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Be sure to reward yourself

Agriculture.com Staff 03/12/2007 @ 8:38am

The rally in grain prices has many farmers in a financial position in which they usually are not accustomed to. That is, a big return on investment and profits.

An old adage in financial planning is to be sure to pay yourself first. In other words, take some of the gain from this past year's positive returns and reward yourself and your family.

Farming has evolved over the decades, with most younger farmers recognizing that despite working hard, they still need to take time to rest and reflect. Your family needs down time as well. For many this could mean a vacation or at least time off. Maybe it is rewarding yourself in some other capacity, such as a retirement account. Nonetheless, with all the inherent risk that farming holds, it is important to balance risks with rewards.

Some farmers believe that when they have a good year, they need to "sock it away" waiting for the inevitable bad year. While we agree with the concept of saving, we also think it is important to live a well-rounded life and celebrate your successes when times are good. It is not unusual to hear older farmers, who are well-off financially, talk with regret that they did not do more with their family. Good times do not last forever, nor do poor times. Enjoy the good when you can!

If you have any questions or comments, please contact Top Farmer at 1-800-TOP-FARM, ext. 129.

The rally in grain prices has many farmers in a financial position in which they usually are not accustomed to. That is, a big return on investment and profits.

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