Loading...
The Rural Voice, 1999-10, Page 46samples taken at a depth of six inches. This represents the depth where plant roots are taking up the majority of the nutrients. Soil below this "plow layer" tend to be lower in fertility. Deeper soil samples will give a false reading, therefore inaccurate recommendations. Other things to consider when deciding what defines each sampling area are the past field history of such things as previous fertilizer applications including manure spreading patterns, previous crops and yields, topography, slope, tillage practices, etc. In a reduced or no -till system, nutrients tend to concentrate near the soil surface. You should still sample to the six-inch depth to determine your P & K requirements. To determine soil pH, a separate sample taken of the top two inches in acid soils will be useful. There are currently five accredited Soil Test Labs in Ontario: Accutest Laboratories in Nepean, Agri -Food Laboratories in Guelph, A & L Canada Laboratories in London, Stratford Agri Analysis Inc. in Stratford and Analytical Services, Dept: of Land Resource Science at the University of Guelph. Each lab has met the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)'s standards for soil testing and will provide OMAFRA recommended fertilizer rates, if you request them. OMAFRA recommended rates are based on research to produce the highest economic yields when accompanied by good or above average management. Sample kits and submission forms are available from any OMAFRA office.0 Ontario Agri -facts Did you know? More than 1,200 food and beverage producers are located in Ontario — more than 45 per cent of food and beverage processors in Canada! 42 THE RURAL VOICE Advice Do's and don't's of farm succession planning By Peter Coughler OMAFRA, Port Perry Farm business succession planning, or the transfer of farm business to the next generation, is very important to ensure the continuation of a family farm business. Unfortunately, it is also one of the hardest topics to broach for farm operators. It involves a piece of themselves. It is emotionally charged and tends to lead to avoidance behaviour as a strategy to deal with it. Do's 1. Start planning now. It is never too early to start thinking about succession. 2. Look seriously at the profitability and viability of the farm business. If it is not making money now, what can be done to make it profitable. 3. Communicate openly with all family members at all times about plans, strategies, issues and problems. 4. Develop a long-term vision of what you want to have happen to the business and then plan towards this vision. Write it down. 5. Address the issue of fair (equitable) vs. equal division of the farm early in the process, especially if there are off -farm family members involved. 6. Prepare a Legal Will. You want to see your estate settled a• specific way. However, if you do not have a will, the court will decide for you. 7. Get a "quarterback" involved early. A quarterback is someone who understands the big picture of farm succession. The family members must feel comfortable working with this individual. 8. Work with the "quarterback" to set goals, communicate openly, and plan the transfer of labour, management and leadership. Develop a general plan for the transfer of assets. Remember, it is the family's plan, not the quarterback's. 9. Once you have a clear idea of how you want the transfer to take place, enroll a team of professional advisors (lawyer, accountant, financial planner, banker, etc). It is a good idea to bring everyone together to discuss and fine tune the plan. 10. Consider the tax implications but don't emphasize this as the only thing. The goal should not be to avoid paying any tax. It should be to determine the best process to transfer the farm and still have it viable, while considering the tax consequences. Don'ts 1. Don't procrastinate and put off discussing succession. Start talking about it now. 2. Don't feel that the succession plan has to treat all children equally. Fair does not necessarily mean equal. Farming children's labour and management can be considered as "sweat equity" and they will need some help getting established. Off - farm children should consider some of the benefits they have received, such as a university education, etc. 3. Don't be afraid to ask lots of questions. Listen carefully to the answers, even though you might not like them. Consider the advice of different experts. 4. Don't assume you know how others feel about the process or what they want to achieve from the succession plan. 5. Don't hold onto control of all aspects of the business except the labour. "Successor development" is developing the skills, abilities and knowledge of the next generation. Both generations will need to work together to ensure the transfer of labour, management and assets. 6. Don't feel both generations must have the same values. There may be differences in views on certain aspects, such as debt or taking time for leisure activities. 7. Don't be a martyr. 8. Don't define your life as the business. There is more to life than work, such as family, friends, leisure enjoyment, hobbies, etc. 9. Don't put all your eggs into one basket. Plan ahead, think early about retirement, and make off -farm investments so that you will have