Financial Modelling II


One day or less
Less than one week

Financial Modeling is a consulting and planning process which integrates a producer’s personal and business financial information, and can test a variety of financial strategies such as business restructuring, acquirement, exit, succession and tax minimization plans and their potential impact upon the producer’s future standard of living and net worth.

Training is provided to producers wishing to improve their financial skill set and is based upon the reports generated by the Financial Modelling process. Financial Modelling I provides background information on the reporting produced by the financial models. Financial Modelling II provides supplementary training blocks that focus upon topics, concepts or strategies that the consultant and producer have agreed require greater clarity and understanding. Training blocks are provided in two hour sessions, customized to the producer's personal financial environment.


Business structures:

  • Proprietorships, partnerships, corporations and holding companies.
  • Taxation of personal income vs corporate income.
  • Shareholder compensation strategies.
  • Dividend income vs wages & bonuses, impact on RRSP contributions and CPP benefits.
  • Timing the extraction of shareholder loans, wages and or dividends.
  • Share issuance strategies to maximize compensation options.

Tax deferral and tax minimization strategies:

  • Marginal tax brackets and indexing.
  • Income splitting with spouses and children.
  • Tax-efficient extraction of holding company assets.
  • Tax free transfer strategies of operating and holding company assets to estate beneficiaries.

Personal Tax Deferral:

  • Personal tax deferral with RRSPs, IPPs, Family IPPs, RRIFs, TFSAs, Universal Life Insurance products.
  • Making the most of RRSP deduction limits; timing of RRSP contributions.
  • Mini RRIFs and pension credits.
  • Intergenerational family farm rollovers.
  • Capital Gains Exemptions, Alternative Minimum Tax and AMT tax credits.
  • Protecting the Capital Gains Exemption; land rent vs crop share.

Protecting farm assets from Death, Disability, Divorce and Disputes:

  • Family trusts.
  • Holding companies.
  • Pre-Nuptial agreements.
  • Wills and Estate Planning.
  • Testamentary trusts.
  • Preferred shares and will planning.
  • Shareholder agreements.

Personal Entitlements:

Canada Pension Plan;

  • Starting benefits early vs late.
  • Determining optimum ages to stop making CPP premium contributions.
  • Value of indexed benefits.
  • Self-employed, CPP contributions past age 65, post retirement benefits and break-even periods.
  • Child rearing drop out provisions.

Old Age Security;

  • Thresholds and claw-backs.
  • Value of indexed benefits.
  • Would deferring receiving OAS benefits to a later age be to your advantage?

Off farm Pension Plans;

  • Defined benefit plans.
  • Defined contribution plan.
  • Individual Pension Plans.
  • Structuring Indexed annuities as pension plans.

Off Farm investing;

  • Investment portfolios; understanding investment risk, risk tolerance.
  • RRSPs, RRIFs & Self Directed Accounts.
  • Annuities.
  • Individual Pension Plans.
  • Tax Free Savings Accounts.
  • Registered Education Savings Plans.
  • Registered Disability Savings Plans.
  • Minimum investment return requirements.
  • Dollar cost averaging.
  • Retirement and reverse dollar cost averaging.
  • Correlations between inflation and fixed income investments.
  • Time value of money (present value vs future value).

Farm Business Risk Management:

  • Crop Insurance.
  • AgriStability.
  • AgriInvest.
  • Correlations between business loan interest rates & inflation.

Personal Risk Management:

  • Life insurance and the Present Value of Human Capital.
  • Insurance benefits and the Time value of money (present value vs future value).
  • Life insurance strategies and succession planning.
  • Disability and Critical Illness insurance.
  • Workers Compensation for farmers.
  • Private Health Services plans.
  • Loans; correlation between inflation and interest rates.

Financial statement analysis and financial ratios:

  • The value of understanding statement analysis when communicating with lenders and partners.
  • The basics of Accrual and Cash Basis Accounting.
  • Understanding your Income Statement.
  • Understanding your Balance Sheet.
  • Understanding your Cash Flow Statement.

Liquidity Ratios including;

  • Current Ratio, Acid Test, Working Capital Ratio.

Solvency Ratios including:

  • Debt to Asset Ratio, Equity to Asset Ratio, Debt Service Coverage Ratio.

Succession planning: 

  • SWOT analysis in succession planning.
  • Ensuring family harmony; Working with family.

It’s all about communication;

  • Structured family business meetings.
  • Professional respect.
  • Shared visions.
  • Understanding strengths of individual family members.
  • Conflict resolution.
  • Outside advisors.

Transfer of control and ownership;

  • Establishing and agreeing on goals.
  • Setting timelines.
  • Who has the final say?

Estate planning:

  • Quantifying sweat equity.
  • Identifying risk in succession planning.
  • Valuing gifts to non-farming children.
  • Division of estate assets and the meaning of fairness to non-farming children.
  • Time value of money and estate division.
  • The use of Family trusts in succession planning.


$275 per hour plus travel.

Target Audience:

Producers interested in tax minimization and business re-structuring strategies as they relate to their personal financial environment.

Producers interested in integrating personal retirement planning with farm exit and/or succession planning.

Producers wishing to improve financial management skills and their understanding of financial reporting to better communicate with lenders, accounting professionals and partners.

Recognition Provided:


Method of Instruction:


Since financial modeling prepares reports based upon a producer’s private personal and business financial information, training is delivered on-site or on farm, or online if a producer's computer hardware & connections allow.

Attendees include the producer and spouse, and if appropriate successors may be invited to attend.

Instructors include the trainer (with Financial Planning designations and AgExpert Analyst Certified Advisor training, and if required may include a co-trainer such as the producer’s accounting or other financial professional.

Availability of Program:


Agriculture Business:

Field Fruit and Vegetables
Greenhouse, Nursery, Landscape and Floriculture
Other & Non-Traditional
Other Animal
Poultry and Egg
Tree Fruit and Vine

Subject of Training:

Business Planning, Strategy and Structure
Financial Management (includes production economics)
Succession Planning

Language of Instruction:


For program information contact:

Raymond Riel

Last Updated: 2014-12-17

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