How advisors add value to your farm management plan
Experts in various fields can help farmers better understand the nuances of farm management. Consulting with one or more farm advisors in aspects ranging from farm transition to animal care gives farmers focused advice from specialists.
But the array of farm advisors is wide-ranging, and knowing who’s needed for farm management can be a challenge. Here’s a look at some of the experts available in the field.
Beyond doing your tax return, accountants can work with farmers as business advisors.
“Your accountant should be able to help you understand the financial impact of larger decisions by running cash flow projections, and answer/ask key questions,” says Maggie Van Camp, BDO Canada’s national agricultural practice development leader.
Strong relationships with lenders are important, and even more so during challenging times, says Manitoba Agriculture farm management specialist Sharon Ardron.
“It’s easier to find solutions to challenges when there’s adequate time to evaluate all options,” Ardron points out.
But strong relationships take time to cultivate, so be proactive: keep in touch with your lenders to help strengthen the working relationship, Ardron says.
Financial planner/farm management consultants
Having a consultant or financial planner as part of the management team can act as the quarterback for the team.
These experts specialize in intensive debt management and strategic business planning, says Denise Filipchuck, consultant associate with Backswath Management.
“Having a consultant or financial planner as part of the management team on an ongoing basis can act as the quarterback for the team and keep all the wheels moving and in the same direction,” Filipchuck says.
On top of working with farm managers to create and follow through with marketing plans, market strategists can also provide valuable training or information for those who seek a more proactive approach to marketing, says Filipchuck.
Peer advisory groups
Some farmers work with peer advisory groups to share knowledge, experiences and engage in joint strategizing and problem-solving, says Heather Watson, executive director of Farm Management Canada.
"While these farm management groups have been around for a long time in Quebec, and predominantly in the dairy sector, they’re becoming more and more popular in other regions for other commodities, and even cross-commodities, where business management practices transcend commodity specifics," Watson says.
These professionals are often used to draft legal documents and agreements or documents for litigation purposes, explains Filipchuck.
“[They] have a wealth of knowledge that can assist farm managers in preparation and strategic planning prior to drafting final documents,” says Filipchuck.
Mathieu Lipari, program manager with Farm Management Canada, adds that in the ag context, lawyers will mainly get involved in estate law, transitioning, farm purchases or sales, divorce and important changes in an operation’s business structure.
An anticipated 37% of the agricultural workforce is expected to retire in the next decade.
Van Camp, a farmer who’s acted as an executor, says transition planning is about more than lowering tax exposure. It should also create business and estate solutions that work for your family and your farm.
Farm family business coaches help families discover expectations and communicate more clearly.
“Coaches can help with getting unstuck, conflict resolution and family meeting facilitation,” says Elaine Froese, farm family transition coach and farmer.
Managing your HR is an important part of your success, says Hali Van Vliet, senior manager HR Advisory at BDO Canada.
Critical HR processes to help your farm business succeed include offering training and development, managing employee performance, maintaining competitive compensation, and following health and safety guidelines, VanVliet says.
Veterinary services can play critical roles in biosecurity, animal health, animal welfare, food safety and rural business success, Manitoba Agriculture explains.
Find an expert
For producers seeking to hire their first advisor — or to add to the team they have in place — Canadian Association of Farm Advisors offers a comprehensive list of potential candidates.
Farm advisors are a valuable resource to bring to farm management for expert advice on a variety of issues. Be proactive and seek out advisors when there is adequate time at the farm, recognize their expertise and work together towards achieving the farm’s goals. Organizations such as the Canadian Association of Farm Advisors are a valuable resource to identify and find the farm experts available across the country.
Article by: Richard Kamchen