Agricultural Business Management News

  by Amber Roberts, Extension Educator If you have yet to identify a successor, you are not alone. According to a 2017 study of Iowa farmers, more than half of all farmers have not identified a successor for their farm. Even without a successor, there are several options available to the farm continue. In this webinar, we discuss three options for those who haven't identified a successor: sell the land, identify a relative successor, and identify a non-relative successor. For farmers looking to transition land to a beginning farmer, Extension educators Natalie Hoidal and Megan Roberts have put together a land transfer guide.  This guide details:  Finding someone who is looking for land Making your land accessible for beginning farmers Establishing a relationship with a land seeker and asking the right questions Types of arrangements Formalizing the agreement 

by Megan Roberts, Extension educator, and C. Rob Holcomb, EA, Extension educator The Consolidated Appropriations Act (CAA), 2021 ,  passed December 27, 2020, updated the rules and processes for the Paycheck Protection Program (PPP) and Economic Retention Credit (ERC) . Since the law's passage in late December, the Treasury Department, Internal Revenue Service, and Small Business Administration have issued further guidance of the programs. This post highlights some of the updates from early January 2021. Although we have already addressed some of these program changes in a previous blog post , for clarity some points are repeated below.  Recalculation of 1st draw PPP loans A new provision (Division N, Title III, Section 313) in the CAA allows Schedule F filing sole proprietors, independent contractors, or self-employed individuals to retroactively recalculate their PPP 1st draw loans based on their 2019 gross income, instead of their 2019 net income. Schedule F filers are farmers a

by Amber Roberts, Extension Educator Whether you are only a few years away from retirement or just starting your career, now is the time to start thinking about retirement planning. In this webinar, Extension Educator Dave Bau, discusses how to determine retirement expenses, and plan for long-term health. Timestamps for each discussion point in the webinar are listed.   How much money is needed for retirement? (starts at 7:01) Retirement planning requires an individual to assess how much saving they will need to be able to maintain thier lifestyle after retirement. A general rule of thumb for retirement is that you will want to have saved about 80% of your current working income for each year of retirement. Inflation should also be factored into saving for retirement; if you retire at 70 and are retired for 20 years, inflation will affect your retirement savings. The Post-Retirement Living Worksheet (page 19) can help you determine how much money you should save. A similar of this wo

    by Amber Roberts, Extension Educator A business can pass from one generation to the next without planning, but making a plan greatly improves the odds of a successful transition.  Ridgewater College Farm Business Management instructor, Jim Molenaar, discusses the four key components to plan for your farm's business succession.  Using the business succession matrix, Molenarr identified four major aspects of the farm business that need to be transferred: labor, income, management, and ownership. Most farmers agreed that labor is the easiest component of their business to pass onto the next generation. While management and income tied for the most difficult components to pass onto the next generation.  To begin planning for the transition of the business, each of these components can be broken down into a series of phases.  Testing Phase - The retiring generation tests the entering generation's desire to farm and commitment to taking over the business. In this phase, the enter

  by Amber Roberts, Extension Educator Over 164 million Americans made New Year's resolutions for 2021. By February only 25 percent of those who set resolutions will still be working towards their goal and fewer will actually accomplish their resolution. How can you make the most of  your goals for the new year? Start by setting SMART goals. SMART is an acronym that can guide you to craft concise and realistic goals. SMART stands for: S - Specific M - Measurable A - Achievable R - Relevant T - Timely   Using the SMART goal format can help to provide more specificity to your goals. According to Extension Educator Megan Roberts, SMART goals can help you recognize "where are you right now, where you want to go, and is that identifiable." Start with your long-term goals and break them down into small chunks. What are the small steps that you can take now to accomplish your big goal? By breaking down major goals into a series of smaller steps, you create a roadmap to success,