Financial Planning Month is observed during October. For farmers, this time of year may be focused on harvesting the crops that were planted earlier this spring or summer. But in this day and age of farming, crops can be harvested all year long with many different types of crops, season extensions like high tunnels, and indoor spaces such as greenhouses.
Take some time this fall to get your farm business and personal finances in order
We all know that life gets busy and stressful with the holidays and the new year just around the corner.
Personal financial planning includes investing, tax planning, retirement planning, and other ways to get finances in order and create budgets for the future. These concepts are very similar to farm business planning as well! Both types are focused on developing a financial plan that will allow the farmer to get closer to their future goals but also to manage sudden issues that might deviate from the original plan.
The idea of financial planning is no different than if you were planning for the upcoming harvest season. Farmers need to know where they would like to be in the future, where they are now, and how to get from here to there. This journey may become overwhelming by the number of factors to consider, the complex relationships involved, and the nature of these decisions. This process will also be complicated by risk. While a farmer may have all the information for decision-making, there is little certainty or even predictability about their decision.
Financial planning is a lifelong process
A farmer’s time horizon might be short or long. During that time, circumstances are likely to change in predictable and unpredictable ways, like a worldwide pandemic. A financial plan can be developed at any stage in a farmer’s life – beginning, middle, and retirement. A financial plan should be re-evaluated, adjusted, and re-adjusted. Like the seasons, life changes over time, including marriage, children, divorces, accidents, or death. Reviewing a financial plan should be completed annually. Taking some time during Financial Planning Month to review personal and farm business financial plans will help to reduce future stress.
