Back to Ag Home Page 

County Home Page

Previous Issues:

Mar 2002

Jan 2002

Oct 2002

Sept 2002

Jul/Aug 2002

Drought Issue

Jun 2002

May 2002

Apr 2002

Mar 2002

Feb 2002

Jan 2002
 
 
 
 
 

 IN THIS ISSUE...  Febuary 2003

Financial Security
Financial security is the ability to meet your future needs while keeping pace with the day-to-day current obligations. Among the reasons financial security is important to most people are family needs, peace of mind, choice and control, reduced burden for others, reduced potential for conflicts, and improved quality of life. Financial security includes retirement planning, estate planning, financial management, and wealth accumulation.

Farmers and Retirement
A 2002 research report by the Economic Research Service ("Income, Wealth, and Economic Well-Being of Farm Households" E'S Report 812, July 2002) contained these facts:
   Slightly more than 6% of farmers are under 35 years of age.
   Half of all farmers are between 46 and 65.
   24% planned to retire in the next five years.
   The average age of farm operators is 55.

One of the summary main findings of this report follows:
"Farm households are no different than other households in pursuing two careers and diversifying earnings. More than half of all U.S. farm operators work off-farm, with 80% of these working full-time jobs. Nearly half of all spouses are also employed off the farm. Off-farm work is no longer viewed as a transitional position between the agricultural and the industrial economy, but as a lifestyle choice, with farming as a second job or investment. As with most households, income flows not only from farm and off-farm employment but also from investments. Off-farm employment is often for the sake of securing retirement and health benefits."

Warren Lee's article in the Fall 2002 issue of the Farm Management Update discussed the planning horizon, income and cost estimates, and some aspects of an investment program. At the recent Farm Science Review, visitors to the Farm Business Office display took a basic true/false test. The results showed an average correct score of 71.5% with a range of 40% - 100%.

Let's touch on ten points that are key to Financial Security in Later Life for Farm Families.
1) Estate Planning – Written, up-to-date plans can help you meet important objectives.

2) Retirement – This phase of a life cycle can be much longer than our parents.

3)Investments – A balanced portfolio which includes some real estate can be an efficient, stable source of income.

4) Financial Goals – It is well documented that persons with written goals are much more likely to achieve them.

5) Funding Education – Even with new programs to help save for education expenses of dependents, more income may be needed.

6) Financial Management – Completing an annual net worth statement, calculating financial ratios, and knowing your credit rating are critical.

7) Risk Management – Understanding your own tolerance for risk and ability to absorb losses help decide on which risk management strategies and tools to use.

8) Tax Management – Understanding the basics of tax reporting and knowing when to consult a professional can help increase "after-tax income."

9) Cash Management – Monitoring and controlling cash flows including living expenses is necessary so current obligations can be met.

10) Emergency Cash Reserve – Many professionals suggest an easily accessible cash reserve equal to at least 3-6 months of normal living expenses be maintained for emergencies.

Four Top Web Sites
Here are four top, new web sites that you will want to visit:
Financial Security in Later Life
http://www.reeusda.gov/financialsecurity
Estate Planning Considerations for Ohio Families
http://ohioline.osu.edu/estate
Retirement Estimator for Farm Families
http://www2.agriculture.purdue.edu/retirement
10 Modules for Planning for Secure Retirement
http://www.ces.purdue.edu/retirement

Summary
Financial security is more likely to be achieved through an informed, timely set of management decisions. My favorite quote is "This information won't affect you unless...You do use it...or...You don't use it!"
- Bob Fleming
  OSU Farm Management Specialist

back to top
 

Ohio Wheat Acres Planted and Winter Condition Report
The National Agricultural Statistics Service, USDA released the winter wheat seeding report on January 10, 2003. Nationally the acreage of winter wheat planted is up 5% from 2002 or 44.2 million acres. The reported acres of wheat planted in Ohio is 1.0 million, up from 0.86 million in 2002. Most of Ohio's wheat crop was planted before October 15 and plants developing from these timely plantings developed 3 to 4 tillers before entering into winter dormancy in mid December. These fields should be in relatively good shape at the present time. The weather that has occurred since mid December has been relatively cold but consistent. Plants are now in frozen ground with varying amounts of snow cover depending on location in the state. Little freezing and thawing has occurred so far so plants should not be damaged. Additionally, the low temperatures have not been low enough to injure the dormant plants under most field conditions. Plants that developed in fields planted after October 15 were much smaller by Mid December due to the colder temperatures that prevailed in late October