Farm Transition & Estate Planning Programming: Participant Behavioral Change, Cumulative Outcomes & Impacts 200

1. Farm Transition & Estate PlanningProgramming:Participant Behavioral Change, Cumulative Outcomes & Impacts2004 - 2010 Gary A. Hachfeld Extension Educator – Ag Business Management NCRME Conference St. Louis, MO. April 11-13, 2011

2. Program Goals • Introduce farm/ranch families to business transition & personal estate planning laws, rules, terminology, etc. • Outline strategies & procedures they might consider using when developing & implementing a business transition & personal estate plan. • Farm/ranch family take new knowledge and confidence and develop & implement a business transition and personal estate plan.

3. Delivery, Materials & Marketing • Face-to-Face workshop setting – PowerPoint slides • Workbook: - PowerPoint slides - 26 detailed information sheets - Participant worksheets - Internet resources • “Sponsorship Model” - Market to local business sponsors - Sponsor pays us a program fee; selects date, time, location; recruits participants; pays all additional costs.

4. Program Outline • Topics discussed: - Preparing to transition the farm/ranch business (goals) - Tax considerations - Overview of business transition strategies - Financial considerations - Estate planning issues - Treatment of heirs - Financial assistance - Developing a written transition plan

5. Program Evaluative Process • End-of-Meeting evaluations: - Each participant is asked to complete a one page evaluation following each workshop: ♦ Focus on increased understanding of key educational points. ♦ Status of business transition & estate planning. • Follow-up evaluation six months following last workshop: - Mailed to participants with return envelope: ♦ Focus on progress toward developing & implementing business transition and personal estate plan. ♦ Obstacles and challenges encountered.

6. Participant Demographics2004 - 2010 • Programs delivered in MN, ND, IA, & WI. • 3,258 total attendees • 1,537 farms/ranches represented • 1,031 local communities represented • 138 local program sponsors involved • 84.5% had no business transition plan • 69.6% had no personal estate plan • Age range: 22 to 89 yrs., 58.1% over age 55 • 62.3% male and 37.7% female

7. End-of-Meeting EvaluationCumulative Results 2004 - 2010

8. Participant’s Self-Reporting Whether Their Understanding of Educational Points Increased Due to Attending a Workshop (2004 – 2010) Used Likert Scale with 1 = “Strongly Disagree’ to 5 = “Strongly Agree”

9. Follow-up EvaluationCumulative Results 2004 - 2010

10. Percent/Number Farm/Ranch Units Starting/Completing Business Transition & Personal Estate Plan (2004 – 2010)

11. Asset ValuesforEconomic ImpactCumulative Results 2004 - 2010

12. Average Asset Values Farm/Ranch & Non-Farm/Ranch Assets by Year(2004 – 2010) Data Source: 1- FINBIN Data Base, Center for Farm Financial Management, U of M , St. Paul, MN. 2- Iowa State University Farm Business Summary

13. Economic ImpactCumulative Results by Year 2004 - 2010

14. Economic Impact Due to an Orderly Process for the Transition of Farm/Ranch & Non-Farm/Ranch Assets

15. $148.2 Million Dollars Program Impact Based Upon Having Implemented An Orderly Process For Asset Transition To The Next Generation

16. What Have We Learned? ◘ Program demand continues to grow. ◘ “Sponsorship Model” works well for us. ◘ “Sponsorship Model” has strengthened our working relationships with local businesses, leading to other opportunities. ◘ Works very well not having attorneys present material. ◘ Participants state the workbook is a valuable resource. ◘ Evaluative data shows participant behavioral change based upon knowledge increase of subject matter (outcomes). ◘ Evaluative data shows significant economic impact resulting from the program effort (impacts).

17. Contact Information Gary A. Hachfeld Extension Educator Agricultural Business Management University of Minnesota Extension 507-389-6722 hachf002@umn.edu

18. Questions ? ? ? Comments ! ! !