The Milk Producer - November 2010 - (Page 20)

FARMFINANCE By Coralee Foster Improving your odds R An important part of running a successful farm is good planning to help reduce certain business risks isk management is an important part of running a business. You need to identify and evaluate risks, and then create plans to reduce their impact. While there are many kinds of risks, as a dairy producer you are well-versed in handling those related to production. However, there are countless legal, human resource and financial risks to consider. Let’s look at these in more detail: Legal risks There are many legal issues when running your own operation, such as establishing a formal business structure—whether it be a corporation, partnership or proprietorship. Estate and succession planning, including powers of attorney and wills, are other areas to consider. These should be reviewed and updated regularly to ensure you’re following current legislation. You may also need to seek professional advice for contractual and borrowing agreements, statutory obligations, employment standards, payroll and environmental legislation, general liability and food safety regulations. Including your lawyer on your succession planning team is a good idea. Ensure you are working with a lawyer who is familiar with farm legal issues. Also, make sure you have sufficient farm insurance coverage. Review and update your policy regularly, especially your liability coverage limits and deductibles. You have many legal issues when running your own operation, such as establishing a formal business structure—whether it be a corporation, partnership or proprietorship. ducers to hire mostly family members and the occasional casual labourer to work on the farm. Today, human resource management has become an increasingly significant risk as farms get larger. Human resource risks At one time, it was common for pro20 | November 2010 | MilkPRODUCER

Table of Contents for the Digital Edition of The Milk Producer - November 2010

The Milk Producer - November 2010
Contents
Editor's Notes
DFO Chair's Message
Provincial Perspectives
Dairy Update
Farm Finance
DFC Promotion
Issues Update
Research
Applied Science
Ruminations
Markets
New 'N' Noted
Back Forty

The Milk Producer - November 2010