acres is wondering how to get the land ready for next year! Not fun.

We’ve gone through this before in 1999 and 2005, but for some folks this year is the most extreme challenge. My concern is for the family foundation and resilience that holds things together even under enormous external stresses.

We can’t stop the rain or cause fields to dry up overnight. We can choose to find ways to cope, and hope.

This summer I’ve had conversations with farmers and ranchers looking for hope to keep up their passion of agriculture and re-ignite the passion of their marriages. I remind them that if their spouse is the most important part of their life, how are they putting that into action?

Farms under financial strain due to poor crops and looming debt payments can still succeed IF the folks involved pull together as a team and keep talking and listening to each other. Continue reading Managing your Marriage in the Muck »

Why should I be a better listener?

Tuesday, May 18th, 2010

What if I showed you a free tool that you could implement today that would have the potential to make your farm 21% more profitable, without spending a dime? Continue reading Why should I be a better listener? »