Annie's Project - Risk Management for Farm and Ranch Women

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Overview of the 2012 Farm Bill
2012 NACAA AM/PIC Ag Econ Super Seminar Presentation

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Annie's Project - Risk Management for Farm and Ranch Women

  1. 1. NACAA Super Seminar Presented by Ruth Hambleton Founder of Annie’s Project July 18, 2012 North Charleston, South Carolina
  2. 2. VisionTo bring financial security and well beingto women in rural communities wherefood, fiber and fuel production aresynonymous with family.
  3. 3. MissionTo empower farm women to be betterbusiness partners through networks andby managing and organizing importantinformation.
  4. 4. What Annie’s Project Does• Safe Harbor• Connection• Discovery• Guided intelligence
  5. 5. Method of Delivery• Series of six classes• Three hour in length• First five classes are planned, the sixth meeting is at the discretion of the class.• Curriculum is designed around the five areas of risk management as defined by USDA. – Production – Financial – Marketing – Legal – Human Resources
  6. 6. Method of Delivery• Class size is between 8 & 25 women• Partner with Extension, Government Agencies, and private business for teams of instructors.• Women receive resources to bring them into the business world.• Fill out a baseline survey which is used to measure impact (behavior change, knowledge change, attitude change.)
  7. 7. Method of Delivery• Ideally would like to have the women behind computers 5 of the six meetings.
  8. 8. intersection farm family finance Family Life Nutrition and Health Field Resource Management Family GeneralProduction Risk estate planningFinancial Risk retirement planningMarket Risk InvestmentHuman Resource Risk financial riskLegal Risk http://www.extension.iastate.edu/feci/annie/rd.html
  9. 9. Audiences Mothers & Daughters Daughter-in-laws Mother-in-lawsWomen Who are Siblings to Famers Women Dating Farmers Newly Widows Weds Young & Old City, Rural, & Farm Women
  10. 10. Demographics Marital Status Business Structure 10% 4% 4% 4% 8%4% SoleProp Married Partnership Single S-Corp/C-Corp Divorced 21% LLC Widowed Other/Trust 63% 82% Income Category Acres Owned Percentage of Participants 24% 80% 70% 30% 60% 50% less50 40% 50-150 30% 20% 150-300 10% over300 0%16% 0 1-500 501- 1001- 1501- 2001- 2501- 3001- 1000 1500 2000 2500 3000 3500 Acres Owned 30%
  11. 11. Five Dangerous D’s Death Divorce Disability Disagreement Debt
  12. 12. Decision-Making Formula Information + knowledge = decisionsIncorrect information + knowledge = bad decisionsCorrect information + no knowledge = bad decisionsCorrect information + knowledge = no guarantees
  13. 13. Tools to Manage Risk • Insurance – Liability/peril – Life – Disability – Crop & Livestock Insurance • Contracts – Leases – Production agreements – Prenuptials – Market sales contracts • Emergency cash funds • Communications • Modified behaviors
  14. 14. Learning ResourcesFinancial Analysis Solution ToolsBalance Sheet, Cash Flow, Depreciation, Land Purchase,Breakeven Crops, Farm Rent Evaluator and othersAgPlan agplan.umn.eduFarmdoc www.farmdoc.illinois.eduFarmdocdaily www.farmdocdailey.eduColors® or True Colors®Investing for Farm FamiliesFamily and Consumer Economic Team
  15. 15. Leather Portfolio - $25 Embossed Pen - $2 Smart Phone- $200 Program - Priceless
  16. 16. Where Our Value Shines• Well organized information reduces stress. – Tax time – Insurance/input decision time – Marketing decisions – Deadlines – Government Farm Service Agency role – Landowner communications – Loan preparation • Business plan—your road map • Cash flow—your ability to generate income • Income statement—were you profitable? • Balance sheet—financial portrait of your business – Transition and retirement issues – Estate planning and settlement issues
  17. 17. HistoryAnnie’s Project began in February 2003with a class of 10 women at KaskaskiaCollege, Centralia, IL.
  18. 18. Current Program Status
  19. 19. National Leadership Policy Board National Leadership 25 Management Team State and Regional Coordinators Fundraising through theNFP and IL AG ANNIES Resource Annie’s Project I ISU Extension 120 Annie’s Project Council (ILAgri Women Not for Profit Facilitators MOU S 501 ©3) •Intellectual Property •Licensor U •Over sight of Annie’s Project •Training Materials Sub committees •Industry Advisory •Course •Promotion Other Implementation •ProgramsAdvisors ISU •Authority to Foundation $ Monitor
  20. 20. Financial Support Funding Sources 10% 13% 53% 24%• Grant Funds – 10%• Participant Fees – 13%• Partners & Sponsors – 24%• In Kind Support – 53% Grant Funds Participant Fees Partners & Sponsors In-Kind Support
  21. 21. Program Cost$313 per Annie.Cost Recovery$75-$100 Registration fee (87% paid)Local Sponsorships--Expense Review--AgPlan Software $ onlineFAST subscription $ onlineSupplies & postage $ 35Publicity & copy $ 15Instructors travel & time $263
  22. 22. How Annie’s has Changed1. Scope of Program—Nationwide (8,000)2. National Sponsor—Farm Credit Council3. Social Media—We are on Facebook4. Structure of delivery—Partnerships5. Structure curriculum for 2nd level program
  23. 23. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension Managing For Today & Tomorrow Succession, Business, Retirement & Estate Planning 2nd Level Annie’s Project BFRDP www.extension.iastate.edu/annie
  24. 24. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension Managing for Today and Tomorrow • Transition • Retirement • Business • Estate Planning From a Woman’s Point of View www.extension.iastate.edu/annie
  25. 25. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension Managing for Today and • Support: Tomorrow – USDA NIFA Beginning Farmer and Rancher Development Program – Farm Credit Council and Farm Credit Associations • Genesis: – Retiring farmers hold the keys of assets and management which beginning farmers seek – Women are influential in transition planning decisions – Women seek understanding on transition planning issues and resources to help start the process www.extension.iastate.edu/annie
  26. 26. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension Overview • Funded through a partnership with USDA OASDFR, Beginning Farmer Rancher Development Program (which is one of the line items reduced in the 2012 farm bill) www.extension.iastate.edu/annie
  27. 27. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension Overview • $675,750 Federal Funds • $192,285 Match from Partners • Goal to educate 3,000 women and beginning farmers and ranchers $290 per each beginning, mid-career or retiring woman farmer and rancher directly served. www.extension.iastate.edu/annie
  28. 28. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension BFRDP Goal • Support beginning, mid-career and retiring farm and ranch women with educational courses to: – Improve profitability, – Smooth the transitions of natural business cycles, – And encourage generational exchange. www.extension.iastate.edu/annie
  29. 29. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension Expectations-All Partners • Curricula development – Led by Ext educators with interested FC partners • Marketing and recruitment – Led by FC with interested Ext partners – Experience capture and stories • Delivery of courses for women – Both partners are fully engaged in delivery www.extension.iastate.edu/annie
  30. 30. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension • First year Timeline – Curricula development – Marketing • Second and third year – Delivery, evaluation, impacts www.extension.iastate.edu/annie
  31. 31. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension Year 1 • Introduction • Curriculum identification • Curriculum development • Pilot course delivery • Evaluation/revision www.extension.iastate.edu/annie
  32. 32. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension Pilot Courses • Pilot courses held: – IL held one course – MI held one course – MO held two courses – IA held three courses • Expect to hold 3 more pilots in 2012: – From among OH, NC, ND, PA, and WI www.extension.iastate.edu/annie
  33. 33. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension What We Work On •A woman’s vision •Define mission for her •How goals can be different and still work •Talking out loud about how and when transitions take place. •Fair and Equal discussions •Empowering women to contribute and guide Family discussions www.extension.iastate.edu/annie
  34. 34. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension Examples of Exercises in Class •Case study •Financial documentation •Goal setting •Visioning oneself as a retired person— what does that look like? •And discussion www.extension.iastate.edu/annie
  35. 35. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension General Observations Pilot Program Fair vs Equal Debt at a time when women want to retire Insurance poor Found the overview of transitioning useful www.extension.iastate.edu/annie
  36. 36. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension Pilot Course Results • We had 94 women participate in 7 courses held in 5 states. • Participants ranged in age from 25 to over 75 years old. • Participants met for one night each week for four weeks and worked on all four areas of business transition planning. • Most participants had a family member who already did or who wanted to come back to the farm. • Several participants had no successor to the farm business, yet realized the need to make a plan. www.extension.iastate.edu/annie
  37. 37. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension Pilot Course Results • Participants began succession planning goals for their families. The simple act of writing these forced many to look at the issue in new ways. – One woman crystallized her thoughts, as “I think my highest goal was to explore how we are going to transition our farm from my husband to our son and his wife. We are in the process at this time, but now that its time to think about retiring, its getting harder to accomplish any long term planning. I think that with the information you gave us and all the support from your team, we can begin to plan on a longer term basis.” www.extension.iastate.edu/annie
  38. 38. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension Pilot Course Results – Another woman wanted to: “Determine how to best pass on my farm to my children with the least disruption to the farm.” – A participant in a mid stage of farm business development concluded that, “(We need to) develop a plan for: • 1) No children want to farm. • 2) Both children want to farm. • 3) One child wants to farm. We are still at the stage where we are not sure which if any of our children will want to farm, so we need to be thinking about all of the possibilities.” www.extension.iastate.edu/annie
  39. 39. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension Ames, Iowa Participants www.extension.iastate.edu/annie
  40. 40. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension www.extension.iastate.edu/annie
  41. 41. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension www.extension.iastate.edu/annie
  42. 42. Annie’s National Network Initiative for Educational Success (ANNIES)at Iowa State University Extension www.extension.iastate.edu/annie
  43. 43. In Dedication to My MotherAnnie’s project is based on thelife experiencesof a woman namedAnnette (Kohlhagen) Fleck(1922-1997)
  44. 44. Thank you!On behalf ofall theAnnie’s, andfor everyone of the Ruth Fleck Hambleton, Annie’s Daughter8,000womenthrough thisprogram. . .
  45. 45. Ruth HambletonRetiredExtension Educator, Farm Business Management & MarketingUniversity of Illinois ExtensionFounder of Annie’s Project—Education for Farm Women16591 N White Swan LaneWoodlawn, IL 62898Phone (618) 485 6711Fax (618) 485 6710ruthhambleton@wildblue.netAnniesproject.org

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