Financial Competence Enhanced Through Annie’s Project in Clarinda, IA

Agriculture and Natural Resources Extension
Iowa State University

Extension Lead(s)
(name, position, counties served, contact information)

Tim Eggers, Iowa State University Extension Field Agricultural Economist
US Mail 311 East Washington Street, Clarinda, IA 51632
E-mail Cell 712 303 7781, Fax 712 542 5936
Point of Contact for Adair, Adams, Cass, Decatur, Fremont, Harrison, Mills, Montgomery, Page, Pottawattamie, Ringgold, Taylor, Union, and Winterset counties.

Your Position


POW #and Team

120 Farm and Business Management

ANR Priority(select all that apply)

­­­­­Global Food Security and Hunger­

Title of Success Story

Financial Competence Enhanced Through Annie’s Project in Clarinda, IA

Continuing Story


Knowledge Areas:(USDA categories)

602. Business Management, Finance, and Taxation

Desired Changes

Basic Financial Documentation
•   Understand components of a net worth statement, or balance sheet
•  Learn how to classify assets and liabilities into current, intermediate, and long-term
•  Understand where the information comes from for projected cash flows

(Why is it important to address this issue with education? What are the desired changes?)

Annie’s Project sites have a planning committee made up of past and potential participants and instructors. When the committee met, they placed a high level of emphasis on financial risk topics. As a result, this Annie’s Project addressed financial risk in seven of its eighteen hours. The desired outcome of the Basic Financial Documentation component of Annie’s Project was for participants to understand their basic financial documents. 

Farmers may approach the interaction with an agricultural lender as one of uneven power. Lenders control access to the funds necessary for producers to operate or expand their farm business. If a farmer doesn’t understand their financial condition and expected outcomes from the use of borrowed funds, then they may be at a disadvantage when negotiating terms for the use of the capital.

(Outputs: activities, numbers reached, publications, products)

20 participants
1 of the 18 hours of contact (six three hour sessions)
1 of the 12 presenters (2 ISUE staff presenters)
Annie’s Project – Understanding Revenue Policies has resulted in new training documentation and a complete rethinking of the evaluation protocol.

RESULTS(Outcomes:  specific changes that occurred in Learning, Actions,Conditions; how outcomes were measured)

Participants increased their understanding of basic financial documentation and its use by both themselves and their lenders.
Participants completed a pre and post forty-one question risk management instrument. They also completed end of session evaluations. Thirteen of the forty-one question on the instrument addressed financial risk. Financial risk had the lowest percent of no answers when administered at the beginning of the project on January 21 at 42 percent and six months after the project on August 31 at 29 percent. The results imply participants best understood financial risk before and after the class. Four questions assessing understanding of financial risk were asked in the end of session evaluation. The questions and percent correct answers follow.

  1. How is net worth calculated? 86% answered correctly.
  2. Twenty-thousand bushels of stored grain is a current, intermediate, or long-term asset? 88% answered correctly.
  3. The unpaid balance at a co-op is a current, intermediate, or long-term liability? 94% answered correctly.
  4. From p. 7 of Financial Performance Measures for Iowa Farms, list your two most important ratios. 86% answered with a ratio that would be an acceptable answer.

Public Value (now or future)
(Impact:  Who benefits beyond participants and how?  What conditions changed?)

The participants increased sense of confidence in decision making capacity causes them to be more engaged in agricultural issues beyond their own farming operation. The program increases the pool of informed leaders in the community.

Major Partners or Collaborators

Heidi Carter, Page County Extension Director
Page County Agricultural Extension District
Megan Brown, Bank Iowa Loan Officer

Where story took place
(Region, campus, multi-regional)

Clarinda, IA
Page, Montgomery, Mills, Taylor, Adams county clientele (clients from Regions 17 & 18)

Fiscal Year


Multi-state or Integrated(Ext + Research)

Results used in trainingAnnie’s Project educators in ID, NC, NJ, NY, PA, SC,and TX.

Funding Source

Risk Management Agency


Annie’s Project, Risk Management, Farm Management


Page last updated: October 3, 2011
Page maintained by Julie Honeick,