The Alberta Environmental Farm Plan Company


AEFP Magazine

  Reprint guide

January 17, 2007
feature article

Using financial thinking to develop an environmental strategy

Mapping the farm's environmental future is a lot like developing a personal financial strategy — the key is having a plan

Don and Elaine Lysons
Don and Elaine Lysons

Like many producers at some point in their farming careers, Don and Elaine Lysons faced a situation a few years ago in which a farm partnership was about to mature and change was imminent. As a result, they were faced with several options — ones that could dramatically affect the future of their mixed farm operation west of Ponoka, Alberta. The question was which options to pursue.

It's not as though the couple were taking a shot in the dark - they had specific financial goals in mind for their farm. What they needed, however, were the tools to help them reach those goals. Rather than risk making a mistake, they consulted a farm financial planner.

The planner, working through a business coaching program, sat them down, asked them a series of questions about their farm and their goals and assessed the situation. It was a process that set them on a new, more profitable path which involved reducing their cow/calf operation and developing a new focus on custom grazing.

That is not to say the Lysons had not been successful on the cow/calf side of farming. In fact, in many ways they were innovators. Don's father, for example, was among the first wave of producers to experiment with rotational grazing 30 years ago. What Don and Elaine were looking for, however, was a process that would force them to ask questions and consider possibilities they may not have considered on their own.

It's a mindset the Lysons also bring to planning their environmental stewardship goals. "It's the same kind of process we went through on the business side," says Don. "You have to look at your goals, what you want out of the future of your operation. You need benchmarks and a framework to work within. The EFP program is more than just a bunch of ideas — it helps you figure out what the heck you're going to do."

Always room for improvement

As regional workshop facilitators for the Alberta Environmental Farm Plan Company (AEFP), Don and Elaine Lysons are in the position of equipping producers with the tools to help them develop a broad, long-term environmental strategy. While producers, like many in society, are coming to recognize the importance of personal financial planning, they sometimes fail to see the value in taking the time to address the environmental risks on their farms.

"We're finding that the retirement strategies of many producers are tied up in their land equity," says Lysons. "That means any option that can positively affect their land values should be seriously looked at. And although the jury's still out on the degree to which environmental factors will play a role in land values, it seems to be the direction in which the world is heading."

For the Lysons, developing an EFP helped them build on an existing foundation of stewardship practices. "We were already using rotational grazing, fencing off creeks and using remote watering stations, but up until the point we did our EFP we had not thought about our fuel storage or household water practices. Completing an EFP provided us with a working knowledge of things we had not given thought to before.

"It's like my father once told me — no producer is doing things 100 percent right or 100 percent wrong. There's always room for improvement."

EFPs — simple, accurate, accessible

Like financial planning, the first step in environmental planning is to actually have a plan and the discipline to implement it. The EFP process provides a simple, step-by-step process to develop an environmental plan, with facilitators who walk producers throughout the development stage and technical assistants available to help producers implement the action items in their plans.

The second step is to have access to the right information. When people consult a financial planner, they assume that the person giving the advice has certain credentials backed up by the industry — environmental planning is no different.

The EFP program is supported by a growing network of some of the best technical talent in the agricultural industry. Regional workshop facilitators such as Don and Elaine Lysons have access to this network, which means EFP participants stand to benefit from the same body of knowledge.

Finally, carrying out the goals laid out in the plan must be as simple as possible. "The experience of the financial and estate planning world shows us that planning is one thing, but implementing that plan is another," says Therese Tompkins, program director for AEFP. "Regardless of peoples' good intentions, if a plan is difficult to put into place, they are not likely to follow through with it.

"That's why the EFP program is delivered on a local basis, the way producers told us they wanted it delivered. Producers have easy access to EFP workshops — the free forums that introduce producers to the program - delivered by local people who are usually farmers themselves. Technical assistance is also community-based so participants do not have to wait long to receive the advice they need.

"We believe the simplicity, integrity and accessibility of the EFP program are the reasons why over 7,000 Alberta producers have attended EFP workshops to date."

For information on workshops being held throughout the province and contact information for facilitators in your area, visit the AEFP Web site at www.AlbertaEFP.com or call toll-free at 1-866-844-2337.

This article is reprintable with credit to AEFP as follows "Reprinted courtesy of the Alberta Environmental Farm Plan Company; www.albertaEFP.com".

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