Families across North Dakota are struggling with the challenges of deciding whether or not to remain in farming or ranching, figuring out how to buy groceries or school clothes, and coping with the stress these decisions bring. The NDSU Extension Service is trying to help these families and others manage their situations.

AThe current farm financial crisis is a cash flow shortage caused by low livestock prices and low crop yields the last few years and now low crop prices,@ says Harlan Hughes, livestock production and marketing specialist. AThis crisis affects not only farm and ranch families, but also others in rural North Dakota, both agriculture and non-ag, and also the ag-related industries in our urban areas and even non-ag industries. We=re targeting not just the farmers and ranchers but also their families and others who support their families and people affected in their communities.

Hughes divides the state=s ag producers into three groups: the financially sound who will be able to weather the crisis, the financially vulnerable who are under some financial pressure and the financially stressed who need to make some immediate major changes or consider exiting farming or ranching. Since North Dakota=s Agricultural Mediation Service focuses on those who are financially stressed, the Extension Service program is targeting producers and their families who are financially vulnerable.

But the educational effort focuses on more than just ag finance. With the goal to help those affected by the farm financial crisis to reduce their financial and personal stress, the four components of Managing Change in Agriculture are:

* Business Management Skills C both financial and risk management
* Family Living C expenditures and supplemental income opportunities
* Family Relations C family communications, decision making and stress management
* What to Grow C planning optimum crop and livestock production and maximum marketing potential

Changing the Way You Farm, a fall 1998 series of programs across the state, kicked off this effort. The programs helped farm families assess the changes taking place in agriculture and the adjustments they may need to make to manage this change. In addition to the programs for farmers and ranchers, four meetings were held for agricultural lenders.

A program called Profit Finder is being piloted in southwestern North Dakota. Dan Nudell and Erin Brown from the Hettinger Research Extension Center are being mentored by a farm business management fieldman to do similar analysis work in an area of the state that doesn=t have a fieldman. Nudell and Brown work one on one with farm and ranch families in financial stress to collect and enter data and then help the family evaluate their financial alternatives. Based on the analysis, sometimes the biggest question is, AShould I exit from farming or ranching?"

Hughes sees the development of business management skills as a long-term need, not a quick-fix to current problems. That=s why a self-study program to help farmers and ranchers examine their financial and risk management for the total business will be developed.

Another long-term goal is to establish diagnostic teams: groups of local professionals with different skills who can informally work with farm and ranch families to suggest business alternatives.

Julie Hudson-Schenfisch, interim family economics specialist, says families feeling the financial crunch should first find out where their money is going.

AI recommend that a family track all bigger expenditures for a full year. If they track for just three months but that doesn=t include Christmas, how do they know what the holiday costs? Only by tracking can you make adjustments in spending. And if you don=t have a spending plan, it=s easy to buy things that aren=t in the plan.@

To help set financial goals, forecast income and plan spending, families can use the AFamily Money Manager@ (FE-222) publication from the Extension Service.

An educational program called ALiving on a Shoestring@ will be unveiled this fall. This program focuses on steps to living more simply, practicing your values and cutting costs. It can be used by various groups and individuals.

AThe family is impacted by the economic difficulties of the farm or ranch in multiple ways,@ said Sean Brotherson, family science specialist. AIncreased stress and higher levels of conflict and depression are examples. There=s a tendency to focus on the business solution to what is perceived to be an economic problem, but this doesn=t guarantee helping the family as a unit. It=s critical for stressed families to build the capacity and skills to cope with change and make important decisions. Communicating within the family and building on the family=s strengths are key to the members= well-being.

AMaking family decisions in farming or ranching involves more than just evaluating what is best for the farm or ranch operation itself. Decision making is influenced not just by economic factors, but also by strong feelings about preserving or perpetuating a meaningful way of life for the family.@

The Family Decision Making Process Model suggests ways families can improve their decision making in the farming or ranching context.

1. Understand the concern
2. Clarify values and goals
3. Identify and manage resources
4. Consider strategies of response
5. Take action and evaluate.

Brotherson stresses that communication through the entire process is necessary for making effective family decisions.

This is an ongoing Extension program that helps farmers and ranchers determine the most profitable enterprises for their operations considering both production and marketing.