F A RM T R AN S F E R
The process of farm transfer is an additional stressor that is partially financial. It is a complex process that requires attending to legal issues and paying for the development of estate planning documents, protecting the viability and integrity of the farm, and maintaining positive familial relationships. It is also connected to the financial security of principle operators in retirement. If retiring principal operators have not saved, or adequately saved, for their retirement years, they are less likely to be able to transfer the farm to family members or others. They will likely be reliant on farm income for living expenses and health care costs in retirement. Additionally, small profit margins, property taxes, solvency and debt will influence farm operators’ abilities to transfer the farm to younger generations (Pitts et al., 2009).
Only 36% of farmers and farmland owners have an estate plan, according to one study. Of those, 82%t did not have an exit strategy; 88% indicated they did not have financial plans for their retirement (Ruhf, 2018).
Beginning and Young Farmers
According to the 2017 Young Farmers Coalition survey, 38% of respondents who are currently farmers indicated land access is a significant challenge due in part to cost. Respondents noted other significant challenges as costs of health insurance (50%) and student loan debt (29%) (Ackoff et al., 2017). Clearly, the costs of start-up, debt that precludes start up loans, and cash flow place financial pressures on young farmers.
Relationships
While relationships themselves can be a stressor, distress about money affects most relationships. Almost a third of adults with partners report that money is a major source of conflict in their relationships. A survey found that for those living in lower-income households (less than $50,000 per year), financial distress stands in the way of a healthy lifestyle. This data suggests that those with financial stressors put their health in jeopardy (American Psychological Association, 2015). Financial stressors manifest as physical and psychological health problems, behavioral change, and diminished decision making. When it comes to farming, poor financial decisions can impact the well-being of not only the individuals within the family but the farm family business and operation as well as the community in which the farm is located.
Farm and Farm Fami ly Risks
Human risk management is one of the five areas of agriculture risk management. The others are production, marketing, financial (as it relates to enterprise and family), and legal. Programming and interventions focus
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