UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10Q


                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                                     OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the Quarterly Period Ended September 30, 1997
                           Commission File No. 1-11941


                           FARM FAMILY HOLDINGS, INC.
                    A Delaware Corporation IRS No. 14-1789227

                   344 Route 9W, Glenmont, New York 12077-2910
                  Registrant's telephone number: (518) 431-5000







Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes No

The number of shares outstanding of the issuer's common stock as of November 12,
1997 is 5,253,813.


<PAGE>


                    FARM FAMILY HOLDINGS, INC. & SUBSIDIARIES

                                      INDEX



   Part I.   Financial Information

             Item 1.  Financial Statements of Farm Family Holdings, Inc. & 
                      Subsidiaries (unaudited)
                      Consolidated Balance Sheets -
                      September 30, 1997 and December 31, 1996

                      Consolidated  Statements  of  Income  Three  months  ended
                      September  30,  1997 and 1996  and the nine  months  ended
                      September 30, 1997 and 1996

                      Consolidated  Statements  of Cash Flow Nine  months  ended
                      September 30, 1997 and 1996

                      Notes to Consolidated Financial Statements

             Item 2.  Management's Discussion and Analysis of Financial 
                      Condition and Results of Operations


  Part II.   Other Information

             Item 6.  Exhibits and Reports on Form 8-K





<PAGE>


<TABLE>



                  FARM FAMILY HOLDINGS, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                ($ in thousands)
<CAPTION>

                                                                              (Unaudited)
                                                                          September 30, 1997  December 31, 1996

---------------------------------------------------------------------------------------------------------------
Assets
Investments:
<S>                                                                                 <C>               <C>    
     Fixed Maturities
     Available for sale, at fair value
        (Amortized cost: $239,393 in 1997 and $214,226 in 1996 )                    $247,807          $219,188
     Held to maturity, at amortized cost
        (Fair value: $9,456 in 1997 and $9,973 in 1996)                                9,181             9,782
   Equity securities
     Available for sale, at fair value
            (Cost: $3,149 in 1997 and $2,546 in 1996)                                  4,077             7,908
   Mortgage loans                                                                      1,682             1,745
   Other invested assets                                                                 620               748
   Short-term investments                                                              6,635             5,333
---------------------------------------------------------------------------------------------------------------
             Total investments                                                       270,002           244,704
---------------------------------------------------------------------------------------------------------------
Cash                                                                                   3,747             4,110
Insurance receivables:
   Reinsurance receivables                                                            11,419            10,743
   Premiums receivable, net                                                           32,100            22,663
Deferred acquisition costs                                                            12,746            10,682
Accrued investment income                                                              4,778             4,861
Deferred income tax asset, net                                                         2,863             1,520
Prepaid reinsurance premiums                                                           2,216             1,944
Receivable from affiliates, net                                                       16,632            16,133
Other assets                                                                           2,777             2,052
---------------------------------------------------------------------------------------------------------------
             Total Assets                                                           $359,280          $319,412
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
LIABILITIES aND STOCKHOLDERS' EQUITY
Liabilities:
   Reserves for losses and loss adjustment expenses                                 $150,297          $141,220
   Unearned premium reserve                                                           68,529            55,945
   Reinsurance premiums payable                                                        2,914               641
   Accrued expenses and other liabilities                                             11,808             9,561
   Debt                                                                                1,277             1,304
---------------------------------------------------------------------------------------------------------------
             Total liabilities                                                       234,825           208,671
---------------------------------------------------------------------------------------------------------------

Commitments and contingencies
Stockholders' equity:
    Preferred stock $.01 par value 1,000,000 shares authorized
         and no shares issued and outstanding                                              -                 -

    Common stock $.01 par value 10,000,000 shares authorized
         and 5,253,813 shares issued and outstanding                                      53                53
    Additional Paid in Capital                                                        98,140            98,140
    Retained earnings                                                                 20,191             5,838
    Net unrealized investment gains                                                    6,071             6,710
---------------------------------------------------------------------------------------------------------------
             Total stockholders' equity                                              124,455           110,741
---------------------------------------------------------------------------------------------------------------
             Total Liabilities and Stockholders' Equity                             $359,280          $319,412
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------

 See accompanying notes to Consolidated Financial Statements.
</TABLE>
<PAGE>

<TABLE>

                  FARM FAMILY HOLDINGS, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF INCOME
                     ($ in thousands, except per share data)

<CAPTION>
                                                                 
                                                                      (Unaudited)              (Unaudited)
                                                                   Three Months Ended        Nine Months Ended
                                                                     September 30,           September 30,
                                                                    1997       1996          1997         1996
---------------------------------------------------------------------------------------------------------------

Revenues:
<S>                                                                <C>        <C>          <C>         <C>    
     Premiums                                                      $38,457    $33,015      $109,191    $96,881
     Net investment income                                           4,603      4,132        13,529     11,635
     Realized investment gains (losses), net                           188      (102)         5,649       (25)
     Other income                                                      234        219           719        689
---------------------------------------------------------------------------------------------------------------
                   Total revenues                                   43,482     37,264       129,088    109,180
---------------------------------------------------------------------------------------------------------------
Losses and Expenses:
     Losses and loss adjustment expenses                            26,701     23,089        76,421     71,842
     Underwriting expenses                                          10,605      9,120        30,803     27,087
     Interest expense                                                   25         33            77        141
     Dividends to policyholders                                         65         43           177        156
---------------------------------------------------------------------------------------------------------------
             Total losses and expenses                              37,396     32,285       107,478     99,226
---------------------------------------------------------------------------------------------------------------
Income before federal income tax expense and extraordinary item      6,086      4,979        21,610      9,954
Federal income tax expense                                           2,009      1,517         7,257      3,136
---------------------------------------------------------------------------------------------------------------
Income before extraordinary item                                     4,077      3,462        14,353      6,818
Extraordinary item - demutualization expenses                            -        126             -      1,543
---------------------------------------------------------------------------------------------------------------
             Net income                                             $4,077     $3,336       $14,353     $5,275
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------

Net income before extraordinary item per share-primary               $0.77      $0.75         $2.73      $1.92
---------------------------------------------------------------------------------------------------------------
Net income before extraordinary item per share-fully diluted         $0.77      $0.75         $2.70      $1.92
---------------------------------------------------------------------------------------------------------------
Net income per share-primary                                         $0.77      $0.72         $2.73      $1.48
---------------------------------------------------------------------------------------------------------------
Net income per share-fully diluted                                   $0.77      $0.72         $2.70      $1.48
---------------------------------------------------------------------------------------------------------------
Weighted average shares outstanding-primary                      5,286,348  4,641,411     5,264,658  3,553,150
---------------------------------------------------------------------------------------------------------------
Weighted average shares outstanding-fully diluted                5,317,828  4,641,411     5,317,828  3,553,150
---------------------------------------------------------------------------------------------------------------

See accompanying notes to Consolidated Financial Statements.


</TABLE>








<PAGE>

<TABLE>

                  FARM FAMILY HOLDINGS, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                ($ in thousands)
                                   (Unaudited)

<CAPTION>
                                                                                          For the Nine Months
                                                                                          Ended September 30,
                                                                                           1997            1996
-----------------------------------------------------------------------------------------------------------------
Cash Flows From Operating Activities:

<S>                                                                                       <C>             <C>   
Net income                                                                                $14,353         $5,275
-----------------------------------------------------------------------------------------------------------------

Adjustments to reconcile net income
              to net cash provided by operating activities:
    Realized investment (gains) losses                                                    (5,649)             25
    Amortization of bond discount                                                             258             99
    Deferred income taxes                                                                   (997)          (291)
    Extraordinary item - demutualization expenses                                               -          1,543
    Changes in:
         Reinsurance receivables                                                            (676)          3,459
         Premiums receivable                                                              (9,437)        (3,643)
         Deferred acquisition costs                                                       (2,064)          (772)
         Accrued investment income                                                             83             36
         Prepaid reinsurance premiums                                                       (272)          (243)
         Receivable from affiliates                                                         (499)          (775)
         Other assets                                                                       (725)            113
         Reserves for losses and loss adjustment expenses                                   9,077            112
         Unearned premium reserve                                                          12,584          5,652
         Reinsurance premiums payable                                                       2,273        (1,660)
         Accrued expenses and other liabilities                                             2,247            (5)
-----------------------------------------------------------------------------------------------------------------
            Total adjustments                                                               6,203          3,650
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
            Net cash provided by operating activities before extraordinary item            20,556          8,925
            Extraordinary item - demutualization expenses                                       -        (1,543)
-----------------------------------------------------------------------------------------------------------------
            Net cash provided by operating activities                                      20,556          7,382
-----------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTiNG ACTIVITIES Proceeds from sales:
    Fixed maturities available for sale                                                     3,514          5,450
    Other invested assets                                                                   (169)            144
    Equity securities                                                                       6,257              -
Investment collections:
    Fixed maturities available for sale                                                    13,542          7,238
    Fixed maturities held to maturity                                                         582          2,289
    Mortgage loans                                                                             62             56
Investment purchases:
    Fixed maturities available for sale                                                  (42,425)       (44,304)
    Fixed maturities held to maturity                                                           -        (1,903)
    Equity securities                                                                     (1,081)              -
Change in short-term investments, net                                                     (1,302)        (6,148)
Change in other invested assets                                                               128            259
-----------------------------------------------------------------------------------------------------------------
            Net cash used in investing activities                                        (20,892)       (36,919)
-----------------------------------------------------------------------------------------------------------------

Cash Flows From Financing Activities
Principal payments on debt                                                                   (27)           (26)
Proceeds from IPO and Subscription Offerings                                                    -         44,880
Demutualization payments to Policyholders and Noteholders                                       -       (12,842)
IPO Expenses paid                                                                               -          (941)
-----------------------------------------------------------------------------------------------------------------
            Net ash provided by (used in) financing activities                               (27)         31,071
-----------------------------------------------------------------------------------------------------------------
            Net increase (decrease) in cash                                                 (363)          1,534
Cash, beginning of period                                                                   4,110          2,410
-----------------------------------------------------------------------------------------------------------------
Cash, end of period                                                                        $3,747         $3,944
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
See accompanying notes to Consolidated Financial Statements.
</TABLE>
<PAGE>



Notes to Consolidated Financial Statements

     1.   Summary of Significant Accounting Policies

     The accompanying  consolidated financial statements include the accounts of
     Farm Family  Holdings,  Inc. ("Farm Family  Holdings") and its wholly owned
     subsidiary,   Farm  Family   Casualty   Insurance   Company  ("Farm  Family
     Casualty"),  (collectively  referred  to as  the  "Company").  Farm  Family
     Holdings was  incorporated  under Delaware law on February 12, 1996 for the
     purpose of becoming  the parent  holding  company of Farm  Family  Casualty
     under a Plan of  Reorganization  and Conversion  (the "Plan").  On July 26,
     1996,  Farm  Family  Holdings  completed  its  initial  public  offering of
     2,470,000  shares of its common stock.  Concurrent with the consummation of
     Farm Family Holdings' initial public offering, Farm Family Mutual Insurance
     Company converted from a mutual property and casualty  insurance company to
     a stockholder  owned property and casualty  insurance  company and became a
     wholly owned subsidiary of Farm Family Holdings pursuant to the Plan. Also,
     Farm Family  Mutual  Insurance  Company was  renamed  Farm Family  Casualty
     Insurance Company.  In addition to the 2,470,000 shares sold in the initial
     public   offering  and  the  315,826  shares  sold  in  the   underwriters'
     over-allotment,  Farm  Family  Holdings  distributed  2,253,813  shares  to
     policyholders  and  surplus  note  holders,  and sold  214,174  shares in a
     subscription  offering.  As a result,  Farm Family  Holdings had  5,253,813
     shares outstanding as of July 26, 1996.

     The  per  share  information  presented  on the  accompanying  consolidated
     statements of income gives effect in the three month and nine month periods
     ended  September 30, 1996 to the  allocation of 3,000,000  shares of common
     stock to eligible policyholders on July 26, 1996 pursuant to the Plan.

     The  accompanying  unaudited  consolidated  financial  statements have been
     prepared in accordance  with the  instructions to Form 10-Q. In the opinion
     of management,  these statements  contain all adjustments  including normal
     recurring  accruals,  which are  necessary for a fair  presentation  of the
     consolidated financial position at September 30, 1997, and the consolidated
     results of  operations  for the three  month and nine month  periods  ended
     September 30, 1997 and 1996. These consolidated  financial statements shuld
     be read in  conjunction  with the  consolidated  financial  statements  and
     related notes contained in the Company's Annual Report to stockholders. The
     results  of the  Company's  operations  for  any  interim  period  are  not
     necessarily  indicative  of the results of the Company's  operations  for a
     full fiscal year.

     2.  Future Application of Accounting Standards

     Statement of Financial  Accounting  Standards Statement No. 128 - "Earnings
     Per Share" is effective for financial  statements issued for periods ending
     after  December 15, 1997.  This  statement  simplifies  the  computation of
     earnings per share (EPS) by replacing the "primary" EPS requirements with a
     "basic" EPS computation  based upon  weighted-average  shares  outstanding.
     This  new  standard   requires  a  reconciliation   of  the  numerator  and
     denominator of the diluted EPS computation.  The Company currently uses the
     treasury stock method in determining  weighted  average shares  outstanding
     for primary and fully diluted EPS.



<PAGE>


     The following  represents the basic and dilutive earnings per share amounts
     had the Company been required to adopt this statement for the periods ended
     September 30, 1997 and 1996:
<TABLE>

                                                         Three months ended             Nine months ended
                                                            September 30,                  September 30,
                                                          1997          1996            1997            1996
                                                    -----------------------------------------------------------
<S>                                                   <C>           <C>            <C>              <C>       
     Net Income                                       $4,077,000    $3,336,000     $14,353,000      $5,275,000
                                                    -----------------------------------------------------------

     Weighted average shares for basic EPS             5,253,813     4,641,411       5,253,813       3,553,150
     Effect of dilutive stock options                     32,535             -          10,845               -
                                                    -----------------------------------------------------------
     Weighted average shares and assumed exercise
         of stock options for dilutive EPS             5,286,348     4,641,411       5,264,658       3,553,150
                                                    -----------------------------------------------------------
     Basic EPS                                             $0.78         $0.72           $2.73           $1.48
                                                    -----------------------------------------------------------
     Dilutive EPS                                          $0.77         $0.72           $2.73           $1.48
                                                    -----------------------------------------------------------
</TABLE>

     3.  Omnibus Securities Plan

     At the Annual Meeting of  Stockholders  held on April 22, 1997, the Company
     adopted the Omnibus  Securities Plan (the "Plan") under which up to 500,000
     shares of common stock are available for award. Stock options granted under
     the Plan may be either  incentive stock options  ("ISOs") or  non-qualified
     stock options ("NQSOs"). For ISOs, the option price may be no less than the
     fair market value on the date of grant.  For NQSOs, the option price may be
     no less than 85% of the fair  market  value on the date of grant.  On April
     22,  1997,  215,000  NQSOs were  granted.  These NQSOs may be  exercised no
     earlier than July 26, 1999 and no later than the tenth  anniversary  of the
     date of the Company's 1997 Annual Meeting of Stockholders. These NQSOs vest
     in equal  amounts  over a three year period and have an  exercise  price of
     $22.56 per share. The following table summarizes option information:

                                                     Shares
              Outstanding as of January 1, 1997           -
              Granted                                  215,000
              Exercised                                   -
              Canceled                                   5,000
                                                   -----------
              Outstanding at end of period             210,000
                                                   -----------
              Options exercisable at end of period        -
              Options available for future grant       290,000

     Financial  Accounting  Standards  Board  Statement No. 123  "Accounting for
     Stock-Based  Compensation  Plans" is effective  for fiscal years  beginning
     after  December  15,  1995.  The Company  has  elected to apply  Accounting
     Principles   Board  Opinion  No.  25  in  accounting  for  its  stock-based
     compensation arrangements.


<PAGE>


Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations.

General

The following  discussion includes the operations of Farm Family Holdings,  Inc.
("Farm Family Holdings") and its wholly owned  subsidiary,  Farm Family Casualty
Insurance  Company  ("Farm Family  Casualty")  (collectively  referred to as the
"Company"). The operations of the Company are also closely related with those of
its affiliates, Farm Family Life Insurance Company ("Farm Family Life") and Farm
Family  Life's wholly owned  subsidiary,  United Farm Family  Insurance  Company
("United Farm Family").

Farm Family  Casualty is a specialized  property and casualty  insurer of farms,
other  generally  related   businesses  and  residents  of  rural  and  suburban
communities  primarily in the Northeastern  United States.  Farm Family Casualty
provides property and casualty insurance  coverages to members of the state Farm
Bureau(R) organizations in New York, New Jersey, Delaware, West Virginia and all
of the New England states.  Membership in a state Farm Bureau  organization is a
prerequisite  for  voluntary  insurance  coverage  (except for  employees of the
Company and its affiliates).

The Company's  operating  results are subject to significant  fluctuations  from
period to period depending upon, among other factors, the frequency and severity
of losses from  weather  related and other  catastrophic  events,  the effect of
competition  and  regulation  on the  pricing of  products,  changes in interest
rates, general economic conditions, tax laws and the regulatory environment.  As
a condition  of its license to do  business  in various  states,  the Company is
required to participate  in a variety of mandatory  residual  market  mechanisms
(including  mandatory  pools) which  provide  certain  insurance  (most  notably
automobile  insurance)  to  consumers  who are  otherwise  unable to obtain such
coverages from private  insurers.  In all such states,  residual  market premium
rates are subject to the  approval of the state  insurance  department  and have
generally  been  inadequate.  The amount of future  losses or  assessments  from
residual market  mechanisms  cannot be predicted with certainty and could have a
material adverse effect on the Company's results of operations.

For the nine month periods ended  September 30, 1997 and 1996,  36.6% and 38.7%,
respectively,  of the  Company's  direct  written  premiums  were  derived  from
policies  written  in New York  and,  for the same  periods,  25.7%  and  22.4%,
respectively,  were derived from policies written in New Jersey.  For these same
periods,  no other state  accounted for more than 10.0% of the Company's  direct
written  premiums.  As a result,  the  Company's  results of  operations  may be
significantly affected by weather conditions, catastrophic events and regulatory
developments  in  these  two  states  and  in  the  Northeastern  United  States
generally.

"Safe Harbor"  Statement Under the Private  Securities  Litigation Reform Act of
1995

Certain  statements made herein or elsewhere by or on behalf of the Company that
are not historical facts are intended to be  forward-looking  statements  within
the meaning of the safe harbor provisions of the Private  Securities  Litigation
Reform Act of 1995. Examples of forward-looking  statements include, but are not
limited to: (i) projections of revenue,  earnings,  capital  structure and other
financial  items,  (ii) statements of the plans and objectives of the Company or
its  management,  (iii)  statements  of  future  economic  performance  and (iv)
assumptions underlying statements regarding the Company or its business. Readers
are hereby  cautioned  that certain events or  circumstances  could cause actual
results to differ materially from those estimated, projected, or predicted. Such
risks and uncertainties include, but are not limited to, the following: exposure
to  catastrophic  loss,  geographic  concentration  of  loss  exposure,  general
economic  conditions  and  conditions  specific  to the  property  and  casualty
insurance  industry  including  its  cyclical  nature,  regulatory  changes  and
conditions,  rating agency policies and practices,  competitive factors,  claims
development and the impact thereof on loss reserves and the Company's  reserving
policy, the adequacy of the Company's reinsurance programs,  developments in the
securities  markets and the impact on the  Company's  investment  portfolio  and
other risks  included in this Report on Form 10-Q and other risk factors  listed
from time to time in the Company's  Securities and Exchange  Commission Filings.
In addition,  forward-looking statements are based on management's knowledge and
judgment as of the date that such statements are made. The Company undertakes no
obligation   to  publicly   release  the  result  of  any   revisions  to  these
forward-looking  statements that may be made to reflect events or  circumstances
after the date hereof or to reflect the occurrence of unanticipated events.

Results of Operations

The Three Months  Ended  September  30, 1997  Compared to the Three Months Ended
September 30, 1996

Premiums
--------
Premium revenue  increased $5.5 million or 16.5%,  during the three months ended
September  30, 1997 to $38.5  million from $33.0  million for the same period in
1996. The increase in premium  revenue in 1997 resulted from an increase of $5.0
million  in earned  premiums  on  additional  business  directly  written by the
Company, as well as an increase of $1.7 million in earned premiums assumed which
was offset by an increase of $1.2 million in earned premiums ceded to reinsurers
and not retained by the Company. The $5.0 million increase in earned premiums on
additional  business directly written by the Company was primarily  attributable
to an increase of $4.3 million,  or 14.0%, in earned premiums from the Company's
primary  products  (personal  and  commercial  automobile  products  other  than
assigned risk  automobile  business,  the Special Farm  Package,  businessowners
products, homeowners products, and Special Home Package).

Net written premiums increased 25.5% to $41.8 million for the three months ended
September 30, 1997  compared to $33.3  million for the same period in 1996.  The
increase in net  written  premiums is  primarily  attributable  to the growth in
direct  writings  to  customers  of $6.3  million  and, to a lesser  extent,  an
increase   in   the   Company's   voluntary   assumed   reinsurance    business.
Geographically,  the increase in the  Company's  direct  writings  came from New
Jersey, New York,  Massachusetts,  West Virginia,  Connecticut,  Delaware, Rhode
Island,  Maine  and  Vermont.  Direct  writings  for the third  quarter  of 1997
increased  primarily  as a  result  of an  increase  in  writings  of all of the
Company's  primary products and to a lesser extent as a result of an increase of
$0.5 million in involuntary  assigned risk automobile business in New Jersey and
the Company's re-entry into the Massachusetts workers' compensation market which
added an additional $0.5 million.

Net Investment Income
---------------------
Net  investment  income  increased $0.5 million or 11.4% to $4.6 million for the
three months ended  September  30, 1997 from $4.1 million for the same period in
1996.  The  increase in net  investment  income was  primarily  the result of an
increase  in  average  cash  and  invested   assets  (at   amortized   cost)  of
approximately  $39.3 million,  or 18.1% for the three months ended September 30,
1997  compared to the three months  ended  September  30, 1996.  The increase in
average cash and invested  assets was primarily  attributable  to available cash
flow from operations.  The return realized on the Company's cash and investments
was 7.2% for the three  months  ended  September  30, 1997 and 7.6% for the same
period in 1996.  The decrease in the return  realized on the Company's  cash and
invested assets was primarily  attributable to an increase in investments in tax
exempt securities. In addition, the return on the Company's cash and investments
decreased  during the three months ended September 30, 1997 compared to the same
period in 1996 as a result of the Company's  investment in fixed maturities with
a slightly lower rate of return due to a reduction in interest rates.

Losses and Loss Adjustment Expenses
-----------------------------------
Losses and loss adjustment  expenses increased $3.6 million,  or 15.6%, to $26.7
million for the three months ended September 30, 1997 from $23.1 million for the
same period in 1996.  Loss and loss  adjustment  expenses  were 69.4% of premium
revenue for the three  months  ended  September  30,  1997  compared to 69.9% of
premium  revenue  for the same  period in 1996.  The  decrease  in loss and loss
adjustment  expenses as a percent of premium revenue was primarily  attributable
to a  greater  relative  increase  in  earned  premiums  than in loss  and  loss
adjustment  expenses.  Losses  believed to be weather  related  aggregated  $1.2
million in the three months ended  September  30, 1997  compared to $0.7 million
for the same period in 1996.

Underwriting Expenses
---------------------
Underwriting expenses increased $1.5 million, or 16.3%, to $10.6 million for the
three months ended  September  30, 1997 from $9.1 million for the same period in
1996.  For the three  months ended  September  30, 1997 and  September  30, 1996
underwriting expenses were 27.6% of premium revenue.

Federal Income Tax Expense
--------------------------
Federal  income tax expense  increased $0.5 million to $2.0 million in 1997 from
$1.5  million in 1996.  Federal  income tax expense  was 33.0% of income  before
federal  income tax expense and  extraordinary  item for the three  months ended
September 30, 1997  compared to 30.5% for the same period in 1996.  The increase
in federal  income  tax as a  percentage  of income  before  federal  income tax
expense was primarily attributable to an increase in taxable income.

Net Income
----------
Net income  increased  $0.8  million to $4.1  million for the three months ended
September 30, 1997 from $3.3 million for the same period in 1996  primarily as a
result of the foregoing factors.

The Nine  Months  Ended  September  30, 1997  Compared to the Nine Months  Ended
September 30, 1996

Premiums
--------
Premium revenue  increased $12.3 million or 12.7%,  during the nine months ended
September  30, 1997 to $109.2  million from $96.9 million for the same period in
1996. The increase in premium revenue in 1997 resulted from an increase of $12.5
million  in earned  premiums  on  additional  business  directly  written by the
Company,  and an increase of $2.5 million in earned  premiums  assumed which was
offset by an increase of $2.7 million in earned premiums ceded to reinsurers and
not retained by the Company.  The $12.5 million  increase in earned  premiums on
additional  business directly written by the Company was primarily  attributable
to an increase of $11.2 million, or 12.9%, in earned premiums from the Company's
primary  products  (personal  and  commercial  automobile  products  other  than
assigned  risk  business,  the Special Farm  Package,  businessowners  products,
homeowners  products,  and Special Home Package) The number of policies in force
related to the Company's  primary  products  increased by 11.4% to approximately
124,100 as of September 30, 1997 from approximately  111,400 as of September 30,
1996 and the  average  premium  earned for each such  policy  increased  by 1.3%
during the nine months ended  September  30, 1997 compared to the same period in
1996.

Net written premiums increased 18.8% to $121.5 million for the nine months ended
September 30, 1997 compared to $102.3  million for the same period in 1996.  The
increase in net  written  premiums is  primarily  attributable  to the growth in
direct  writings to  customers  of $16.1  million  and, to a lesser  extent,  an
increase   in   the   Company's   voluntary   assumed   reinsurance    business.
Geographically,  the increase in the  Company's  direct  writings  come from New
Jersey, New York,  Massachusetts,  Connecticut,  West Virginia,  Delaware, Rhode
Island and Vermont.  In addition,  direct writings of all the Company's  primary
products,  particularly  personal  automobile,  increased  during the first nine
months of 1997.  During the nine months ended  September  30, 1997,  the Company
wrote  approximately  $1.4 million of assigned risk  automobile  business in New
Jersey and $1.4 million in workers compensation business in Massachusetts.

Net Investment Income
---------------------
Net investment  income  increased $1.9 million or 16.3% to $13.5 million for the
nine months ended  September  30, 1997 from $11.6 million for the same period in
1996.  The  increase in net  investment  income was  primarily  the result of an
increase  in  average  cash  and  invested   assets  (at   amortized   cost)  of
approximately  $34.0 million,  or 15.8% for the nine months ended  September 30,
1997  compared to the nine months  ended  September  30,  1996.  The increase in
average cash and invested  assets was primarily  attributable  to available cash
flow from operations.  The return realized on the Company's cash and investments
was 7.2% for the nine months ended September 30, 1997 and September 30, 1996.

Losses and Loss Adjustment Expenses
-----------------------------------
Losses and loss adjustment  expenses  increased $4.6 million,  or 6.4%, to $76.4
million for the nine months ended  September 30, 1997 from $71.8 million for the
same period in 1996.  Loss and loss  adjustment  expenses  were 70.0% of premium
revenue  for the nine  months  ended  September  30,  1997  compared to 74.2% of
premium  revenue  for the same  period in 1996.  The  decrease  in loss and loss
adjustment  expenses as a percent of premium revenue was primarily  attributable
to the  reduction  in weather  related  losses.  Losses  believed  to be weather
related  aggregated  $4.4  million in the nine months ended  September  30, 1997
compared to $9.4 million for the same period in 1996.

Underwriting Expenses
---------------------
Underwriting expenses increased $3.7 million, or 13.7%, to $30.8 million for the
nine months ended  September  30, 1997 from $27.1 million for the same period in
1996. For the nine months ended September 30, 1997,  underwriting  expenses were
28.2% of premium  revenue  compared  to 28.0% for the same  period in 1996.  The
underwriting expense ratio of 28.2% for the nine months ended September 30, 1997
was less  than the  underwriting  expense  ratio  of  29.2%  for the year  ended
December 31, 1996.

Federal Income Tax Expense
--------------------------
Federal  income tax expense  increased $4.1 million to $7.2 million in 1997 from
$3.1  million in 1996.  Federal  income tax expense  was 33.6% of income  before
federal  income tax expense  and  extraordinary  item for the nine months  ended
September 30, 1997 compared to 31.5% for the same period in 1996.



<PAGE>


Realized Investment Gains
-------------------------
Realized  investment  gains  increased to $5.6 million for the nine months ended
September  30, 1997.  The increase in realized  investment  gains was  primarily
attributable to the sale of a common stock investment.

Net Income
----------
Net income  increased  $9.1  million to $14.4  million for the nine months ended
September 30, 1997 from $5.3 million for the same period in 1996  primarily as a
result of the  foregoing  factors and the impact of $1.5  million of expenses in
the first quarter of 1996 related to the demutualization of Farm Family Casualty
which the Company has identified as an extraordinary item.

Liquidity and Capital Resources
-------------------------------

Net cash  provided by operating  activities  was $20.6  million and $7.4 million
during the nine month periods ended  September 30, 1997 and 1996,  respectively.
The increase in net cash provided by operating activities during the nine months
ended  September  30, 1997 was  primarily  attributable  to the  increase in net
income and a decrease in payments for losses and loss adjustment expenses.

Net cash used in investing  activities  was $20.9 million during the nine months
ended  September 30, 1997  compared to net cash used in investing  activities of
$36.9  million for the same period in 1996  primarily as a result of an increase
in proceeds  from sales as well as  collections  from  investments  that matured
during the nine month period ended September 30, 1997.

The Company has in place unsecured lines of credit with two banks under which it
may  borrow  up to $12.0  million.  At  September  30,  1997,  no  amounts  were
outstanding on these lines of credit.  In addition,  at September 30, 1997, Farm
Family Casualty had $1.3 million principal amount of surplus notes  outstanding.
The surplus  notes bear interest at the rate of eight percent per annum and have
no maturity  date. The principal and interest on the surplus notes are repayable
only with the approval of the Superintendent of Insurance of New York State.



<PAGE>


Future Application of Accounting Standards

Financial  Accounting  Standards Board Statement No. 128 - "Earnings Per Share."
is effective for financial  statements  issued for periods ending after December
15, 1997 and simplifies the computation of earnings per share (EPS) by replacing
the  "primary"  EPS  requirements  with a "basic"  EPS  computation  based  upon
weighted-average shares outstanding. This new standard requires a reconciliation
of the numerator and denominator of the diluted EPS computation.

The following  represents the basic and dilutive  earnings per share amounts had
the  Company  been  required  to adopt  this  statement  for the  periods  ended
September 30, 1997 and 1996:

<TABLE>
<CAPTION>

                                                       Three months ended             Nine months ended
                                                          September 30,                  September 30,
                                                        1997          1996           1997            1996
                                                        ----          ----           ----            ----
<S>                                                   <C>           <C>            <C>              <C>       
     Net Income                                       $4,077,000    $3,336,000     $14,353,000      $5,275,000

     Weighted average shares for basic EPS             5,253,813     4,641,411       5,253,813       3,553,150
     Effect of dilutive stock options                     32,535             -          10,845               -
                                                    -----------------------------------------------------------
     Weighted average shares and assumed exercise
         of stock options for dilutive EPS             5,286,348     4,641,411       5,264,658       3,553,150
                                                    -----------------------------------------------------------
     Basic EPS                                             $0.78         $0.72           $2.73           $1.48
                                                    -----------------------------------------------------------
     Dilutive EPS                                          $0.77         $0.72           $2.73           $1.48
                                                    -----------------------------------------------------------
</TABLE>

Financial   Accounting   Standards  Board  Statement  No.  123  "Accounting  for
Stock-Based  Compensation  Plans" is effective for fiscal years  beginning after
December  15,  1995.  The  Company has  elected to apply  Accounting  Principles
Bulletin  Opinion  No.  25  in  accounting  for  its  stock-based   compensation
arrangements.



<PAGE>


Item 6:        Exhibits and Reports on Form 8-K
<TABLE>

                                  EXHIBIT INDEX

                      FARM FAMILY HOLDINGS, INC. FORM 10-Q
                    FOR THE QUARTER ENDED SEPTEMBER 30, 1997


Exhibit Number       Document Description

<S>                  <C>
*2.1                 Plan of  Reorganization  and Conversion  dated February 14, 1996 as amended by
                     Amendment No. 1, dated April 23, 1996

*3.1                 Certificate of Incorporation of Farm Family Holdings, Inc.

*3.2                 Bylaws of Farm Family Holdings, Inc.

  10.12              Farm Family Life Insurance Company, Farm Family Casualty Insurance Company,
                     Farm Family Holdings, Inc. Officer Severance Pay Plan Effective July 29, 1997

  11                 Computation of Earnings per  Share


*Incorporated by reference to Registration Statement No. 333-4446

</TABLE>

<PAGE>


Exhibit 11.     Statement re computation of per share earnings
<TABLE>

                           FARM FAMILY HOLDINGS, INC.
                        COMPUTATION OF EARNINGS PER SHARE

<CAPTION>

                                                                    Three months             Nine months
                                                                        ended                   ended
                                                                    September 30,            September 30,
                                                                   1997        1996       1997          1996
                                                              -------------------------------------------------
Primary
<S>                                                               <C>       <C>          <C>         <C>      
Average shares outstanding                                        5,253,813 4,641,411    5,253,813   3,553,150
Net effect of dilutive stock options based on the treasury
    stock method using average market price                          32,535         -       10,845           -
                                                              -------------------------------------------------
Weighted average shares outstanding-primary                       5,286,348 4,641,411    5,264,658   3,553,150
                                                              -------------------------------------------------

Net income available to common shareholders (In thousands)           $4,077    $3,336      $14,353      $5,275
                                                              -------------------------------------------------

Net income per share-primary                                          $0.77     $0.72        $2.73       $1.48
                                                              -------------------------------------------------


Fully Diluted
Average shares outstanding                                        5,253,813 4,641,411    5,253,813   3,553,150
Net effect of dilutive stock options based on the treasury
    stock method using stock price at end of period                  64,015         -       64,015           -
                                                              -------------------------------------------------
Weighted average shares outstanding-fully diluted                 5,317,828 4,641,411    5,317,828   3,553,150
                                                              -------------------------------------------------

Net income available to common shareholders (In thousands)           $4,077    $3,336      $14,353      $5,275
                                                              -------------------------------------------------

Net income per share-fully diluted                                    $0.77     $0.72        $2.70       $1.48
                                                              -------------------------------------------------
</TABLE>




Reports on Form 8-K

        A report  on Form  8-K was  filed on July  30,  1997  reporting  a press
release issued  announcing the Company's  operating results for the three months
and the nine months ended September 30, 1997.

        No financial statements were filed with the Form 8-K.




<PAGE>


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)




   November 13, 1997      By:/s/ Philip P. Weber
-------------------------   --------------------------------------------------
           (Date)           Philip P. Weber, President & Chief Executive Officer
                            (Principal Executive Officer)




  November 13, 1997       By:/s/ Timothy A. Walsh
-------------------------   ----------------------------------------------------
           (Date)           Timothy A. Walsh, Executive Vice President 
                            - Finance & Treasurer
                            (Principal Financial & Accounting Officer)



<PAGE>


Exhibit 10.12
                            SUMMARY PLAN DESCRIPTION

                       FARM FAMILY LIFE INSURANCE COMPANY
                     FARM FAMILY CASUALTY INSURANCE COMPANY
                           FARM FAMILY HOLDINGS, INC.

                           OFFICER SEVERANCE PAY PLAN
                             Effective July 29, 1997

Purpose

Farm Family Life Insurance  Company  (hereinafter  referred to as "Life"),  Farm
Family Casualty  Insurance Company  (hereinafter  referred to as "Casualty") and
Farm Family Holdings,  Inc. (hereinafter referred to as "Holdings") have adopted
a severance  pay plan  effective  August 1, 1994 and amended July 29, 1997,  the
purpose of which is to provide financial benefits to officers of Life,  Casualty
or Holdings who lose their positions  involuntarily  under Severance  Qualifying
Conditions.

Eligible Officers

All officers of Life, Casualty and Holdings  (hereinafter  collectively referred
to as the Companies) are eligible for severance benefits under this plan.

Definitions

1. Cause: An officer's:

     (a) felony  conviction or the failure of an officer to contest  prosecution
     for a felony;

     (b)  willful  misconduct  or  dishonesty,  any of  which  is  directly  and
     materially  harmful to the  business  or  reputation  of Life,  Casualty or
     Holdings;

     (c) theft,  participation in any material fraudulent conduct, or other acts
     involving material misappropriation of property;

     (d) habitual drunkenness or habitual drug abuse;

     (e) material and willful disclosure of any confidential information;

     (f)  unlawful  discrimination  and/or  unlawful  sexual  harassment  by  an
     officer;

     (g) serious breach of Life's, Casualty's or Holding's  policies; or

     (h) continuing  inattention  to or  continuing  neglect of the duties to be
         performed by an officer which  inattention or neglect is not the result
         of illness or accident.


2.  Change in  Control:  A change in control of Life,  Casualty or Holdings of a
nature  that  would be  required  to be  reported  in  response  to Item 6(e) of
schedule 14A of  Regulation  14A under the  Securities  Exchange Act of 1934, as
amended  (the  "Exchange  Act"),  whether or not Life,  Casualty  or Holdings is
subject  to the  Exchange  Act at such time;  provided,  however,  that  without
limiting the generality of the foregoing,  a Change in Control will in any event
be deemed to occur if and when:

     (a) any person (as such term is used in  paragraphs  13(d) and  14(d)(2) of
         the Exchange Act, hereinafter in this definition, "Person"), other than
         Life,  Casualty  or  Holdings,  or a  subsidiary  of Life,  Casualty or
         Holdings  or  employee  benefit  plan of Life,  Casualty  or  Holdings,
         becomes  the  beneficial  owner (as  defined  in Rule  13d-3  under the
         Exchange Act),  directly or indirectly of securities of Life,  Casualty
         or Holdings  representing  more than  twenty-five  percent (25%) of the
         combined  voting  power  of  Life's,   Casualty's,  or  Holding's  then
         outstanding securities;

     (b) stockholders   approve  a  merger,   consolidation  or  other  business
         combination   (a   "Business   Combination")   other  than  a  Business
         Combination  in which  holders  of common  stock of Life,  Casualty  or
         Holdings   immediately   prior  to  the   Business   Combination   have
         substantially the same  proportionate  ownership of common stock of the
         surviving  corporation  immediately  after the Business  Combination as
         immediately before;

     (c) stockholders   approve   either  (i)  an  agreement  for  the  sale  or
         disposition  of all or  substantially  all of  Life's,  Casualty's,  or
         Holding's  assets to any entity that is not a subsidiary of one of said
         Companies, or (ii) a plan of complete liquidation; or

     (d) the  persons  who were  members of the Board of  Directors  immediately
         before a tender  offer by any  Person  other  than  Life,  Casualty  or
         Holdings or a subsidiary  of Life,  Casualty or  Holdings,  or before a
         merger,  consolidation or contested election, or before any combination
         of such  transactions,  cease to  constitute a majority of the Board of
         Directors as a result of such transaction or transactions.

3.  Salary:  The  highest  rate of  wages,  salaries  and fees for  professional
services,  and other  amounts  received  by an  officer  for  personal  services
actually rendered in the course of employment with the Companies within the last
2 years, on an annualized basis.  Salary does include taxable  reimbursements or
other  expense  allowances,  fringe  benefits  (cash and non  cash),  and moving
expenses. Salary does not include:

     (a) any  bonus  paid to the  officer  whether  paid  pursuant  to an annual
     incentive plan or otherwise;

     (b)  any distribution from a plan of deferred compensation;

     (c)amounts,  realized from the exercise of a non qualified stock option, or
     when  restricted  stock (or  property)  held by an officer  either  becomes
     freely  transferable  or  is no  longer  subject  to  substantial  risk  of
     forfeiture; and

     (d) amounts realized from the sale,  exchange or other disposition of stock
         acquired under a qualified stock option.


Severance Qualifying Conditions

An  Eligible  Officer  whose  employment  with Life,  Casualty  or  Holdings  is
terminated,  is eligible for  severance  benefits,  if his or her  employment is
terminated under the following conditions ("Severance Qualifying Conditions"):

The  officer's  employment  with Life,  Casualty or  Holdings  is  involuntarily
terminated  due to (i) the officer not  satisfactorily  performing the duties of
his or her position with such  Company;  (ii) the  elimination  of the officer's
position  and  the  officer  is  not  offered  another  position  of  comparable
responsibility  and compensation with Life,  Casualty or Holdings;  or (iii) the
result of a Change in Control of Life,  Casualty or Holdings  and the officer is
not offered a position of  comparable  responsibility  and  compensation  by the
acquiring or resulting company; AND

The officer executes a release of all claims against Life, Casualty and Holdings
acceptable to Life, Casualty and Holdings.

The termination of an officer's employment with Life, Casualty or Holdings,  for
any of the  following  reasons  shall not be treated as a  Severance  Qualifying
Condition:

     1. If an officer resigns,  abandons his or her job, fails to return from an
     approved leave of absence or initiates termination on any similar basis; or

     2. If an officer is terminated for Cause.

The  decision of whether an  officer's  termination  is a  Severance  Qualifying
Condition shall be determined solely at the Companies' discretion.

Policy

The Companies will pay severance pay equal to the greater of:

 1. one week's Salary for each Year of Service  or

 2.  (i)   36  months Salary in the case of the Chief Executive Officer;
     (ii)  24  months Salary in the case of an Executive Vice President;
     (iii) 12  months Salary in the case of a Senior Vice President; and
     (iv)  6   months  Salary in the case of any officer other than the Chief
               Executive  Officer,  Executive Vice Presidents,  and Senior Vice
               Presidents

to an Eligible Officer who meets the Severance  Qualifying  Conditions set forth
above.  Any  bonuses or  performance  or merit  reviews  that are  pending or in
process shall not affect the amount of any officer's severance benefits.

In the  event an  officer  becomes  eligible  for  severance  benefits  due to a
Severance  Qualifying  Event with  respect to Life,  Casualty or Holdings or any
combination of the Companies  less than all three of the Companies,  then Salary
shall  include only the amount of Salary which would be allocated to the company
for  which  there is a  Severance  Qualifying  Event  for the  Eligible  Officer
pursuant to the Amended and Restated  Expense  Sharing  Agreement dated February
14, 1996 or any successor agreement thereto.

Year of Service shall mean a period of 12 months during which the  individual is
an officer  and/or  employee of Life,  Casualty or Holdings and does not include
any service as:

         A leased employee;
         An independent contractor; or
         An  employee  or agent of the Company  compensated  pursuant to an
         agent's  training  allowance  program,  agent's,  independent  agent's,
         regional  manager's  contract  or other  contract  of the same  general
         character.

The decision of how benefits will be paid will be made by the Companies in their
sole discretion.  The Companies will pay all benefits under this plan from their
general assets.


Review of Denial of Benefits/Appeal Process

If an officer does not receive benefits to which the officer thinks he or she is
entitled,   the  officer  may  file  a  claim  for  those  benefits.   The  Vice
President-Human  Resources  will rule on the claims within 60 days of receipt of
the claim. In the case of claims made by the Vice President-Human Resources, the
Chief   Executive   Officer  of  the  Companies   shall  make  such  review  and
determination.  If claims are denied,  in whole or in part,  the officer will be
notified  in  writing.  A copy of the  ruling  and a  statement  supporting  the
decision  will be given to the officer.  The notice will indicate why the claims
were denied, and either describe any additional information necessary to grant a
claim or instruct the officer on how to appeal the denial.

After an officer receives notice of denial of his or her claims, the officer may
appeal to the Plan Administrator, in writing within 60 days. If the officer does
not make an appeal within 60 days, the original  decision will become final. The
officer  may  include  in the  written  appeal  any  reasons  for appeal and any
information to support the officer's rights to benefits.  The Plan Administrator
will then reexamine all the facts and come to a final decision. The officer will
be notified of this decision within 60 days of the time that the officer submits
the written appeal, unless there are special  circumstances,  such as a hearing.
The officer will be notified if an extension  is required.  However,  in no case
will the officer receive the Plan  Administrator's  decision later than 120 days
after the  appeal  is  submitted.  The  notice of final  decision  will  include
specific reasons for the decision and identify the plan provisions relied upon.


Amendment or Termination of the Plan

The Companies reserve the right to amend or terminate the plan at any time, with
or  without  advance  notice,  by action of the  Board of  Directors.  Provided,
however, that no amendment or termination of the plan will reduce the amount the
Companies agree to pay officers covered by the Plan at the time of the amendment
or  termination,  in the event of a  Severance  Qualifying  Condition  below the
following amounts:

     (i) 36 months Salary in the case of the Chief  Executive  Officer;  (ii) 24
     months Salary in the case of an Executive  Vice  President;  (iii)12 months
     Salary in the case of a Senior Vice President; and
     (iv) 6  months  Salary  in the case of an  officer  other  than  the  Chief
          Executive   Officer,   Executive  Vice   Presidents  and  Senior  Vice
          Presidents.

Further, it is provided,  that no amendment or termination of the plan adversely
affecting the right of any officer to severance pay hereunder due to a Change in
Control of Life,  Casualty or  Holdings,  shall be  effective  if made after the
Board of Directors has approved such Change in Control.


Employee rights under ERISA

As a  participant  in this plan,  officers  are  entitled to certain  rights and
protection  under ERISA.  ERISA  provides  that all plan  participants  shall be
entitled to:

      Examine,  free of charge, at the administrative office in their geographic
area, all plan documents and copies of all documents  filed by the plan with the
U.S. Department of Labor.

      Obtain  copies of all plan  documents  and  other  plan  information  upon
written request to the plan  administrator.  The plan  administrator  may make a
reasonable charge for the copies.

In  addition  to  creating  rights  for the  plan  participants,  ERISA  imposes
obligations on the people who are responsible for the operation of the plan. The
people who operate the plan, called "fiduciaries" of the plan, have a duty to do
so prudently and in the interest of all plan participants and beneficiaries.

No one,  including the Companies or any other person,  may discriminate  against
employees to prevent them from  obtaining a benefit or  exercising  their rights
under ERISA.

If a claim for a benefit is denied in whole or in part, an employee must receive
a written  explanation  of the reason for the  denial.  Employees  also have the
right to have the plan administrator review and reconsider any claim.

Under ERISA, there are steps employees can take to enforce the above rights. For
instance,  if a  participant  in the  plan  requests  materials  from  the  plan
administrator  and does not receive them within thirty days, the participant may
file suit in a federal  court.  In such a case,  the court may  require the plan
administrator  to  provide  the  materials  and pay up to $100 a day  until  the
participant  receives the materials,  unless the materials were not sent because
of reasons beyond the control of the plan administrator. If a claim for benefits
is denied or ignored,  in whole or in part, the  participant  may file suit in a
state or federal court.

If any employee is  discriminated  against for asserting  that person's  rights,
assistance  may be sought from the U.S.  Department of Labor or the  participant
may file suit in a federal  court.  The court  will  decide who should pay court
costs and legal fees. If the participant is successful,  the court may order the
person sued to pay these costs and fees. If the participant loses, the court may
order that person to pay these costs and fees, for example,  if it finds a claim
is frivolous.

If a  participant  has any  questions  about the plan,  the  participant  should
contact the Human  Resources  Department of the Companies.  If a participant has
any questions  about this statement or about his or her rights under ERISA,  the
nearest  area  office  of the  Labor-Management  Services  Administration,  U.S.
Department of Labor, should be contacted.

General  Information.  Officers should note the following  information about the
severance plan:

                   Plan Sponsor.  The Plan is sponsored by:

                   Farm Family Life Insurance Company
                   Farm Family  Casualty Insurance Company
                   Farm Family Holdings, Inc.
                   P.O. Box 656
                   Albany, New York 12201-0656
                   Telephone Number (518)  431-5000

     Plan  Administrator:  Farm  Family  Life  Insurance  Company  is  the  plan
administrator.  The plan administrator makes the rules and regulations necessary
to administer the plan. The plan administrator shall have the responsibility and
discretionary  authority  to  interpret  the terms of this  plan,  to  determine
eligibility  for  benefits  and to  determine  the amount of the  benefits.  The
interpretations  and determinations of the plan administrator shall be final and
binding.

     Agent for legal  process:  The Vice  President-Human  Resources of Life and
Casualty  shall  be the  agent  for  service  of  legal  process  for all of the
Companies. Any communications should be sent to the following address:

                   Vice President-Human Resources
                   Farm Family Life Insurance Company
                   Farm Family  Casualty Insurance Company
                   Route 9W
                   Glenmont, NY 12077

                   Mailing Address:
                   P.O. Box 656
                   Albany, NY 12201-0656

     Legal process may also be served on the plan administrator at the following
address:

                   Farm Family Life Insurance Company
                   Attn.:  Human Resources Department
                   Route 9W
                   Glenmont, NY 12077


                   Mailing Address:
                   P.O. Box 656
                   Albany, NY 12201-0656

     Plan year: The records of the plan are kept on a calendar year basis.

     Identification  number:  If an  officer  needs to  discuss  the plan with a
federal  government  agency, he or she should reference the plan number 510. The
Company's employer identification numbers are:

                   Farm Family Life Insurance Company 14-1400831
                   Farm Family Casualty Insurance Company 14-1415410
                   Farm Family Holdings, Inc. 14-1789227