500.00

Workshops

General

Financial Management (includes production economics)

English

(306) 722-3884
Visit the program Web site
Kelvin Shultz

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.

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.

Certificate

Internet
On-site/On-farm

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.

Daytime
Evening
Weekends
Year-round

Aquaculture
Cattle
Crops
Field Fruit and Vegetables
General
Greenhouse, Nursery, Landscape and Floriculture
Other & Non-Traditional
Other Animal
Poultry and Egg
Swine
Tree Fruit and Vine

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

English

1-800-589-0980
306-537-6731
Raymond Riel

 

 

1-800-589-0980
306-537-6731
Raymond Riel

One day or less
Less than one week

Financial Modelling 1: Training sessions are scheduled in two, two hour blocks.

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

Financial Modeling generates comprehensive projections that are substantive and auditable, and will sustain the scrutiny of a producer’s accounting professional. Training leverages those reports to illustrate, compare and clarify core financial strategies and their implementation as they apply to a producer’s individual situation.

Training enhances a producer’s financial skillset, empowering producers to make better informed financial decisions, improving their ability to communicate effectively with lenders and accounting professionals, and increasing confidence when faced with significant and complex financial transitions.

2 Hour Block A: Cash Flow Tables

Personal Cash Inflow tables; Taxable and non-taxable income streams; sources and assumptions.

Sources of current and future personal taxable revenues referencing tax returns, farm financial statements, entitlements (CPP/OAS) and personal investment returns and withdrawals (RRIFs, TFSAs etc.). Concepts of income indexing and the implications of delaying or receiving entitlements earlier than age 65.

Reconciling wages (and/or drawings), dividend and/or shareholder loan extraction assumptions detailed in your personal financial models from farming operations, to your farm’s business financial models and pro-forma financial statements.

Review personal current and projected future incomes and discuss how the integration of farm and off-farm taxable income streams (if applicable) combine with non-taxable income cash flows such as redemption of shareholder loans, capital gains dividends, principal withdrawals from savings accounts, and sale of a principal residence to provide cash flows to sustain a producer’s current and future standard of living.

Verify that the “Total Cash Inflows Column” is the sum of all the taxable and non-taxable incomes in the prior columns. Compare the personal cash inflow table income assumptions with the producer’s historical tax returns and farm financial statements, and also review the prepared pro-forma financial statements and tax returns.

Personal Cash Outflow tables; Tax Deductible and Non-Deductible personal expenditures; sources and assumptions.

Review producer’s sources of personal (non-business) taxable-deductible expenditures associated with his/her tax return, such as RRSP contributions, donations, deductible interest on investment properties and tax deductible tuition and medical expenditures.

Discussion of income tax, marginal tax brackets and indexing, tax credits, Old Age Security claw back, and OAS claw back thresholds.

Taxation of dividend income, taxation of interest income and capital gains. Capital gains exemptions, the effect of Alternative Minimum Tax and AMT credits against future tax.

Discussion of non-deductible expenditures such as gifts to family members, additions to savings accounts, personal loan principal and interest payments and life insurance premiums.

Review how personal expenditures (groceries, vacations and personal vehicles, family home improvements/relocations etc.) modelled reconcile with the projected expenditures provided in a budget previously prepared by the producer.

Review concepts of inflation and how that impacts future personal expenditures, and how the models convert those values into “Today dollars” representing their projected future standard of living.

Reconcile Total Cash Outflows Column to the Total Cash Inflows Column; how a producer can review and confirm to their satisfaction all projected personal incomes, expenditures and assumptions, and amounts added to or withdrawn from personal savings and investments.

2 Hour Block B: Savings and Estate Tables

Personal Savings Tables: reconciling contributions and withdrawals demonstrated in the Savings Tables to cash flows demonstrated in the Cash Outflow tables. Review Personal Cash Inflow Tables and assumptions relevant to extracting cash resources (wages/dividends/sale of assets/shares etc.) from farming operations.

Discussion of investment concepts related to dollar cost averaging during accumulating savings phase and reverse dollar cost averaging (sequencing of returns) during retirement and savings withdrawal phases.

Registered Investments: Qualified registered investments, Fundamentals of RRSPs, RRIFS & Pension plans; tax deductible RRSP contributions, tax deferral on investment returns, taxable withdrawals.

Contribution assumptions, rates of return assumptions on registered investments (inflation based or linear), retirement income and withdrawal streams and the effect on rates of return assumptions (reverse dollar-cost averaging). Timing of RRIF/pension withdrawals, the effect of indexed marginal tax rates, RRIFs and minimum withdrawal schedules. Mini RRIFs and pension income tax credits.

Non-Registered Investments: Cash and cash like instruments; contribution assumptions, rates of return assumptions on non-registered investments (inflation based or linear), retirement income and withdrawal streams and rates of return assumptions. Stocks, mutual funds, tax effective investing; Incorporated Mutual Funds & Return of Capital investment funds.

Tax-Free Investment Accounts: Qualified TFSA investments, non-deductible contributions & non-taxable investment income, withdrawal streams and rates of return assumptions (reverse dollar-cost averaging), contribution limits, unused contributions, over contributions, timing of withdrawals, TFSAs and estates; exempt contributions, successor holder and beneficiaries.

Personal Estate tables; reconciling valuations demonstrated in the estate tables to farm financial pro-forma statements (ie: statement of retained earnings), tax on final returns, spousal rollovers of registered investments to surviving spouses, tax deferral on assets.

Estimates of tax on registered investments on final returns, rollovers of qualified farm property, rollovers of family farm shares, life insurance benefits, farm land and other property. Reconciling farm asset values in Estate tables to farm Pro-forma financial statements.

$275 an hour plus travel.

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.

Certificate

Internet
On-site/On-farm

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.

Daytime
Evening
Weekends
Year-round

Aquaculture
Cattle
Crops
Field Fruit and Vegetables
General
Greenhouse, Nursery, Landscape and Floriculture
Other & Non-Traditional
Other Animal
Poultry and Egg
Swine
Tree Fruit and Vine

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

English

1-800-589-0980
306-537-6731
Raymond Riel CFP CLU CHS CEC

Learn how to train your farm workers to work safely with pesticides under the supervision of a Certified Farmer.

$65

Certificate

Classroom
Internet

Daytime

Aquaculture
Cattle
Crops
Field Fruit and Vegetables
General
Greenhouse, Nursery, Landscape and Floriculture
Other & Non-Traditional
Other Animal
Poultry and Egg
Swine
Tree Fruit and Vine

Crop Production
Other

Pesticide Safety

1-800-652-8573
Visit the program Web site
Susan Kelner

Less than one week

Learn about pesticide safety practices and the legislation for selling and using pesticides in Ontario.

$200

Vendors of pesticides in Ontario.

Certificate

Upon successful completion, pesticide vendors are issued a certificate which is valid for five years.

Classroom
Internet

Daytime

Aquaculture
Cattle
Crops
Field Fruit and Vegetables
General
Greenhouse, Nursery, Landscape and Floriculture
Other & Non-Traditional
Other Animal
Poultry and Egg
Swine
Tree Fruit and Vine

Crop Production
Other

Selling and using pesticides in Ontario.

English
French

1-800-652-8573
Visit the program Web site
Susan Kelner, Program Coordinator

One day or less

Pesticide safety certification for Ontario farmers to buy and use Class 2 or 3 pesticides on their farms.  For dates and locations across Ontario, visit the program website: www.opep.ca

 

Learn about integrated pest management, pesticide products, health and environmental risk management, pesticide safety practices and pesticide application.

$105

farmers

Certificate

Upon successful completion, farmers are issued a certificate which is valid for 5 years.

Classroom
Internet

Daytime
Evening

Aquaculture
Cattle
Crops
Field Fruit and Vegetables
General
Greenhouse, Nursery, Landscape and Floriculture
Other & Non-Traditional
Other Animal
Poultry and Egg
Swine
Tree Fruit and Vine

Animal Production
Crop Production
Other

Pesticide Safety

English
French

1-800-652-8573
Visit the program Web site
Susan Kelner, Program Coordinator

Less than one week

2 Days On Site Course Sponsor

 

INTRODUCTION TO DERIVATIVES

 

"How it all works"

 

Grains and Oilseeds are renewable resources with continuously fluctuating global supplies, largely determined by crop production cycles, weather and ongoing shifts in global market demand.  Grain and Oilseed futures and options serve commodity producers, end users and trading intermediaries seeking price risk management and price discovery tools.

In addition, these tools provide market liquidity, providing traders and investors with a vehicle to capitalize on the diverse opportunities agricultural markets have to offer.

8:00- 8:30 Registration Desk Course Sponsor

 

09.00      How it all works (Video) CME Group

 

09.15      Standard form Exchange cleared contracts, definitions and examples

               Futures,Options on Futures, Swaps/OTC

 

10:45 Coffee

 

TRADE GOVERNANCE/CFTC/CLEARING

 

11:00     Introduction to Financial Clearing, “buyer to every seller, seller to every

              buyer”, securing the transaction (Video)

            

              CFTC oversight (Commodity Futures Trading Commission)

              Clearing (Robust Trade Governance)

              Exchange Board of Governors
              Exchange Risk Committees

              Exchange Advisory Committees
              Exchange Default Management Committees

 

12:00     Lunch

 

BILATERAL CASH CONTRACTS vs CLEARED TRADES

 

13:00   Differences between common bilateral cash contract markets and financial

            cleared transactions

 

1.            Buyers Contracts vs Standard Form Cleared Derivatives and OTC contracts
2.            Payment assurance (cash margin accounts/performance bonds/mark to market)
3.            Member requirements (Clearing members FCMs/customers of clearing members)
4.            Clearing Memberships (Guarantors of customer accounts)
5.            Cleared transactions ( A trade guaranteed by a Futures Commission Merchant              that is a Clearing Member of a Clearing House
6.            Acceptable performance bonds
7.            Customer Gross Margin accounts
8.            Segregated funds FCM and its customers
9.            Price Discovery
10.            Transaction Anonymity
11.            Member Discipline

 

14:00                   

              Practical Exercise, Case Study – Cash Margin Transactions through a Clearing

                                                                 member

 

                   Margining a futures transaction ( initial margin/maintenance margin)
                   Margining an options transaction ( option premiums/maintenance margins)
                   Margining an OTC swap

 

15:00 Coffee Break

 

Hedging and Basis – The link between derivatives and cash markets

 

15:15  

 

Regulated Derivatives Exchanges do not in any manner participate in the process of price discovery. The Exchange is neither a buyer nor seller of contracts, nor does it have a role in the price level which prevails at any point in time. The role of the Exchange is to provide a central and governed market place for buyers and sellers of regulated derivatives contracts (futures/options/OTC)

 

Traditional bilateral cash contract markets are unregulated and subject to a high degree of contract variation in both form, terms and settlement process and an absence of trade governance

 

The process of hedging attempts to link existing cash and derivatives markets through the concept of basis

 

15:30 Practical Exercise, Quiz 1 Page 7 and 8 Self Study Guide to Hedging with Grain

                                                                        and Oilseed Futures and Options

 

16:00  Hedging with Futures and Basis

 

           The short hedge (futures)
           The long hedge (futures)
           Basis and the short hedger
           Basis and the long hedger

           Storage hedge (futures)
           Cash for futures

           Concept of carrying charges

 

17:00  End of Day 1 – Home Study Examples for Review Day 2, pages 17-22 Self Study Guide to Hedging with Grain and Oilseed Futures and Options

 

Day 2

 

8:30    Hedging with Options and Basis

 

            Review of assignment Day 1

 
            Quiz 4 page 23 Self Study Guide to Hedging with Grain and Oilseed Futures

            and Options

 

Commodity Options

 

When buying an option, a hedger is protected against an unfavorable price change but, at the same time, can take advantage of a favorable price change. In addition, buying an option does not require performance bond/margin, so there isn’t any risk of receiving a performance bond/margin call

 

Introduction to Options Video

 

9:00   What are commodity options? definitions and basic terminology

 

           Puts and Calls
           Strike Price
           Time to Expiration
           Underlying Interest
           Premium

 

10:00 How are options traded?

 

All buying and selling in regulated futures contract options occurs through competitive bids and offers made via the Exchange. An important difference between futures and options contract markets is trading in futures contracts is based on prices, while trading in options is based upon premiums

 

10:30 Coffee Break

 

10:45 Option Pricing

 

           Intrinsic Value
           Time Value
           At the Money
           In the Money
           Out of the Money

 

Practical Exercise, Quiz 5 Page 29, Quiz 6 page 32 Self Study Guide to Hedging with Grain and Oilseed Futures and Options

 

12:00 Lunch

 

13:00   How do you close an open option position?

 

           • Offset

           • Exercise

           • Expiration

 

Practical Exercise, Quiz 7 page 37, Self-Study Guide to Hedging with Grain and Oilseed Futures and Options

 

14:00   Basic Option Hedge Strategies

 

           Buying Put options against unsold inventory
           Buying Call options against forward cash contracts
           Selling Put Options to  lower cash contract purchase prices in a stable market
           Selling Call Options to collect storage income anticipating strengthening basis

 

         Practical Exercise, Quiz 8 page 42, Quiz 11 page 52, Self-Study Guide to Hedging

         with Grain and Oilseed Futures and Options

 

15:00    Coffee Break

 

15:15   Other Strategies for Marketing Commodities

 

A commodity marketer (seller/buyer) should be acquainted with all of their alternatives and understand when a specific strategy should be employed or revised.  A marketing strategy and contracting that worked effectively for one

commodity sale/purchase may not be the best for your next commodity transaction in the next production/marketing cycle

 

Review of current market conditions and risk management issues Illustrate current potential marketing strategies using, cash, futures and options contracts,  facilitator led with current online market prices and cash contracting opportunities

 

14:00 Introduction to the VCMx Exchange - Overview

 

The VCMx Exchange platform brings the information, infrastructure, verification, transactional assurance, trade governance, and exchange associated services needed for large-scale product differentiation in global markets.

 

By allowing buyers access to specific crops, varieties and quality attributes, and then identity preserving the product, the inherent value can be captured facilitating direct marketing value chains.

 

The VCMx exchange will act to reduce transaction costs and ensure security for any trade specialty or otherwise, transacted across its international secured negotiable transaction platform, Value Chain Management

 

As VCMx buyers and sellers and service providers see the economic opportunity, there will be incentives to shift from undifferentiated commodities to value add products and services, and more efficient global value chains

 

http://www.vcmx.ca

 

"Building and Managing Global Value Chains"

 

 

 

 

 

$1200 Cdn funds + GST

$1200 Canadian Funds + GST

 

Course cost includes training materials and credit towards VCMx Exchange Membership requirements as amended by VMx International Governance Council

 

 

 

 

 

Principal Traders ( Buyers/Sellers)

 

Logistics Asset Owners (terminal operations, primary elevators, track loading facilities, farm site loading faciltators, processors, warehouse operators, transportation asset owners, rail, trucking, ocean marine

 

Physical Product and Logistics brokers

 

Professional Trade Services Providers (grading, agronomy,insurance,accountants, legal, foreign exchange, banking, consultants, educators)

Certificate

Participants will receive 25 Continuing Professional Development Credits VCMx Exchange for this 2 day programme

 

Course materials and supplemental information will be provided electronically by the VCMx Exchange 1 week prior.

 

Participants are required to bring the materials to the course either electronically or in paper form to refer to.

 

Lectures are provided in the English language

Classroom
On-site/On-farm

On sight classroom ( boardroom) training

 

Site location to be determined by Course Sponsor (Course Broker)

 

The course is taught through a blend of lectures, online visual presentations, questions and answers and practical written exercises base around real worls examples and case studies

Year-round

Booking Terms and Conditions:

 

Payment is due on booking—payment is due irrespective of attendance once an indication has been made to attend—this may be by completion of an on-line or manual booking form or by sending of any communication indicating an intention to attend this event. 

 

The event will only be confirmed when 20 registrations are confirmed—the organisers will notify participants 4 weeks in advance if the event is not proceeding due to a lack of subscribers.

 

Course details contained here are provisional.  The organisers reserve the right to change the speakers at any time. Course materials, additional documents, and case studies will be provided in English in advance for participants to be able to review.  Participants are required to bring copies of materials with them to the course, as well as sufficient paper to take notes.

 

Cancellation Terms:

 

Delegates wishing to cancel their place on this course must inform VCMx Exchange Education Department in writing, and receive written confirmation of receipt of this cancellation 1 month prior to confirmed course date  Full payment will remain due for any cancellations received after this date.  Delegate substitutions may be made at any time to course commencement

General

Business Planning, Strategy and Structure
Financial Management (includes production economics)
Marketing (includes value added)

Managing Commodity Price and Market Risk - Derivatives Contracts Part 1

 

In North America , trading futures began in the mid-19th century with the establishment of central grain markets where farmers could sell their products either for immediate delivery, also called the spot or cash market, or for forward delivery.

 

These forward contracts were private contracts between buyers and sellers and became the forerunner of today’s exchange-traded futures and options contracts.

Both forward contracts and futures contracts are legal agreements to buy or sell an asset on a specific date or during a specific month. Where forward contracts are negotiated directly between a buyer and a seller and settlement terms may vary from contract to contract, a futures contract is facilitated through a futures exchange and is standardized according to quality, quantity, delivery time and place.

 

The only remaining variable is price, which is discovered through an auction-like process that occurs on the Exchange trading floor or via CME Globex, CME Group’s electronic trading platform.

 

With the backing of Centralized transaction Clearing, the financial integrity of derivative markets is unsurpassed. 

 

The course will provide the introductory knowledge required for students to participate in global derivatives markets such as the CME and an introduction to global verified, secured cash contract trading on the VCMx, Part 2 in the training series

 

English

306-539-3559 C
306-789-4164
Visit the program Web site
Darhl Vercaigne, President