Milk Producer Early Spring 2023

Top advice from experts and dairy farming families Pg 8

THE VOICE OF ONTARIO DAIRY PRODUCERS • EARLY SPRING 2023

A ROADMAP FOR THE FUTURE

Transitioning the farm means focusing on family and business fundamentals

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PUBLISHED BY DAIRY FARMERS OF ONTARIO

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Theresa Rogers theresa.rogers@milk.org

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Pat Logan pat.logan@milk.org

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GRAPHIC DESIGN

Katrina Teimo

CONTRIBUTORS

Andrew Brooks

Chris McCullough

Jeanine Moyer

Robert Price

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8

For many producers, the family dairy farm is a multi-generational operation requiring the same types of decisions as a publicly traded company and where planning for the future requires diligence.

36 Dairy Code of Practice

PLANNING FOR THE FUTURE

By Murray Sherk, CHAIR, DAIRY FARMERS OF ONTARIO AND BOARD MEMBER FOR REGION 8, OXFORD AND WATERLOO

My four daughters, all of whom are now grown and married, joke about the Sunday night planning sessions we used to have when their mother would corral us around the dining room table to find out what was going on during the upcoming week. It would allow us, as parents, to plan how the week would unfold but we all tried to avoid this routine and instead focus on another activity for the evening. Planning, whether it’s for next week, month, year or generation, is much like this. We want to enjoy the present rather than commit to the work of figuring out how best to prepare for the future. The busyness and demands of daily life crowd out the non-urgent but important task. We cannot control the future, but we can devote some thought and energy so those who come behind us are set up for success. I think about this subject on three levels. One has to do with our own farm, the second at DFO and the third as a Canadian dairy industry of producers, processors and governments. At our farm, one of the things that made the transition successful from my parents to my wife and I, was that my father was willing to give up control and let us make the decisions needed to take the business in the direction we wanted. Additionally, we came to an arrangement where he continued to manage certain aspects of the business for many years after the initial transition. This resulted in a great working relationship. There are many counsellors, accountants and lawyers who can help families work through these transitions but one of the main hurdles is simply making it a priority. Now we are at the stage of preparing to transition to the next generation.

At the Board, we often refer to this as strategic planning. This is a time each year when the board and senior staff consider where we are and where we want to be in the future. The impediments to good strategic planning organizationally are really no different than in the family or business. Having the will

Murray Sherk

to set aside time, organize resources, allowing space for understanding and desires to be heard are applicable in both situations. At the industry level, it gets trickier. The larger the number of stakeholders involved in long-term planning, the more challenging the exercise gets. When we think about national or industry planning, the groups get large quickly. It is sometimes difficult to reach agreement on the issues and move beyond the status quo.

As we think about planning, it’s appropriate to remember the adage, “What is important is seldom urgent and what is urgent is seldom important,” until it’s too late.

PLANNING FOR THE FUTURE

TRANSITIONING THE FAMILY FARM

Passing on your farm to the next generation of producers can be challenging. Taking timely steps to lay out a well-planned and communicated succession plan can make the process substantially easier.

THE GOAL

A successful farm transition means preserving the future of family farms while maintaining the production of fresh, quality Canadian milk.

Planning begins with a transition timeline that considers:

Your cash flow

More than half of Canadian farmers are aged 55+, with many transitions planned within the next decade

22,196

Canadian farms have plans that include one or more family members

891

Canadian farms have plans that include one or more non-family members

Build a strong farm transition team.

• Accountant

• Financial planner

• Lawyer

• Farm succession expert

Share your plan with family and those involved.

• Host transition meetings with farming and non-farming children

• Encourage open, honest conversation

• If you need a mediator, get one

• Remember it’s okay to be fair but not equal

• Consider dividing the farm into separate entities

Take steps to minimize the transition tax burden for all.

• Engage a farm advisor early

• Engage in tax planning early

• Consider lifetime capital gains exemptions and your legal business structure

• Look into gifting assets and establishing trusts

Where you live

In 2021, 6,673 more Canadian farms reported having a succession plan than five years earlier: Written Succession Plan

125,492

The role you will play

22,873

Canadian Farm Succession Plan Status (2021)

41,502

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THE POWER OF A PLAN

All businesses, whether dairy farms or organizations like DFO, need a focused plan in order to succeed.

Plans are like roadmaps, giving the driver and the passengers a route to the destination. At DFO, our team is laser-focused on getting there – fulfilling our mandate as a regulator and the sole delegated authority for the marketing of cow’s milk in Ontario. Our mandate is to support a dynamic, profitable, growing Canadian dairy industry.

Our strategic planning process looks ahead three years and includes longer term opportunities too. We are guided by our vision, mission, target, and foundational priorities in support of supply management, as well as who and how we serve.

Our strategic plan, updated annually, feeds our operational plan, or the day-to-day activities of all departments. Currently, at the halfway

point of 2023, we are ahead on some projects and behind on others, while from a financial perspective, we are in a strong position. Our continued focus on cost containment has allowed us to offset more inflationary increases than expected.

Like any good driver, our eyes are firmly set on the road ahead and to developing 2024’s plan, while we monitor what’s happening around us and in the rearview on 2023’s plan.

As with all destinations, there are choices and adjustments along the way. Plans are meant to be fluid, redrawn and flexible. We must be nimble enough to adjust to face the unexpected – both to mitigate risk and take advantage of opportunities.

Strategy sets our destination. Plans tell us how to get there. But it is the passion and commitment of DFO’s team working together that will make it happen.

Cheryl Smith Chief Executive Officer

PLANNING

FOR THE FUTURE

FOR ONTARIO DAIRY PRODUCERS, the family farm is a thriving multi-generational operation that requires the same types of decisions as a publicly traded company. Planning for the future – whether that means growing the business, scaling back, partnering or retiring – is a “must do” for every licensed producer, and the process has changed a lot since your grandparents stopped farming.

“In the past, death and wills tended to take care of succession, but now people are living well into their 80s, which would make the next generation in their 60s before they took ownership,” says Maggie Van Camp, National Director Agriculture, BDO Canada LLP. “Today’s farms need to have a plan that transfers decision-making and ownership to the next generation when they are young enough to expand and grow, adopt new technologies, efficiencies and ways to market, plus pay back debt and create profit.”

Without a plan, farm families open themselves to the risks of the four Ds – death, disability, divorce and disagreement. Van Camp notes another significant risk is the loss of the opportunity cost of not training and empowering the next generation to lead the business soon enough.

By Jeanine Moyer

“If farmers want their farm and children to be successful, they better plan ahead,” she says, explaining that sometimes fear of change or conflict drives procrastination and get in the way of progress. Some of the most common barriers preventing farm families from developing a plan come down to setting succession planning as a priority and accepting that it is going to take time, money and learning how to communicate about business and family.

Van Camp says a succession plan is an opportunity to create pathways for the next generation to move from labour to management to ownership roles in a business. “A good succession plan creates clarity of these shifting roles and responsibilities, like timelines, compensation and new business plans, and culminates in the creation of financial, tax and legal structures that meet the future needs of the farm business and family.”

Here’s a look at how three Ontario dairy farm families are approaching succession, and why this process is so important to them.

Early planning and open, honest conversations are key to success when handing over the reins

HARROP FAMILY

Harrcroft Acres

Teamwork leads Harrop family succession

Ian and Janet Harrop of Harrcoft Acres in Fergus, ON, are going through the second farm succession of their farming career. The first was a transition of farm ownership from Ian’s father to Ian and his brother as partners in the late 1980s, and the second, the current transition from Ian and Janet to their son, Ryan and his wife Jessie.

Over the years, the Harrops have learned from their experiences working alongside family, managing the farm business and making plans for the future, and are pouring their efforts into making today’s transition successful.

“We’ve changed our management strategy from a top-down, to a bottom-up approach,” says Janet, explaining that in the past, the senior generation made all farm decisions, but today, the junior generation is encouraged to lead discussions and take an active role in farm management and succession planning.

Still in the farm transition phase with no set timeline for the senior generation to retire, the Harrops have established what they describe as a “fluid” succession plan based on realistic farm goals, monthly management meetings and a collective mindset that everyone works together to transfer the family farm legacy to the junior generation over time. “We’re working toward the same goals and we’re all on the same page with our vision for the future,” says Janet. “We know that without an agreed upon direction we understand that we would risk the health of our family

relationships and the success of our farm business.”

Janet says that now, as the senior generation, she’s more conscious than ever of maintaining good relationships, resolving conflict, and respecting the personal space of her son and daughter in-law who now live on the family farm. “We’re six years into this transition process and we’re still working on getting it right,” she chuckles.

Throughout the process, Ian and Janet have been transparent about expectations

with their non-farming daughter, who has embraced the process. “It’s been important to us to explain the plan as a business case and remove emotions from conversations,” explains Janet, noting how closely everyone is connected to the farm, and how hard it can be to have open conversations about the value of farm assets and future inheritance.

Like most families working through the succession process, the Harrops believe in open communication and prioritizing family relationships. The family has had the opportunity to learn from previous transition experiences that, while challenging, had the best of intentions, and have since embraced a new process that includes open dialogue through monthly farm meetings and annual consultations with farm advisors. Janet and Ian have made it their goal to never use the phrase, “we already tried that”, and to always be open to new ideas.

“It’s been important to us to explain the plan as a business case and remove emotions from conversations.”

Janet Harrop

Janet, Ian, Ivy, Jessica, Ryan, and Ashley have embraced open dialogue and new ideas as part of their transition planning.

PETHERICK FAMILY Almerson

Farms Ltd.

Proactive planning drives eastern Ontario dairy farm succession

Almerson Farms Ltd., located near Campbellford, ON, is home to two generations of the Petherick family milking cows together as part of an ongoing farm succession. Adam, a Region 4 Dairy Farmers of Ontario Board Member, and his wife Amy, will be the seventh generation to take over the family farm, working alongside his parents, Evan and Marilyn.

What started as integration into the dayto-day farm work after he returned home from university in 2009, has since grown to a full business partnership between Adam, Amy, and his parents. “We started working in the barn together, working our way up to helping with the farm management, and then eventually sharing ownership when we incorporated the farm in 2014,” says Adam, reflecting on the family’s succession process. “When it comes to decisions, all four of us have always worked equally together with a common goal in mind.”

Adam says he’s fortunate his parents have been so inclusive and open about becoming involved in the farm, and together both generations have made proactive planning a priority. “They want to ensure we don’t have to face the barriers they did in transitioning the family farm and are committed to making this current transition positive for everyone. Our responsibility now, as the next generation is to realize how fortunate we are to have such an encouraging and rewarding experience, and show the same

respect and outlook going forward,” says Adam.

Incorporating the farm was a strategic step in the Petherick’s succession plan. By consulting with a team of advisors to help them through the process, the family realized the new legal structure would benefit the farm by helping fuel growth, protect equity for Adam’s parents, and thereby enable Adam and Amy to become shareholders and active owners as the next generation.

“It was important to us to have a solid succession plan developed while everyone was working in agreement and before any issues or stressful situations arose,” explains Adam, noting that while the farm is still in transition, they now have a set timeline of guidelines and parameters to follow if the

family or farm should face any unexpected challenges.

Continuous education has been another key to the success of the Petherick family farm transition. “Amy has been instrumental in participating in courses, seeking resources and funding opportunities to help us all learn together through this process,” says Adam. “Communication is vital for a healthy farm succession, as well as the support of your partner. I’m grateful every day for my wife, children, parents and siblings who are making this experience a success.”

“All four of us have always worked equally together with a common goal in mind.”

Adam Petherick

Evan, Marilyn, Amy, and Adam Petherick share decision-making and ownership at their farm.

SCHOTMAN FAMILY Schothorst

Farms Ltd.

Working toward the goal line

It’s been 17 years since Gary Schotman started farming full-time alongside his parents, Henk and Truus. From an early age, Gary knew he wanted to farm, and that his parents were invested in helping their children realize their goals. Over the years, the family has navigated the process of farm succession, working at their own speed, and achieving milestones that make sense for their family and business.

In 2008, the farm was incorporated, creating Schothorst Farms Ltd. This allowed Gary to officially enter the business as a shareholder, preserve the farm equity and establish a basis for a future succession of ownership. “Dad and I have always been able to work well together, and the process of continuously becoming more involved in farm management, coming together to build consensus, and eventually shifting authority from my parents to myself has allowed me to grow into the business and mature as I learned,” says Gary, who now has a family of his own, and looks forward to sharing what he’s learned with the next generation of Schotmans.

Incorporation was a sound business decision for the family, but Gary notes the business model also means shareholders must work together and make decisions together. Those decisions range from animal care and farm equipment to upgrades or renovations to the family home that is owned by the corporation. “No matter the

topic of discussion, we all know we have to be willing to compromise and work together,” he says. “We are all accountable to each other and the farm.”

Every farm is unique, making the succession process its own experience for every farm family, and individual members. Gary admits the process hasn’t been easy, and they’ve had struggles along the way. The Schotmans have engaged a variety of farm advisors to support their succession planning, including accountants, financial advisors and advice from farm service providers. Gary says that for advisors to help, it’s important to trust and be honest to enable everyone to see the full picture of the farm’s intended future together. “Everyone around the table may not get what they want, but they need to know how each other feels so you can move forward,” says Gary. “No one wants animosity and we all want to be able to enjoy Christmas dinner together.”

Like many farm families, Gary’s parents have been focused on being fair to all their children. As the oldest and most interested in the dairy farm, Gary was involved in the farm incorporation. Recognizing incorporation as successful transition tool, Henk and Truus have since supported their other two children in establishing their own farms by building corporations with each of them. “The farm business is always changing, and what’s fair isn’t always equal so my parents found a way to help each of us get established, and we are all grateful,” says Gary.

Today, Schothorst Farms Ltd. is in its final stages of succession, transitioning ownership to Gary. Henk and Truus are still active on the farm but are taking time to get away with their RV. Gary credits early planning and open, honest conversations as the keys to success of their family’s succession.

“No matter the topic of discussion, we all know we have to be willing to compromise and work together.”

Gary Schotman

Gary Schotman farms alongside his wife Miriam, parents Truus and Hank, and their children.

TAKING THE FIRST STEP

By Jeanine Moyer

IT’S ESTIMATED THAT 75 PER CENT OF FARMS ACROSS CANADA will change hands in the next 10 years. That prediction by Farm Management Canada means farm businesses should be making plans for succession and transition, or an exit. But are they prepared?

According to the Statistics Canada 2019 Farm Financial Survey, only one-quarter of Canadian farms have a written succession plan either completed or in progress.

“Without a plan, farm families risk losing their vision or legacy of passing the farm to the next generation,” explains Audree Morin, Business Advisor with Farm Credit Canada.

So, what does it take to make a succession plan? And what’s the best way to start?

Morin says the best advice she offers families is to start the succession process early, as soon as children –possibly the next farming generation – start working on the farm, whether they express an interest in taking over the farm or not. She says, “assigning jobs based on age and skillset can help every family member assess if they

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have an appetite for the farm or not. Opening conversations about the future of the farm early also makes everyone comfortable sharing their ideas or intentions.”

As a FCC Business Advisor, Morin works with families in the early stages of farm succession or transition, helping them prepare to build a plan. Her services are available free of charge, offering consultations that can serve as a discovery phase for families to help organize thoughts, identify gaps, and find farm advisors to assist with the plan development.

“The transfer of ownership doesn’t have to be all or nothing, it can look different for every farm,” says Morin, explaining that a farm succession or transition is a process that takes time, open communication, and a desire to work toward a common goal.

To make the process a little less daunting, a farm succession can be broken into three phases – the transfer of labour, farm management responsibilities and ownership.

STEP 1 – TRANSFER LABOUR

Transferring labour can be as easy as involving the secondary generation in the day-to-day farm operations, testing to see if they can handle the physical labour, and changing up roles and responsibilities over time as skillsets develop and interest grows. Don Gordon, Region 5 DFO board member operates a multigenerational dairy farm in the Durham region and is in the early stages of succession planning with his son, Sam. Gordon says his board role has escalated this initial labour transition phase on his farm, providing his son more opportunities to step into the day-to-day farm operations when Gordon is away managing DFO board responsibilities. Gordon says that in his absence, his son has demonstrated enthusiasm and capabilities that are helping the succession plan move ahead faster than they had planned.

STEP 2 – TRANSFER MANAGEMENT

When it comes to transferring management, a solid farm business plan can make everyone’s job easier. Whether a farm is preparing for a transition or not, Morin stresses the importance of creating a business plan to help guide business decisions, establish long- and short-term goals, and responsibly manage finances and assets.

“Business plans aren’t just required to get a loan, they are also risk management tools like crop or life insurance, and have the power

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“Without a plan, farm families risk losing their vision or legacy of passing the farm to the next generation.”

—Audree Morin, Farm Credit Canada

of fostering family unity or cohesiveness because people are working toward common goals,” says Morin. “Without a business plan, farm managers are at risk of making decisions that could impact or limit the succession to the next generation.”

Morin suggests the transfer of farm management may go smoother with a solid business plan in place. She also recommends farm families engage outside resources and consultants for assistance, including accountants, lawyers, and financial advisors to help with long-term planning and decision-making.

“Create an environment that fosters critical thinking, knowledge sharing, and above all, open communications between generations,” suggests Morin. “This will give the junior generation the confidence and capabilities to step into the management role, knowing they have support, while helping the senior generation take a step back.”

STEP 3 – TRANSFER FARM OWNERSHIP

The final farm transition phase, the transfer of ownership, is often referred to as the “finish line”, or the ultimate goal every farm family member works toward. Morin reminds producers this final phase will look different for every family.

“Every operation is unique, and families need to focus on what works for their situation,” confirms Gordon, noting that even though his family farm is in transition, he doesn’t have a finish line or timeline in mind. “The most important thing for our family is that we’ve started the process with an idea of what we want to happen to support our family and farm legacy, and we’re all working together,” says Gordon.

PHASES OF FARM SUCCESSION

To make it less daunting, break your farm succession into three phases:

• Transfer labour

• Transfer management

• Transfer farm ownership

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DFC IN ACTION

A MESSAGE FROM THE PRESIDENT

It was a pleasure to gather together in March for Dairy Farmers of Canada (DFC)’s 2023 Annual Policy Conference (APC). Farmers from across the country joined us both in person and online to discuss key issues of concern and opportunities for the Canadian dairy sector.

Just one week after our impactful Lobby Day activities following the APC, we saw three of our asks addressed in the Trudeau government’s 2023 budget:

• Establishing the Dairy Innovation and Investment Fund to support investments in research and development of new products based on solids nonfat, which represents $333 million over 10 years;

• Earmarking $57.5 million over five years, starting in 2023-24, with $5.6 million ongoing, to the Canadian Food Inspection Agency to establish a Foot-andMouth Disease vaccine bank for Canada; and,

• Introducing a “Made-in-Canada” plan that responds to the U.S. Inflation Reduction Act.

During our productive time in Ottawa, I had the privilege to attend a gala dinner in honour of United States President Joe Biden and First Lady Jill Biden, as part of Biden’s first official visit to our national capital. It was an honour to represent Canadian dairy farmers and I thank Prime Minister Trudeau for extending me the invitation.

MICHAEL BARRETT NOMINATED TO DFC BOARD OF DIRECTORS

I would also like to offer my congratulations to Michael Barrett on his recent nomination to DFC’s Board of Directors. Mr. Barrett is well respected given his knowledge of the whole spectrum of the dairy sector, and comes with lengthy experience in dairy processing having chaired two important dairy processors key organizations. We look forward to bringing that experience and his strong interest in governance to our important deliberations at the DFC Board of Directors.

We at DFC are proud to represent dairy farmers in Ottawa. I look forward to our continued shared success.

Pierre Lampron President, Dairy Farmers of Canada

Dairy Farmers of Canada (DFC) is pleased to announce that Michael Barrett will be joining DFC’s board of directors as an external advisor. Mr. Barrett recently retired after more than 20 years at Gay Lea Foods Co-operative, including eight as President & CEO. He also chaired the Dairy Processors Association of Canada from 2019 to 2022.

“Michael will be providing advice to our Board of Directors and to our CEO in areas such as governance and dairy processing. He brings a lengthy experience in the dairy sector and is well respected in our community.

He is a great addition to our organization,” said Pierre Lampron, president of Dairy Farmers of Canada.

Michael Barrett

AN OVERVIEW OF DFC’S 2023 ANNUAL POLICY CONFERENCE

On March 20th, Dairy Farmers of Canada (DFC) hosted its 2023 Annual Policy Conference, bringing together dairy farmers from across the country to discuss key issues and opportunities for our sector.

Here is a snapshot of key discussions held:

Agri-food one of Canada’s most ‘promising’ sectors, but Canada needs long-term strategy

Speaking with Dairy Farmers of Canada CEO Jacques Lefebvre, economic analyst Robert Asselin said Canada needs a modern industrial policy that targets support for high-potential sectors like agriculture to secure future economic growth in an increasingly technology-driven world.

A former federal government adviser, Asselin is currently senior vice-president, policy, at the Business Council of Canada and a senior fellow at the Munk School of Global Affairs and Public Policy at the University of Toronto.

Asked if, six years on, the agri-food sector had lived up to potential identified in a 2017 federal government-commissioned economic study known as the Barton report, Asselin said not enough progress has been made.

“Agri-food is one of the most promising sectors in the country. But we’ll have to be much better at it than we are,” he said. “We’re going to have to invest more in R&D, we’re going to have to scale our businesses, we’re going to have to adopt more technology at scale.”

Global demand for milk is growing despite talk of a decline in the dairy sector

Torsten Hemme, founder of IFCN Dairy Research Network, offered conference attendees a snapshot of the international and Canadian market trends and outlooks along with Annie AcMoody, DFC’s vicepresident for policy and trade.

Hemme said by the end of this decade, the world’s dairy farmers will need to produce about 21 per cent more milk to keep up with growing demand. That increase would be equivalent to about two times the amount of milk the U.S. now produces.

Providing a domestic outlook, AcMoody said while retail sales of dairy products were down last year, there was an impressive year-over-year bounce toward the end of 2022 in sales of all dairy products in non-retail outlets such as restaurants, hotels and institutions.

New informative guide is next step to achieve Net Zero by 2050

Canadian dairy farmers have a new toolkit to help them green their operations with the release

The release of DFC’s Net Zero by 2050 Best Management Practices

Guide to Mitigate Emissions on Dairy Farms was the highlight of this year’s Annual Policy Conference. The detailed, practical guide will help Canadian dairy farmers reach net-zero greenhouse gas (GHG) emissions by 2050.

Developed in consultation with experts to identify and implement best management practices (BMP) on dairy farms, the guide includes an overview of 30 BMP opportunities for reducing emissions, increasing carbon sequestration and improving overall environmental sustainability.

The guide is available for download on our new Farmer Resources portal at dairyfarmersofcanada.ca/en/farmerresources (and in French at producteurslaitiersducanada.ca/fr/ ressources-producteurs).

TRANSITION JOURNEY

Farm succession planning requires effective conversations about the future, even if it’s hard

By Andrew Brooks

PASSING THE FAMILY FARM ON TO THE NEXT GENERATION is one of the biggest milestones a dairy farmer will ever face. The process has to be approached carefully, with a clear understanding of what each family member wants and expects. And professional support is invaluable.

That’s where people like farm family coach Elaine Froese come in. Froese and her team of coaches have supported more than 1,000 farm families through the transition process.

The key to a successful farm transition is to enter the discussion with clear objectives and with a desire to make sure every family member’s wants and expectations are acknowledged. That intentionality starts with the concept of “transition” rather than “succession,” Froese says.

Elaine Froese with her Beanie Baby, Ox. The plush toy is her “talking stick.” A family member holds it during a transition meeting to indicate they have the floor and can’t be interrupted. Some clients roll their eyes at the idea until they find out that the no-bull bull actually gives them a voice.

“‘Succession’ implies someone being knocked off the throne but in fact it’s a journey, a transition – the transfer of labour, management and ownership. There are lots of moving parts and it’s never done.”

Froese believes that that most diary farming families fail to work collaboratively between generations because they’re afraid of conflict and failure. “They keep putting off the transition conversation because it’s hard – or they think it will be. I don’t subscribe to that mindset.”

Froese encourages transitioning farm families to focus on “Three Cs”: Clarity of expectations, certainty of timelines and agreements, and commitment to action.

“Clarity of expectations means what do you want your roles to be on this farm, and what are your expectations with regard to income streams for the founders and the successors, housing – which is a really big deal on dairy farms – and fairness to the non-dairy heirs.”

Certainty of timelines and agreements covers the “by when?” factor. “‘By when will I go from being an employee of this dairy to being a stakeholder or a shareholder?’” Froese says. “And from the founders’ point of view, ‘By when will I know you’re committed to this business?’”

Commitment to action simply means that while getting the conversation going can be a job in itself, talk has to be converted into an agreed-upon, executable plan. And everyone has to understand what a transition plan actually is.

The Slits dairy farming family is a textbook case of how well a methodical approach to transition can work. The family is involved in three dairy operations in Perth County, ON: Slits Dairy Farm, Sandy Peaks Dairy and Resolution Dairy.

“It isn’t a one-time thing,” says Linda Slits, one of three siblings. “In our opinion, it’s a journey that takes years, countless conversations and many changes along the way. Our parents let us know they would support all of us in farming if that’s what we wanted, however, we had to make a choice on our involvement.”

“Clarity of expectations means what do you want your roles to be on this farm, and what are your expectations with regard to income streams for the founders and the successors, housing – which is a really big deal on dairy farms – and fairness to the non-dairy heirs.”

— Elaine Froese

THE THREE Cs

The transition planning began when Linda had just started her banking career, sister Bianca was studying nursing, and brother Jeroen had just begun an agriculture degree at University of Guelph. Linda is no longer involved in the dairy farm and is a Vice President of Commercial Banking for Royal Bank.

“When we started planning, my dad said, ‘It’s important we start the conversation early – we can make changes along the way but we’d like to understand how we can best include each of you and how we can support you. It will be something we can then plan for over time.’”

Initially, only the immediate family was around the table, along with the accountant, a lawyer, a banker and the transition consultant. Linda’s, Bianca’s and Jeroen’s partners joined the process later. “It was important to start initially without significant others to have unbiased opinions – but also to start young before we each had our own families established,” Linda says. “Once this happened there could be further iterations and including them in the conversation.”

The transition also factored in the goals of the parents. “We as kids felt it was important to understand what they would like outside of the business for their retirement,” Linda says. Today, parents Pedro and Jolanda run Slits Dairy Farms, Bianca and her partner Maik run Sandy Peaks Dairy, and Jeroen and his partner Caleigh operate Resolution Dairy. Bianca and Jeroen both also have careers outside farming. Eventually the plan envisages two equal dairy farms, one owned and operated by Jeroen and Caleigh and the other by Bianca and Maik.

CLARITY of expectations

CERTAINTY of timelines and agreements

COMMITMENT to action

It doesn’t always go so smoothly. “When I talk to next-generation farmers, they say, ‘the hardest thing is we can’t get our parents to come to the table,’” Froese says. She cites the case of a female client who wanted to transition to ownership and operation of her father’s dairy farm. Her father refused to have the conversation, so she and her partner wound up leaving the farm for about a decade, during which she earned a Master’s degree.

“I was at the farm and I said, ‘Your daughter has a Master’s, she’s intelligent, her husband is in robotics – what’s the problem here?’” Froese recalls. “It was stubbornness and also cultural DNA.” Eventually the father came around and invited his daughter to return to the farm.

No coach can force a farmer into a decision, but they can present alternatives. “My work plants seeds and tools over time,” Froese says. “I didn’t change the father’s mind; he came to that understanding as his health was shifting and he needed to find new options.”

Linda Slits says having someone to facilitate the transition process was invaluable for her family. “They helped us with deadlines and asked some of the hard questions. Ask for advice and don’t be afraid to invest in your succession plan. The most important part is starting early and getting the family conversation going.”

No coach can force a farmer into a decision, but they can present alternatives.

Farm family coach, Elaine Froese, asks transitioning farm families to focus on “Three Cs”:

By Robert Price

RONY ODERMATT SAYS HIS FAMILY HAS BEGUN THE COMPLICATED PROCESS OF SUCCESSION PLANNING.

It’s baby steps to start. His father, Josef, a native of Switzerland who came to Canada to farm in 1993, bought a camper to see what life is like off the farm and recently took a trip to Switzerland.

“He’s always on the farm,” Odermatt says of his father, so it was important that the family get the older Odermatt trying new things.

Building a succession plan is especially important since Josef is 56 – an age when he needs to start considering retirement. He’s had five hip operations, meningitis, and small farming accidents, like a pitchfork to the

Rony and Tiffany Odermatt, with their sons, Felix, Marco and Remi, are already planning for the future of the family farm.

head. Rony, 29, hopes that in four years, when his mother turns 60, he’ll be living on Dunmatt Farm and his parents will be happy living somewhere else.

“That is the gamechanger in moving succession along,” he says. Still, Odermatt says, “It’s a hard conversation.” He and one of his sisters work on the farm and they love life on the farm. “I like not knowing what the day will bring.” But getting everyone in the family at the same table is as difficult as broaching the emotional topic of what to do with the farm when the parents have passed. Odermatt says other producer friends face the same problem. Succession planning is an awkward topic. “It’s not something you talk to friends about.”

But Odermatt says he understands the importance of broaching the difficult topic. His family’s 1,700-acre farm in Dunvegan, ON, milks 190 cows. The business needs acreage and an income sufficient to pay the bills and feed the cows and they need a plan to succeed in the future.

“You can’t chop it up so much that the farm can’t move forward,” he says.

Succession planning – determining who will take over when the farmer retires – is one part of the business that most farmers prefer to ignore.

“They don’t want to retire,” says Tom Blonde, a partner at Baker Tilly

GWD, which offers audit, tax, business advisory and succession planning services in Guelph and Elora, ON.

Farms are unlike other businesses, he explains. Farmers live where their business is. Their lifestyles intertwine with what they do for a living.

“The farm is part of the farmer’s identity,” says Blonde. “The thought of selling or transferring part of your identity and property you’re living on is hard to comprehend.”

But farmers who ignore succession planning are taking a risk.

WORST CASE SCENARIO

Blonde says failure to plan for succession can play out like a bad dream. Imagine a farmer named Burt. In this scenario, Burt dies without having written a will. In the absence of a will, his four children

Succession planning –determining who will take over when the farmer retires – is one part of the business that most farmers prefer to ignore.

are entitled to their fair share of the farm. Three of them vote to sell the farm to a developer. The one child who has been farming with Burt for decades – and who was never given a share of the business – doesn’t have the equity to buy the other siblings out. Hoping to preserve his lifestyle and hold onto the farm, the young farmer sues the other siblings based on what he thought would happen. In-laws offer their opinions. The family exhausts its resources in a lawsuit. The absence of a plan cripples the family financially and drives a wedge between the grieving siblings.

GETTING STARTED EARLY

Avoiding the worst-case scenario means starting the succession planning process early. Blonde says he makes a point to bring up succession planning during the tax season and to “make sure my clients are preparing for it.” He also says that farm successors need to stop making assumptions about what might happen after their parents pass and start advocating for themselves and for the future they see for the farm. Likewise, farmers in the position to pass on the business need to step out of the day-to-day and articulate what they want to see happen. The sooner they talk to potential successors about what they hope will happen, the better.

“Succession can get complicated when it comes to tax issues, but that’s not the big stumbling block,” says Blonde. “It’s the need to admit that it’s time to transition.”

Source: Farmers Wanted: The labour renewal Canada needs to build the next green revolution, RBC, April 2023

By 2033, 40% of Canadian farm operators will retire, placing agriculture on the cusp of one of the biggest labour and leadership transitions in the country’s history.

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FARM TRANSITION

READINESS

Many farms lack a plan, but awareness is growing

By Andrew Brooks

FARMERS IN ONTARIO and across the nation are facing a demographic challenge. Like business owners in other sectors, they’re approaching the stage of life where they will exit the business and pass the reins on to their successors. Many aren’t as ready as they need to be.

“There’s still a lot of room for improvement but there is an attitude change underway,” says Audrée Morin, Business Advisor with Farm Credit Canada. “I see more 45-year-old business owners with 15-yearold kids asking how they can make transition easier, how they can create opportunities for the next generation. They’re being more proactive.”

Statistics Canada’s 2021 Census of Agriculture shows 60.5 per cent of farm owners are aged 55 and up, a significant rise from 2016 when that percentage was 54.5. In Ontario, the average age of farm operators rose from 55.3 years to 56.7 years over the same period, while the younger age categories declined. The proportion of operators aged under 35 went from 9.1 to 8.6 per cent, while those in the 35 to 54 category decreased from 36.3 to 30.9 per cent.

Succession planning in farming… in Ontario

The number of farm operators aged 55 and above rose 8.1 per cent from 2016 to 2021.

In 2016, 8.5 per cent of farm operators had a succession plan. In 2021, that rose to 12.4 per cent, likely due health concerns raised by the pandemic.

Statistics Canada, “Ontario is an agriculture powerhouse,” June 15, 2022

Succession planning in farming… across Canada

Public policy – such as the passage of Bill C-208 to ease the tax burden on farm operators who pass their businesses to children or grandchildren instead of third parties – can help to promote succession planning. The real change has to come on the farm itself and Morin believes that by doing succession planning right, farmers are engaging in effective management planning that furthers excellence in Canadian agriculture as well as building their own legacy.

“Farming already comes with risks and uncertainty. Developing and maintaining a transition plan gives a clear path forward, both for those who want to exit the industry and for those who want to remain or become a part of it. It helps to manage business risk and it gives producers certainty and peace of mind.”

Figures from 2022 show that 22,873 farms in Canada have a written succession plan, with a small minority of those plans including one or more non-family members, while 41,502 have an informal, verbal succession plan. More than 125,000 say there is no succession plan in place at all.

Statistics Canada, May 2022

Despite their age, the proportion of farm operators who still have no succession plan remains high but it may be slowly changing.

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AN UPDATED WILL IS THE MOST IMPORTANT PART OF A TRANSITION PLAN

By Farm Credit Canada

THERE ARE MANY STEPS AND TASKS on the pathway to transition, but writing and updating a will is the most important. It’s impossible to overstate how important this step is and shocking how many farmers either don’t have one, or it’s woefully outdated.

Transition builds a shared vision between multiple generations. It also involves hard assets like land, buildings, quota and equipment. The most impactful way to address both is to write a will that matches the business plan. Ask the question: can the farm business support the financial obligations outlined in the will.

POWER DOCUMENTS

Although a will is the centrepiece of estate planning, these three documents should be addressed simultaneously:

• Will

• Power of attorney

• Critical care

Writing a will is often overlooked because there are so many other things that seem more pressing for the farm business. And let’s face it, a will represents mortality and who wants to think about that?

Like all aspects of transition, having the right attitude or mindset about the job makes all the difference. Think of a will as an empowering document that protects loved ones, business partners and the business itself. It provides control and peace of mind. It’s also one of the biggest gifts a farmer can give his or her family. Those are positive things.

WHO NEEDS A WILL?

Everyone involved in the farm should have a will. Start as a young adult at 19 or 20 to simplify updating it as earning potential and asset acquisition occurs.

All family members involved in the transition plan should have an up-to-date will. If employees have a stake in the business, encourage them to have a will as well.

HOW DO I CREATE A WILL?

The hardest part of any unpopular job is getting started. Sometimes, it helps to break it down into small steps. Call or email a lawyer to set up an appointment to start the process.

Don’t think about any of the uncomfortable details or decisions yet. Just get the ball rolling and make that appointment. Boom – that’s the first step. Your lawyer has probably done hundreds of wills and can walk everyone through the process. It doesn’t need to be done in one shot. Make

the easy decisions first and chip away at it until it covers all the bases.

To prepare for that first meeting with a lawyer, compile a list of assets and start thinking about potential beneficiaries. Think through the issues that will complicate the will, such as second marriages, business arrangements, etc. Think about what you want to happen if something happens not only to you but to the entire family. Write the will based on the situation today, knowing it will need revisions as life and business evolve.

WHAT IS A WILL?

A will is a legal document that describes two main things:

• Who manages the estate after death

• How the estate is managed.

A will tells the provincial court who gets what and how to treat those assets. Every province has its own rules and legislation regarding estates and property distribution. Without a will, the province steps in and makes the decisions.

If you die without a will, the estate is carved up and given to your spouse and children according to pre-determined percentages. There’s no room for negotiation or nuance or any maneuvering to save tax or honour specific wishes.

The lawyer’s job is to ask the appropriate questions to ensure the will reflects your intentions. Their knowledge can help save money and stress during what can be an upsetting time. Forget about an online or mail-order will kit; this required a

professional’s help. Ideally, work with a lawyer familiar with agriculture who knows about estate planning and tax law.

In addition to getting the details right, you also need to name an executor or personal representative to act on your behalf after you’ve died. The person selected may have to deal with the children's guardianship, probate fees, tax issues, competing or controversial creditors, and beneficiaries. In the short term, they’ll also maintain day-to-day business operations if necessary. This can be as simple as paying outstanding bills and making sure the staff is paid. It can get more involved depending on the farm business.

Put some thought into who should fulfill this role. Select someone who is decisive, can get the job done and is fair and impartial. Discuss everything with the executor to help them understand your wishes and act on your behalf.

It’s a good idea to name a couple of alternate options for executor. Circumstances change over time, and the first choice may be unwilling or unable to fulfill the responsibilities. Choose the executor wisely and review the decision regularly.

What is an estate plan?

A will takes care of the estate when you die. An estate plan can mean the transfer of wealth while you’re still alive.

A will should be updated every three to five years; more often if there are plans to keep accumulating assets or starting new enterprises. It’s a bit like an equipment insurance policy – you notify your agent if you buy or sell a piece of equipment to ensure you have the right coverage. The same goes for a will. If you buy or sell a farm or start a trucking company, you should be calling the lawyer to update the will. This is important for the transition plan and should reflect your transition intentions.

A will is one of the kindest things you can do for your family.

WHAT’S COVERED IN A WILL?

There are three big-ticket items covered in a will:

• Naming who will administer the assets of the deceased.

• Outlining who receives which assets.

• Expressing who will be the guardian of any children if death occurs when the children are still minors.

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NEW CODE REQUIREMENTS WILL RESHAPE CANADA’S DAIRY BARNS

By Chris McCullough

COW COMFORT WAS TOP OF MIND when Eric and Courtney Veldhuizen built a new freestall barn in 2022.

The Velstar Dairy Inc. owners run two farms in Ontario – one at Mossley and one at Tillsonburg – milking 75 cows at each location.

With a freestall barn already in operation at Tillsonburg, the Veldhuizens replaced an 80-stall tiestall barn built in the 90s with a new freestall unit designed for the future at their Mossley location.

“We had converted a hay shed to dry cow and heifer housing in 2018 to give cows increased freedom of movement in the dry period, however, we were maxing out our tiestall,” Eric says. “We were able to get decent production year-round in our tiestall but with our quota holdings growing, it was becoming difficult to fill quota and incentive days.

Eric Veldhuizen built a new freestall barn in 2022 to give his cows maximum freedom and air quality.

“In addition, no matter how good your tiestall is, it can’t mimic the everyday freedoms a cow would do if she had the choice. So we started building our new barn in early 2022 with cow comfort in mind.”

With 180 stalls, the new robotic freestall dairy barn currently operates two Lely robots but is built to expand to four.

“The new barn also holds all the dry cows from both farms – currently 25 – and all pregnant heifers.”

The couple is now ahead of the game when it comes to complying with new code requirements from the latest Code of Practice for the Care and Handling of Dairy Cattle set to take effect April 1, 2024. The updated code replaces its predecessor developed in 2009. When building the new barn, the Veldhuizens had already embraced many of the new requirements set out in the latest code.

“We built the new barn to give our cows their maximum freedom,” Eric says. “We really wanted to give the best air quality, so the barn is built on higher elevation with plenty of fans and a sprinkler system for summer cooling.

“We were very sure we wanted free flow robots so cows could truly come and go, getting milked as they wanted. We strategically placed tip water troughs at all crossovers and have large crossovers in front of the robots.”

More freedom of movement for cows is just one of the design requirements, along with social contact for calves, that will shape new dairy barns of the future in Canada.

These examples come into effect in one year, unless indicated otherwise in the “requirements” with a later phase-in date.

The new code also contains “recommendations” which are good advice to help enhance a farm’s focus on animal welfare.

"Canadian dairy farmers already follow some of the most stringent standards in the world, and the new Code of Practice will help them continue to provide the best in animal care while staying consistent with our industry’s history of continuous improvement,” Pierre Lampron, President of Dairy Farmers of Canada, said in a statement. "This commitment to quality and care means dairy farmers are always looking to stay ahead of the curve and improve their practices, reflecting the most recent science on the welfare of their animals.”

Back at the new Veldhuizen barn, a six-row freestall with sand bedding and perimeter feed maximizes feed intake and gives the utmost comfort for increased lying time.

“The biggest advantage of our new barn is probably the greater space for our dry cows and decreasing pen moves at this more stressful period of a cow’s life.

More freedom of movement for cows is just one of the design requirements, along with social contact for calves.

“A cow now moves into the new barn at 12 months of age and can live out her life in the comfort of the new barn with lots of space, away from the elements, able to milk as she chooses and can see water and feed at every angle,” he says.

MAIN HOUSING UPDATES

Other new requirements for cow housing within the latest code include a ban on electrified crowd gates, plus, effective from April 1, 2027, cows must not be tethered continuously throughout their entire production cycle, calving to calving.

Newly built barns must allow daily, untethered freedom of movement and social interactions year-round.

Other requirements involve calving areas, and, effective April 1, 2029, cattle on all farms, including existing barns and for those being built, must calve in loose housed maternity pens, yards, or pastures.

Calving areas, whether for group or individual calving, must provide the cow and calf an area that is clean, safe, separated from the lactating herd, and that provides enough space for the cow to be assisted.

There are also some interesting developments surrounding cow space coming in the future. Existing requirement insists that stocking density in barns must not exceed 1.2 cows per stall in freestall systems.

Then, effective April 1, 2027, the stocking density must not exceed 1.1 cows per stall. And later, effective April 1, 2031, the stocking density must not normally exceed one cow per stall. This gradual progression allows some farmers time to make plans to either reduce number of cows or extend stall numbers.

CALF HOUSING

One of the other big requirements involves calf housing where the code says calves must not be tethered in indoor housing and if outdoors, can only be tethered via a collar in a calf hutch with access to an area outside the hutch.

Producers raising calves individually must develop a plan to transition to pair or group housing methods, in consultation with a veterinarian or other qualified advisor.

Effective April 1, 2031, calves that are healthy, thriving, and compatible, must be housed in pairs or groups by four weeks of age.

PRODUCER ADVICE

“The NFACC Code development committee brought together a diverse group of stakeholders whose job was to review scientific research and come up with science-based attainable requirements, which improve the welfare of farm animals,” says Steve Runnalls, Dairy Farmers of Ontario board member and code committee representative.

He says many producers already meet the new code requirements so will have no changes to make, however, some producers may need to make some investments.

“Producers always hold the health and welfare of their animals to the highest standards. These changes also help build public trust and mean that farm practices keep pace with societal expectations and based on science.”

For a summary of what’s new and what’s changing, visit https://dairyfarmersofcanada.ca/sites/default/files/20233/ Comparison%20between%202023%20and%202009%20 versions.pdf

PREPARING FARM BUILDINGS FOR SNOW, WIND AND EARTHQUAKES

New farm buildings will soon need to comply with the latest edition of the National Building Code of Canada (NBC 2020).

This excludes those farm buildings under 6,458 square-feet that will be permitted to continue to meet the requirements of the existing code (NFBCC 1995).

Larger farm buildings will now fall under the same code as other regular buildings.

Some of the major new changes state new farm buildings in some areas of the country will need to be designed to resist larger loads of snow.

Another climatic issue is wind. New barns must be able to withstand winds with pressure referenced as once in 50 years instead of once in 10 years.

Resulting wind loads from this change are roughly 30 per cent larger, meaning bracing assemblies will need to be sized to resist the increased loads.

New farm buildings must also be earthquake-proof, depending on the region they are built in. In the previous code (NFBCC 1995), farm buildings were not required to be designed to resist loads due to earthquakes. Not all, but certain new farm buildings will need to consider these loads to comply with the NBC 2020.

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UPDATED CODE OF PRACTICE RELEASED: WHAT PRODUCERS NEED TO KNOW

By Dairy Farmers of Canada

ON MARCH 30, 2023, the National Farm Animal Care Council (NFACC) and Dairy Farmers of Canada (DFC) released the updated Code of Practice for the Care and Handling of Dairy Cattle. This powerful tool, like Canada’s other Codes of Practice, helps meet changing consumer, marketplace, and societal expectations relative to farmed animal welfare. Based on current science and stakeholder feedback, the codes are designed to support responsible care practices and keep everyone involved in animal care and handling on the same page as we move toward the future of farming.

We know our dairy farmers already follow some of the most stringent standards in the world, and the new Code of Practice for the Care and Handling of Dairy Cattle will help farmers continue to provide the best in animal care while staying consistent with our industry’s history of continuous improvement. This commitment to quality and care means dairy farmers are always looking to stay ahead of the curve and

improve their practices, reflecting current science on the welfare of their animals.

The new Code of Practice will replace the 2009 Code as of April 1, 2024 (unless indicated otherwise in a requirement with a later phasein date). The current dairy cattle Code of Practice will remain in effect until March 31, 2024.

HOW WAS FEEDBACK INCORPORATED INTO THE NEW CODE?

A draft of the revised Code of Practice for the Care and Handling of Dairy Cattle was released for public comment in November 2021, and a significant number of farmers submitted comments. Participation in the public feedback process was excellent, and input had a clear impact on the resulting revised version. Many of the final requirements in the Code of Practice were streamlined or clarified due to the comments received. Of note, some requirements were also removed. Some of the new or revised requirements are already covered in proAction, and others are already common practices on many farms. Dairy farmers across Canada are well-positioned to achieve the new requirements in the Code of Practice.

HOW DO THE 2023 AND 2009 VERSIONS COMPARE?

The most impactful changes in this Code of Practice, compared to 2009, are the requirements to provide more opportunities for social contact for calves (i.e., transitioning to pair or group housing for preweaned calves), and more opportunities for movement for lactating cows and dry cows. These updates are supported by science in promoting overall good welfare.

The most impactful changes in this Code of Practice, compared to 2009, are the requirements to provide more opportunities for social contact for calves

Don’t miss our story on barn-building for the future. Flip to page 32.

Some farms will find some changes more challenging and may need to plan investments in their barns. Both NFACC and DFC appreciate that such investments will take time and could be significant for some farms. That’s why up to eight years is given to implement changes that require more investments on-farm.

HOW DO THE UPDATES AFFECT PROACTION?

The changes to the Code of Practice for the Care and Handling of Dairy Cattle will eventually be incorporated into the proAction program. Some of the new or revised requirements are already covered in proAction, and others are already common practices on many farms. The proAction committees will evaluate incorporating the new or revised requirements into the Animal Care module over the next few years, with first changes to be expected in September 2025.

It’s important to note that provincial animal enforcement organizations may expect that these requirements are met according

to the timelines mentioned earlier in the case of an animal care investigation, regardless of the requirement status in proAction.

WHERE CAN FARMERS FIND OUT MORE ABOUT THE NEW CODE?

Dairy farmers across Canada are well-positioned to achieve all requirements in the Code of Practice for the Care and Handling of Dairy Cattle.

Detailed information regarding the 2023 Code is available on DFC’s new Farmer Resources portal, which includes:

• The complete Code of Practice for the Care and Handling of Dairy Cattle

• Comparisons between 2023 and 2009 requirements

• Summary of key impactful requirements and timelines

The Farmer Resources portal: www.dairyfarmersofcanada.ca/en/farmer-resources or email communications@dfc-plc.ca and request to be added to the Dairy Express mailing list, to receive up-to-date information sent directly to your inbox.

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— Joe Engel

“People ask how our cows’ udders look so good so soon after calving. I say we always use Udder Comfort.™

It maximizes a cow’s genetic potential. We use it on the entire udder of every heifer twice a day after calving and put it between the leg and udder to soothe irritation before they calve. For fresh mature cows, we use it routinely, but fewer days. It does an awesome job softening udders and is gentle to skin,” says Joe Engel, Luck-E Holsteins, Hampshire, Illinois. Dams of the 184-cow milking herd average EX92. Luck-E has bred over 600 EX, including both sides of the pedigree of Luck-E Awesome Adventure EX94 96MS, 2022 Illinois Cow of the Year. Joe’s 9-year-old son showed her at World Dairy Expo. She was International Type and Production winner nominated Junior All-American.

“We want fresh, crisp, perfect udders by 10 to 21 days in milk. Udder Comfort gets udders spot-on, all the way ready, fast. At our 50th anniversary sale in 2019, we had many cows just fresh and showring ready,” says Joe. In 2023, brothers Joe and Matt are preparing 170 lots, including around 90 milking cows, many fresh in March for the ‘Best of Luck-E’ sale in April. Scan QR on the right to read about Luck-E Holsteins!

A RECORD COMEBACK A RECORD COMEBACK

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Having a strong farm transition plan ensures your farm – and anyone involved in running it – are set up for success.

As Doug Young wrote in this article from the February 1978 issue of Milk Producer, arriving at a satisfactory working agreement involving the transfer of farm assets from one generation to another is one of the major challenges perpetually facing dairy farming families.

More than 45 years later, this still holds true. What has changed, however, is that women now run farms and have voices in the process, alongside their fathers, brothers and husbands.

“Advice on the types of arrangements and possible tax consequences should be investigated thoroughly,” Young writes, and advice should be sought from a variety of professionals including accountants, lawyers, and even staff at the Ontario Ministry of Agriculture, Food and Rural Affairs.

The Heartbeat of Your Dairy.

The HiFlo Evolution pulsator is the true evolution within BouMatic’s legacy. BouMatic’s first pulsator was born in 1939 through the hard work and dedication of Lawrence Bouma. What became the BouMatic milking principle of milking gently, quickly and completely was reflected then in the original design and continues today.

The HiFlo Evolution pulsator embodies the efficient simplicity and rugged reliability that Lawrence Bouma engineered into his first BouMatic pulsator in 1939.

The HiFlo Evolution will become the heartbeat of your dairy as it has become the heartbeat of BouMatic.

Request more information at BouMatic.com/HiFlo. It is in the best interest for the life of your dairy.

The Complete Package!

Pursuit

• In December, Pursuit was our #1 selling sire!

• From 11 generations of VG or EX dams tracing back to the universally renowned Rudy Missy family

• Calving Ease, Robot Ready™, and Immunity+® designated

• Available Day-to-Day Sexed

Whatever goals you are pursuing, Pursuit will check all the boxes!