Here are some case studies that show how farmers have achieved success when faced with problems. For many of them, the next steps will be making plans for retirement and farm transfer. After each case study, there is a question. Think about what advice you would give them before reading the suggestions. 

 

Jane sells flowers and herbs that she raises on her small farm. She was dealing with credit card debt and then her problems got worse when her roof fell. She was turned down for a loan by 3 loan agencies. She was able to get help from rural housing with a both a grant and a low interest loan. She has also received training on diversifying her farm from the Cooperative Extension Service and is beginning to tackle her credit card debt.

Question: What can she do to save for retirement?

Suggestions: She should get control of the credit card debt and then start an Individual Retirement Account (IRA).

 

Beth and her husband have a dairy farm. When their milk route was dropped, their solution was for the husband to find a job off the farm. He believed that he didn’t have any skills to list on a job application. With some coaching from the Cooperative Extension Service (CES), Beth helped him describe the skills he had used in managing the dairy farm. He got the job and has since received a promotion. Beth received training from the Cooperative Extension Service (CES) on diversifying and now the farm is producing dairy heifers, pasture poultry (free range chickens), eggs, and flowers.

Question: What can they do to save for retirement?

Suggestions: If the husband is eligible for a pension plan at work, they should contribute as much as possible or enough to get the employer match. If no plan is available at work, start an IRA for him. Beth should also start an Individual Retirement Account (IRA).

 

Mattie retired from teaching. Although she and her husband, also retired, didn’t know much about farming, they bought a farm. They have gotten training from the Cooperative Extension Service (CES) and learned how to keep records, increase production, improve their water quality, and install fences.

Question: What financial goals should they concentrate on now that they have learned about how to farm?

Suggestions: They should think about saving for a second retirement when they are older and less able to do all of the physical work that they are currently enjoying. Each one could have an Individual Retirement Account (IRA).

 

 Janet sells vegetables to the local farmer’s market. She is also part of a Cooperative Share Agreement (CSA) that serves a 70 mile radius. She and her children are developing a Living History farm on her farm. Although that has not become a money maker yet, they are working toward that goal.

Question: Janet is in her late seventies. What financial goals should she focus on?

Suggestions: She should do some estate planning. She should know how her property is titled, decide on an executor, and prepare a will. She should discuss all of this with her family so that they know what she wants and are in agreement with her plans.

 

Mary needed financing to buy half of her farm. After she was turned down by three agencies, she obtained help from the Cooperative Extension Service (CES) in applying for a loan to purchase the farm. She received the loan and was able to purchase the farm. Now she feels more stable.

Question: What financial goals should she focus on?

Suggestions: She should continue to learn management skills and focus on production and repaying her loan. She should develop an estate plan. She should discuss her plans with family members.

 

Marie has started raising goats after retiring from a job with state government. Her farm is also a location for hunting and she is thinking about developing that to increase her income. She is still learning how to market the meat from her goats.

Question: What financial goals should Marie focus on? 

Suggestions: She should continue with her plans to increase income from hunting and the goats. She could start an Individual Retirement Account (IRA) and save at least a small amount each year. She should have an estate plan.

 

After reading these case studies, think about your own situation.

ü      What problems are you facing?

ü      Who can help you?

ü      What alternatives are possible?

ü      Make a plan and take action.