Farm Credit recently announced a $150,000 disbursement of grant funds to beginning farmers through JumpStart, the Association’s competitive grant program for farmers in the start-up phase of business.  The following applicants were selected to receive $10,000 each to establish and grow their farms:

• Paul & Laura Congleton from Woodbine, MD
• Carlene Curtis from Parkton, MD
• Eric & Christy Donnelly from Rocky Ridge, MD
• Benjamin & Sarah Goldberg from Clarksville, MD
• Jon Hartzler & Erin Luley from Pennsylvania Furnace, PA
• Lulav Lieberman from Newark, DE
• Matthew & Brittany Miller from York Haven, PA
• John Orlowski from Knoxville, MD
• Andrew Porter & Rebecca Robertson from Spring Mills, PA
• Matthew & Jessica Schnupp from Harrisburg, PA
• Richard Talbott from Gerrardstown, WV
• Katelynn Troy from Parkton, MD
• Timothy & Edna Yoder from Salisbury, PA
• Titus & Anna Yoder from Salisbury, PA
• Blake & Sarah Ziegler from Lebanon, PA

More than 100 applications were received for the 2023 JumpStart grant program, all of which were carefully evaluated by a diverse panel of agriculture professionals and industry experts. Those named above were selected on the merits of their submissions, which included an application, business plan, and completion of the Ag Biz Basics educational course.

“Beginning farmers are the future of our industry,” said Tom Truitt, Chief Executive Officer of Horizon Farm Credit. “We are pleased to offer JumpStart grants as part of the Association’s ongoing support of producers who are just starting out and establishing their operations,” he says.  “The funding provided by this grant program goes a long way toward helping these new farmers pursue their dreams and realize long-term financial success.”

JumpStart is an annual grant program for agriculturalists who are at least 18 years of age, have two years or less of farming experience or be planning to begin farming within the next two years, and reside in Horizon Farm Credit’s territory and Washington, D.C.  The program is open to both full and part-time farmers and does not require applicants to be Farm Credit customers. Learn more about this program by visiting horizonfc.com/jumpstart.

Farm Credit has opened reservations for its third annual Delmarva Poultry Seminar, which is scheduled for October 3, 2023 in Salisbury, Maryland. 

The event will take place at the Wicomico Youth and Civic Center from 9am through 3:30 p.m. and will  feature presentations from industry experts in the areas of production and animal care, biosecurity, and the implementation of solar processes. Lunch will be provided. The seminar will deliver both educational and networking opportunities; nutrient management credits will also be available. Additional information can be found at horizonfc.com/seminar.

The Poultry Seminar is free and open to all interested poultry growers but reservations are required. Please RSVP at horizonfc.com/seminar no later than September 19, 2023.  Questions should be directed to 888.339.3334.

Farm Credit announced the launch of its third annual Farmers on the Rise program, which awards up to ten beginning farmers in its footprint with $10,000 to grow their operations.  

“This award program was created to recognize outstanding farm owner-operators within the diverse agricultural community and help them to expand their existing agricultural business,” says Tom Truitt, CEO of Horizon Farm Credit. “Those selected to receive an award will be recognized based on their efforts in agriculture, financial character, leadership, community involvement, and environmental stewardship.”

The award program is open to beginning farmers in Horizon Farm Credit’s footprint who have at least three years of experience, but no more than ten years of farming experience. 

In 2022, Farm Credit selected ten applicants to receive Farmers on the Rise award funding. “Last year’s applicants were truly all impressive. Their businesses ranged from livestock and grain to agritourism and CSAs” says Johanna Rohrer, Member Education & YBS Program Manager at Horizon Farm Credit. “Our panel of judges is, once again, looking forward to reviewing the applications this year and seeing the inspiring dreams of our region’s producers.”

This program is open to all farmers meeting the experience threshold and geographic requirements outlined above. Applicants are not required to be Farm Credit customers, although current customers are encouraged to apply.  The deadline to submit an application is October 6, 2023 at 4PM. For more information and to apply, visit horizonfc.com/rise.  Questions about this program or application should be directed to learning@horizonfc.com.

When we talk about social security benefits, the subject is often met with a lot of negative thoughts.  Generally, most people don’t look it as much of a benefit for retirement and many don’t believe it will even be there when they reach retirement age. 

The truth is, we have been talking about making changes to the social security system for decades, but no major changes have happened yet.  If and when our security system is overhauled, it will have to be done gradually, with older taxpayers grandfathered into the system.

While it is true that we cannot count on social security to cover our living expenses in retirement, for most of us it still will provide the basis for our income in our senior years.  Here are a few things we should keep in mind as we plan and build for our retirement years.

How do you qualify for social security?

To qualify for social security, an individual needs 40 credits of earnings.  A person’s benefit is determined by their top 35 earning years adjusted for inflation.  In 2022, an individual needed to earn $1,510 to receive one credit with a maximum of four per year. In other words, to qualify, a person needs 10 years of work. 

It’s important to note that special rules apply to self-employed farmers.  If a farmer does not earn enough for the year to receive his four credits, the farmer can take the optional social security method, pay the resulting self-employment tax, and get credits for that year.  This step is very important for farmers to make sure they get their 10 years of earnings in.  When we are young, we don’t really think about our mortality and our retirement years.  However, social security benefits are there in case one becomes disabled or, in case of death, would provide survivor benefits for our children.  This makes it essential we build that history as soon as possible.

What is full retirement age?

Full retirement age for those born in 1960 or later is 67.  For those born between 1943-1960, the age gradually increases from 65 to 67.

How does early retirement effect social security benefits?

A person can start receiving retirement at age 62, but there will be a decrease in monthly benefits until they reach full retirement age.  The monthly benefit you start with will be your monthly benefit forever, only changing with increases for inflation.  For the person taking social security at age 62, the reduction is about 30% from the amount they would receive at full retirement.  Additionally, there is an annual limit on earnings until a person reaches their full retirement age.  This year (2023) 2023, the limit is $21,240.  Social security will deduct $1 for every $2 dollars earned above that amount.  Before taking social security early, these considerations need to be taken into account.

How does delaying benefits effect social security benefits?

On the other side of this, a person can always delay taking their benefits until age 70.  A person’s monthly benefit will increase about 8% a year until they reach age 70.  After age 70, this will not change, nor will delaying it raise the monthly payment.  Consequently, there is no reason to delay taking benefits after age 70.

What do these benefits mean for spouses?

A spouse receives one half of the retired workers’ benefit at full retirement age.  If an individual has both benefits from their spouse as well their own, the individual always gets their own first.  The individual may receive more if the spouse’s benefit is higher.  In the event of the death of an individual, the surviving spouse then receives the benefit that is highest.

Are social security benefits taxed?

Up to 85% of social security benefits are taxable, depending on other income.  For a taxpayer that is filing married, if their other income is over $44,000, they could pay tax on up to 85% of their social security income.

In summary, the decision of when to start receiving social security is one that should not be taken lightly. Everyone’s financial situation and life expectancy is different, so it not a one size fits all decision.  The first step is to check out your earnings and projected social security income at: ssa.gov/myaccount. This website replaces the yearly benefit letter that we all used to receive.  This will help you start the retirement process.  It is always a good idea to consult a retirement specialist or consultant to help you through this process.