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

NACAA Super Seminar

Presented by Ruth Hambleton

Founder of Annie’s Project

July 18, 2012

North Charleston, South Carolina

Vision To bring financial security and well being

to women in rural communities where

food, fiber and fuel production are

synonymous with family.

Mission To empower farm women to be better

business partners through networks and

by managing and organizing important

information.

What Annie’s Project Does

• Safe Harbor

• Connection

• Discovery

• Guided intelligence

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

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.)

Method of Delivery

• Ideally would like to have the women

behind computers 5 of the six meetings.

intersection

farm

family

finance

estate planning

retirement planning

Investment

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

Audiences

Mothers &

Daughters

Women Who are Siblings to Famers

Daughter-in-laws

Mother-in-laws

Women Dating Farmers

Newly

Weds Widows

Young & Old City, Rural, &

Farm

Women

Demographics

Marital Status

82%

4%

4%

10%

Married

Single

Divorced

Widowed

Business Structure

63%

21%

8%

4%4%

SoleProp

Partnership

S-Corp/C-Corp

LLC

Other/Trust

Income Category

30%

30%

16%

24%

less50

50-150

150-300

over300

Acres Owned

0%

10%

20%

30%

40%

50%

60%

70%

80%

0 1-500 501-

1000

1001-

1500

1501-

2000

2001-

2500

2501-

3000

3001-

3500

Acres Owned

Perc

enta

ge o

f P

art

icip

ants

Death

Divorce

Disability

Disagreement

Debt

Five Dangerous D’s

Information + knowledge = decisions

Incorrect information + knowledge = bad decisions

Correct information + no knowledge = bad decisions

Correct information + knowledge = no guarantees

Decision-Making Formula

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

Learning Resources

Financial Analysis Solution Tools Balance Sheet, Cash Flow, Depreciation, Land Purchase,

Breakeven Crops, Farm Rent Evaluator and others

AgPlan agplan.umn.edu

Farmdoc www.farmdoc.illinois.edu

Farmdocdaily www.farmdocdailey.edu

Colors® or True Colors®

Investing for Farm Families

Family and Consumer Economic Team

http://www.farmdoc.illinois.edu/

http://www.farmdocdailey.edu/

Leather Portfolio - $25

Embossed Pen - $2

Smart Phone- $200

Program - Priceless

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

History Annie’s Project began in February 2003

with a class of 10 women at Kaskaskia

College, Centralia, IL.

Current Program Status

ISU

Foundation

Other

Advisors

ANNIES ISU Extension

•Over sight of

Annie’s Project

•Training

Materials

•Course

Implementation

•Authority to

Monitor

Fundraising through the

NFP and IL AG Resource

Council (IL Agri Women

501 ©3)

25 State and Regional

Coordinators

120 Annie’s Project Facilitators

Sub committees •Industry Advisory

•Promotion •Programs

National Leadership

Policy Board

Annie’s Project Not for Profit

•Intellectual Property •Licensor

National Leadership Management Team

$

MOU

I

S

U

http://extension.missouri.edu/directory/people.aspx?C=1273

Financial Support

• Grant Funds – 10%

• Participant Fees – 13%

• Partners & Sponsors – 24%

• In Kind Support – 53%

10%

13%

24%

53%

Funding Sources

Grant Funds Participant Fees

Partners & Sponsors In-Kind Support

Program Cost $313 per Annie.

Cost Recovery

$75-$100 Registration fee (87% paid)

Local Sponsorships --Expense Review--

AgPlan Software $ online

FAST subscription $ online

Supplies & postage $ 35

Publicity & copy $ 15

Instructors travel & time $263

How Annie’s has Changed

1. Scope of Program—Nationwide (8,000)

2. National Sponsor—Farm Credit Council

3. Social Media—We are on Facebook

4. Structure of delivery—Partnerships

5. Structure curriculum for 2nd level program

Annie’s National Network Initiative for Educational Success (ANNIES) at Iowa State University Extension

www.extension.iastate.edu/annie

Managing For Today & Tomorrow Succession, Business, Retirement &

Estate Planning

2nd Level Annie’s Project

BFRDP



• Transition

• Retirement

• Business

• Estate Planning

Managing for Today and

Tomorrow

From a Woman’s Point of View



Managing for Today and

Tomorrow • Support:

– 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



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)



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.



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.



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



Timeline • First year

– Curricula

development

– Marketing

• Second and

third year

– Delivery,

evaluation,

impacts



Year 1

• Introduction

• Curriculum identification

• Curriculum development

• Pilot course delivery

• Evaluation/revision



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



•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

What We Work On



Examples of Exercises in Class

•Case study

•Financial documentation

•Goal setting

•Visioning oneself as a retired person—

what does that look like?

•And discussion



General Observations Pilot

Program

Fair vs Equal

Debt at a time when women want to retire

Insurance poor

Found the overview of transitioning useful



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.



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 it's time to think about retiring, it's 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.”



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.”



Ames, Iowa Participants

In Dedication to My Mother Annie’s project is based on the

life experiences

of a woman named

Annette (Kohlhagen) Fleck

(1922-1997)

On behalf of all the Annie’s, and for every one of the 8,000 women through this program. . .

Thank you!

Ruth Fleck Hambleton, Annie’s Daughter

Ruth Hambleton

Retired

Extension Educator, Farm Business Management & Marketing

University of Illinois Extension

Founder of Annie’s Project—Education for Farm Women

16591 N White Swan Lane

Woodlawn, IL 62898

Phone (618) 485 6711

Fax (618) 485 6710

[email protected]

Anniesproject.org

mailto:[email protected]

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

Economy & Finance

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