FCSAmerica officer discusses smart farm finances during YF&R conference
From Feb. 6-7, members of the Wyoming Farm Bureau Federation and Colorado Farm Bureau Federation gathered in Cheyenne for the 2026 Joint Young Farmers and Ranchers (YF&R) Leadership Conference.
A series of breakout sessions on Feb. 7 covered relevant topics for young agriculturists, including a talk on budgeting, cost of living and smart farm finances by Farm Credit Services of America (FCSAmerica) Developing Markets Officer Robbie Alexander.
Alexander plays a key role in FCSAmerica’s Starting Gate program, an initiative which helps young and beginning farmers and ranchers get a foothold in the industry through personalized coaching in agricultural finance.
In his presentation, Alexander emphasized the importance of budgeting and shared tips and tools for creating a smart financial plan.
Importance of budgeting
To begin, Alexander emphasized the importance of taking control of finances through budgeting, noting creating a smart financial plan starts with asking questions about long-term priorities, assessing spending habits and making financial choices with intention.
“I’m not here to tell you to quit spending money and having fun, but I do want you to think about where you want to be and what goals you want to reach in this world,” Alexander said.
Having a budget helps individuals distribute fi-nances evenly and effectively throughout the year and can be especially important for agricultural producers who often rely on both operational income and off-the-farm income.
To put things in perspective, Alexander encouraged the audience to think about their money as a bucket of water. Once funds go in, he explained, it’s impossible to dip out of either side – it all becomes the same, regardless of its original source.
Without a budget in place, the temptation for impulse buys increases, which can be especially dangerous for producers who receive large cattle checks a few times a year rather than smaller, more evenly spaced income.
Alexander further added recent market conditions have been favorable for cattle producers, but markets always turn at some point.
Making a plan and putting away savings during the good times can help producers weather the storm of economic downturn.
“Our spending habits tend to increase with more income,” Alexander said. “If we don’t exercise control during good times, it makes things a lot harder when we start getting into bad times.”
Cost of living
Budgeting for cost of living is one of the most impactful ways a producer can exercise control over farm and ranch finances, according to Alexander.
He noted budgeting for cost of living is one of the most controllable parts of an operation, and since cost of living is a variable expense, having a plan in place and understanding financial abilities provides freedom and power when it comes to handling money.
“Cost of living is a variable expense that is always moving, and it has a major impact on your life and your future,” he stated.
With this, Alexander emphasized implementing good budgeting practices makes spending conscious and accountable, cutting down on uncertainty and anxiety surrounding individual purchases.
To emphasize the importance of budgeting cost of living intentionally, Alexander shared just $27.40 a day – or roughly $200 a week – of miscellaneous spending adds up to $10,000 which could have been allocated elsewhere over the course of a year.
“If you don’t start taking control of your money, spending will continue to creep up on you, and it just disappears,” Alexander said.
He also emphasized the importance of controlling family living expenses when it comes to applying for loans, stating demonstrating smart money management in everyday living can aid in the process of getting approved for, and paying off, a loan.
Creating categories
To create budget categories, Alexander recommended looking at three months of transaction history to begin getting a feel for spending habits.
Apps and spreadsheets can help with separating categories, which individuals should then assess and rank from most to least necessary.
Cutting back on less necessary immediate expenses helps ensure funds for long-term goals, summarized by Alexander into three categories – farm, family and future.
Succcession planning is another area Alexander warned young producers not to overlook.
He encouraged individuals facing an opportunity to take over the family operation to take an in-depth look at their current cost of living and assess whether their lifestyle can continue to be supported on operational income alone.
“If you’re looking at succession planning, you need to start looking at how much your operation can support family living,” Alexander said. “Odds are, you’re going to have to come up with more cash than you’re thinking.”
Tools and tips
Alexander concluded his presentation by sharing some tools and tips to make budgeting and managing farm finances easier.
He noted there are several banking and budgeting apps available to make moving and tracking money easier and encouraged attendees to set up savings accounts and practice self-accountability.
When planning for large life events and expenditures like weddings or starting a family, Alexander recommended factoring in room to save 10 to 20 percent more than anticipated costs.
In addition, Alexander cautioned against taking out lines of credit for longer than absolutely necessary, emphasizing paying off loans and closing lines of credit as soon as possible can help protect against runaway spending and a false sense of financial security.
Grace Skavdahl is the editor of the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.
