Beginning Farmer Center:FarmOn ProgramWestminster Fellowship ClubDes Moines, IAMichael Duffy, DirectorOctober 27, 2009

OutlineBackground and current situationBeginning Farmer CenterFarmOn programFutureDiscussion

SummaryWe have a situationDecreasing number of farmsIncreasing average age and age distribution Increasing age of land ownersChanging structure of agricultureTechnology that increases continually tightens profit margins

All of this makes it difficult for the beginning farmer

Beginning Farmer CenterStarted in 1994 by the Iowa LegislaturePrimary objectives are:Coordinate education programs and services for beginning farmersAssess the needs for beginning and retiring farmers to identify opportunities for programs and servicesDevelop statewide programs to educate beginning and retiring farmers

Beginning Farmer CenterFarmOn programAgLink programIndividual consultationsSeminars and other educational programsSome research

FarmOnAddresses fundamental problems of those entering or exiting farmingIdentifying viable entry opportunities.Developing effective entry/exit strategies.Minimizes the need for entry capital.Developing the required skills.

FarmOn Program:Data base of retiring farmers and young people wanting to farm and a system to match up one with the other380 young people; 16 retiring couplesEducational programs for successful transitionsFamily mediationSupport services such as retirement and estate planning.Financial analysis

Candidates A beginning farmer is someone whoWants to find a way to pursue or continue a farming careerIs willing to invest time, energy, resources, and sweat equity in return for an opportunityHas a strong desire to farm but has limited resourcesWants to avoid large debt needed for start-up costsAcceptable to a mentoring scenario

Retiring FarmersPlans to retire within 5-10 years Wants to find someone to continue the farm businessWants to help a young person enter into a great career

Retiring FarmersWants to help preserve the family farm business and the local communities by encouraging young people to move into farmingWould like to take maximum advantage of tax savings, such as reduced capital gains in transferring land, livestock, or machinery using income tax credits, and tax-free interest loan programs

Barriers to Exiting the Family BusinessChildren do not want the business or want to sell the assets.No examples within the community.Lack of resource guides.Poor human interaction skills.Poor interactions between the generations.Not aware of entrants who want to own a small business.Desire to equalize estate shares among all the heirs.Dont know how to transfer the business to the next generation.

Beginning Farmer CenterInstrumental in starting the International Farm Transition NetworkCurrently there are 20 states and 15 countries that have worked with the network

Thank you for your interest and support!

Contact info:

Beginning Farmer Centerwww.extension.iastate.edu/bfc/877.BFC.1999