Cultivating farming’s cerebral side

WINTER DOWNTIME

labour, and it’s all stuff that makes up what it means to live in rural Canada.

I don’t see my yard as a sea of possible calamities, but being aware of potential scenarios helps in thinking about how to properly allocate the lump sum that will have to last until next fall.

You’ll drive yourself to the edge of reason if selling at the high point is your goal. I sold when I thought the time was right. Soybeans were trading at $12.56 per bushel at the time, which is a good price and one I feared wouldn’t rise. Three days ago, they were $13.

This is a world I’m still not entirely used to; a world where I could have made $4,000 by waiting a week before selling my crop. And I’m only dealing with small amounts. For a farmer with 2,000 acres of soys, that commodity price difference could represent up to $35,000.

But waiting isn’t always an option. Bills need to be paid. Cash flow plans need to be put in place. Some farmers intentionally sell small amounts at a time to space out the money coming in. Others operate differently, but they all have a plan.

Between budgeting for the unexpected costs of life and running a farm and ensuring there is money for the known expenses, there is lots to learn.

Companies, commodity groups and other organizations utilize winter to engage with farmers on these issues and many more, refreshing and updating them on issues such as commodity marketing, budgeting, staffing, asset management and production tips.

When a new combine runs at $750,000, knowing how to properly service debt, account for depreciation and have a detailed handle on your books is paramount. These events, often daylong workshops, happen in winter and they take place in towns and communities across Canada.

For many agriculturerelated groups, summer is the time for research and development, and winter is the time to share those results with farmers, helping them prepare for the following growing season.

Organizations receive direction from their farmer-run boards over winter. They have their AGMs at this time. Agriculture-related conferences and fairs take place between January and April.

By spring, the entire agricultural network across Canada has had ample opportunity to enter the new growing season a little smarter than the year before.