| Role | First Name | Last Name | Age | Farming Intent |
|---|
| Asset | Estimated Value ($) |
|---|---|
| Land | |
| Farm Buildings | |
| Farm Residences | |
| Machinery & Equipment | |
| Livestock | |
| Quotas | |
| Inventories | |
| Timber & Woodlot Rights | |
| Other | |
| Other | |
| TOTAL FARM ASSETS (A) |
| Debt Type | Amount ($) | Nature of Security |
|---|---|---|
| Mortgages | ||
| Bank Loans | ||
| Bank Overdraft | ||
| Finance Contracts | ||
| Future Tax Liability | ||
| Other | ||
| Other | ||
| TOTAL FARM DEBTS (B) |
1. Estimate values based on recent appraisals and/or information from other farmers and business contacts.
2. List machinery and equipment on a separate sheet and estimate value by talking to your local dealer.
3. Write livestock, quotas and inventories details on a separate sheet and estimate value.
4. Do not calculate future tax liability now — it will factor into the sale price to your child(ren).
| Legal Description & Acreage | Registered Owner | Original Cost | Current Value | Date Purchased | Ave 5Yr Yield/Acre | Ave Input Cost/Acre |
|---|
| Description | Registered Owner | Original Cost | Current Value | Date Purchased |
|---|
| Description | Registered Owner | Original Cost | Current Value | Date Purchased |
|---|
| Description | Registered Owner | Original Cost | Current Value | Date Purchased |
|---|
| Description | Registered Owner | Original Cost | Current Value | Date Purchased |
|---|
| # | Strategy | Notes / Applicability | Priority |
|---|---|---|---|
| 1 | Outright Purchase | ||
| 2 | Partial Purchase w/ Financing | ||
| 3 | Rollover | ||
| 4 | Federal Financing Programs | ||
| 5 | Financial Institutions (Banks) | ||
| 6 | Other |
| Expense Category | $/Month Now | $/Month in 10 Years |
|---|---|---|
| Automobile | ||
| Debt Payments (Principal & Interest) | ||
| Food | ||
| Gifts & Donations | ||
| Insurance | ||
| Medical, Health & Dental | ||
| Property Maintenance | ||
| Property Taxes | ||
| Utilities | ||
| Investments | ||
| Vacation & Travel | ||
| Long-Term Care / AL | ||
| Other | ||
| (A) Total Expenses |
| Income Source | $/Month Now | $/Month in 10 Years |
|---|---|---|
| Canada Pension Plan | ||
| Old Age Security | ||
| Investment Income | ||
| Rental Income (after tax) | ||
| Other | ||
| (B) Income Total | ||
| Payments Required from Farm, net of tax (A)−(B) |
1. Estimate monthly living needs immediately after retirement and in ten years' time.
2. At 2% annual inflation, income needs in 10 years will be ~25% higher. At 4%, ~50% higher.
3. Include a cushion for unexpected expenditures — security and comfort are the foremost concern.
4. Payments required from the farm are the amounts after deducting income tax on all income.
| Item | Now | 3 Years Out | 5 Years Out | 10 Years Out |
|---|---|---|---|---|
| 1. Farm's annual income | ||||
| 2. Add: Depreciation (A) | ||||
| 3. Deduct: Principal payments / Capital expenditures / Cushion (B) | ||||
| 4. Cash Flow Available for Your Needs + Tax on Farm Profits (A)−(B) |
1. Review financial statements for the last fiscal year. Adjust for unusual incomes or expenses.
2. In a proprietorship, use income after deducting salary paid to the child(ren) taking over.
3. In a partnership, start with income allocated to you; ignore profits allocated to the successor.
4. For future years, account for increased profits as existing debt is gradually repaid.