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FARM FA.IILY FIHj.NCIaL FLAMING 



A farm family ivhich owns a farm vyill gain financial security usually to the 

 extent that they can make and carry out sound plans in the areas of family finan- 

 cial management which follow; 



Credit . Keeping the use of credit within the means of the family to repay 

 takes some doing but is a big factor in a security programT The feeling of security 

 which results from a good credit standing which can be called upon in times of 

 family or business need and stress cannot be measured. 



Savings , The typical farm family saves first by buying and paying for a farm 

 business, and by adding to the value of this farm property. Sometimes savings in 

 the form of investments or life insurance supplement the farm investment but the 

 major savings program usually is investing in the farm business. 



General Insurance. No farm owner should feel secure v/ithout insurance pro- 

 tection. One catastrophic fire, a costly accident to the hired man or just one 

 mistake while operating a motor vehicle on a public highvvay and a lifetime of work 

 in building up financial security and savings can be wiped out. 



Life Insurance. Fairm people buy less life insurance than any comparable 

 groupl Life insurance can be both a protection and an investment. Farmers need 

 life insurance mainly as protection for the family in case of death of the farm 

 operator since farmers use their farm as an investment. To insure an adequate 

 income to tlie family in case of death of the farm operator i:isually life insurance 

 is needed, even #ien the family ovms a large farm free from debt. 



Retirement Plans. Farmers like other people live longer and many, indeed 

 too many fann families make no plans for retirement, IIo one should plan to 

 operate at full tilt for life. Savings in the form of farm property alone often 

 prove inadequate to provide a retirement income that is satisfactory. Few farm 

 owners can retire on the income from the proceeds of the sale of the farm at age 

 65 or even 70 or 75. Social security protection and benefits apply to farmers 

 and their dependents and needs to be considered as part of an overall plan. 



Estate Plans. Very Often a widow or an estate cannot operate a farm business 

 at a profit. Definite plans as to disposition of the business in the case of the 

 untimely death of the operator should be inade. Every farm ovmer should have a 

 will. Plans for the sale or operation of the farm at his death should be made by 

 the owner vjith his wife. 



Actually these problems are all part of the same problem although we commonly 

 make the mistake of looking at each of them separately. 



It is increasingly important that you take the time for a real look at your 

 plans for family financial security. Dollar investments in the farm business are 

 increasing and the need for planning ahead is becoming much more necessary and 

 important, 



L. D. Rhoades 



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