FCC AgriSuccess March 2017

AgriSuccess
M A R C H 2 0 1 7
FARMBOYS
FARM
SUCCESSION
SKIPS
A GENERATION

MARCH / APRIL | 2
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PRODUCER PROFILE
Farmboys: Farm succession skips a generation
Bryan and Kyle Maynard of P.E.I. bought
a turn-key farming operation from their
grandfather, overcoming some challenges
in the process.
IN THIS EDITION
FEATURES
9
Hiring a consultant: 5 questions you need to ask
The questions may seem basic, but producers don’t always ask.
10
Use on-farm trials for informed decision-making
On-farm trials can be used to answer many important questions
as long as the trials are properly designed.
COLUMNS
3
YOUR MONEY
How will you spend your
retirement years?
You need to know what you want
to do in retirement to calculate how
much money it’ll take.
8
GAME CHANGERS
Big farm-input players getting
even bigger
What producers should know about
the pending mega-deals.
14
CASE STUDY
Good farm succession plans
allow for change
A succession plan is thrown into chaos
when one of the kids unexpectedly
decides to farm.
16
ASK AN EXPERT
The ever-changing role of women
in agriculture
Hear from four presenters from last
year’s Advancing Women in Agriculture
conferences.
18
ECONOMIC INSIGHTS
Canadian agriculture is a trading
powerhouse
Three factors that impact Canada’s role
as a leader in world markets.
19
TECHNOLOGY
Cell boosters keep you connected
A cell phone booster might be the
answer to your dropped calls and poor
smartphone performance.
COVER STORY
4
With pride in agriculture and
a positive yet realistic outlook,
AgriSuccess is dedicated to
helping Canadian producers
advance their management
practices. Each edition aspires
to present content that is:
• engaging
• motivational
• innovative
• actionable
Est. 2004, Edition 75
Editor, Kevin Hursh
Original photography by
GregHuszarPhotography.com
Photography and articles may be
reproduced with permission. Please
contact us at agrisuccess@fcc-fac.ca.
Cette publication est également offerte
en français. Consultez fac.ca/agrisucces.
The editors and journalists who
contribute to AgriSuccess attempt to
provide accurate and useful information
and analysis. However, the editors and
FCC cannot and do not guarantee the
accuracy of the information contained
in this journal and the editors and FCC
assume no responsibility for any actions
or decisions taken by any reader of
this journal based on the information
provided.
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AgriSuccess
M A R C H 2 0 1 7

2 | FCC.CA/AGRISUCCESS
“Truth is stranger than fiction,” wrote Mark Twain, and that’s no doubt true when
it comes to farm succession issues. You’d be hard-pressed to invent the complex
family dynamics and financial situations that exist in real life. But we’re going to
give it a try.
Starting with this edition, we’re introducing an article that features fictional
farm families facing real-life succession issues. Our thanks to BDO Canada for
providing these case studies.
Why not just tell the stories of real families? We do that in many of our other
features, but these tend to be successful transitions that didn’t get heated. Not
many of us would like to see the messy side of our family dynamics printed in a
magazine for everyone to see.
Fiction also helps with simplicity. To tell a compelling story and provide useful
succession advice in less than 900 words requires scenarios that are more
straightforward than what typically exist in real life.
Even though the families are fictional, the situations and characters are unlikely
to be as eccentric as many real-life situations. Truth really is stranger than fiction.
Hopefully, you’ll see elements of your own succession situation or that of your
friends and neighbours within these stories. And hopefully, there will be nuggets
of information you can use.
Dabbling in fiction is new for us, so the feature is likely to evolve a bit over time.
Let us know what you think of this approach and if you have any suggestions,
feel free to pass them along.
As always, we welcome all your feedback and story ideas. Email kevin@hursh.ca
or tweet @kevinhursh1. n
FROM THE EDITOR
KEVIN HURSH, EDITOR / Kevin is a consulting
agrologist, journalist and editor based in
Saskatoon, Sask. He also operates a grain farm
near Cabri, Sask., growing a wide array of crops.
hursh.ca
CONTRIBUTORS
KIERAN BRETT / Kieran is an Alberta-based writer
who’s been covering agriculture-related topics,
from production to finance to marketing, since
1989.
ALLISON FINNAMORE / Allison is a freelance
agricultural journalist and social media enthusiast
based in New Brunswick. She is the editor of FCC
Express and contributes to publications nationwide.
Finnamore.ca
PETER GREDIG / Peter has a background in
agricultural communications and is a partner in
mobile app development company AgNition Inc.
He farms near London, Ont.
LORNE MCCLINTON / A writer, journalist and
photographer, Lorne divides his time between his
office in Quebec and his Saskatchewan grain farm.
LYNDSEY SMITH / Farm writer and ag
communicator with a love of social media, Lyndsey
often writes about the complexity of farming and
the interplay between farmers and consumers.
Fictional family,
real-life situation

MARCH 2017 | 3
My father sold his dairy operation when he
turned 64, but actively continued to grow small
grains and oilseeds with me on our farm near
Yellow Grass, Sask., until he turned 80.
Decades of milking left him with a pair of bad
knees that made walking painful. As a result,
he had little interest in travel. He occasionally
attended the Royal Winter Fair in Toronto,
went to farming conferences and tradeshows,
and visited family and friends. His favourite
recreational pastime was reading.
On the other hand, my great aunt Jenny sold
her ranch in central Florida after the death of her
parents. Excellent health, deep pockets and no
dependents allowed her to indulge in her love
of travel for more than forty years.
My father and my great aunt chose to spend
their retirement years in vastly different ways,
requiring very different income levels.
It’s important to know your retirement goals
and how you plan to fund them.
“The first step is to brainstorm a bit with your
spouse about what each of you might like to do
when you retire,” says financial writer,
broadcaster and author Bruce Sellery.
Couples might have different dreams. A husband
might prefer to stay close to home. His spouse,
on the other hand, might want to travel and see
all the sights they were too busy to see when they
were fully engaged with the farm. If they have
divergent goals, they’ll need to hash out
a compromise.
Having these types of conversations starts to
make retirement more tangible, Sellery says.
They create the clarity people need to calculate
the cost of their retirement.
Start by determining how much income you’ll
need for day-to-day living. You can find all kinds
of retirement income calculators with a Google
search. After that, work out how much extra
you’ll need for your special goals.
Taking action to make your retirement goals
a reality is a big step for some, Sellery says.
A farmer’s sense of identity is often tied to the
job. So if you’re no longer a farmer, you need to
redefine who you are as a person – and that takes
a lot of courage. n
YOUR MONEY
VIDEO: Reinvent Your Retirement fcc.ca/Reinvent
How will you spend
your retirement years?
BY LORNE MCCLINTON
A farmer’s sense of
identity is often tied to
the job.
Bruce Sellery
recommends you ask
yourself:
How do I want to
spend my time?
What experiences
do I want to have?
What kind of hobbies
do I want to pursue?
Where do I want to live?
What kind of home
do I want to have?
What kind of
contribution do I want
to make to my family?
BRAINSTORMING YOUR
RETIREMENT
OPTIONS?

PRODUCER PROFILE
FARMBOYS
FARM
SUCCESSION
SKIPS
A GENERATION
BY ALLISON FINNAMORE

MARCH 2017 | 5
Knowing an opportunity when you see
it is key to building a successful business,
say two Prince Edward Island brothers.
So are preparation and confidence in
your skills.
When the opening came to purchase their
grandfather’s farm near Summerside and
walk into a turn-key potato operation,
Bryan and Kyle Maynard knew it was
their chance.
“When the opportunity came up, we were
both excited to take this on,” 31-year-old
Kyle says of the 2015 farm purchase.
The choice was either buy the farm or let
it go. “We figured it could be something
we’re good at.”
“I feel we had the expertise and
experience to give us the right mix for
success,” adds Bryan.
The brothers grew up on the farm,
and Kyle went on to become a licensed
machinist. He eventually moved
from the shop into the office of an
aerospace company where he became
a customer service manager, dealing
with international clients and gaining
financial experience.
Meanwhile, Bryan, who is 33, continued
to work alongside their grandfather,
gaining invaluable first-hand experience.
Call to action
Their grandfather owned Arlington
Farms and was a processing-potato
grower for Cavendish. His decision,
at age 80, that it was time to retire was
a call to action for the brothers. They
immediately went to work creating their
business plan, securing financing and
putting opportunity to work for them.
With product from the previous year still
in storage – and the planting for the year
ahead already laid out – Bryan and Kyle
found themselves in a good position.
“We were in a unique situation where
we hit the ground running,” Bryan says.
“We had a contract to sell to the same
client. A lot of the same employees were
staying around.”
Taking over the operation was fast
once the sale was complete, but moving
from inception of an idea to purchasing
the farm to completion of the sale was
anything but. Negotiations began in
PRODUCER PROFILE
WHY FARMBOYS FARM
“You can’t do this because you think you want to. . .
only do this if you can’t stand not to.”– Bryan Maynard
Hear their story from the Farmboys themselves in North Cape Coastal’s YouTube video.
Staff are on site and ready to go at sunrise

PRODUCER PROFILE
2014 and went on for about four months before an
agreement was reached between the brothers and
their aunt, who was negotiating the sale on behalf
of her father.
Transition planning
“It was a very open transition,” Kyle recalls. “The
biggest thing we had to figure out was, is this even
possible? Can we service the debt?”
By the time they reached an agreement, they
owned 70 per cent of the assets of Arlington Farms.
Farmboys Inc. – a name that’s a tip of the hat to their
father Kent, who died in a farming accident in 1993 –
was formed. “That’s what our father raised – two farm
boys,” Bryan says.
Today’s farm is 3,000 acres, with about 1,400 acres
of potatoes, 1,200 acres of cereals and the rest going
to forages.
Even after the negotiations were over and the
papers signed, the transition to full ownership
was a challenge, Bryan says. Arlington Farms
owned the stock from the previous growing year
and still had employees on its payroll to handle that
crop. Meanwhile, Farmboys was working towards
full operation.
Part of the sales agreement, however, provided
a detailed transition plan that outlined just about
every scenario the two farms could encounter
during the changeover. The agreement even
covered snowstorms.
“It would have been difficult to get up in the middle
of a snowstorm and wonder who is responsible for
cleaning the yard. It can be an issue if you let it be an
issue, but stick to your transition plan and it’s OK,”
Bryan says. He notes the plan outlined which farm
staff did the clearing, who paid the employee’s wages
and who paid the tractor’s fuel when the yard was
cleared of snow.
Farm adjustments
In the business they created, Kyle and Bryan
say they’ve deliberately adjusted their cropping
plan. Bryan had noticed over the years that about
25 per cent of the crop was always a challenge –
whether during planting, harvest or sometime in
between. When the Maynards were going through
the purchasing process, they opted to reduce
potato production by 25 per cent, making the
operation tighter.
“It seemed like Arlington Farms was always about
25 per cent too thin,” Kyle says. “It would require
investing in more equipment as well as more help
to remain Arlington Farms size.” Farmboys wasn’t
ready for either yet. “In the years to come, we’ll
definitely look at growing. But now, this is much
more manageable. It allows us to focus on quality
rather than quantity. If we want to grow, I feel we’ll
be more groomed for that later.”
Bryan and Kyle say they were fiercely competitive
with each other as children, whether it was during
a hockey game in the yard in the winter or playing
baseball in the summer.
Today, as they walk the same farmyard they played
in, they’ve redirected their competitive natures to
take on potato farming. n
Follow Allison: @A_Finnamore
A conveyor frames some of the potato storage

MARCH 2017 | 7MARCH / APRIL | 7
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GAME CHANGERS
Business consolidation is an ongoing
process, but the mega-deals announced
in agriculture over the past year have
been unprecedented.
A merger between Dow Chemical and
DuPont. ChemChina is purchasing
Syngenta. The takeover of Monsanto by
the German chemical giant Bayer. The
merger of Agrium and PotashCorp. All
are multi-billion-dollar deals.
Producer groups have raised concerns
over the consolidation, citing less
competition and reduced incentive for
innovation. Others say the mergers and
acquisitions will generate efficiencies
and create players better able to fund
research and development.
Although his company is involved in
facilitating more mid-market-sized
business deals, Andrew Muirhead of
Origin Merchant Partners based in
Toronto understands the incentive for
companies to become larger.
“It’s a scale game and companies are
always looking for growth,” Muirhead
says. “This is especially important for
publicly traded companies and particularly
if returns for shareholders have been
disappointing like they have been for
Agrium and PotashCorp.”
To counter commodity price declines and
increased economic volatility, companies
look to merge with other players to add
new products and geographic reach.
However, there are a number of
important points to remember regarding
the mega-deals.
As the mega-deals are reviewed by
regulatory authorities, producers and
producer groups should ask questions and
make their concerns known. There’s a great
deal of uncertainty over how each deal will
proceed and the process will take time.
REGULATORY APPROVALS
Competition bureaus in many nations will
need to approve each deal. Having so many
big deals pending could bog down regulators
and slow the process.
DIVESTITURES ARE LIKELY
To gain approval for a deal, it’s common to
see certain assets sold to a third party. For
instance, some observers have speculated
that major ag chemical companies might not
be allowed to own two herbicide tolerant
canola systems.
BIG PLAYERS CAN LEAVE A VACUUM
According to Muirhead, growth for the sake
of growth hasn’t always been a good strategy.
“Big companies sometimes ignore market
opportunities that smaller players can exploit.”
Smaller companies can often be more nimble
and go after niches that aren’t being serviced.
MARKET POWER CAN BE FLEETING
“More potash production by other companies
in other nations is one of the forces driving
PotashCorp and Agrium into each other’s
arms,” Muirhead says. In the crop protection
industry, chemical patents eventually expire.
Meanwhile, smaller companies continue to
grow and innovate.
AGRICULTURE ISN’T UNIQUE
Business consolidation is happening in many
other sectors. It just so happens that many
of the blockbuster deals currently pending
are within agriculture. n
Big farm-input players
getting even bigger
BY KEVIN HURSH
“It’s a scale game and companies are
always looking for growth.”

MARCH 2017 | 9
FEATURE ARTICLE
As Canadian farms have become larger and arguably more
complex to run, a new class of agricultural consultants has
emerged. These include not only lawyers and accountants but
advisors in areas such as production, marketing and technology.
Terry Betker is one of them. President and CEO of Backswath
Management Inc., he and his team advise farm family clients in
areas such as finance, human resources and succession.
If you’re in the market for a consultant, Betker believes it’s
worth taking the time to ensure you get the right person for
you. Here are five questions to ask.
WHAT ARE YOUR QUALIFICATIONS? “You
want to know how much experience they have in their
field,” Betker says. “It’s not impolite to ask. It’s just
good business.”
CAN YOU PROVIDE REFERENCES? Ask for names
of producers your prospective consultant has worked with.
This might seem obvious, but Betker himself is asked for
references only occasionally. “You don’t have to call all the
references that are provided,” he says. “But if you ask for
names and don’t get any: red flag.”
DO YOU UNDERSTAND WHAT I NEED?
Misunderstandings around scope of work can be
a cause of friction between farmers and consultants.
Betker recommends the two parties draft, review and
sign an engagement letter with all the details.
WHO ELSE IS ON YOUR TEAM? If you meet one
person for the interview, but someone else comes to the
farm, it could get the project off to a rocky start. Ask for
names and qualifications of all personnel who would be
involved. “You want to know who’s doing your work,”
Betker says. “If the farmer knows who’s on the team,
they don’t have to wait if the primary contact is travelling
or not available. They can call another member of the
team and have their questions answered.” That’s also
important in the event the primary contact retires, leaves
the firm or is unable to continue working.
WHAT WILL THIS COST AND WHEN DO I PAY? Ask
what the consultant will charge, and at what points you’ll
be expected to make an interim or full payment. A farmer
can ask to hold back a portion of the fee – perhaps 15
per cent – based on successful completion of the project.
“While generally common in industry, a holdback is not
that common in farm management consulting,” Betker
says. “For larger consulting projects, it wouldn’t offend
me at all to be asked.”
Make sure you know not just the amount of the fee, but
the basis for it. Is the fee calculated hourly, by project, by
farm unit managed or some other way? “It’s important
for the farmer to try to avoid equating value with
time spent,” Betker says. “Value and time often aren’t
connected in a linear way.” n
HIRING A CONSULTANT:
5 questions you
need to ask
BY KIERAN BRETT

FEATURE ARTICLE
USE ON-FARM TRIALS FOR
INFORMED
DECISION-MAKING
BY PETER GREDIG AND KEVIN HURSH
Whether you grow corn, canola, forage crops or
vegetables, you likely have unanswered agronomic
questions – questions that properly designed on-farm
trials might answer.
But you need to do the trials properly and follow
through, or it’s likely to be a waste of time.
Would a fungicide application increase yield and
preserve crop quality? What’s the optimum seeding rate
for this crop? Does granular inoculant perform better
than peat inoculant applied to the seed? What about
that brand new foliar fertilizer?
Each company wants to shine the best possible light on
its products, so company information has to be taken
with a grain of salt.
On his farm near Carman, Man., Brent VanKoughnet of
Agri-Skills does field-scale trials for various companies
as well as trials to satisfy his own curiosity. He’s a
big advocate of producers doing the work to reach
conclusions for their own farms.
“What in management planning drives you crazy? What
do I need to do to be smarter in the next production
season?” VanKoughnet asks. He advises producers to
turn their top questions into replicated trials.
In Ontario, Peter Johnson has spent his entire career
challenging farmers to prove him right or wrong on
their own farms. After many years as the wheat lead
with Ontario Ministry of Agriculture, Food and Rural
Affairs and now as the resident agronomist with
RealAgriculture.com, Johnson is convinced it has
never been easier to plan on-farm trials and harvest
meaningful data.
“It drives me nuts when I hear farmers or see tweets that
announce huge yield differences resulting from field-to-

MARCH 2017 | 11
FEATURE ARTICLE
field comparisons that aren’t valid. We shouldn’t
be making major decisions based on poorly
designed or random comparisons,” Johnson
says. “We can do better.”
Technology makes it easy
“A well-calibrated yield monitor essentially
turns a farm into a research centre, but farmers
have to set up the project properly to get
anything useful out of it,” Johnson says. “It’s
not about splitting a field in half or comparing
one whole field to another. It’s all about
replication, and with RTK auto steer and
accurate yield monitors it’s much easier today
than in the past to do it right.”
For his part, VanKoughnet prefers to back up
yield monitor data with weigh wagons, and
fortunately more grain carts now come with
weigh systems. As well, regular GPS auto steer
without RTK can be adequate if the combine
header is narrower than the seeder or sprayer.
Both researchers say the secret is replications;
at least three or four per location. By using A-B
lines on GPS guidance, it’s possible to do each
treatment separately. For example, one treatment
would be done first on A-B strips 12, 15 and 18.
The rate or treatment is adjusted and applied on
strips 13, 16 and 19. The third treatment goes on
strips 14, 17 and 20. This creates a trial that is
easy, but generates more meaningful results than
splitting the field into thirds for each treatment.
Field strips versus plot trials
Most research is done in small plots with
numerous replications. While that approach
has advantages, VanKoughnet believes long
skinny strips running the length of the field
help incorporate and manage variability.
However, care should be taken to avoid old
field edges and fence lines. Wheel tracks from
other operations can also skew results. You need
to build trials with approaches that remove
potential bias.
“If you have a three- or four-bushel-per-acre
improvement it may seem small, but if it’s stable
across all replicates, it’s real,” VanKoughnet says.
“A big yield improvement on just one strip
might not be.”
Johnson is a big believer in collaborative
learning. “Find four or five other farmers in
your area and have everyone follow the same
trial plan and share the data at the end of the
year. The Iowa Soybean Association on-farm
network posts suggested trials on their website,
and they often get over 100 producers who
will follow through and share the results. That
is powerful.”
The Manitoba Pulse Soybean Growers
Association has a similar approach with its
on-farm network. Producers can participate
in specific trials, with established protocols
organized by a dedicated research partner.
Test your precision ag prescription
An increasing number of growers are working
with agronomic companies to apply variable
rates of fertilizer and sometimes seed. Soil tests,
aerial photographs and topographical maps are
among the factors used to build the variable rate
prescriptions.
VanKoughnet recommends replicated trials
to test whether the variable rate prescription is
actually making you money. Just do strips with
your non-variable regular rate of fertilizer or
seed and compare them to adjacent strips that
use the prescribed variable rate.
“I’d recommend going with a company that has
a verification strategy,” VanKoughnet advises.
“Why invest in a technology unless there’s
proof?” n
Follow Kevin: @kevinhursh1
Follow Peter: @agwag
4 THINGS
TO CONSIDER IN
ON-FARM
REPLICATED STRIP
TRIALS
Keep it simple
Compare only two or
three treatments in a
single replicated strip trial.
Replicate treatments
Replicate each treatment
a minimum of four times
in the trial.
Maintain consistency
Keep all management
practices, except those
used in treatments,
the same.
Avoid bias
Use randomization
whenever possible.
Source: Iowa Soybean Association
1
2
3
4
VIDEO: Getting the Most from Field Manager PRO 360 fcc.ca/FMPRO360

IN THE OFFICE
ONE-PAGE BUSINESS PLAN
Farmers with a written business plan average a
return on assets five times higher than those without
a plan. It might be as short as one page, but it should
include these four elements:
Stated direction: A vision or goal for the farm
business.
Identified trends: Both positive and negative trends,
external from the farm, which could or will impact
the farm business.
Action items: What needs to get done to achieve
the vision for the farm? Who is going to do what,
and when will it be done by?
Selected financials: Financials and ratios that are
meaningful, measurable, and able to be monitored and
compared over time (profit per acre, pounds of gain
per day, liquidity).
AT A GLANCE
Source: Rob Hannam, Synthesis Agri-Network, and PledgeToPlan.com
Source: Farm Management Canada
Only 26% of farms
have a written business plan
Did you know?
COMPILED BY LYNDSEY SMITH | Find Lyndsey across social media platforms as @realloudlyndsey
HUMAN RESOURCES
4 THINGS YOU
CAN DO TO
ATTRACT
TOP TALENT
Think big picture. The right hire could fill multiple
roles, but only if you understand the needs of the
farm. Spend time clearly identifying all the work gaps
before hiring staff.
Use your personal networks. Don’t
underestimate your own people’s reach. Use social
networks and word of mouth to speed up the search
(bonus: staff found this way already have a reference
you know).
Promote your farm’s competitive edge.
Farming competes with several industries for top
talent. Make sure you identify why someone would
want to work for you; be proud of what makes your
farm a great place to work.
Stress feedback and communication. Provide
formal and informal feedback, offer praise and
appreciation when deserved, and commit to making
staff feel comfortable talking to the boss (you or
otherwise).
Source: Evan Carmichael and Ontario Ministry of Agriculture, Food
and Rural Affairs

MARCH 2017 | 13
INDUSTRY SNAPSHOT
STORAGE TRENDS
Commercial grain storage capacity in Western Canada is finally
trending upward again after the severe decline of the early 2000s.
While the number of licensed primary elevators remains steady, total
capacity is now about equal to the early 1980s (around 7 million
tonnes), with more elevators to be completed in the coming year.
STAGGERING STAT
Only about 7% of the land base in Canada is used for
agriculture production. Of that, about 70% is suitable for crops.
Source: Statistics Canada
AT A GLANCE
Opportunity is missed by most
people because it is dressed in
overalls and looks like hard work.
Thomas A. Edison
7%
3 THINGS TO KNOW ABOUT
THE CANADIAN LAMB INDUSTRY
It’s the only red meat with an increasing
consumption trend in Canada
Ontario is Canada’s largest producer and
accounts for 54% of processing
Canadian imports were $173 million
in 2015 – 59% of which came from New Zealand
Source: Ontario Sheep Marketing Agency
4,000,000
2,000,000
0
Man. Sask. Alta.
Source: Canadian Grains Commission
Licensed primary elevator capacity
(tonnes)
2012
2016
One of Canada’s premier
financial authors and
broadcasters, Bruce was
a speaker at FCC Forums
across Canada in 2016-17.
Learn a five-step approach
to money management
with his book Moolala.
See Bruce’s tips for brainstorming retirement
options in Your Money on page 3 of this issue.
BRUCE SELLERY
MONEY MANAGEMENT

$
$
$
CASE STUDY
GOOD FARM
SUCCESSION
PLANS
ALLOW
FOR CHANGE
THE SETUP
Bill and Donna had done it right. They had worked hard and built
a successful mid-sized grain operation. But it was apparent early
on that taking over the farm was not in the cards for their three
children (two daughters and a son). The interest wasn’t there, and
the kids had moved away from the farm after university to build
their lives.
With the next generation out of the picture, Bill and Donna
started thinking about a wind-down plan in their early 50s. Both
enjoyed good health and were still enjoying actively farming.
The plan was to retire at 60 and live in a small house newly built
on a lot severed from one of the properties.
For tax reasons, the farm was set up as a corporation and all the
equipment was owned by BD Farms Inc. When the time came,
the plan was to have an auction and disperse the equipment.
All owned farmland was held outside the corporation to
maximize capital gains exemptions. Bill and Donna planned
to sell one property upon retirement to provide a comfortable
nest egg. They were in no hurry to sell the rest of the land, and
planned to use land rental income to supplement their investment
and savings.
A comprehensive will established how the estate would be
executed. The land would pass to the three children – who were
made aware of the plan – and all were comfortable with the way
the plan was laid out. Life was good.
THE WRENCH
Then their son Brandon and his new wife Amy, at Thanksgiving
dinner at the farm, announced they wanted to come back to run
the farm and raise a family. There was talk of converting the farm
The following fictional case study, the first in a series
from BDO Canada, provides insight into how a
rock-solid retirement plan can be tested when family
dynamics change. The intent is not to provide a definite
correct course of action, but rather to illustrate that the
process can be emotional and complex, and highlight
tax and planning issues to consider.

MARCH 2017 | 15
CASE STUDY
They wanted to ensure their
plan was flexible enough to
accommodate another change.
PODCAST: Host Kevin Stewart learns why being open to change is essential for success. fcc.ca/OpenToChange
to organic and even starting a bed and breakfast. With their
retirement date only a few years away, Bill and Donna felt like the
rug had been pulled out from under them. Brandon’s sisters Kate
and Diane were not impressed with Brandon’s about-face, and felt
Amy’s urban background didn’t provide a realistic perspective on
running a farm business. Fireworks ensued.
Brandon’s new-found interest in farming meant major changes to
Bill and Donna’s retirement plans. It would also mean significant
change for Brandon’s sisters down the road. While they were
reluctant to discuss it with Brandon, one of Bill and Donna’s
immediate concerns was to make sure the family farmland would
not fall into Amy’s hands if she and Brandon’s marriage were to
end. The tidy retirement and succession plan was getting messy
in a hurry.
Through discussions with their accountant and a lawyer, they
were able to draft an agreement clearly defining what would
happen in the event of death, divorce, insolvency, disability or any
other situations that would necessitate another shift in the plan.
CHANGING DIRECTION
Bill and Donna held a family meeting, and it was agreed that
Brandon would have the opportunity to slowly integrate into
the existing operation. The biggest challenge facing both families
was how to make an operation that had supported only one
family now support two. Aging equipment would need to be
replaced, and there was still the matter of where Brandon and
Amy would live. The severance of the lot and construction of
the new retirement house would have to happen years sooner
than planned.
They decided to sell the home property to Brandon and Amy for a
slightly discounted price, taking into account the Income Tax Act
that enables transfer of farm property to the next generation,
potentially eliminating tax through the intergenerational
provisions and capital gains exemptions. Brandon and Amy sold
their house in the city and borrowed from the bank to provide
enough money for Bill and Donna to build their retirement home.
Bill and Donna took back a 15-year mortgage for the remainder
owing on the farm.
In exchange for Brandon and Amy’s labour, Bill and Donna
provided the existing equipment for them to use. Bill proposed
that custom work could help update the equipment and provide
some additional income for Bill and Donna. The organic farm and
bed-and-breakfast proposals were put on the back burner until
there was some financial stability, and Brandon and Amy
learned the ropes.
Bill and Donna were pleased that the operation would have a
chance to live on for another generation, but they weren’t willing
to completely sacrifice their retirement plans. They also wanted to
ensure their plan was flexible enough to accommodate another
change of heart by Brandon and his wife. They needed certainty
there was a mechanism that would get them out of the new
succession plan – before they even got in. It took time, and it
involved some difficult discussions, but Bill, Donna, Brandon and
Amy, and both sisters agreed it was a necessary exercise to
complete before any further problems arose.
Bill and Donna also updated their wills so Brandon would receive
the shares of BD Farms Inc. and their daughters would receive
the new house. While each of the three children would receive
some of the land, the wills made provisions for Brandon to have
a chance to buy it at fair market value from his sisters if he chose.

THE LESSON
Things don’t always go according to plan. People,
situations and expectations can change – sometimes
quickly. A succession plan is rarely written in stone.
It’s more often a living, evolving and sometimes complex
undertaking. n

BDO Canada LLP is a national accounting and advisory firm serving
producers from offices across Canada.

@BDOCanada_Ag | BDO.ca

ASK AN EXPERT
The ever-changing
role of women in
agriculture
Advancing Women in Agriculture conferences are planned
for March 6 and 7 in Calgary, and October 30 and 31 in
Niagara Falls. Some previous conference speakers were
asked to respond to this question:
How is the role of women
in agriculture changing, and
what are the best ways to
capture the opportunities?
Agriculture, period, is changing!
However, there’s also a strong
recognition that the presence of
women is increasing. We’re starting
to see greater presence of women in
senior leadership roles, serving on
boards, and I guess you could say
we have started to change what the
“old boys’ club” looks like.
I want to be very specific. Throughout
my career, although I felt I was
working in a male-dominated
industry, I never let that be an obstacle.
Rather, I always tried to view it as an
opportunity – recognizing it was so
important to prove myself on merit
and ability.
Personally, as a mother, wife and
employee, I believe it’s absolutely
imperative you choose the right
partnerships. Without the right
partnerships and alignment on
expectations, I believe it is impossible
to manage it all. Even at the best of
times, the choices are difficult.
Don’t lose sight of the importance
of good friends, mentors, leadership
development, collaboration and
authenticity. Finally, be passionate
about what you’re doing and own
your choices.
CHANTELLE DONAHUE
Vice-President, Corporate Affairs,
Cargill Canada
Q

MARCH 2017 | 17
ASK AN EXPERT
Today, women dominate as
graduates from agriculture faculties
and agri-related fields of study. This
creates a more diverse talent pool
for employers to choose from. In
addition, most employers today are
committed to creating inclusive and
diverse workplaces. How can women
capture the many opportunities that
agriculture offers?
• Focus on your current role and
relentlessly deliver on the projects
in front of you.
• Never doubt you can take on a
“stretch role” to learn and grow.
• Don’t be embarrassed if you don’t
know everything. If you want to
learn, you have to be willing to show
vulnerability and ask questions.
• Speak up when you have a
perspective or experience to share.
• Exude confidence even when you
don’t have it.
• Walk into a room as if you own it.
• Seek out mentors.
Women face additional pressures at
home. Get extra help for the second
shift (wife, mother, grocery shopper,
supper cooker, chief homework helper,
lunch packer and bedtime reader,
not to mention house cleaner and
laundry guru).
TRISH JORDAN
Director, Public and Industry Affairs,
Corporate Engagement,
Monsanto Canada
Today’s agriculture industry is
changing incredibly quickly, and new
opportunities are coming up every day.
Whether it’s in production, marketing,
trade, education or finance, we need
enthusiastic, talented people who
can help our industry meet its full
potential. And considering women
have always been vital contributors
to family farms, it’s not surprising
that we’re also taking leadership roles
in all these areas.
I think it’s the best of both worlds.
Women bring a deep passion to their
roles – and a fresh perspective on how
to move our industry forward.
This is an amazing time for Canadian
agriculture. The role our industry plays
in feeding a growing global middle
class cannot be overstated. Collectively
and individually, we need to put our
best foot forward.
My advice? For men or
women, it’s the same:
The most important thing
is to constantly look for
chances to expand your
skills and competencies.
The opportunities will
arise. Be ready for them!
SOPHIE PERREAULT
Executive Vice-President
and Chief Operating Officer,
Farm Credit Canada
I wouldn’t say the role of women in
agriculture has changed over the years.
I’d say that we are taking on more of
a leadership role – from being the
farmer’s wife who took care of the
animals on a daily basis to managing
the farm full time.
I attended the Advancing Women in
Agriculture conference in Toronto,
where there were more than 430
women in attendance who were
involved in the ag industry: from
farmers, bankers, crop and equipment
specialists and cash croppers to CEOs,
and everything in between!
With agriculture accounting for 6.7
per cent of Canada’s GDP in 2013 and
one in eight jobs being in agriculture,
there are so many ways for women to
capture the opportunities in our
industry. Some just might have to step
out of their comfort zones and put
themselves out there!
Farming is such a rewarding career.
I look after a laying hen and pullet
farm, and it’s the greatest feeling
knowing the eggs my hens produce
every day are enjoyed by people all
over Canada. n
TONYA HAVERKAMP
Egg Farmer, Listowel, Ont.

In 2015, Canada was the world’s
fifth largest exporter of agriculture
commodities, a status we’ve held for
years. Being a leader in world markets
gives Canada bragging rights. But
that leadership is also important to
the long-term health of the industry.
Being a big-time trader gives us a
competitive boost when disruptions
occur in global trade (for instance,
when trade disputes arise or when one
supplier’s commodities become relatively
more expensive for countries to import).
This happened last year when U.S.
wheat exports declined and Canada
was able to pick up the slack.
There are a number of factors that
make Canadian agriculture a trading
powerhouse.
Competitive advantages
• Canada can fill gaps in supply because
we have a diversity of commodities
available and the well-developed
infrastructure to store and deliver it.
• Canada’s agriculture exporters benefit
from well-developed trade relations
with some of the world’s largest
importers (e.g., the U.S., China and
Japan).
• Our political and economic stability
and the quality of our commodities and
products can all boost our trade with
new/emerging trade partners.
Reliance on the U.S.
All the above points matter, but our
ranking as the world’s fifth largest
exporter is in large part due to our
proximity to the U.S., the world’s
largest single-country market, and the
integration of the two economies.
Diversifying Canada’s exports will
mitigate the risk of disruptions in global
markets, and will enable us to take
advantage of possible trade opportunities
in non-traditional markets. China is
a good example of a growing market,
and individual European countries may
provide more growing opportunities as
the new political landscape unfolds.
Growing demand for food
World economic growth has slowed, as
has export growth of many commodities.
However, while the shape and sources
of new demand may shift in the new
economic climate, export leadership
will become increasingly concentrated.
The Organization for Economic Co-
operation and Development projects that
the top five exporters of each agriculture
commodity will account for at least
70 per cent of total exports in 2025.
Canada should be one of those top five
for a number of commodities.
For more on Canadian agriculture
trade, download the FCC Ag Economics
annual report on trade: Canadian
Agriculture’s Productivity and Trade at
fcc.ca/AgEconomics. n
FCC AG ECONOMICS
Get regular updates and unique perspectives on national
and global economic events that impact Canadian
agriculture.
fcc.ca/AgEconomics
ECONOMIC INSIGHTS
Canadian agriculture
is a trading powerhouse
Canada was the
world’s fifth
largest agriculture
exporter in 2015
Share of top
10 agriculture
exporters, 2015
Source: UN Comtrade
figure 1 figufigure 5
USA 14.8%
China 7.0%
Netherlands 6.4%
Brazil 6.2%
Canada 5.7%
Spain 4.3%
Mexico 2.8%
France 3.9%
Australia 2.9%
India 3.5%
Other 42.6%

MARCH 2017 | 19
TECHNOLOGY
I can’t think of anything more frustrating
than a dropped call. For those who live
and farm in areas with perennially weak
mobile connectivity, it’s a serious problem.
It’s not just the phone. Most of the
functionality the smartphone offers
is compromised when the signal fails.
Cell boosters or repeaters can help by
amplifying the signal. It must be stressed
that these devices cannot create a signal
where none exists, but they can often take
a weak, single bar and boost it to a usable
three- or four-bar connection.
It’s fairly simple to source and install a
cell booster in your truck, car, tractor, etc.
Ideally, you would select a model that can
be moved from vehicle to vehicle. Most
have a magnetic antenna that is mounted
to the roof of the vehicle. With a cradle-
style booster you insert your smartphone
into a cradle and use hands-free gear or the
speakerphone option on the phone. The
disadvantage of this type of booster is that
only the phone in the cradle benefits from
the signal boost. Those riding with you will
not benefit. There are wireless models that
enhance and broadcast the signal within
an area so multiple phones can benefit, but
they tend to be more expensive.
If you’re like me and have limited home
Internet and Wi-Fi options, you can
install a cell booster for your house, shop,
barn or other buildings to maintain
mobile connectivity so you don’t have
to step outside to use your smartphone.
Installation involves putting up an external
receiving antenna on the side or roof of
the building to capture the existing signal
and send it, via cable, to the booster or
amplifier mounted inside. The boosted
signal is then transmitted throughout
the building via a second antenna.
Depending on the size of the building
and the construction materials, you may
need numerous antennae to keep pushing
the signal to all parts of the structure. In
general, the bigger the coverage area, the
more expensive the booster.
As with most electronic devices, there
are numerous buyer’s guide and “top ten”
product reviews available, so it’s fairly easy
to do some research on what model makes
the most sense for your situation.
Cell phones communicate with cell towers
on different frequencies, so before you
buy a booster you need to know which
frequency your cell phone uses. Your
carrier can help you with that. Make sure
the booster you buy is compatible with
your mobile carrier and that it covers
multiple frequency bands including 800
MHz, 1900 MHz, 2G, 3G and 4G.
Prices range from under $200 for a single-
phone cradle booster to several thousand
dollars for a commercial-scale wireless
booster that can service dozens of phones
and cover an entire property. You can
check products and prices at stores that
provide electronics and/or cell phones. n
Cell boosters keep you connected
BY PETER GREDIG
Wireless models enhance and broadcast the signal
within an area so multiple phones can benefit.
READ MORE about the latest Canadian Radio-television and Telecommunications Commission ruling on Internet speed and
performance in Closing the Broadband Gap at CRTC.gc.ca.

FROM FCC
Flexible financing key when acquiring equipment
In farming – as in any business – managing costs, maintaining cash flow
and understanding tax implications are crucial in running a successful
operation. When decisions involve farm equipment and machinery,
producers from every sector can face the same question: How do I know
if I should buy or lease?
The short answer is, it depends.
Leasing pros and cons
Leasing tends to have lower annual costs – freeing up cash flow – and
contrary to what many believe, lease financing is available for both new and
used equipment. There’s usually lower up-front cash outflow than a purchase
down payment, and most producers can write off 100 per cent of the lease
payment. At the end of the lease you won’t own the equipment, but a lease
removes ownership risk if the equipment devalues. On the down side, hours
of use (before penalty) are limited, and payments are subject to GST/HST.
Why buy?
For producers who are focused on building asset equity, purchase may be
the better choice. There’s often a thriving market for like-new or slightly
used equipment at reasonable prices – a benefit whether you’re looking to
buy or sell. You can typically write off interest payments and capital cost
allowance as expenses for tax purposes. Terms do tend to be longer than
leasing – up to seven years for used equipment and 10 years for new –
which can tie up cash flow and commit you to a piece of equipment for
longer than you’d like.
Get pre-approved
Ask your lender about being pre-approved. FCC Equipment Financing,
for example, offers pre-approval for both lease and purchase financing,
so you know your budget and terms right up front.
There are many myths out there about equipment financing, so be sure you
do your homework, investigate all your options and get professional advice
from someone familiar with your operation before you close the deal.
Buy or lease?
VIDEO: Buy or Lease Farm Equipment: Which Option is Right For You? fcc.ca/Flexibility

MARCH 2017 | 21
Save dollars
and make
sense
With accounting software built for agriculture
Keep your business on track and on budget with AgExpert Analyst – do everything
from basic bookkeeping to GST returns, inventory management, payroll, forecasts,
automated or customized reports, and more.
fccsoftware.ca | 1-800-667-7893
MARCH / APRIL | 21

Return undeliverable copies to:
Farm Credit Canada
1800 Hamilton Street
Regina, SK S4P 4L3
Publications Mail Agreement
No.40069177
For subscription changes call 1-888-332-3301
Be somebody who does something.
Be an agvocate.
Learn more at AgMoreThanEver.ca.
- Andrew Campbell, Agvocate
Dairy Producer
“To the consumer,
our story doesn’t
exist until we tell it.”

FCC AgriSuccess March 2017

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FCC AgriSuccess March 2017