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Thoughts on Succession Planning at Between Generations
Between Generations is a succession planning seminar for professionals held annually across Alberta. The focus of Between Generations 2004 was on succession planning strategies, how different business structures are used as tools in succession planning, and a transfer of knowledge on the technical and human dynamics that are involved in farm succession. This year’s seminar also included speakers on the Agricultural Policy Framework as well as an overview of the agricultural industry in Alberta.
Merle Good’s presentation “Choosing the Right Business Arrangement” and Elaine Froese’s “Discussing the UndiscussabullTM” were crowd favorites. Many Edmonton attendees were pleased to attend a second day and hear Dr. John Fast. Participants expressed a real appreciation for the interactive approach he used.
Although the Between Generations 2004 seminar had lower attendance (51 in Calgary, 34 in Red Deer, and 32 in Edmonton) than in previous years, the evaluation results indicate those attending were more than satisfied with the seminar’s content.
Alberta Consultants Use ABA
Agriculture Business Analyzer (ABA) is a financial analysis tool designed for reviewing up to 5 years of historical financial data and preparing a financial plan for the upcoming year. The program calculates the key ratios for past and projected income and financial statements, and compares the ratios to industry benchmarks.
Since spring there have been beginner and advanced training ABA workshops for the consulting and supporting industries across Alberta. The response to these workshops was very favorable. All but one participant in the ABA workshops plan to use ABA or recommend it to their clients.
If you don’t have the ABA software yet, go to Ropin’ the Web at: www.agric.gov.ab.ca/business/aba/aba.html and download it free of charge ABA version 2.5 and ABA Version 2.5 CFBAS are now also available.
For consultant support of the ABA contact:
Larry Lindquist
Ph: (780) 483-3055
E-mail: lindql@shaw.ca | Craig Smith
Ph: (403) 626-3362
E-mail: smithcc@telusplanet.net |
For producer support of the ABA contact the Ag-Info Centre toll-free at 1-866-882-7677 (ask for Ted Nibourg or Dale Robinson).
The Consultants’ take on CropChoice$
CropChoice$ is a decision tool for identifying, measuring, and managing crop risk. The software program uses a scenario analysis to look at the effect of different risk management strategies such as crop diversification, crop insurance, spring price endorsement, and share rental agreements.
Consulting and supporting industries were exposed to CropChoice$ at three ABA workshops in Spring 2004. The workshop evaluation results indicate that the consulting industry sees significant value in the program but have several suggestions for improvements to the next version due in early 2005. The biggest changes pushed forward are to include irrigation, forages, and livestock, and to incorporate the CAIS program in the scenario analysis. Participants also suggested ways to make the software more user-friendly.
CropChoice$ is available free of charge on Ropin’ the Web at www.agric.gov.ab.ca under the subsection ‘Calculators’.
Have you considered AgriProfit$ for you and your clients?
AgriProfit$ is a cost and return research program that establishes benchmarks for production costs in Alberta. The program works by splitting the participating farm into enterprises for unit cost analysis. By participating in the program, farm managers receive cost and return information for their farm operation, benchmark comparison data, and the AgriProfit$ newsletter. The overall analysis offers critical decision-making information, such as focusing the participating farms on profitability (Should I?) rather than affordability (Can I?).
AgriProfit$ information sessions were held with the consulting industry in Edmonton and Lethbridge in Spring 2004. Session evaluations were very positive. Many of the consultants not only saw a good fit for AgriProfit$ but have since signed a contract to deliver the service to their own clients. The information sessions also had an educational component, and the topic content was very well received. Nearly all the participants ranked the day well worth their time.
Alberta Financial Survey Results
A financial survey was completed in January 2004 with 330 producers representing the farm community in Alberta. The results from the survey would indicate that less than one-in-five producers have a written business plan, less than half wrote an annual budget, break-even analysis, or a cash-flow analysis in the past 12 months. The survey found that most producers (96%) produced a balance sheet in the past 12 months; about half were connected to the Internet, and one-in-three use accrual accounting.
The survey highlighted that almost all producers (96%) were aware of the Canadian Agriculture Income Stabilization (CAIS) Program while only about one-in-five were aware of the Canadian Farm Business Advisory Service (CFBAS). This may indicate significant potential uptake in the CFBAS as producers become aware.
For more detailed results from the survey contact Jeff Ward at (403) 556-4212 (Dial 310-0000 for toll-free access outside Edmonton) or e-mail: jeff.ward@gov.ab.ca.
The Agricultural Policy Framework (APF)
A FEDERAL-PROVINCIAL-TERRITORIAL INITIATIVE | |
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