NPR - “BEST PRACTICES IN FARM FINANCING AND MANAGEMENT” TRAINING COURSE

Abstract:

Through its mandate, the Centre d’expertise en gestion agricole (CEGA) promotes the sound management of agricultural businesses. In this regard, CEGA is committed to a wide range of issues, including farm debt in Quebec. CEGA’s implication throughout the management sector has prompted representatives of financial institutions to call attention to the financing of agricultural businesses and the fact that their financial services & funding programs varies from one financial institution to another. The confusion resulting from these mixed signals could influence agricultural business managers to take less than judicious decisions that would consequently affect the future of their businesses. Hence the request by financial institutions to put forth a guide stipulating the Best practices in farm financing.
The Ordre des agronomes du Quebec (OAQ), in collaboration with CEGA, mandated the firm Forest Lavoie Conseil Inc. to produce a report that would identify the main issues regarding farm financing and management, as well as determine the training needs for advisors. A pilot committee comprising of representatives in both the financing and management fields was established to disclose the current state of affairs. All acknowledged that farm capitalization and indebtedness in Quebec had substantially increased in recent years. As noted in the report from 2012 by Forest Lavoie Conseil Inc., “This asset and liability growth has not resulted in the improvement of the competitive capacity of Quebec farms; much to the contrary, it has weakened the financial situation of farm businesses, despite the sharp decline in interest rates”.