Small investment may yield big returns
Are you in the market for some professional assistance
to develop a succession plan? Maybe you are thinking
about expanding or diversifying your farm business?
With the Canadian Farm Business Advisory Services
(CFBAS) program, you can now have a specialized
business consultant help you assess your financial
position, develop business plans and prepare action
plans. Best of all, it only costs $100.
To qualify, your gross farm sales have to be $10,000 or
more and you need to live in one of the provinces that
has signed on to the Agriculture Policy Framework (APF).
Through the CFBAS, which is part of APF’s Renewal
component, the federal government will provide up to
five days of private sector consultant services valued
at $2,000.
Before they access the services, producers first need
to contact a program officer either over the phone or
in person to determine which services are the best fit
for their specific operation. Producers can then choose
a consultant from a qualified list provided by the CFBAS.
FARM BUSINESS ASSESSMENT
The CFBAS program is divided into two sections –
a farm business assessment and the development of
a specific action plan. Following an assessment of the
farm business, a producer will receive a business profile,
a statement of assets and liabilities, a farm business
ratio analysis, an income and expenses statement for the
previous three years and other farm business-related
information. This service will give producers up to
three days’ worth of consulting.
Following the initial assessment, producers can access
two days’ worth of consultation to assist them in
reviewing options to increase farm profitability and
develop a plan to implement the specific option. This
service will provide a cash-flow financial plan, option
projections and a written report. Entire cost for the
producer is a $100 fee paid to the consultant.
Additional services available through the CFBAS include
specialized business planning as well as planning and
assessment for value-added enterprises. Consultant
costs up to $8,000 for the specialized business planning
will be shared on 50/50 basis between the governments
and producers. Costs for the value-added enterprise
service have not been determined as of yet.
Producers can use each of the CFBAS services once in
the program’s five-year period which ends in 2008.
For more information, www.agr.gc.ca/ren/cfbas
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