FY04-07 - NDSU Extension Service
PROGRAM #204 - FARM AND FAMILY ECONOMICS

Program Planning Team: 

George Flaskerud (co-chair), Deb Pankow (co-chair), Dwight Aakre, Donna Anderson, Holly Bastow-Shoop, Tim Becker, Brad Cogdill, Roger Egeberg, Wally Eide, Gene Elhard, Margaret Fitzgerald, Gale Gette, Gary Goreham, Merry Green, Ron Haugen, Willie Huot, Sarah Jacobson, June Kraft, Brenda Langerud, Larry Leistritz, Wayne Markegaard, Bill Nelson, Tim Petry, Richard Rathge, Neil Riveland, Mort Sarabakhsh, Dave Saxowsky, Lori Scharmer, Tim Semler, Andy Swenson, Kathy Tweeten, Rebecca Ziegler

Overall Situation:

Agriculture is a cornerstone of the North Dakota economy. It’s a 3.2 billion dollar industry, according to 2003 North Dakota Agricultural Statistics. Agriculture contributed 25 percent to North Dakota’s basic economic activity in 2000 and 36 percent to its exports of goods and services, according to Agribusiness Report No. 57-S. In addition, 11 percent of total employment is engaged in agriculture. However, net farm income is highly variable, according to the 2002 Farm Business Management Education Program. The 20 percent of farms with the highest profit returned $136,000 on average, whereas the 20 percent of farms with the lowest profit lost $17,000 per farm. In addition, the level of personal savings remains far lower in the United States than in other industrial countries while the number of personal bankruptcies in the state continues to rise. Educational programs are needed to help individuals, farmers, ranchers and families develop competencies to remain financially secure members of North Dakota's economy.

PROGRAM COMPONENT
MANAGING RISK AND PROFIT OF CROP PRODUCTION

Key Theme(s):   Agricultural Profitability; Risk Management

Time Frame:  FY04, FY05, FY06, FY07

Contact:  George Flaskerud, 701-231-7377, gflasker@ndsuext.nodak.edu

Team Members:  George Flaskerud, Dwight Aakre, Andrew Swenson, Tim Petry and Farm Economics Emphasis Agents

Situation:

Crop net returns are vital to producers and the North Dakota economy. Crop producers are attempting to improve profitability and income stability through the use of marketing tools and crop insurance that work best with the government farm program. Considerable variability exists among producers in their level of knowledge and commitment to learning about risk management tools. Many have joined marketing clubs.

Environment:

Crop prices and yields are highly variable in North Dakota. For example, during 1993-2002, the spring wheat marketing year average price ranged from $2.76 to $4.71 and the yield varied from 25 to 36.5 bushels per harvested acre. Loan deficiency payments, counter cyclical payments and other provisions of the government farm program must be considered when managing price and yield risks.

Desired Outcomes:

Short Term:  At least 2,000 farm family members annually will improve their knowledge of risk management tools.

Medium Term:  At least a third of program participants will make changes in their crop marketing practices to include a wider use of risk management tools than used previously.

Long Term:  At least a fourth of program participants will improve their net farm income and reduce its variability as a result of their increase in marketing knowledge and application of marketing strategies.

Outputs:

Activities:

• “Market Advisor” monthly news release.
   
• Crop Marketing and Risk Management web site at http://www.ag.ndsu.nodak.edu/aginfo/cropmkt/cropmkt.htm.
   
• The establishment and support of Marketing Clubs for crops and livestock.
   
• A one-day Marketing Club Facilitator Conference will be held in September, which will also serve as in-service training for Farm Economics Team members.
   
• Four one-day Ag Lender Conferences will be held in October-November covering outlook and issues.
   
• A one-day Crop Insurance Conference will be held in January.
   
• "Marketing Presentation" preferably by videoconference for 30-60 minutes covering one or more selections from such topics as Outlook and Marketing Strategies, Brazil’s Soybean Production and Impact, What French Farmers are Doing that may be of Interest to U.S. Farmers, Developing and Implementing a Marketing Plan, risk management, breakevens, basis, marketing tools, and issues.
   
• "Marketing Plan Development and Implementation Seminar" preferably by videoconference involving discussion and exercises for three hours which will cover risk management, breakevens, fundamental and technical analysis, seasonal price patterns, marketing plan format, marketing strategies, basis, futures, options and elevator contracts.
   
• "Crop Insurance Alternatives Presentation" preferably by videoconference for about 40 minutes during February covering risk management and crop revenue insurance products compared to multi-peril crop insurance.
   
• "Beginning Level Managing Risk and Profit Workshop" during eight two-hour weekly videoconference sessions, preferably during December-March, covering marketing seminar content and crop insurance. A case study integrating marketing and insurance concepts will be provided to the facilitator to present locally. As an alternative to the videoconference, a condensed workshop can be held on-site in one day (six-hours).
   
• "Intermediate Level Managing Risk and Profit Workshop" during six two-hour weekly videoconference sessions, preferably during December-March, covering a review of the beginners material, synthetic options, fences, rolling futures, rolling options, conversions, Winnipeg Commodity Exchange, cross hedging, maximum purchase price, option pricing model, and option spreads. A case study integrating marketing and insurance concepts will be provided to the facilitator to present locally. As an alternative to the videoconference, a condensed workshop can be held on-site in one day (six-hours).
   
• Publications, handouts and PowerPoint presentations in support of presentations, seminars and workshops will be made available to local presenters either on the Crop Marketing and Risk Management web site or on request.
   
• Outlook and Purchasing Strategies for Inputs will be available in presentations, seminars and workshops beginning in FY05.

Participation: 

Farm family members, Ag lenders, elevator managers, insurance agents, and mediators.

Inputs:

George Flaskerud and other Extension Specialists, Extension Agents, marketing club facilitators and instructors, Farm Business Management instructors, elevator managers, insurance agents and commodity brokers.

Evaluation Plan:

Marketing club member surveys, pre-test, post-test, event evaluation and follow-up survey. Results will be presented in Extension Report publications.

PROGRAM COMPONENT
LIVESTOCK MARKETING AND MANAGEMENT

Key Theme(s):   Agricultural Profitability; Risk Management

Time Frame:   FY04, FY05, FY06, FY07

Contact:  Tim Petry, 701-231-7469, tpetry@ndsuext.nodak.edu

Team Members:  Tim Petry, Dwight Aakre, Andrew Swenson, George Flaskerud and Farm Economics Emphasis Agents

Situation:

Livestock net returns are vital to producers and the North Dakota economy. Beef cattle cash receipts are second only to wheat in importance in the state. Many livestock producers are investigating ways to improve profitability and income stability by using marketing tools and value-added, retained ownership strategies. Considerable variability exists among producers in their knowledge of risk management tools, particularly futures and options markets.

Some producers have shown an interest in retained ownership strategies, and others are interested in receiving more information about the potential for generating additional profits. Recent abnormally dry weather conditions have limited marketing and management alternatives. Several livestock marketing clubs have been formed help producers compare alternatives available to them.

Environment:

Beef cattle numbers in North Dakota have been relatively stable over the past 20 years, but dairy cattle, swine, and sheep numbers have been declining during that time. About one-half of the approximately one million beef calves born each year are marketed in the fall. The other one-half are backgrounded for various lengths of time with only about 75,000 head ultimately fed to market weight. Recent dry weather in ND and other livestock producing regions in the US has caused beef cattle numbers to also decline, but numbers are expected to increase when normal weather patterns return. Livestock prices are highly variable and are characterized by distinct seasonal and cyclical price patterns. Producers need to be aware of these patterns and the appropriate risk management strategies to deal with them. For example, beef calves sold in the fall typically receive seasonally low prices, and backgrounded yearlings sold in the spring also are at seasonal low levels. Drought in the cattle producing regions of the US has caused an extended liquidation phase of the cattle cycle which will have significant ramifications for cattle prices in the next five years.

Desired Outcomes:

Short Term:  At least 500 livestock producers annually will improve their knowledge of risk management and value-added retained ownership strategies.

Medium Term:  At least one-third of program participants will make changes in livestock marketing practices to include a wider use of risk management tools and seasonal and cyclical marketing strategies.

Long Term:  At least one-fourth of program participants will improve profits from livestock production as a result of improved marketing knowledge and application of appropriate livestock marketing strategies.

Outputs:

Activities:

• Maintain Livestock Economics web site at www.ag.ndsu.nodak.edu/aginfo/lsmkt/livestock.htm
   
• ”Market Advisor” monthly news column
   
• The establishment and support of livestock marketing clubs
   
• A one-day Marketing Club Facilitator Conference held annually in September, which also serves as in-service training for Farm Economics Team members
   
• A two-day Livestock Workshop held annually in September, which serves as in-service training for Farm Economics and Competitiveness and Profitability of Animal Systems team members
   
• Four one-day Ag Lender Conferences held annually in October and November covering livestock market situation and outlook and marketing strategies
   
• A one-day Value-Added Livestock Summit held annually in January
   
• Two two-day Cow-Calf Management Schools held annually in January and February
   
• Six one-half day North Dakota Cattle Backgrounding Seminars for ag lenders held annually in October
   
• Six one-half day North Dakota Cattle Backgrounding Seminars for cattle producers held annually in October
   
• Two two-day Feedlot Schools held annually at various times
   
• A one-day Sheep Day at the Hettinger REC in February
   
• A one-day Agribusiness Day at the Hettinger REC in November
   
• Several Drought Management Strategies for Cattle Producers workshops held as necessary
   
• Monthly board meetings of the Dakota Lamb Cooperative
   
• Feeding and Marketing Committee meetings of the North Dakota Stockmen’s Association
   
• Numerous county level meetings such as Livestock Improvement Association meetings
   
• Publications, handouts, and Microsoft PowerPoint® presentations in support of presentations, seminars, and workshops will be handed out or made available on the Livestock Economics web site.

Participation: 

Livestock producers, ag lenders, livestock auction market managers, and mediators

Inputs:

Tim Petry and other Extension Specialists, Extension Agents, marketing club facilitators and instructors, Farm Business Management instructors, Chicago Mercantile Exchange personnel and commodity brokers.

Evaluation Plan:

Marketing club member surveys and workshop, seminar, etc participation surveys will be administered as necessary to evaluate both content and delivery methods.
 

PROGRAM COMPONENT
FARM BUSINESS PLANNING

Key Theme(s):   Agricultural Profitability; Agricultural Financial Management; Family Resource Management

Time Frame: FY04

Contact:  Dwight Aakre, 701-231-7378, daakre@ndsuext.nodak.edu

Team Members: Farm Management and Marketing Specialists

Situation:

Farm families are working harder on and off the farm in an attempt to meet their financial goals. Data from the N.D. Farm Business Management Education program shows that farm size has increased 40 percent and nonfarm wages and salary has more than doubled in the past 10 years. The process of developing a farm business plan will help farm families understand their resources and how to manage resources to meet their goals. A farm business plan is a roadmap for the farm business and may be necessary to procure funding for the business.

Environment:

The farm business headquarters is generally the farm family home as well. Other family members may have more direct involvement in the farm operation than is typical of non-farm small business. As a result there is a need to involve all family members in the long term planning of the farm business.

A business plan can be very useful in better understanding a business, goal setting, and developing a structured decision making process. However, most producers are unwilling to make the time commitment to attend multi-session farm business planning education. Materials that provide a step-by-step process for constructing a business plan will allow producers to proceed at their own convenience and pace. Extension agents will be trained to have a working knowledge of the planning process so they can guide producers.

Desired Outcomes:

Short Term:  Producers will learn the components of a farm business plan and be able to construct a farm business plan.

Medium Term:  Farm families will monitor their farm business plan. This will help them to determine whether changes are necessary for them to meet their goals.

Long Term: The farm business planning process helps producers achieve their goals.

Outputs:

Activities: 

Provide in-service training to extension agents whose emphasis area is farm and family economics. Principles and examples of farm business planning will be provided. Materials will be available to county offices for clients seeking information in this area. Materials will include a step-by-step guide to help producers through the process of creating a farm business plan document, example farm business plans to further assist producers in developing their own plan, and a reference list of farm business planning materials that can be acquired by producers. Web-based material and training information may also be made available. If further interest develops, workshops for clientele could be offered in FY05, FY06 and FY07.

Participation:  Farm Economics Emphasis team members and other Extension Staff

Inputs:

Farm management and marketing specialists will adapt material already developed by other states.

Evaluation Plan:

An evaluation form and survey will be administered at the extension in-service meeting.
 

PROGRAM COMPONENT
LAND ECONOMICS

Key Theme(s):   Agricultural Profitability

Time Frame:  FY04, FY05, FY06, FY07

Contact:  Dwight Aakre, 701-231-7378, daakre@ndsuext.nodak.edu

Team Members:  Dwight Aakre, Andrew Swenson, Ron Haugen and Farm Economics Emphasis Agents

Situation:

Cost of controlling land remains the largest single input expense for North Dakota farmers. Understanding and managing this cost is essential to long term survivability.

Environment:

Land values and rental rates have been rising steadily across most of North Dakota for the last decade. Land values in particular, over-adjusted to the downside during the 1980s. The 1996 Farm Bill and emergency farm aid legislation delivered farm program payments to North Dakota farmers in record amounts. The 2002 Farm Bill continues this trend. Due to strong competition for land, government payments are quickly bid into the cost of land.

Anticipated Outcomes:

Short Term:  Farm operators and landowners will improve their understanding of the factors that influence land rental rates and land values.

Medium Term:  Same as above

Long Term:  Rental arrangements will reflect a rate that is equitable with the contribution land plays in the production of commodities.

Outputs:

Activities:   County and area workshops will be offered that will cover the economics of renting and purchasing land. This will include both dryland and irrigated land. These workshops will cover residual return to land, rental arrangements and calculating land value based on production.  Crop budgets will be constructed and used in calculating equitable land rental rates.

Participation:  Farm family members, ag lenders, land owners

Inputs: 

Dwight Aakre and other Extension Specialists and Extension Agents.

Evaluation Plan:  

Surveys of attendees at workshops.

PROGRAM COMPONENT
FINANCIAL RECORD KEEPING

Key Theme(s):   Agricultural Financial Management; Family Resource Management

Time Frame: FY04, FY05, FY06, FY07

Contact: Andrew Swenson, 701-231-7379, aswenson@ndsuext.nodak.edu

Team Members: Andrew Swenson, Ron Haugen

Situation:

Financial record keeping is critical to the success of businesses and also to the financial well-being of households. A practical hands-on training program on using computer technology for accounting and the basics of financial analysis is needed.

Environment:

Computers and inexpensive software have provided the means to overcome two of the main deterrents to record keeping: setting up a system and the tedium of a hand entry system. However, many people have limited experience in accounting, financial analysis and/or computer operation.

Desired Outcomes:

Short Term:  Participants will gain a basic understanding of accounting and financial management to help determine what type of accounting system will best suit his/her needs, insight on how to set up an accounting system to summarize important financial information and efficiencies in transaction entry.

Medium Term: Participants will improve their current record keeping systems as well as their methods of using electronic information systems to make financial management decisions.

Long Term: Participants will have at least a modest improvement in their financial well-being as a result of improving their record keeping and management skills.

Outputs:

Activities: 

Several workshops on computerized accounting using Quicken or Quickbooks software will be held and exercises and fact sheets on accounting and financial management will be developed. Also, a survey of farm accounting software companies will be conducted and a fact sheet made for producers to evaluate accounting software.

Participation:

People who want to improve their financial recording keeping on a computer and learn about financial management.

Inputs:

Andrew Swenson, Ron Haugen and extension educators of counties which host a workshop.

Evaluation Plan:

A survey will be conducted after the workshop.
 

PROGRAM COMPONENT
INCOME TAX MANAGEMENT FOR AGRICULTURAL PRODUCERS

Key Theme(s):   Agricultural Financial Management

Time Frame: FY04, FY05, FY06, FY07

Contact: Andrew Swenson, 701-231-7379, aswenson@ndsuext.nodak.edu

Team Members: Andrew Swenson

Situation:

Income, Social Security and Medicare taxes can be a significant cash outlay for North Dakota farm families. Tax legislation changes often and IRS interpretation, and tax court rulings can also be complex. Education for producers, and the tax professional who serve them, is needed to improve short and long term tax planning.

Environment: There has been much tax legislation in recent years that affects agricultural producers. This makes it difficult for individuals to stay abreast of tax management alternatives to make informed decisions that impact current and future tax liabilities. For instance, many North Dakota farmers face large deferred tax liabilities if they exit farming.

Desired Outcomes:

Short Term: Farmers and tax preparers will better understand recent tax legislation and interpretation and make management decisions that increase "after-tax" financial well-being.

Medium Term: Not Specified

Long Term: Producers have a manageable level of deferred income tax liabilities.

Outputs:

Activities:

An interactive video network program will be hosted at eight to ten sites on income tax management in early December while producers still have time to implement year end tax management decisions. Information on current important tax topics will be presented by a panel of tax experts. Ample time will be allowed for participants to ask questions about specific tax situations. A tax guide with the presentations and examples will be compiled and provided to participants.

Participation:

Agricultural producers, tax preparers, lenders, farm business management education instructors and extension agents.

Inputs:

Andrew Swenson, income tax consultants, an Internal Revenue Service specialist, a faculty member of NDSU Dept. of Business, ND Interactive Video Network, and extension agents in host counties.

Evaluation Plan:

An evaluation of the program, including suggestions for future tax topics, will be collected from participants at each site.

PROGRAM COMPONENT
FAMILY RESOURCE ECONOMICS

Key Theme(s):   Promoting Housing Programs, Family Resource Management, Consumer Management, Retirement Planning, Estate Planning, Financial Security in Later Life

Time Frame:  FY04, FY05, FY06, FY07

Team Members:  Debb Pankow, Margaret Fitzgerald, Merry Green, Brenda Langerud, June Kraft, Donna Anderson, Gail Gette, Rebecca Ziegler, Lori Scharmer

Situation:

Most Americans are not satisfied with their current economic situation and do not feel in control of their resources - time, money and other resources. Many rely on sales-oriented information to make decisions concerning significant resources or have unwise credit use practices. Others let compulsive behaviors interfere with their financial goals.

Recent studies have documented a lack of financial literacy among youth and adults of all ages in our country: Increased personal debt, bankruptcies, lack of emergency savings, and failure to attain financial goals such as an economically secure retirement are a threat to our state's financial well-being. Productivity in the workplace is affected when workers are experiencing financial stress and lack of work/family options.

Environment:

American personal savings hit an all time low in recent years while bankruptcy rates have steadily climbed. Personal financial literacy is declining while consumer financial products are increasing.

Inputs:

Debb Pankow, Andy Swenson, Family Economics Emphasis Team Members and Other Extension Agents.

Financial Security in Later Life resources http://www.reeusda.gov/financialsecurity

Extension publications, curricula and resources:

• The YES mini-society project is promoted to encourage entrepreneurial activities in youth.

• A packaged program "Dialing to Save Dollars" is available to educate consumers on choosing and using phone service.

• HSFPP will be promoted to Family Economics agents and other extension staff.  HSFPP Newsletters in September and April.

• Financial Champions 4-H Curriculum

• Bankruptcy publication

• Money Sense for Teens four part newsletter series available for HSFPP participants and others in the state.

• HomeBuyer Education programs.

• Dollar Works financial education course.

• Baby Boomers Come of Age curriculum available for agents/programming.

Outputs:

Program delivery methods for the general public will include newsletters, media releases and meetings.

Program delivery methods for other professionals will include newsletters, distance education trainings and meetings.

In-service training for agents will include monthly conference calls, web-based study materials, and face-to-face trainings.

Teaching packets, videos, PowerPoint presentations, and other resources will be developed.

Anticipated Outcomes:

Short Term:

Family Economics Emphasis Agents will:

• Attend annual professional development training.

• Become familiar with state agencies and their roles in resource economics issues.

Extension Agents will:

• Identify current trends in the economy and how they affect financial management behaviors.

• Identify fraudulent practices that target consumers.

Consumers will:

• Become aware of the High School Financial Planning Program.

• Look to NDSU Extension as a source of unbiased, factual and research-based information.

Medium Term:

Family Economics Emphasis Agents will:

• Develop proficiency in family economics subject matter area.

• Regularly provide consumers with consumer education information via news releases, newsletters and radio spots.

Extension Agents will:

• Collaborate with other state agencies and professionals available to help in consumer education.

• Provide financial management education for Homebuyer education programs.

Consumers will:

• Identify sound financial products and the professionals who sell them.

• Adopt wise credit use practices.

• Identify fraudulent practices in the marketplace.

• Apply financial management concepts to develop a family spending plan.

• Become eligible to receive financial incentives for USDA housing loans after completing Home Buyer Education course.

Long Term:

Family Economics Emphasis Agents will:

• Become a recognized resource for family resource economics information and research in the State of North Dakota.

Consumers will:

• Increase homeownership rates

• Increase personal savings

• Reduce personal debt

• Adopt sound personal and family financial management skills, which contribute to increased financial satisfaction, increased personal savings and reduced debt.

• Avoid fraudulent practices in the marketplace.

• Enjoy increased financial security in later life

Evaluation Plan:

Agents will complete basic competency screening for Family Economics

Emphasis Agents will begin working on increasing competencies in Family Economics

Evaluations will track the packaged program impact.

The HSFPP impact evaluation will become available for the state from NEFE.

PROGRAM COMPONENT
REACHING LIMITED RESOURCE AUDIENCES

Key Theme(s):   Promoting Housing Programs, Family Resource Management, Consumer Management, Retirement Planning, Estate Planning, Financial Security in Later Life

Time Frame:  FY04, FY05, FY06, FY07

Team Members:  Debb Pankow, Margaret Fitzgerald, Merry Green, Brenda Langerud, June Kraft, Donna Anderson, Gail Gette, Rebecca Ziegler, Lori Scharmer

Situation:

Unprecedented social and economic change has led to financial vulnerability for many North Dakotans. In addition, welfare reform has created a greater demand for education regarding management of limited resources and life skills specific to successful work force participation.

Despite popular belief, the welfare population is far from homogeneous. Extension's response to addressing needs of families and households must be a collaborative partnership based on need at the local county level. These educational opportunities must provide skills necessary to raise and parent children while preparing individuals to enter or reenter the workplace. For families to be self-sufficient they need skills to effectively obtain, maintain and manage resources. Program efforts must consider the higher-than average educational level, higher-than-average employment status, transportation and daycare needs, and  travel distances for audiences in North Dakota.

Environment:

Inputs:

Debb Pankow, Sean Brotherson, Family Economics Team Members, NEA and Other Extension Agents.

Extension publications, curricula and resources:

• FNP program assistants and supervising agents are trained annually and provided regular updates and resources.

• Extension's Welfare Reform Task Force will provide leadership for Extension's programming.

• Making Ends Meet discussion piece is revised and available.

• The poverty simulation "Life in the State of Poverty" is used with statewide groups.

Outputs:

Program delivery methods for the general public will include newsletters, media releases and meetings.

Program delivery methods for other professionals will include newsletters, distance education trainings and meetings.

In-service training for agents will include monthly conference calls, web-based study materials, and face-to-face trainings.

Teaching packets, videos, PowerPoint presentations, and other resources will be developed.

Anticipated Outcomes:

Short Term:

Family Economics Emphasis Agents will:

• Develop a relationship with area social service agencies.

Extension Agents will:

• Become aware of the poverty situation in their county or area.

• Receive training on:
  -  Individual Development Accounts
  -  Welfare reform in North Dakota

• Identify their educational role with limited resource audiences in their community.

• Educate families about available health insurance programs.

• Understand the changes in Medicaid and CHIP applications that became effective January 1, 2002.

FNP Professionals (NEA, Nutrition Education Agents) will:

• Become aware of hands-on activities to teach limited resource audiences wise food shopping skills.

• Understand the changes in Medicaid and CHIP applications that became effective January 1, 2002.

Consumers will:

• Understand health insurance programs that they may be eligible for.

• Practice wise food shopping and increase the amount of income available within the household to attain financial goals.

• Become aware of the various insurance plans that are available for children in the state.

Medium Term:

Family Economics Agents will:

• Develop a working relationship with social service agencies in their region.

• Facilitate the Poverty Simulation in their area.

Extension Agents will:

• Develop a relationship with area social service agencies.

• Collaborate with local agencies to offer the Poverty Simulation in their areas.

Consumers will:

• Adopt practices which help in planning spending for an entire month.

• Keep accurate and helpful personal financial records.

• Increase other levels of self-sufficiency. 

Long Term:

Consumers will:

• Increase their financial security.

Evaluation Plan:

Impacts of extension programs are tracked through FNP, EFNEP and other agencies.

PROGRAM COMPONENT
FINANCIAL SECURITY IN LATER LIFE

Key Theme(s):   Retirement Planning, Estate Planning, Financial Security in Later Life

Time Frame:  FY04, FY05, FY06, FY07

Team Members: Debb Pankow, Margaret Fitzgerald, Merry Green, Brenda Langerud, June Kraft, Donna Anderson, Gail Gette, Lori Scharmer, Rebecca Ziegler

Situation:

Most Americans are not prepared for their financial futures. Many rely on sales-oriented information to make decisions concerning significant resources. Failure to attain financial goals such as an economically secure retirement are a threat to our rural communities and to our state's financial well-being. Timely, researched-based and unbiased information and programs are needed to help individuals plan for financial security in later life.

Environment:

Financial security is the ability to meet future needs while keeping pace with day-to-day obligations.  Preparing for retirement and potential long-term care costs takes planning, saving, and debt control.  The Cooperative Extension initiative "Financial Security in Later Life" seeks to help people improve personal finance behaviors leading to financial security in later life, enhance the capacity of local educators and their partners to deliver effective programs, and increase economic vitality and quality of life for families and communities.  

Inputs:

Debb Pankow, Andy Swenson, Family Economics Emphasis Team Members and Other Extension Agents

Financial Security in Later Life resources http://www.reeusda.gov/financialsecurity

Extension publications, curricula and resources:

• Media awareness program to highlight results of agricultural household retirement preparation research.

• Understanding Mutual Funds home study course.

• Investing for Your Future program and home study course.

• Baby Boomers Come of Age curriculum available for agents/programming.

• Estate Planning publications being reviewed and or revised.

• Your Roadmap to Financial Security  packaged program – Fall 2002

• Financial Values, Attitudes and Goals – Fall 2002

• Communicating About Money and Money Issues – Fall 2002

• North Dakota Saves --Fall 2003

• The Basics of Saving and Investing --Fall 2003

• The Basics of Bonds --Fall 2003

• Understanding the Stock Market --Fall 2004

• Starting an Investment Club --Fall 2004

• Basic Mutual Funds --Fall 2004

• Long Term Care Planning --Fall 2005

• Forecasting Retirement Income and Expense --Fall 2005

• Financing Post-Secondary Education Goals --Fall 2005

Outputs:

Program delivery methods for the general public will include newsletters, media releases and meetings.

Program delivery methods for other professionals will include newsletters, distance education trainings and meetings.

In-service training for agents will include monthly conference calls, web-based study materials, and face-to-face trainings.

Teaching packets, videos, PowerPoint presentations, and other resources will be developed.

Anticipated Outcomes:

Short Term:

Family Economics Emphasis Agents will:

• Attend annual professional development training.

• Participate in monthly conference call in-services.

Extension Agents will:

• Identify current trends in the economy and how they affect financial management behaviors.

• Become aware of the status of retirement preparation for North Dakota farm and ranch couples.

• Identify retirement planning basics.

• Receive training and provide educational programs on the FSLL series:
  - Savings and North Dakota Saves
  - Basic Investing
  - Bonds

• Participate in the National FSLL Satellite Conference 12/11/03.

• Promote local and area America Saves Coalitions.

Consumers will:

• Set and prioritize appropriate financial goals

• Understand their financial values and attitudes.

• Develop a positive attitude toward life changes and how they affect financial plans.

• Increase financial communication skills.

• Understand their personal risk tolerance and financial planning horizon

• Understand the difference between saving and investing

• Understand various types of bonds

• Participate in the America Saves campaign

Medium Term:

Family Economics Emphasis Agents will:

• Develop proficiency in family economics subject matter area.

Extension Agents will:

• Collaborate with other state agencies and professionals available to help in consumer education.

• Receive training and provide educational programming in:
  - Mutual Funds
  - Starting an Investment Club
  - Planning for Retirement Income and Expense
  - Choosing Long Term Care

Consumers will:

• Identify sound financial products and the professionals who sell them.

• Identify sources and calculate the amount of retirement income.

• Calculate realistic living expenses for retirement planning. 

• Define terms related to retirement and estate planning. 

• Learn more about Mutual Fund Investing with the Mutual Fundamentals program.

• Understand investment basics through the Investing for Your Future program.

Long Term:

Family Economics Emphasis Agents will:

• Become a recognized resource for family economics information and research in the State of North Dakota

Consumers will:

• Increase personal savings

• Reduce personal debt

• Adopt sound personal and family financial management skills, which contribute to increased financial satisfaction, increased personal savings and reduced debt.

• Develop a family long term care plan

• Develop a plan to provide for post secondary education goals

• Avoid fraudulent practices in the marketplace.

• Enjoy increased financial security in later life.

Evaluation Plan:

FSLL components will be evaluated using national indicators and reported on Federal report.

Evaluations will track the packaged program impact.