THE FARM AND RANCH SURVIVAL KIT PROGRAM Susan Kerr, WSU-Klickitat County Extension Brian Tuck, OSU-Wasco County Extension Service Cheryl Cosner, Oregon Livestock Producer

Location

Situation/Issues Facing Clientele

Need for financial management education, but... Discomfort discussing financial issues in a public forum Discomfort discussing financial issues in a public forum Time pressures Time pressures Distance/travel costs Distance/travel costs Age--driving at night Age--driving at night Workshop costs Workshop costs Varied needs Varied needs

Discussion with producers; developed concept of “Farm & Ranch Survival Kit” Discussion with producers; developed concept of “Farm & Ranch Survival Kit” WSU/OSU cooperative effort WSU/OSU cooperative effort Obtained USDA RME grant Obtained USDA RME grant Hired program coordinator Hired program coordinator Sent direct mailing to 1200 ag, forest and open space landowners in Mid-Columbia Sent direct mailing to 1200 ag, forest and open space landowners in Mid-Columbia 165 officially enrolled; many more participants 165 officially enrolled; many more participants Program Development Process

Participants Commercial operators Small acreage operators

Outputs (Program Activities)

A. Newsletter installments 1. Business planning 2. Financial planning 3. Interpersonal relationships 4. Farm succession 5. Taxes and insurance planning 6. Marketing

B. Web page development 1. Subset of Small Farms web site 2. oregonstate.edu/wasco/ smallfarms/ RiskManagement.php

C. Workshops Ranching for profit 65 Farm succession 50 Winegrape production, vineyard establishment and vineyard management 100 Livestock workshop 35 Partial budgeting 13 Analyzing agricultural investments 13 Evaluating land lease agreements 14 Crop profitability analysis 7 Machinery costs 10 Hay growers’ workshop 35 Direct marketing workshop 11

Outcomes (Impacts)

30% response rate 30% response rate Respondents from 16 different counties in the Northwest; owned and/or managed 28 different agricultural enterprises; represented 77,220 acres under management Respondents from 16 different counties in the Northwest; owned and/or managed 28 different agricultural enterprises; represented 77,220 acres under management “On a scale from 1 to 5 (1 being none and 5 being a great deal), how much useful knowledge did you gain as a result of your participation in this project?” 3.78 “On a scale from 1 to 5 (1 being none and 5 being a great deal), how much useful knowledge did you gain as a result of your participation in this project?” 3.78 Evaluation via Survey

“Decrease overhead.” “Decrease overhead.” “Invest more time looking at business to see what is losing money.” “Invest more time looking at business to see what is losing money.” “Eliminate non-profitable enterprises.” “Eliminate non-profitable enterprises.” “Begin estate planning and meet with family members to discuss issues of succession and find out what next generation’s expectations might be.” “Begin estate planning and meet with family members to discuss issues of succession and find out what next generation’s expectations might be.” “Make educated decisions vs. guesses and hope!” “Make educated decisions vs. guesses and hope!” “I will be able to provide better information when approaching my lending institution. I can project which crops would be best for our land.” “I will be able to provide better information when approaching my lending institution. I can project which crops would be best for our land.” “Get my husband to figure out if it’s cost effective to buy machinery or farm.” “Get my husband to figure out if it’s cost effective to buy machinery or farm.” “What will you do differently following this workshop?”

Started/completed a business plan (14) Started/completed a business plan (14) Holding regular family meetings (7) Holding regular family meetings (7) Analyzed my financial situation with my lender (10) Analyzed my financial situation with my lender (10) Started/completed an estate/succession plan (16) Started/completed an estate/succession plan (16) Made changes to better manage stressful periods in my life (13) Made changes to better manage stressful periods in my life (13) Reviewed my insurance policies to determine if I have appropriate coverage (17) Reviewed my insurance policies to determine if I have appropriate coverage (17) Started/completed a change in our business structure (7) Started/completed a change in our business structure (7) Started/completed a marketing plan for my farm or ranch (11) Started/completed a marketing plan for my farm or ranch (11) “What changes have you made as a result of your participation in this project?”

Extension educators at the Louisiana State University AgCenter will use farm succession materials from the Farm and Ranch Survival KitExtension educators at the Louisiana State University AgCenter will use farm succession materials from the Farm and Ranch Survival Kit The Farm Family Support Network has linked its Web site to the Farm and Ranch Survival Kit Web siteThe Farm Family Support Network has linked its Web site to the Farm and Ranch Survival Kit Web site Wyoming Department of Agriculture included farm succession installment in their Estate Planning Handbook for the state’s agricultural producersWyoming Department of Agriculture included farm succession installment in their Estate Planning Handbook for the state’s agricultural producers Distribution of Austin Family Business Center workbooks to participantsDistribution of Austin Family Business Center workbooks to participants Other Impacts

Quotes from Participants

“I feel like I went from knowing nothing to be able to make intelligent decisions.” “I feel like I went from knowing nothing to be able to make intelligent decisions.” “We’re holding family meetings to discuss goals and objectives for use of our family property. Also working with financial planner to look at long-term financial objectives.” “We’re holding family meetings to discuss goals and objectives for use of our family property. Also working with financial planner to look at long-term financial objectives.” “We have prioritized what needs to be done first in setting up our farm. We are starting from scratch—as in bare land with no improvements.” “We have prioritized what needs to be done first in setting up our farm. We are starting from scratch—as in bare land with no improvements.” “Very good information. Real world stuff. Will have a value when used.” “Very good information. Real world stuff. Will have a value when used.” “Useful and practical info. Seems transferable to various situations and enterprises. Very convenient program.” “Useful and practical info. Seems transferable to various situations and enterprises. Very convenient program.”

Future Directions

WA-OR Farm Succession program: $30,000 from the USDA-RMA Western Center for Risk Management Education WA-OR Farm Succession program: $30,000 from the USDA-RMA Western Center for Risk Management Education NxLevel ® and Cultivating Success ® programs NxLevel ® and Cultivating Success ® programs Livestock enterprise budgets Livestock enterprise budgets Economic development funding requests Economic development funding requests Financial management and estate planning educational program partnerships with community colleges and Small Business Development Center Financial management and estate planning educational program partnerships with community colleges and Small Business Development Center

Questions?