Document Sample

Bernard Belzile Secretary General

The thousands of producers who are members of farm management clubs
The many hundreds of advisors in management committed to their members The many producers who are involved with la Fédération’s Administrative Council.

La Fédération’s personnel

Who we are


Presentation Outline
Why speak about Farm Management Clubs History What is an Farm Management Club Management Services Budget and Funding Farm Management Clubs’ financial impact La Fédération: The power of a network Conditions for implementing a Farm Management Club

Why speak about Farm Management Clubs

Why speak about Farm Management Clubs
A proven formula
35 years of history Compelling results

A formula which encourages producers to manage their tools for progression. A privileged model of MAPAQ and UPA

Why speak about Farm Management Clubs
In Québec, it has become an original and popular model for the development of consultation-services:
35 farm management clubs 30 technical type of clubs 75 agroenvironmental clubs 10 regional establishment centres (farm succession) 3 organisations for manure management


1968: Establishment of the first Farm Management Club (FMC), the Iberville-Missisquoi.
10 years later: Establishment of a second FMC (Nicolet-Yamaska)

1978 – 1982: Establishment of more than forty clubs within all regions of Quebec
1982: Establishment of la Fédération des syndicats de gestion agricole (Federation of agricultural management clubs), affiliated with UPA

1984: Computerization of the FMC (Agritel-counsel and data base)
1985-1990: Creation of the first techical clubs

1989-1993: Implementation of management groups in Eastern Ontario
1993: Establishment of Support Services for Non-Members

1997: Creation of the first agro-environment club
1998-2002: Merging of management clubs and development of multidisciplinary groups (management, agro-environment, technology, etc.) 2002: Plans for marketing and name-change

Elements favorable to the Farm Management Clubs:
Increase of investments and of the financial risk on corporations Producers’ determination to control the development of their farms Concrete support from the province for the development of agricultural management (financial partnership)

What is an Farm Management Club (FMC?)

What is an FMC?
An independent grouping of agricultural corporations (legal constitution)
20 to 200 corporate members (average: 60)

The Administrative Council is elected by the members (comprised of producers)
Salaried personnel (agrologists, technical staff and secretariat)

FMC’s Mission
To support agricultural producers in the management of their businesses with consultation services and group activities directed and controlled by the members.

Affiliation with a group of corporations
Leadership and control of producer services. Respect of values and objectives from the individuals working on farms The development of independence through training A privileged relationship between the consultant and the producer

Local Structure
General Assembly Head Office (5 to 9 members) Management Consultants
• Secretariat •Treasury • Personnel •Management

Committee • Journal • Management • Social • Training



Agricultural Corporation Members

Management Services… …Help for making business decisions

Management Services

Business Profile and Analysis
Business Development Plans

Group Activities

Management Services

Business Profile and Analysis
Business Development Planning

Group Activities

Management Services
Business Profile and Analysis
Implementation of a management information system
Management Accounting

Technical Registries

Analytical Reports for every farm Group Analysis (benchmarking) Diagnosis

From Accounting to Management Diagnosis Accounting Registries
• Revenues
• Expenses • Assets • Debts • Mechanics • Labour Balance Sheet Results Analysis
2000 2001 2002

Evolution in Time

Group Analysis
Farm Products Expenses Benefits $$ $$ $$ Group $$ $$ $$


Analysis Reports
Market Value Balance Sheet
State of Management Results Reimbursement Capabilities

Analysis of Financial Ratios and TechnicalEconomical Efficiency
Analysis of Production Costs Analysis of Margins for All Farm Activities

Management Services

Business Profile and Analysis
Business Development Planning

Group Activities

Management Services

Business Profile and Analysis
Business Development Planning

Group Activities

Management Services

Strategic Planning

Business Planning and Development


Project Studies and Business Plans (Funding)
Production Plan

  

Budgeting and Follow-up
Advice on Business Management Farm Succession Planning, Legal Status Conflict Resolution



An agricultural producer is, first and foremost…
A Business Leader
Driven by his vision, ambitions and objectives

A Manager
Mindful in taking reasonable and enlightened decisions

A Technician – Machine Operator
Eager to work in a pleasant, safe and efficient environment.

Management Services

Business Profile and Analysis
Business Development Planning

Group Activities

Management Services

Business Profile and Analysis
Business Development Planning

Group Activities

Business Management

Management Study Workshops
Training Sessions Trips - Farm Tours

Group Activities
« A Partnership in Support »

    

Newsletter-Press Releases Exchange Groups (4 or 5 corporations)

Budget and Funding
INCOME Members’ Contribution MAPAQ Contribution Other Income Total Income

Average Group 60 Members $58 200
$58 700 $13 100 $130 000

Per member $960 $965 $215 $2 140

Source: FGCAQ Enquête GCA 2000

Budget and Funding
EXPENSES Personnel Salaries Fédération Services

Average Group 60 members
$95 800 $12 400

Per member $1 580 $205

Other Expenses
Total Expenses

$21 800
$130 000

$2 140

Source: FGCAQ Enquête GCA 2000

FMC Financial Impact
By helping producers to clarify their objectives, the FMC have provoked them to call many issues into question:
Transfer of investments towards more productive funds. Adoption of technologies to reduce costs Awareness of the importance of time management Equipment Pooling (CUMA) Contemplation on the quality of life of Agriculture.

FMC Financial Impact
Corporations which initially joined an ACG experience:
43% increase of the operating profit. 2,2% increase of the return on assets $150 000 increase of the net worth



0 Operating Profit

(Étude réalisée pour le Comité de coordination MAPAQ-UPA, FSGAQ 2000)

-than 3 yrs

+than 10yrs

FMC Financial Impact
Many studies reveal the benefits provided by the FMC:
Financial ratios are significantly different, in favour of farms which have been members for a long period of time
(Doyon, GREPA 1998)

The more years spent affiliated with an FMC increases the measured level of technical efficiency
(Romain & Lambert, U. Laval, 1995)

Following training, affiliation with an FMC is the second element to the success of an agricultural establishment
(Muzzi, U. Laval, 1988)

La Fédération des groupes conseils agricoles du Québec

The Power of a Network

FMC Network Today:
35 groups in Quebec 3 groups in Ontario 1 group in Manitoba (service accord)
2 200 corporate members (4 000 producers) Total assets: $3,4 billion Annual Investments: $210 million

ACG Network Today:
62 Agricultural Management Advisors
5 Agricultural Production Advisors 26 Technicians / Support Staff A Sales Figure of 5 millions $

FMC Network Today:
Ten Groups affiliated with la Fédération are now offering its clients multidisciplinary services, management services, agroenvironmental services, beef production services and farm succession services.

The Role of La Fédération:
To represent and support affiliated management clubs
To manage common policies on Human Resources Management Ensure the standardization of work tools and methods Ensure integration in the workplace, training and support from the FMC staff

Develop common tools for the analysis of financial results and corporate techniques (Agritel-counsel)

Our Future Challenges
Ensure a steady and reliable service for our members
Increase number of members to 3000 from now until 2005 Maintain our role as Leader of la Fédération Complete the affiliation of diverse group formulas and carry out the establishment of multidisciplinary groups.

Our Future Challenges
Fulfill the needs of all agricultural corporations
Reinforce the role of the agricultural counsel groups such as social organizations within the community
Increase and diversify la Fédération’s source of income.

Conditions for Implementing a Farm Management Club
Leadership of agricultural producers for the establishment and development of the FMC
Dynamic, competent and devoted consultants, eager to work directly with the producers Services adapted to the needs of our members and evolving with time.

Services helping producers to achieve THEIR goals

Conditions for implementing a Farm Management Club
Fees reflecting the true value of services and providing an adequate long-term funding
A financial aid supported by the State
Justified by the training completed by the group and positive repercussions for the entire community

An adequate framework for management groups and their personnel (second line services)

Standardization of work tools and methods as well as Human Resources Management policies

« A Partnership in Support »