Parlor Profiles: Dairy Families Talk About Their Lives

Finances

A Major Cause of Stress

Finances, a big concern for all farm families, are a major cause of stress for dairy families. Over 88% of the families interviewed for this study discussed this issue. One woman put it bluntly. “I wake up in the morning thinking about financial problems,” she maintained, “and go to bed thinking about them.” One man voiced what no doubt worries many. “I have a big fear that everything I’ve worked for will go down the tubes,” he admitted.

Here are some other telling comments:
"I wake up in the
morning thinking
about financial
problems and go
to bed thinking
about them."

  • “Every time you talk to a banker, it gets worse and worse and worse,” said one woman.

  • “I’d like to see a bit more profit so I could update my machinery to lessen my work hours and avoid major breakdowns,” one man said.

  • “There’s not much profit in farming, so you can’t let things go that need to be done. But you hate to abandon your family’s needs,” another man noted.

Crops

There were many areas where finances caused stress for families. Not getting crops planted and harvested in due season, coupled with price uncertainty, was most frequently mentioned. This worry may have been discussed more frequently because the majority of the interviews were completed in late 1993, following two years of poor planting and harvesting conditions.

Milk Prices

Milk prices were mentioned by almost half (7) of the 15 families who mentioned finances as a cause of stress. The prevailing low milk prices during the study may again have affected families’ opinions. As with their uncertainty about crop production, families feel this is something beyond their control.

Open Accounts

Six families discussed paying monthly bills and credit loans (open accounts) as a stress-producer. One wife reported, “I guess if there is a day that I am the hardest to work with, it’s on bills day.” Another wife said, “I think it’s the open accounts that bother me the most.”

Medical Insurance

One-third of the families who experienced stress over their finances brought up the cost of medical insurance. “Medical insurance has increased every time we receive a notice,” one spouse said.

If dairy families are insurable, they face high premiums and deductibles. “No matter what happens,” one husband complained, “when health insurance comes they want anywhere from $200 to $250 a month with a $1000 deductible.” Several families rely on spouses’ off-farm employment to provide their health insurance coverage.

From the number of families raising this issue (88%), it is apparent that financial concerns are one of the most significant causes of stress for dairy farm families. Worries about paying open accounts and credit loans, losing the farm, attaining credit, milk prices, and so on, often occupy their thoughts. It appears that learning to live with and manage uncertainty about finances in a positive way is a key to a high quality of life for dairy farm families.

Financial Causes of Stress

(in the order of frequency they were mentioned by study participants)
  • Crops planted/harvested in due season
  • Milk prices
  • Open accounts
  • Medical insurance

Secondary Financial Causes of Stress

  • Unidentified disease in dairy cattle
  • Machinery breakdowns and repair costs
  • Government regulations
  • Poor quality feed
  • Workload

Strategies to Strengthen Families

  • Talk about financial issues openly as a family.

  • Work with a financial consultant or farm management specialist to complete a financial (enterprise) analysis of your farm, including balance and cash-flow sheets.

  • Consider a farm record system that will provide annual comparisons and show financial growth and trends.

  • Develop short-term (less than 5 years) and long-term (5-10 years) financial goals.

  • Develop business relationships with lenders. Communicate frequently with them about your business, including failures as well as successes.

  • Meet regularly with your business management team, consisting of your vet, banker, seed supplier, county extension educator, etc.

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