#120 In Practice JUL/AUG 2008

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healthy land. sustainable future. 2008 2006 JULY / AUGUST January / February

NUMBER105 120 Number

Remembering to Count Our Blessings

INSIDE THIS ISSUE

by Tony McQuail

I

’ve been involved in farming and farm organizations and attending farm meetings for over 35 years, and there is no question that things are mighty tough in the farm community right now. I was a young farmer when I started farming in 1970, and 38 years later I’m still younger than the median age of farmers. We’ve been getting older and older with fewer young people wanting to start farming. We suffered through high interest rates in the late ‘70s and early ‘80s. We suffered through price cycles that frequently robbed a farmer of his feed and labor values. We’ve seen grain prices drop well below the cost of production. We’ve come through the BSE crisis in the beef industry followed by a Canadian dollar rising to par with our major trading partner. Times are tough and they seem to be getting tougher for agriculture as a whole. So when we were doing our Holistic Management® Financial Planning this year we thought we better remember to count some of the hidden profits in living on our farm. The easy way to remind ourselves of these hidden profits was to go through this exercise. We asked “What if we sold the farm and reinvested the money we would get from that at our local credit union? What would we need to do then?”

What if we sold the farm? • Get $300,000 net return • Invest at local credit union at 4.75%: $14,250/year interest income

What next? But now we’ve got no house, no barn, no woodlot and no garden so here are the yearly expenses that would be added on: House Rental – comparable value $1,500 to $2,000/month = $18,000 to $24,000; Additional food purchases – at least $100 a

WWW.HOLISTICMANAGEMENT.ORG www.holisticmanagement.org

week to our food bill to buy the beef, pork, lamb, chickens and vegetables that currently make their way into our freezer by way of the barn and garden. = $5,200; and Heating oil – Without a woodlot to cut our own firewood we would need to buy heating fuel and that would likely run around $100 to $167/month = $1,200 to $2,000.

CANADIAN CONFERENCE

When we total up just these three items let’s see what happens.

Financial Analysis Income $14,250 Expenses House Rent $18,000 to $24,000 Food 5,200 5,200 Fuel 1,200 2,000 Totals

Join HMI-Canada for the Holistic Management International Conference on October 22-25, 2008 in Brandon, Manitoba, Canada. Read more about the details on page 20.

FEATURE STORIES

low $24,400 high $31,200 Aligning with Nature— Applying Tools Toward Your Holisticgoal TONY MALMBERG . . . . . . . . . . . . . . . . . . . . . . . .3

At the low end we are $10,150 worse off by being off the farm than if we stay on it. At the high range we are $16,950 worse off, and neither of these take into account the impact of inflation on the money invested as opposed to the ownership of land. It also doesn’t take into account that we would have to pay income tax on our interest earnings before paying rent, buying groceries or paying the fuel bill, and we would have to pay income tax on any wage we earned to make up the difference. So we would be paying these expenses with after tax dollars. At the low range our farm is giving us a value worth over $400/week that is untaxed and at the high range the value is over $600/week. If I weren’t working on our farm I might be able to get a much better paying job—but would I be doing something I enjoyed and CONTINUED ON PAGE 2

Holistic Management & Heifer International MIKE EVERETT . . . . . . . . . . . . . . . . . . . . . . . . . . .5

First Things First ANN ADAMS . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Developing A Quality Of Life Statement DAVID IRVINE . . . . . . . . . . . . . . . . . . . . . . . . . . .8

LAND and LIVESTOCK Twodot Land and Livestock— Pushing Limits on the Northern Plains JIM HOWELL . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Shenley Station— Simplicity is the Key to Success JOHN KING . . . . . . . . . . . . . . . . . . . . . . . . . . .13

NEWS and NETWORK From the Board Chair . . . . . . . . . . . . . . . . . . . .16 Healing the Land Documentary . . . . . . . . . . . .16 Grapevine . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Certified Educator . . . . . . . . . . . . . . . . . . . . . . .17 Network News . . . . . . . . . . . . . . . . . . . . . . . . .18 Marketplace . . . . . . . . . . . . . . . . . . . . . . . . . . .19


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