Last week Rural Agricultural Development Authority (RADA) hosted a Men’s Wellness Day at its headquarters in St Andrew. I was invited to address the farmers on the benefits of pension plans and investing for their retirement.

It was an honour to address the hard-working farmers who took a day from their farms to invest in themselves. They listened attentively to the various speakers who spoke on a range of topics, including finance, health, and conflict resolution.

It was an unforgettable experience for me, as the farmers understood that the same characteristics that made them good farmers are necessary to make them successful investors. They demonstrated the meaning and impact of inflation (known as the silent thief) having experienced praedial larceny. They are armed with the knowledge that inflation robs their money of its purchasing power or value.

Interestingly, one farmer made the point that he earns from inflation. Whenever food shortages occur he earns more from the sale of his farm produce, as consumers and businesses pay more for agricultural commodities, such as vegetables and fruits. His remarks align with that of world-renowned successful investor Warren Buffett, who believes that your best protection against inflation “is your own personal earning power”. He said no one can rob you of your talent.

According to Buffett, “If you do something good and valuable for society” then the performance of the dollar is insignificant. Individuals will pay more for goods and services that are in demand. It is a fact that the wealthy benefit from inflation and it’s the consumers who pay the price.

Inflation is an invisible or hidden tax. Noted author Henry Hazzlit said: “Inflation makes the wealthy wealthier and the poor poorer.”

It was important for the farmers to understand how inflation works since no one can predict what inflation is likely to be in the future.

Farmers should plan and invest wisely for their retirement. But do farmers retire?

The event hosted by RADA was well supported by the farmers and highlighted the aging of the farming population. There were few young farmers in attendance. Most of the farmers were either near or past the normal retirement age of 65. They were keen to learn about investing for retirement. Many didn’t have a definite retirement plan, and others were not sure when or if they will retire.

Farming is more than a career. For many farmers, it’s a way of life. As long as they enjoy good health and are of reasonable physical strength they expect to continue working on their farms.

In a 2022 Jamaica Information Service (JIS) report, the executive director of Jamaica 4H Club Dr Ronald Blake noted that the average age of a Jamaican farmer is 48.7 years. According to Dr Blake, Jamaica has the youngest farming population in the world. Globally, the average age of a farmer is 60. He said more youth were viewing agriculture as a viable profession. The report cited Dr Blake as saying that research showed that the “multiplier effect” of every dollar invested in agriculture is “better than putting it in any other sector” in Jamaica.

But if agriculture is such a lucrative business, why are some farmers not enjoying their retirement or fearing retirement?

Some farmers do not have enough saved for retirement. The strong emotional attachment to their farms can also result in delays in planning for retirement. Some farmers have no succession plan in place. The absence of the services of a professional and experienced financial advisor to provide wise counsel or advice on the financial journey can result in poor decision-making. Having the services of other professionals, such as lawyers and accountants, to assist with financial advice and succession planning can aid farmers in securely planning for the future.

Unfortunately, some farmers are not familiar with investing in financial assets, such as stocks and bonds, nor do they understand how these investments work. Some farmers saw their farms as their retirement income. But so many mishaps can happen near or post retirement. Illness is no respecter of persons, and health costs can be huge. This can be catastrophic for the farmer who had little funds saved or invested, or who fears running out of money.

What can be done?

* Farmers can sell or lease their farms to provide income in retirement.

* Farmers are self-employed and are eligible to contribute to approved retirement schemes known as personal pension plans, and it is best to start saving early and regularly.

* Farmers should seek to have diversified income streams, such as wages from the farm, agri-tourism, earnings from value-added products, non-farm assets such as rental property, pensions, money market funds, dividends, stocks, mutual funds, and certificates of deposits.

The farmers I addressed at the RADA’s Men’s Wellness Day are interested in investing for the long term in the same way that their farm is a long-term business. Every time we eat it’s because of the job of a farmer. From the field to the table.

The aging farmers will one day retire and deserve to live comfortably in retirement. We can’t live without farmers. As the scripture says, “The Earth was made for the profit of all. Even the king eats from the field.” I believe that farming is the lifeline of a nation.

Grace G McLean is a financial advisor and retirement specialist at BPM Financial Limited. Contact her at gmclean@bpmfinancial or visit the website: www.bpmfinancial.com. She is also a podcaster for Living Above Self. E-mail her at livingaboveself@gmail.com.