Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
Page 31
Page 32
Page 33
Page 34
Page 35
Page 36
10 Ag Families-Summer BY DIANETURNER While working on this article about managing farm finances I thought How can I write this when I am terrible at a budget my- self Then I thought Everyone does things a little bit different. We all have different methods to understanding our money mad- ness and what didnt work for me might work for someone else. When I changed jobs a few years ago it was hard for me to adjust from being paid every Friday to only twice a month. I struggled for months with my budget Lets be honest maybe I still do. I brain- stormed different techniques and tried giving myself only half of my check and putting the rest aside. When that didnt work I put money in my savings accounts so I would get a penalty if I withdrew money too often. As you can imagine that method failed as well. After get- ting married I realized I needed to step it up and finally started using a different system. For our family things are a little bit easier. My husband and I have full-time jobs that bring in regular paychecks and my husband farms on the side. Monthly bills are paid with income from our full-time jobs. For insurance and extra items we use the envelope system putting a little bit away each week so that when large bills come the sting isnt as bad. Many families have one stream of income to pay for monthly ex- penses. Others rely on income when crops are sold. Some larger families may find it easier for the primary-care provider to stay home and save on the cost of child care in the early years and to lend help in the field or in the shop. Not every year is a good year for farming but there are options when things are not so great. Recently I had the chance to talk with Jarrod Bennett sales representative and owner of Western Ken- tucky Crop Insurance about the products he offers farmers when conditions are unfavorable for crops. Most of the policies Bennett offers are considered federally sub- sidized while 5 percent of the policies are private. When a claim is placed insurance is tailored to make up for the annual shortfalls in cash flow and revenue. The policy itself acts as liability protection for the purchaser. Many lending sources require farmers to have some type of crop insurance before they are approved for lines of credit. Bennett said the most recent Farm Bill is a source of concern for the agricultural community considering only 20 percent of it is focused on insurance and FSA programs. We have to protect Americas food source so there was a great deal of lobbying in Washington D.C. to pass a Farm Bill that gave reassurance to the community he said. Lending institutions provide the light at the end of the tunnel for many farmers. Brandon Oldham branch manager of United Southern Bank spoke about the options he can offer customers. Lines of credit provide cash flow for purchasing equipment seed or others products vital to the production and harvesting of crops. Oldham said the bank works with its customers in ways that are convenient for them such as arranging annual or semi-annual pay- ments with only the interest being due each month. He also talked about how the bank is competitive with its interest rates and that he is not afraid to send customers elsewhere if they can get them better terms. My no. 1 concern is the customer Oldham said and making sure that their needs are met. If I cant do that here Ill refer them to someone who can help. With the assistance of lending institutions such as United South- ern Bank and Farm Credit Services many small farmers have the financially stability they need. Luckily the government also believes in setting aside funds for our agricultural communities through programs at local FSA offices and supporting crop insurance agencies. Much of this information is not new but it helps the rest of us understand the struggles our ag families face maybe we need to take a lesson on budgeting from our farmer friends. Finance tips from a farmers wife and experts