UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: December 16, 1996
FARM FAMILY HOLDINGS, INC.
A Delaware Corporation Commission File No. 1-11941 IRS No. 14-1789227
344 Route 9W, Glenmont, New York 12077-2910
Registrant's telephone number: (518) 431-5000
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Item 5. Other Events
On December 16, 1996, Farm Family Holdings, Inc. issued a press
release announcing the implementation of a voluntary early
retirement program and other changes to the Company's benefit
plans.
Item 7. Financial Statements and Exhibits
The following exhibits are filed as part of this report:
Exhibit Index
Exhibit 99 - Press Release
Signatures
- ----------
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
FARM FAMILY HOLDINGS, INC.
(Registrant)
December 16, 1996 /s/ Philip P. Weber
------------------- -----------------------------
(Date) Philip P. Weber
President and CEO
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EXHIBIT 99
Timothy A. Walsh
IMMEDIATE (518) 431-5410
Glenmont, New York - December 16, 1996 -- Philip P. Weber,
President and CEO of Farm Family Holdings, Inc. (NYSE symbol:
FFH), today announced that the Company will implement a
voluntary early retirement program and other changes to the
Company's benefit plans. These moves are part of the Company's
continuous expense management program. The early retirement
program will result in a one time charge to earnings in the
fourth quarter of 1996.
"The early retirement program is a strategic move to reduce
expenses and is part of our ongoing focus on expense levels,"
said Mr. Weber. "This program will position Farm Family
Holdings as a stronger competitor in the insurance marketplace."
The retirement program, approved on Friday by the Board of
Directors, will be offered to over 60 employees and is slated
for completion in April 1997. The Company estimates this will
result in savings, net of tax, of between approximately $150,000
to $225,000 per year, or $0.03 and $0.04 per share respectively.<F1>
The one time cost of the early retirement program is expected to
result in a charge to earnings, net of tax, during the fourth
quarter of 1996 of approximately $600,000 or $0.11 per share.<F1>
The charge is nonrecurring and over time should be offset by the
savings resulting from the program.
The Board also approved changes to the Company's employee
benefit plans. The Company will freeze benefits available
through its defined benefit plan and enhance its defined
contribution plan. As a result, the Company's employee
retirement contributions will vary to a greater extent based
upon the Company's profitability than the contributions
previously required to fund its defined benefit plan. These
changes are designed to more clearly align employees' benefits
to the Company's profitability. In addition, the Board approved
a stock option plan, subject to shareholder approval, and an
annual incentive plan for officers.
_____________________________
[FN]
<F1> Final charge to earnings will depend upon the number and the
job level of employees who elect to participate in the voluntary
early retirement program and final savings will depend upon the
number and the job level of employees who elect to participate
in the voluntary early retirement program and costs of
replacement personnel.
[/FN]
***MORE***
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Mr. Weber said the Company is also considering several
alternatives to expand Farm Family's product offerings. Some of
these alternatives include mutual funds and related products.
"It is important for our agents to be able to offer a wide
variety of financial planning vehicles to our clients." he said.
"Our customers are increasingly sophisticated and look to our
agents to help protect their property and investments."
In addition, the Board of Directors approved the promotion of
Timothy A. Walsh to Executive Vice President - Finance &
Treasurer of the Company.
Farm Family Casualty is a specialized, regional property and
casualty insurer of farms, agricultural-related businesses and
residents of rural and suburban communities.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: All forward-looking information or
statements contained in this press release are based on
management's current knowledge of factors, all with inherent
risks and uncertainties, affecting Farm Family Holdings, Inc.'s
business. Actual results may differ materially if these
assumptions prove invalid. Significant risk factors include the
results of the voluntary early retirement program and the risk
factors listed in the Company's SEC filings, including the
Prospectus dated July 22, 1996, pp. 10-15.
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