6 Follow us on @PrairieFarming Better Farming | September 2024 Beyond the Barn BEEF PRODUCERS URGED TO USE FLOW STATEMENTS Prairie beef farmers know the importance of financial structure when managing their operations. Cash flow statements are a way to help producers focus and improve performance. Farm Credit Canada’s (FCC) Aaron Backman, a senior loans analyst, and Nathan Janzen, a senior relationship manager, provide reasons beef farmers should use cash flow statements. Often beef farmers receive one payment a year, and have to stretch out cash flow over the next 12 months. Having a clear cash flow statement helps manage money most effectively. FCC says farmers should use statements to “understand if purchases and expenses make sense, reviewing your annual financial plan every three to six months to ensure you are still on track and able to make all your purchases and pay your bills.” Cash flow statements also help with capital investment evaluations for expansion, maintenance, and equipment replacement. “Consider whether the purchase would make sense if cattle prices dropped,” explains Janzen. “This helps focus on understanding the risks you’re taking and the possible shortfalls.” The statements also help in making risk-management decisions. “A tractor at an auction may be a great deal, but how many calves do you have to sell out of your bottom line to rationalize that purchase?” Checking cash flow is a way to ensure safer and balanced decision-making. “All decisions you make ultimately have an impact on cash flow. Can you absorb those impacts? Only a cash flow statement can tell you that,” Backman says. They can also help farmers find growth potential. Janzen explains that “statements identify opportunities, noting how it’s important to balance revenue and expense impacts when looking at them.” BF With an overload of work and responsibility during harvest, many Prairie farmers may find themselves struggling with symptoms of burnout. So how can producers avoid burnout? According to Lesley Kelly of Saskatchewan’s Do More Agriculture Foundation, becoming self-aware, reducing your stimulation level, drawing lines of self-respect and prioritizing activities you love are simple ways to combat exhaustion. Becoming self-aware and recognizing the symptoms is the first step. Kelly points out that “basic activities like going to the grocery store or moving a piece of equipment feel overstimulating. We’re quick to ignore these signs, but they’re important alarm bells.” Fourth-generation farmer Sara Wood also points out, “it’s important to identify triggers and symptoms so that they can seek help if needed or take a break before the symptoms get worse.” According to Kelly, reducing your stimulation level is essential to avoiding burnout, as high stress levels can cause problems with decision-making and the inability to relax or sleep: “To prevent being overstimulated, do some exercise or try deep breathing and other relaxation techniques.” Kelly stresses the importance of maintaining personal boundaries. “It takes courage to say no and stick to it without feeling guilty. Your capacity is also going to be different from everyone else’s. Remember that behind every no is a deeper yes, even if that yes is just to yourself.” Burnout can significantly impact both your physical and mental health. Seeking help is the best option to help avoid burnout. Wood says, “you are your business’s No. 1 asset, so it’s important to take care of yourself so you can look after others.” Although harvest can be stressful it is still necessary to prioritize activities you enjoy. “This strategy can help you remind yourself that there’s life outside of your job and the farm. “Take a break, grab coffee with family or friends, go for a walk or a workout, talk to a friend or family, laugh, drink lots of water and pack all the snacks!” BF - Mary Loggan AVOID HARVEST-SEASON BURNOUT Leslie Stewart photo CASH
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