Economic Advice for Farmers

Every farming and ranching family knows the agriculture business is a year round venture.

But income doesn't flow in every two weeks like other professions and when it does come in the amount may be different every time make it hard to budget and save.

Financial expert Laurel Kubin of Colorado State University Extension tells USDA news ag professionals must do some planning in order to live on an irregular income. She suggests start by estimating a minimum monthly amount as a buffer.

"We suggest you plan your budget around that basic minimum amount that you know will actually be there.

She says when calculating the minimum amount focus on essentials like housing, food, insurance, transportation and other things that involves loans or is under contract. Extra income can be used for childcare and clothing and of course savings.

"Savings funds get built up slowly and by dedicated action."

Agriculture professionals are also advised to contact their local Farm Service Agency to get information about the Bridges to Opportunity project. FSA has partnered with local, regional, and national ag organizations that offer programs, nongovernmental grants, technical assistance, financial advice.