We speak your language

 

Making a living in agriculture has never been more challenging. Profit margins are thinner than ever, and today many members of the younger generation do not wish to take up the torch of owning and operating the family farm. Because most farmers own multiple farms, when the time comes to retire your biggest concern may be determining the most advantageous way to get all your money out of your properties. Another key concern is ensuring you are getting specialized tax advice.


We understand your issues and the complex agricultural tax rules that affect you. We will work in concert with your tax and legal advisors, or can introduce you to trusted professionals. In addition, we track the trends that drive your industry. Most importantly, we have specialized strategies to help you maximize your financial success while minimizing the emotional stress of running and transferring ownership of your agricultural operation.

 

 

Earning trust through sound processes, strategies and services

Before advising you we will get to know you, your family and your business, as well as your needs, goals, financial situation, time horizon, fears, and liabilities.

Once we understand your circumstances, our team can help you to structure a business and investment plan based on the size of your operation, your estimated production, quotas and
growth objectives.

Our targeted conversations can provide guidance to:

  • Help you invest your surplus cash reserves or the proceeds of your farm sale.
  • Invest in proven, well-capitalized businesses with sound management teams.

 

Risk management:

  • Given the often unpredictable nature of your business, it’s important to ensure that you consider investments outside of your farming properties. This will diversify your assets and reduce your overall risk as you prepare for retirement and the potential sale of your business.

 

Cash flow management:

  • Delegate your assets as either core (to fund regular expenses) or surplus (to be invested).
  • Help you plan to fund major capital purchases to avoid dipping into your long-term retirement savings.

 

Tax relief:

  • Explain the requirements and benefits of the farmers’ capital gains exemption.
  • Comply with the complex tax rules that you must follow to obtain this significant tax relief.
  • Plan properly to take advantage of this valuable benefit.

 

Borrowing:

  • As partners, we appreciate the long-term potential of your business and understand how thin farm margins can be.
  • We can introduce you to a seasoned agri-focussed Private Banker or Commercial Banker for operating loans or mortgage solutions.

 

Insurance:

  • Help you mitigate financial risks, minimize your tax bill, maximize your estate for your heirs, and diversify your investment portfolio.

 

Education funding:

  • Advise you regarding funding options that take advantage of government programs and alternative strategies available to agricultural business owners.

 

Real estate:

  • We will work with mortgage and real estate professionals at BMO Private Banking for tailored advice from an agri-lending specialist.

 

Retirement planning:

  • Determine how much you need to set aside to retire comfortably beyond the assets received in any potential sale of your farm properties.
  • Create a customized investment plan that can provide a reliable income stream and cover expenses for the duration of your retirement.

 

Farm succession planning:

  • Together with BMO specialists, help you maximize the value of your farm or related agri-business and transition it tax efficiently to a family member or sell it to a third party. Our services include strategic succession tax planning, farm or business valuation advisory services, wealth planning, and other considerations.
  • Help you to determine the best philanthropic strategies to leave a meaningful legacy.
  • Understand the emotion that can be involved in transitioning a farm property and help you manage the transition with minimal stress.

 

Your personalized, evolving wealth plan


Our team will prepare a complete, customized financial roadmap uniquely designed for your family and farm. We will revisit this wealth plan and provide updated solutions to help you address major life events.

We will consult with other BMO specialists as needed:

 

Your wealth plan can include:

  • Retirement and estate planning
  • Tax minimization strategies

You may have your own your tax advisors; however, we are happy to liaise with them to ensure your assets are managed tax-effectively. If you prefer, we can recommend a trusted advisor.

  • Life and disability insurance
  • Customized Private Banking, Small Business Banking, Private Trust and
  • Commercial Banking services
  • Farm succession planning
  • Philanthropic strategies

 

 

Contact us today if you have any questions about any of this or would just like to have a chat.