Beginning Farmer Center: FarmOn Program

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Beginning Farmer CenterFarmOn Program

• Westminster Fellowship Club
• Des Moines, IA
• Michael Duffy, Director
• October 27, 2009

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Outline

• Background and current situation
• Beginning Farmer Center
• FarmOn program
• Future
• Discussion

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Summary

• We have a situation
• Decreasing number of farms
• Increasing average age and age distribution
• Increasing age of land owners
• Changing structure of agriculture
• Technology that increases continually tightens
  profit margins
• All of this makes it difficult for the beginning
  farmer

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Beginning Farmer Center

• Started in 1994 by the Iowa Legislature
• Primary objectives are
• Coordinate education programs and services for
  beginning farmers
• Assess the needs for beginning and retiring
  farmers to identify opportunities for programs
  and services
• Develop statewide programs to educate beginning
  and retiring farmers

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Beginning Farmer Center

• FarmOn program
• AgLink program
• Individual consultations
• Seminars and other educational programs
• Some research

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FarmOn

• Addresses fundamental problems of those entering
  or exiting farming
• Identifying viable entry opportunities.
• Developing effective entry/exit strategies.
• Minimizes the need for entry capital.
• Developing the required skills.

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FarmOn Program

• Data base of retiring farmers and young people
  wanting to farm and a system to match up one with
  the other
• 380 young people 16 retiring couples
• Educational programs for successful transitions
• Family mediation
• Support services such as retirement and estate
  planning.
• Financial analysis

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Candidates

• A beginning farmer is someone who
• Wants to find a way to pursue or continue a
  farming career
• Is willing to invest time, energy, resources, and
  sweat equity in return for an opportunity
• Has a strong desire to farm but has limited
  resources
• Wants to avoid large debt needed for start-up
  costs
• Acceptable to a mentoring scenario

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Retiring Farmers

• Plans to retire within 5-10 years
• Wants to find someone to continue the farm
  business
• Wants to help a young person enter into a great
  career

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Retiring Farmers

• Wants to help preserve the family farm business
  and the local communities by encouraging young
  people to move into farming
• Would 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

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Barriers to Exiting the Family Business
Children 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.
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Beginning Farmer Center

• Instrumental in starting the International Farm
  Transition Network
• Currently there are 20 states and 15 countries
  that have worked with the network

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• Thank you for your interest and support!
• Contact info
• Beginning Farmer Center
• www.extension.iastate.edu/bfc/
• 877.BFC.1999

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