How to Grow Your Finances as a Farmer in Calgary

Agriculture provides most of the world's food and fabrics, and the industry also improves food security, reduces poverty, and raises income. Farming is the backbone of many economies, providing the resources needed for survival worldwide and offering many employment opportunities.

Alberta has a long history with agribusiness thanks to its numerous distribution channels, natural resources, and skilled workforce. The province has the highest farm operating revenues in Canada, as farms with at least $2 million in revenues reported over half of the province's farm operating revenues. The city of Calgary is home to many farms, allowing farmers to increase their income and expand their skill set. But that does not automatically result in financial freedom for the city's farmers. Learn how to grow your finances as a farmer in Calgary.

Set Clear Goals & Create a Plan

Agriculture is a large industry that offers many employment scopes for farmers, but the path isn't easy without a proper plan and list of goals. It's essential to identify your target, set clear goals, and create a proper plan to achieve your goals. This requires thorough knowledge of the industry, which involves research and education.

Take the time to familiarize yourself with the common goals farmers typically set. Do you aspire to work outdoors with plants, animals, or machinery? Are you interested in growing your food and pursuing a rural lifestyle? Or do you want to fulfill consumer needs? Once you've identified your goals and interests, create a plan that allows you to fulfill the goals and work your way towards achieving them.

Implement Risk Management Strategies

It's great to be motivated and dream big when entering the farming industry, especially as Southern Alberta is an excellent place for agricultural innovation with several growth opportunities. But it's important to remember that farming is a risky venture. It requires a significant investment and can take time to reach your financial goals. The good news is that you can prepare for potential risks by being cautious.

Explore different risk management strategies and implement them into your business plan. This involves financing the business primarily from your earnings to avoid spending your savings once you start making money. You should also consider keeping your off-farm job until your business is stable enough to offer long-term support. In addition, you should also try to grow slowly and work your way up.  

Separate Business & Personal Finances

One of the worst things you can do when attempting to grow your finances as a farmer is to mix professional and personal finances. Open a business checking account and keep all your finances for the company separate to distinguish between farm and personal expenses and income.

This also applies to debt, as taking on debt for business purposes with your personal account or vice versa can cause financial hurdles in the long term. When applying for business loans, include your business statements, such as forecasted revenue and expenses, to highlight your eligibility.

If you're seeking a personal loan, look for a reputable provider to offer the funds you need. It is easy to get an online loan in Calgary when you choose a licensed online lender. Getting a short-term loan is also simpler and does not typically involve a lengthy application process.

There are many ways you can grow your finances as a farmer in Calgary, both in your professional and personal life. Be strategic about managing your money and build meaningful relationships with producers, other farmers, and extension agents to stand out and grow your business.