Incorporating Investing for
Farm Families into a Second
Level Annie’s Project
National Women In Agriculture Educators Conference
Baltimore, MD
March 25, 2010
Barbara O'Neill, Ph.D., CFP, CRPC, AFC, CHC, CFCS
&
Ruth Hambleton, Founder of Annie’s Project
What We Will Accomplish
• Review Annie’s Project—Education for Farm
Women
• Review Investing for Farm Families
• Demonstrate how components of Investing for
Farm Families are used for second level
programming.
History
Expansion as of January 2010
In Dedication to My Mother
Annie’s project is based on the
life experiences
of a woman named
Annette (Kohlhagen) Fleck
(1922-1997)
Leather Portfolio - $16
Embossed Pen - $2
Technology - $450
Program - Priceless
Annie’s Project Methodology
•
•
•
•
Safe Harbor
Connection
Discovery
Guided intelligence
Intersection of Farm Family Finance
estate planning
retirement planning
tools
investment and financial risk
Production Risk
Financial Risk
Market Risk
Human Resource Risk
Legal Risk
Family Life
Nutrition and Health Field
Resource Management
Family General
http://www.extension.iastate.edu/feci/annie/rd.html
Online Investment
Education for Farm
Households Project
Nancy M. Porter, Clemson University
Barbara O’Neill, Rutgers University
Investing for Your Future
http://www.extension.org/pages/Investing_for_Your_Future
Farmers Have Unique
Financial Information Needs:
• As self employed, they are responsible for
planning and funding retirement
• Many have both farm and off-farm income to
manage
• Their wealth is often tied up in land and not taxdeferred retirement savings accounts and other
investments
Farmers Have Unique
Financial Information Needs:
• They face economic vulnerability due to risks
beyond their control
• Sale of assets/land requires wise investment
decisions
• Rural areas are under-served by large financial
service firms and financial education providers
Farm Computer Usage and
Connectivity
• 57% of over 2 million farms use computers
• 27% use DSL (rate doubled from 2005 to 2007)
(Definition of farm which includes ranching and forest lands
http://www.agcensus/usda.gov/Help/FAQs/2002_Census/index.asp#1)
Source: 2002 Census of Agriculture, USDA National Agricultural
Statistics Service
Online Investment Education
for Farm Households
Two year $449,505 project with six phases:
– Market/audience analysis to clarify investment
concerns and learning preferences of farmers
– Adapt and enhance Investing for Your Future
learning lesson for farmers
– Pilot test program with Annie’s Project
– Extensive revision of course based on pilot results
– Market new, improved program
– Evaluate effectiveness of program
Farmers/ranchers 25 to 65 years of age involved
in household financial decisions
Objectives
Profile
Investments
Education
Outreach
Implications
Methods
• The survey sample of 300 farm families
was designed to focus on operations of
intermediate size ($250,000 to $2,000,000
sales).
• Younger farm owner/operators were
slightly oversampled.
• The respondent was screened to be
involved in making decisions about
your household’s personal finances. As
expected, a majority of participants were
women.
• Quotas were set to get a representative
sampling by geographic region.
7/17/2016
15
Computer Usage and Connectivity
Objectives
Profile
Investments
Education
Outreach
Implications
Methods
• Two-thirds have broadband access, but
remember all respondents were screened.
• In the West, half rely on satellite.
• In the North Central region, DSL is the leader.
• The age of the farmer is not related to his or her
use of dialup Internet services, however
education does; 42% of those with no college
education use dialup compared to 26% of those
with a college education.
North
Central
North-east
South
West
Dial-up
32%
28%
25%
32%
Satellite
27%
6%
29%
48%
DSL
34%
31%
28%
24%
Cable
4%
19%
6%
2%
7/17/2016
16
Respondents’ Level of Trust for Internet Investment Information Sources (N = 300)
Source of Internet Investment Information
A Lot
Some
Combined
Total
Cooperative Extension System Web sites
21%
45%
66%
University or college Web sites
Securities and Exchange Commission (SEC)
Web sites
13%
49%
62%
11%
45%
56%
State government Web sites
10%
41%
51%
Consumer groups Web sites
8%
42%
50%
Financial services companies Web sites
6%
42%
48%
Respondents' Likelihood of Responding to Information Sources About Online Investor
Education (N = 300)
Very
Likely
Somewhat
Likely
Combined
Total
Recommendation from local Cooperative
Extension System (CES) agent
Farm shows and meetings
Local university or college
National farm or ranch magazines
25%
11%
10%
10%
60%
70%
66%
65%
85%
81%
76%
75%
Someone who has seen CES online investor
education Web site
Stories in local newspapers
E-mailed newsletters
National farm television broadcasts
Links on agricultural-related Web sites
13%
11%
13%
6%
6%
61%
61%
56%
57%
56%
74%
72%
69%
63%
62%
Information Dissemination
Method/Reference
For OIE
Respondents' Preferred Investment Education Methods (N = 300)
Very
Willing
To Use
Somewhat
Willing
To Use
Combined
Total
Cooperative Extension System (CES) Internet
program
14%
44%
58%
Meet with a group of farmers and CES Agent
8%
47%
55%
Printed workbook
9%
40%
49%
Financial services company Internet program
8%
40%
48%
Meet with group of farmers led by financial
services company
5%
41%
46%
Financial planning program in Quicken
6%
35%
41%
Six-session course at a high school
4%
31%
35%
Preferred Investment Education Method
Farm Families Are Comfortable
Investing in Farmland
Trends in the prices for
farmland reinforce their
allegiance to the land as an
investment over stocks.
Most farmers do not expect to
retire as much as cut back the
scope of their operations. This
has significant implications
for investing strategies.
www.extension.org/pages/
InvestingforFarmFamilies
Second Level Annie’s Project
Incorporating Investing for Farm Families
into a Second Level Annie’s Project
Base Annie’s Project
Class #1 Feb 9
Welcome & Overview of the Course
Colors Communications Assessment
Risk Management Survey
Class #2 Feb 11
Risk Management for Your Farm Enterprise and Family
Estate Planning
FAST Tools
FarmDoc
Agriculture Regulations (PSEP, Livestock Management Facilities Act, Fence Law)
Crop Insurance
Class #3 Feb 16
Working with Lenders/Financial Management Skills
Farm Leasing
Enterprise Analysis
Finding Breakevens
Lease Evaluation
Land Purchase Evaluation
Class #4 Feb 18
Ag 101:
Soils, Crops and Grazing
Animals
Class #5 Feb 23
Women and Money
Retirement Planning
Keeping Track of Expenses and Incomes (Acct 101)
Financial Documentation
Balance Sheet
Income Statement
Cash Flow
Types of Insurance – Life, Health and Disability, Liability
Class #6 Feb 25
Farm Bureau-Soil & Water Conservation DistrictOpportunities and Services through the Farm Bureau
Opportunities through the Soil & Water Conservation District
Evaluation and wrap-up
Second Level Offerings
•
•
•
•
•
Women Marketing Grain
Keeping Farm Financial Records for Farm Women
Retirement and Estate Planning for Farm Women
Women and Farm Land Leasing
Investing for Farm Families (new for 2010 )
– Six hours of class room instruction using the eXtension
on-line course Investing for Farm Families as the
guiding curriculum.
Risk Management Areas and Activities
to Address Them
Financial
Human
Legal
Production
Price/Market
Estimated Expenses
and Emergency Cash
Reserves Worksheet
Risk Tolerance Quiz
Emergency
Preparedness
Document
Crop Insurance
Alternatives
Individual or Pooled
Marketing
Alternatives
Integrate Balance
Sheet / Net Worth
Exercise
Personal Insurance
Needs Assessment
(Health, Life,
Disability)
Asset Management
Transfer Plan
Production
Technologies
Pre- and PostHarvest Marketing
Alternatives
Asset Allocation
Worksheet
Retirement Estimator
for Farm Families
Estate Plan
Preparation
Worksheet
Futures/Options
Review your Personal
Credit Report
Financial Advisor
Questionnaire and
Response Key
UCC Lending Report
Input Price
Management
Evaluation of
Financial Account
Alternatives and
Service Providers
Balance Sheet Exercise
Risk Tolerance Survey
Emergency Cash Reserve
Evaluation
?
?
?
?
?
Two Levels of Evaluation
• IFF has a built in evaluation as
part of the original IFF project
• Second Level Annie’s Project
will be an on-line survey
Your Questions
Thank you!
Barbara O'Neill, Ph.D., CFP, CRPC, AFC, CHC, CFCS
Extension Specialist in Financial Resource Management
Professor II Rutgers Cooperative Extension
Cook College Office Building Room 107
55 Dudley Road
New Brunswick, NJ 08901
Phone: 732-932-9155 Extension 250
Phone: 973-903-7869 (cell)
Fax: 732-932-8887
E-mail: oneill@aesop.rutgers.edu
Internet: http://njaes.rutgers.edu/money2000/
http://www.investing.rutgers.edu
Twitter: http://twitter.com/moneytalk1
Ruth Hambleton
Founder, Annie's Project--Education for Farm Women
16591 N White Swan Lane
Woodlawn, IL 62898
ruthhambleton@wildblue.net
Phone: 618-485-6711
Phone: 618-237-6441 (cell)
Fax: 618-485-6710
Internet: www.extension.isu.edu/annie