Provincial Ag Scene - Spring 2016

May 1, 2016

Don't Sell the Farm

Canada has 160 million acres of farmland. For many years, land was passed along from parents to children who continued to farm it. Today, as more and more farm children choose other careers, less and less land is being kept in the family.

More than 70% of Canadian farmers are 50 or older. With those farmers continuing to age, the number of farms changing hands is increasing. In many cases, the land is simply sold, but not because the owners or their heirs need the money. It just seems to be the only low-stress alternative as non-farming children often lack the time or expertise to properly and profitably manage their land.

We believe that succession planning should include an easy way for heirs to hold on to the family farm with the confidence that their asset is protected. That option is now available to Canadian landowners.

FNC Serecon provides peace of mind to people who take ownership of family farms but don't live on the land. We actively manage the relationship between the owner and the tenant to ensure proper land stewardship and fair rental rates.

The same factors leading to farm ownership transfer have been prevalent in the Midwest United States for generations, and millions of acres there are looked after by farm managers.

FNC Serecon is a joint venture partnership between two employee-owned organizations, both highly regarded in agriculture. Serecon is a Canadian agricultural consulting and appraisal firm providing services nationwide since 1991. Farmers National Company is the leading farm and ranch management firm in the US providing services since 1929.

"Serecon is excited about this joint venture with FNC. It enables us to extend our valuation and management services to existing and new clients, leveraging the expertise and experience of FNC with our skills and knowledge of Canadian agriculture," said Bruce Simpson, Senior Director at Serecon.

"The needs of US and Canadian landowners are similar when it comes to the services necessary to manage a farm," said Jim Farrell, Farmers National Company President and CEO." Our farm management services will translate very well to Canada."

"This partnership provides landowners with a way to ensure that their assets are being managed in a responsible way using a proven system, ultimately ensuring the long-term profitability of the land for future generations." said Simpson.

Managing Your Farm for Profit

Knowing that your land is profitable to own and that the property is well taken care of are both vital to you as a farm owner. But having knowledge of what is a fair rent for your farm is not easily ascertained unless you have the necessary knowledge of farmland leasing. Where do you find rental information for your farm? The professional farm managers at FNC Serecon know the economics involved in determining fair leases within the farm rental marketplace.

Knowing the proper rent and profit from the ownership of your farm is only the beginning of managing your farm for a profit. A good lease with the appropriate terms is crucial in carrying out your ownership needs and profit goals. Landowners need lease terms that protect their rights, guarantee the rental payments, and protect the land. FNC Serecon knows leasing terms that represent the best interests of the landowner.

A professional farm manager representing the landowner not only brings about the best rental terms for the owner, but also works to protect long-term ownership interests.

Working to improve the long-term value of the land includes ensuring proper fertility and crop production practices are employed by the operator. Soil conservation and land preservation are important to long-term productivity and value of the land. Farm managers at FNC Serecon understand each landowner's goals in preserving their land asset and improving long-term value. We can help by managing your land profitability and provide peace of mind that it is being well cared for.