Checklist: Are You Leaving Money on the Table with Your Farm?
Every year, thousands of dollars quietly leak out of Canadian farms through unclaimed deductions, unused programs, or overlooked inefficiencies. Most of it is avoidable.
At AG Business Advisory, we’ve recovered more than $4 million in hidden value for clients by conducting targeted financial reviews and grant audits. If you want to plug the gaps, this checklist is where to start.
Farm Profitability Checklist
Go through each item below. If you hesitate or answer “no,” there may be money waiting to be recovered.
1. Have you tracked and categorised all your expenses this year?
Expenses must be logged in real time to claim full deductions. Tools like AgExpert or a simple spreadsheet can help you stay consistent.
2. Have you reviewed every current federal and provincial ag grant you’re eligible for?
Many grants go unclaimed simply because farmers don’t realise they qualify. From energy-efficiency upgrades to young farmer incentives, the programs change every year.
3. Have you done a break-even analysis on each crop or product line?
Knowing your breakeven cost per acre or per unit helps you adjust pricing or remove underperforming assets before they cut into profits.
4. Are you claiming all applicable depreciation through the Capital Cost Allowance (CCA)?
If you’ve purchased or upgraded equipment, buildings, or vehicles, you may be eligible for annual write-offs under CRA’s depreciation categories.
5. Have you reassessed your insurance coverage vs. cost?
We often see over-insured or misclassified farm assets. Getting the balance right can reduce annual premiums without increasing risk.
6. Do you have a business plan that includes financial forecasting?
Farms with written business plans are 30 percent more likely to reach revenue targets, according to Farm Credit Canada.
7. Are you using income-splitting or family payroll deductions where appropriate?
If family members work on the farm, legitimate payroll structures can reduce the overall tax burden while keeping everything compliant.
8. Have you checked whether your financials qualify for low-interest ag financing?
Some lenders and programs require updated records and profitability ratios. A quick review can unlock new capital sources.
Featured Snippet Q&A:
Q: How can Canadian farmers find hidden profits in their operation?
A detailed financial checklist can reveal missed deductions, underused grant programs, and unprofitable practices that reduce margins.
Where to Go From Here
This checklist is a starting point—but identifying the gaps is only half the battle. If you’d like help turning these checks into real savings, our advisors can run a full profit audit tailored to your farm type, region, and goals.