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Farmers and Social Security Reform

For several years, reports from the Trustees of the Social Security system have warned us that at the current rate of benefits and given the current age structure of our population, the Social Security system will go broke sometime between 2038 and 2042. To address Social Security Trustees’ concerns, President Bush, in his postelection speech, reported that one of the legacies of his administration would be to reform the Social Security system. Farm operators tend to be older, on average, than people in other populations, meaning that changes in Social Security would more likely be of near-term concern to them. Although there is still considerable debate on whether reform is necessary or desirable, this article reports on what a changed Social Security system might look like, and how changes in the system might affect farmers’ need for additional savings.