Cultivating Business The official publication of the Canadian Association of Farm Advisors Winter 2012-2013 Canada Post Mail Publications Agreement Number: 40609661 With compliments of: CURRENT CONNECTED CERTIFIED2012 - 2013 / www.cafanet.com 5 MESSAGES: 7 A Message from CAFA’s National Chairman 9 A Message from CAFA’s Executive Director FEATURES: 10 Taxes and Maximizing Cash Flow 12 Shared Vision: One of the Four Pillars of Family Business 14 CAFA EVENTS SPECIAL SECTION: 15 The 2012/2013 Canadian Farm Advisors Resource Guide 15 Alberta 17 British Columbia 19 Manitoba 21 Ontario 29 Saskatchewan 34 Buyer’s Guide Cultivating Business contents Published By: Matrix Group Publishing Inc. Canada Post Mail Publications Agreement Number: 40609661 Return undeliverable copies to: 52 Donald Street, Suite 300 Winnipeg, MB R3C 1L6 Tel: (204) 953-3120 Toll free: (866) 999-1299 Fax: (866) 244-2544 Email: sales@matrixgroupinc.net Web: www.matrixgroupinc.net President & CEO Jack Andress Chief Operating Officer Jessica Potter jpotter@matrixgroupinc.net Publisher Peter Schulz Editor-in-Chief Shannon Savory ssavory@matrixgroupinc.net Editor Alexandra Walld Finance/Accounting & Administration Shoshana Weinberg, Nathan Redekop, Pat Andress accounting@matrixgroupinc.net Director of Marketing & Circulation Shoshana Weinberg Sales Manager – Winnipeg Neil Gottfred Sales Manager – Hamilton Brian Davey Matrix Group Publishing Inc. Account Executives Rick Kuzie, Brian MacIntyre, Brodie Armes, Christopher Smith, Courtney Green, David Roddie, Declan O’Donovan, Jeff Boyle, Jeff Cash, Jim Hamilton, Ken Percival, Monique Simons, Rick Kuzie, Robert Allan, Robert Choi, Ronald Guerra, Wilma Gray-Rose, John Price Layout & Design Travis Bevan Advertising Design James Robinson ©2012-2013 Matrix Group Publishing Inc. All rights reserved. Contents may not be reproduced by any means, in whole or in part, without the prior written permission of the publisher. The opinions expressed in this publication are not necessarily those of Matrix Group Publishing Inc. Cultivating Business Published For: Canadian Association of Farm Advisors P.O. Box 578 Blaine Lake, Saskatchewan S0J 0J0 Toll free: (877) 474-2871 Direct: (306) 466-2294 Fax: (306) 466-2297 Email: info@cafanet.com CAFA’S NATIONAL BOARD OF DIRECTORS BRITISH COLUMBIA • Jim Soldan, The Family Furrow Chilliwack, BC ALBERTA • Sidney Cumming, AccuPro Real Estate and Appraisal Grande Prairie, AB • Janet Nielsen, JRN Consulting Services Red Deer, AB SASKATCHEWAN • André Fagnou, FCC Regina, SK MANITOBA • Myles Pouteau, CAFA Treasurer, Frostiak & Leslie Chartered Accountants Winnipeg, MB • Roger Mills, Manitoba Dairy Farm Management Group Steinbach, MB ONTARIO • Ted Clysdale Peterborough, ON • Amanda Hammell, RBC Royal Bank Hanover, ON • George Sinker, George E. Sinker Law Firm Strathroy, ON • Michael Bossy, BNG Group Tillsonburg, ON CAFA Co-Founders: Donna Hastings and Howard Morry2012 - 2013 / www.cafanet.com 7 National Chairman’s Message T here has probably never before been such a need for farm ad- visors as at this present time. Whether it’s providing succession / tran- sition or business / management advice, many Canadian producers are seeking the best possible information to take their business to the next level or for- ward into the next generation. The internet can be a great source of information for anybody or any busi- ness, but those same producers need the guidance of a professional advisor to help disseminate all that information. Although CAFA professionals bene- fit from networking opportunities, they have to be encouraged to make use of their CAFA designate by ensuring that their potential clients are aware of the benefits of using a CAFA profes- sional. This has to be the reason for CAFA membership. Producers are well known for talking to each other (net- working!) and will recommend success- ful components to improve each other’s business. In that instance, farmers are some of the best advisors and the information is free! So, following up from that, if, as an advisor, you have provided favourable and useful advice to a client, it is very likely that you will get a referral. This is by far the best compliment a person can receive. Given the fact that there are networking opportunities for profes- sionals at chapter meetings and con- ferences, etc., it only makes sense to engage in networking with these suc- cessful people. So, what are producers looking for in an advisor? They want professional personnel who are reputable and known to be knowledgeable about their subject of expertise. They want to know that their farm business information will be treated in confidence, that the advisor will be time sensitive in setting and maintaining deadlines, and that they are receiving value from that advisor. So, where is the producer likely to find this type of professional person? By using an advisor that has the CAFA designate, producers will gain the servi- ces of personnel who: • Have the opportunity to improve the level of advice delivered through networking at chapter meetings, at- tending conferences where speakers address topics of common interest and advisors interact with other pro- fessionals and producers. • Have access to educational up- grading from newsletters, chapter meetings, conferences and online resources. • Are required to maintain their certifi- cation through the system of ongoing professional credit requirements. CAFA’s National Mission is to con- tinually improve the quality of advice being given to producers and their fam- ilies, including agribusiness. So, for pro- ducers seeking specialist advice, they can benefit by using a CAFA profes- sional as: • A way to identify farm advisors who have made a commitment to provide quality advice to the farm sector. • An opportunity to network with ad- visors and share information with them. • Dealing with advisors dedicated to the farm sector, who adhere to a professional Code of Ethics and Standards, who agree to meet continuing educational requirements and who maintain Errors and Omis- sions insurance. • Improved quality and level of service. One of the best ways for a profes- sional, whether they are a CAFA member or potential member, to improve that level of advice to producers is to attend the provincial conferences that will provide information on current and local topics as well as the chance to network and interact with other like-minded professionals. To this end, the board agreed to the sugges- tion of the provinces to put on two con- ferences per year. Thus, by using differing locations, it immediately opens up the possibility of easier access for most mem- bers. As well as benefiting from the edu- cational value, this is a great opportunity to accumulate some credits, particularly for those members whose chapter may not be meeting on a regular basis. About 80 per cent of listed advisors have a farming background of some description. This puts them at a huge advantage when working with a produ- cer. The one thing that bugs a producer is talking to a professional who knows very little about the day-to-day run- ning of a farm. The next generation of advisors may likely not have that direct link. It is imperative that we pass on our experience and continue to educate the upcoming advisors. I thank the board for their support during the year, particularly our treasurer whose contribution is invaluable. Also, as ever, thanks to Liz for the immense amount of work she contributes on be- half of our organization. Roger Mills, CAFA National Chair If, as an advisor, you have provided favourable and useful advice to a client, it is very likely that you will get a referral. This is by far the best compliment a person can receive. 8 The Canadian Association of Farm Advisors2012 - 2013 / www.cafanet.com 9 W elcome to our fourth edition of Cultivating Business. In this edition you will again see the impressive—and growing—list of CAFA members, along with a couple of useful articles. You are also going to see that CAFA has stepped up its educational offerings, such as chapter meetings and conferences, as we are committed to being the go-to associa- tion for qualified and experienced farm business management and farm family professionals. This is CAFA’s Vision Statement: “CAFA is the nationally recognized organization for professional farm ad- visors. CAFA advisors maintain high standards while continually increasing farm advisory skills and knowledge intended to provide measurable value to their farm clients.” What makes this vision statement so incredibly relevant now? We know what the statistics look like for farm transfers and know that the complex- ity of some of these demand profes- sional advice and guidance. We know that the next phase of farming is go- ing to be as much about good busi- ness management as it is about good agronomics and a lot of it will be out- sourced. We know that global oppor- tunities and technology have opened up limitless possibilities for agriculture in this country. All this creates a demand for good farm advice, so why is the uptake not as strong as it could be? Consider the following: In Ontario, the Agricultural Manage- ment Institute (AMI) had Ipsos Forward Research conduct a Baseline Study of Farm Business Management Planning. One of their findings from the focus groups was that they seemed dissatis- fied with the lack of specific farm know- ledge that professionals have and the same has been said in Letters to the Editor in various publications. I have been hearing—from profes- sional farm advisors—that some of the work / files that are brought in to their office are ones that a previous advisor has made a mess of. This creates more costs for the clients and looks bad on advisory services. From my perspective, there are lots of great farm advisors with skills and knowledge specific to their area of practice and with plenty of wisdom to share. In fact, I would bet that amongst our members, over 80 per cent have a direct personal connection to the farm— many still farm or their spouse farms or they came from a farm. A professional who understands the business of farm- ing really is the very definition of a “farm advisor”. Now that is worth talking about. Much of this farm specific knowledge has come from years of experience. The demographics for advisors are similar to farmers—graying and many set to retire. We need to ensure that the experience and wisdom is passed on so that there are great farm advisors in the future as well. If you have young advisors in your office, bring them out to CAFA meetings and get them involved. It is time to start telling your clients (and prospective clients) about CAFA and all the resources you have access to through membership; to education about their industry and to the differ- ent services our other members can provide. It’s time to start reaching out to your colleagues who work with farm families and businesses and let them know about the standard CAFA is setting and how that will benefit the industry. There is a big need for credible, qual- ity farm advice and CAFA members can deliver one-on-one or as a collaborative team. Members have something to be proud of because they are all helping to grow CAFA, a grass roots organization to benefit the industry. Let’s not keep it such a secret! A call came in to the office just as this short article was being proof read. It was a son calling in as his parents are selling the farm. The father has had an account- ant for years but for the farm sale, they want an advisor who specifically knows the farming side of things. I told him that he had contacted the right place! As always, sincere thanks to the people and firms that help keep CAFA going: CAFA members, our volunteer board and chapter executives, our na- tional sponsors—FCC, Scotiabank, TD Canada Trust, Farms.com and the FarmMarketer.com—and our Ontario sponsors, Allied Associates and The BC Dairy Directory. Jane Goodall said it well: “What you do makes a difference and you have to decide what kind of difference you want to make.” Liz Robertson Executive Director Executive Director’s Message It is time to start telling your clients (and prospective clients) about CAFA and all the resources you have access to through membership; to education about their industry and to the different services our other members can provide.Next >