NEWS for North Dakotans
Agriculture Communication, North Dakota State University
7 Morrill Hall, Fargo, ND 58105-5665

December 23, 1998

Family Support Critical During Tough Financial Times

The survival of family owned businesses like North Dakota's farm and livestock enterprises depends upon a host of economic factors extending beyond the ebb and flow of supply and demand. But financial decisions related to farm and ranch operations need to reflect more than mere economic considerations, says a researcher at North Dakota State University.

"Decisions made about the farm and ranch impact family life. Understanding this is critical," says Sean Brotherson, extension family science specialist at NDSU. "The family can provide a support system—an emotional buffer—for many of the stresses one might feel when times are tough financially."

Brotherson says there are a number of personal and interpersonal resources that families can use to aid their decision-making process. Those decisions may involve leaving agriculture altogether, seeking off-farm employment to supplement income, diversifying by adding a crop or livestock enterprise, expanding to reduce unit costs of production or a host of other options.

Good communication between and among family members is an example of an interpersonal resource. "That's a resource you can rely on to make good decisions, and it's a resource you can develop," Brotherson stresses. Other examples of family based resources include cooperation, trust and understanding.

Certainly, paying attention to financial security is the first and foremost step related to sustaining a family's well-being, but too often money issues receive all a family's attention. Brotherson says decisions related to a family business need to be based on both economics and emotions.

One particularly complex issue related to family run agricultural enterprises is generational. What factors must enter into a family's decision to quit farming or ranching? To give up an operation and a way of life that fathers, mothers and grandparents before them have carried on?

"There is a history of expectations in these situations that is incredibly deep and meaningful to everyone involved," says Brotherson. "It goes beyond deciding about getting out of a business that is profitable or not profitable. People need to consider and evaluate the costs and benefits to their families. Decisions of this magnitude affect not only a single generation, but future ones as well. And it's not just a matter of determining whether the next generation can survive financially. You've got to consider their educational future and their future in a particular community and in a state."

Families facing complex decisions can employ a number of strategies to simplify the challenges they face. Again, Brotherson stresses that family members need to communicate clearly with one another about the problems they face. They need to clarify the values and goals that are important to them and express any concerns they may have. In addition, families need to identify resources they have and those available from their communities that will help them address their concerns.

"If you can walk yourself through that process, it will ultimately be helpful in whatever challenge you face," Brotherson concludes.

NDSU now offers "An Alternative Career Program for Experienced Farmers and Ranchers." To find out more about this program, write to College of Agriculture, Morrill Hall 315, NDSU, Fargo, ND 58105, or call (701) 231-8790. For more information about community resources, contact the nearest county office of the NDSU Extension Service.

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Source: Sean Brotherson (701) 231-6143

Editor: Dean Hulse (701) 231-6136