I did not say I needed $150 to cover expenses although I would challenge you to look at your numbers to see if you can operate you farm for less than $250 per acre when all is included (depreciation, reasonable management wage etc)
Cash costs are one thing but overall profitability is another.
I was shown that $140 per acre reference margin would allow my operation to remain comparable to my history which has been strong and key word, stay in the black. With a excel spreadsheet tool, he showed me how quickly the impact of a lower reference margin had on the profitability of my farm and vice versa, how $180 (our 2010 actual) was a significant advantage.
I don't lease any equipment other than a few odd rental pieces, the majority of land is owned, minimal debt, spouse works so we only take about $50,000 a year from the business. The next operator will be different and it may not work.
As far as fees, its a fee per service payable as the work starts or is complete. Some years our corporations are $2000-$2500 (each), agristability is usually $1000 (each), personal tax with 2 kids is $450. I know what a few friends pay with smaller public accountants and MNP is not any more. We have good computerized records which I know helps.
The biggest difference is I make a point to get in an see my guy to go through the information. He admits to me that at times they get too busy and therefore they are not always able to do the things they want with their clients. Because he farms, May is a tough month to get together as well.
Yes, I am very pleased because I know I am getting something no one else provides or can provide. And when they can give me re-assurance as to where I stand in a year like this, its worth a few hundred bucks more.
My suggestion to anyone and you yourself, go and talk to them for an hour. They will give you that and show what they have to offer as I have had a couple friends sit with them this past year. Both of them are clients in 2010
Cash costs are one thing but overall profitability is another.
I was shown that $140 per acre reference margin would allow my operation to remain comparable to my history which has been strong and key word, stay in the black. With a excel spreadsheet tool, he showed me how quickly the impact of a lower reference margin had on the profitability of my farm and vice versa, how $180 (our 2010 actual) was a significant advantage.
I don't lease any equipment other than a few odd rental pieces, the majority of land is owned, minimal debt, spouse works so we only take about $50,000 a year from the business. The next operator will be different and it may not work.
As far as fees, its a fee per service payable as the work starts or is complete. Some years our corporations are $2000-$2500 (each), agristability is usually $1000 (each), personal tax with 2 kids is $450. I know what a few friends pay with smaller public accountants and MNP is not any more. We have good computerized records which I know helps.
The biggest difference is I make a point to get in an see my guy to go through the information. He admits to me that at times they get too busy and therefore they are not always able to do the things they want with their clients. Because he farms, May is a tough month to get together as well.
Yes, I am very pleased because I know I am getting something no one else provides or can provide. And when they can give me re-assurance as to where I stand in a year like this, its worth a few hundred bucks more.
My suggestion to anyone and you yourself, go and talk to them for an hour. They will give you that and show what they have to offer as I have had a couple friends sit with them this past year. Both of them are clients in 2010
Comment