Cultivating Business The official publication of the Canadian Association of Farm Advisors 2022-2023 Canada Post Mail Publications Agreement Number: 40609661 With Compliments Of: CAFA: The Most Trusted Advisors in Canada3 CAFA LEADERS 04View from the Chair 05Executive Director’s Message 06Advice from CAFA’s Board of Directors Cultivating Business contents Published By: Matrix Group Publishing Inc. 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FEATURES 08How Farm Management Consultants Can Help You 10Get Your Farm Business Ready for Succession 12Overcoming Adversity CAFA MEMBERS: 2022-2023 14Upcoming Farm Updates 15Join CAFA Today! 162022-2023 Canadian Farm Advisors Resource Guide 34INDEX TO ADVERTISERS Cultivating Business Published For: Canadian Association of Farm Advisors Box 270 Seven Sisters Falls, Manitoba R0E 1Y0 Toll free: (877) 474-2871 Direct: (204) 348-3578 Cell: (204) 340-2500 Email: info@cafanet.ca CAFA’S NATIONAL BOARD OF DIRECTORS Ryan Parker, B.Comm., AACI, P.App., P.Ag., CHAIR Partner, Valco Consultants London, Ontario Catherine McCorquodale, M.Sc., J.D., VICE CHAIR Monteith Ritsma Phillips LLP Stratford, Ontario Thomas Blonde, B.Sc., CPA, CA, TREASURER Partner, Baker Tilly GWD Guelph, Ontario Danielle Wildfong, B.Comm., FEA, SECRETARY Dani Wildfong Coaching Saskatoon, Saskatchewan James Fehr, B.Sc., P.Ag. RBC Vice President, Commercial Financial Services Steinbach, Manitoba Rick Gendemann, CPA, CA Partner, Manning Elliott, Accountants & Business Advisors Abbotsford, British Columbia Kim Gerencser, BAFS, CFP®, PAST CHAIR Regina, Saskatchewan Shannon Lueke, B.Mgt., PAg. Partner and Farm Management Consultant, MNP LLP Humboldt, Saskatchewan Craig Swistun, CIM, RGD, MFA-P Portfolio Manager, Lexicon Financial Group at Raymond James Investment Counsel Toronto, Ontario Sarah Weigum President, Alect Seeds Three Hills, Alberta4 The Canadian Association of Farm Advisors In-Person Focus View from the Chair I write from Ontario where we are enjoying a warm, dry fall that has made harvest enjoyable for producers. The only wet day I can recall was Halloween, which is always handy for us parents who lack the same youthful enthusiasm that our kids have for trick-or-treating in the rain. This past year, as Chair of the CAFA Board of Directors, I have appreciated the knowledge and insight that I have gained from my fellow Board members. I want to thank the Board for their commitment to the organization as we move into this post-COVID environment. A special thanks goes out to Chris MacPhee and Steve McQueen for their valued time on the Board, as well as a warm welcome to Craig Swistun who has just joined the Board. Our Board recently had an in-person strategic planning day, which was held just prior to the annual general meet- ing. Firstly, it was enjoyable for us to meet our out-of-province I am excited for the coming year where we can continue to get together to learn and network with the ultimate aim of helping our farm clients by improving our craft and building our team of advisors. members, and secondly, the meeting was productive and successful on a strategic level. This is in spite of the Chair, since I still think that we need actual video to be “in camera,” and I didn’t reign in the discussion that proposed CAFA con- ferences in Vegas and Nashville. The one major theme of our meeting was that in-person participation is crucial to the organization and to the value proposition for CAFA members. A major priority for the Board is to make sure that our Executive Director, Liz Robertson, has the tools and support available to sustain and increase in-person participation at chapter meetings and conferences. Chapter meetings are crucial to establishing a solid local net- work of advisors, as well as providing an ideal platform for young advisors to learn from our seasoned veterans. Confer- ences, which are also ideal networking spaces, provide top- shelf farm advisory education that was on full display at the recent Farm Tax and Legal Update in Waterloo, Ontario. The other major theme from our Board strategy meeting was the need for all of us to continue to encourage young advisors to become members and leaders in our chapters. Many of us are well equipped to help our clients with succes- sion, so we must implement those same strategies at our local chapters. Strong chapter leadership is essential to this organ- ization, and I want to thank all of you who are or have been part of chapter executives. Going forward, it is important that younger members are added to chapter executives to con- tinue the flow of new ideas and energy into our local meetings. I am excited for the coming year where we can continue to get together to learn and network with the ultimate aim of helping our farm clients by improving our craft and building our team of advisors. Online meetings, although handy when our favourite pants didn’t get washed in time, are only an oc- casional solution to in-person interaction. It is the in-person networking and learning that binds us as an organization. I look forward to seeing many of you at a meeting or con- ference soon, whether it be in Red Deer or Vegas! Ryan Parker National Chair CURRENT and CONNECTED Membership in CAFA puts you in the company of some of the best farm advisors in Canada. CAFA is Canada’s only national network of farm advisors. Imagine what you can learn! For more membership information go to page 15 or visit https://www.cafanet.ca.5 Better Together T he past two and a half years have reinforced my be- lief that humans are better together — in every way. We are social animals and are wired for social con- tact for our health, happiness, and success. Technology has been an amazing facilitator to share know- ledge and, to a degree, communication, but I will vouch for the value of in-person over online any day. I live 90 minutes away from my two grandchildren, and we FaceTime or talk on WhatsApp regularly. But nothing compares to going for a visit and getting hugs and playing with them in the leaves or at a playground — the sheer joy of being with them cannot be done online. Even with peers and colleagues, technology has kept folks connected, but I would bet that it has weakened professional (and personal) networks, as nothing beats face-to-face. A solid handshake, eye-to-eye contact, a warm smile — that’s all stuff that can be done only in person. Even remote work, when compulsory or now by choice, can be detrimental to teamwork, a sense of belonging, and of what is going on around us. “People need to come into the office in order to regain a ‘sense of belonging’ and to feel part of something larger than themselves,” said Malcolm Gladwell, the famous author. “It’s very hard to feel necessary when you’re physically disconnected,” he added. “As we face the battle… in getting people back into the office, it’s really hard to explain this core psychological truth, which is we want you to have a feeling of belonging and to feel necessary.” He continued, “We want you to join our team. And if you’re not here, it’s really hard to do that.” When people come together, they can build friendships and develop mutual respect and admiration. It is a much bet- ter place from which to move forward. As farm advisors, you need to come back together to share ideas and provide collaborative solutions for your farm clients. Together with your peers, you have the oppor- tunity to share knowledge, teach skills, provide prac- tical assistance, and connect people with resources and opportunities. Our chapter meetings offer you a way to build a local pro- fessional network, and you get to learn something from the guest speakers. Chapter chairs and the executive put effort into arranging each meeting, so please respect their time and leadership and get to as many as you can. CAFA’s Farm Updates are geared toward improving the CAFA community. There is energy, enthusiasm, and connec- tivity in the rooms. They are not just about technical learning but also about building a strong advisory backbone for the farm community. Presentations, case studies, questions, and discussions all add to improved understanding and experi- ence for everyone. CAFA members are an incredible group of successful and knowledgeable advisors, so get together with other smart people who share your passion for helping farm families and businesses. As the saying goes, “Alone we are smart. Together we are brilliant!” We are better together. Liz Robertson, M.A. Executive Director Executive Director’s Message CAFA insiders Art Lange, P.Ag., is the prin- cipal with AJL Consulting in Sherwood Park, Alberta. For the last 18 years, he has been an independent farm business consultant helping new and existing farm families to plan their futures and to access the necessary financing. Lorne Boyle, James Grieve, and Ashka Wirk are Certified Management Consultants (CMC) and the creators of SuccessionReady — a simple, effective, and real-world ap- proach to succession planning for founder-owned businesses. They can be reached at info@successionready.ca. Learn more at www.SuccessionReady.ca. Karla Rahn, Family Enterprise Advisor, is rooted in agriculture and understands the complex- ities in family-owned farm busi- nesses. She has spent the last 15 years assisting farm families with managing credit obligations and re-structuring loans.6 The Canadian Association of Farm Advisors How important is leadership in advisory services? What can leadership, at all levels, accomplish? Advice from CAFA’s Board of Directors Thomas Blonde, B.Sc., CPA, CA Partner, Baker Tilly GWD Guelph, Ontario Leadership is important in advisory services because you need someone that is willing to take charge to bring farm professionals of all stripes together to provide the depth and breadth of experience that all of our farm clients deserve. Kim Gerencser, BAFS, CFP ® Regina, Saskatchewan People look to leaders when they need answers, when they need direction, and when they need confirmation that the decisions being made are the best ones. No one seeks guidance from fol- lowers. Would you rather be a lion led by sheep, or a sheep led by a lion? For examples of the effectiveness of leadership, look no further than professional sports (team and individual sports alike), global politics, or even your local governments and committees. Bodies with effective leadership are accom- plished, accountable, and admired. Leadership matters at all levels. James Fehr, B.Sc., P.Ag. RBC Vice President, Commercial Financial Services Steinbach, Manitoba Leadership provides the strategy and direction, which in turn helps operations complete their tasks with confidence. By having the right advisor, you have the right direction and strategy! Shannon Lueke, B.Mgt., P.Ag. Partner and Farm Management Consultant, MNP LLP Humboldt, Saskatchewan Leadership in advisory services is critical to growing advisors in their roles. CAFA supports this by providing farm advisors skills and knowledge through training and through its referral networks. As advisors, we are leaders not only to the clients we service but also to the teams we work with. We also recognize that no one advisor or organization has all the skills and expertise to fully support their clients and their team, therefore it is important that we rely further on external leadership networks of other professionals in a multi-disciplin- ary environment. Leadership advisory across all levels fosters an encouraging and empowering environment for everyone involved in the professional network, from administration to senior management. Rick Gendemann, CPA, CA Partner, Manning Elliott, Accountants & Business Advisors Abbotsford, British Columbia Leadership is an important element in the context of advisory services. Clients seeking out specialized advisory services often choose those advisors who have demonstrated leader- ship not only in their area of knowledge expertise but also in their ability to guide and lead clients in the delivery and imple- mentation of their advisory services. In order to attain credibil- ity and recognition, advisors need to demonstrate knowledge leadership in their specific field as well as provide leadership in responding to the needs of their clients. Clients look to their advisors for guidance and leadership to resolve issues and provide solutions to the challenges they face in operating their business. Get Behind-the-Scenes, Members-only Access to videos from past CAFA educational development events. This is ONLY available to members so join now! Members!7 Catherine McCorquodale, M.Sc., LL.B. Monteith Ritsma Phillips LLP Stratford, Ontario Clients are always looking to advis- ors to provide leadership and direction. Strong leadership in an advisor assists in moving matters quickly and efficiently to resolution. Ryan Parker, B.Comm., AACI, P.App., P.Ag. Partner, Valco Consultants London, Ontario Strong leaders are the ideal farm ad- visors because farmers need advisors with good leadership characteristics: vision, creativity, and intelligence. As leaders in their own disciplines, CAFA advisors are able to collaborate in order to provide customized solutions for each farm client. Sarah Weigum President, Alect Seeds Three Hills, Alberta Leadership can actually give people freedom. While advisors don’t choose the path their clients take, they can use leadership skills to make various options clear to the people they work for. Clarifying the options takes a hurdle out of the decision-making process. Craig Swistun, CIM, RGD, MFA-P Portfolio Manager, Lexicon Financial Group at Raymond James Investment Counsel Toronto, Ontario Being perceived as a leader in your area of expertise enhances your ability to attract and retain clients who require your professional advice. For profession- als, I tend to equate leadership with knowledge and expertise. Existing clients may take some comfort knowing that their professional advisors are always training, striving to improve. For new clients, perceived leadership helps differentiate your advice from your competitors. In this context, though, leader- ship is about how you are perceived in the marketplace. Ul- timately, nothing replaces a warm referral from a satisfied client. Danielle Wildfong, B.Comm., FEA Dani Wildfong Coaching Saskatoon, Saskatchewan The practice of leadership has always fascinated me since having the opportun- ity to grow up in a family enterprise that ran multiple business with many employees. I believe taking a servant leadership approach is one of the most effective leadership paths in advisory services, as it’s our job to lead others to a common goal with the client’s interest first. https://cafanet.ca/cafa%20directors Learn more about our Board of Directors at: Connect with CAFA Website: https://cafanet.ca Email: info@cafanet.ca Twitter: https://twitter.com/CAFANET LinkedIn: https://www.linkedin.com/in/ liz-robertson-m-a-4bb74848 The Canadian Association of Farm Advisors F arm management (or business) consultants are rela- tively new to the farm scene in Canada. They started to appear after Agriculture and Agri-Food Canada (AAFC) passed the Farm Debt Mediation Act in 1997. From 1998 to 2009, AAFC offered the Farm Consultation Service and the Canadian Farm Business Advisory Service. These government programs helped to foster the era of farm management consultants. It might be said that this development paralleled the shift from farms with relatively low capital investments to larger farms that require much more capital and other inputs. With larger financial investment comes more risk and a greater chance of financial distress if finances are not managed well. Thus, farmers started to turn to farm management consultants in much the same way as they’ve engaged crop consultants, nutritionists, and other advisors. So what are some of the services that farm management experts provide, and why might you use one? If you have an accountant, lawyer, and banker on your advisory team al- ready, what can a management consultant provide? They usually start by doing a business overview, defining your goals and then preparing a business plan. Many farmers rely on lenders for financial advice, but remember that lend- ers’ loyalties are to their employer. Accountants usually deal with historical data such as last year’s income tax return or fi- nancial statement, and thus may not be good at preparing for- ward-looking projections unless they have specialized training in that area. How Farm Management Consultants Can Help You By Art Lange, P.Ag., AJL Consulting9 A business plan has three main parts 1.Where you have come from — a history of the farm; 2.Where you and your farm family/team are now, financially, operationally, marketing-wise, risk management-wise, labour and machinery-wise, and so on; and 3.Where you and your family/team want to be in the short term (one to five years) and long term (five to 10 years). By examining your present financial situation and entering asset and liability information into an analysis program, the management consultant can get a good idea of your starting financial situation by calculating various business ratios. They will examine your income (and expense) statement for the last three to five years to see how your operation is trending in actually making money and how much. The next step is to meet with the rest of your family/team, elicit individual goals, develop goals for your farm, and do some forward projections. For example, “what if” you were to buy or rent more land, buy some new(er) machinery, diversify your operation, consolidate debt, sell some assets, or make some other changes? It’s important for you to know how changes in your operation would likely “shake out” before you implement them. It’s also important that you get the rest of your family/team to agree to any changes you contemplate before you implement them. Considering all the options Once you have decided what changes you wish to make to your operation, the management consultant can prepare sev- eral alternative scenarios. This is called sensitivity analysis. For example, what if market prices dropped 10 or even 20 per cent, what if costs rose 10 or 20 per cent, or worse, what if market prices dropped and costs rose? The important thing to know with any of these scenarios is can you still make all your payments on time, have enough money for family/team living expenses, and have a 20 per cent (at least) safety margin in your proposed income? If you need a new loan for a significant new purchase or consolidation, you should have a business plan prepared that provides the three parts mentioned above and the detailed projections for your chosen course of action. Then, present the plan to your main lender and one or two others. Some consultants can even do this for you. By doing this, you are in effect shopping for financial services, which should be no different than shopping for any other farm inputs. So you can see that farm management consultants can perform many tasks for you that you may not have the exper- tise or desire to do yourself. When you enlist them, you are their primary and only interest. They are another one of the advisors you should seriously consider having on your farm team. Art Lange, P.Ag., is the principal with AJL Consulting in Sherwood Park, Alberta. He is a graduate from University of Alberta in agriculture. Following that, he worked in various sectors of the agriculture industry, including the federal and provincial governments and private industry. For the last 18 years, he has been an independent farm business consultant helping new and existing farm families to plan their futures and to access the necessary financing. This article was prepared with inputs from Larry Lindquist, P.Ag. and Larry Morin. Con- tact Art at 780-467-6040 or art@ajlconsulting.ca. This article appeared in Country Guide July 2021. It’s important for you to know how changes in your operation would likely “shake out” before you implement them.Next >