Securing the Future of Your Farm
Sep 20, 2016
Chip Cortez
Farmers have unique needs when it comes to passing the farm on to the next generation. They typically have a lot of non-liquid assets, such as the land and the equipment needed to farm that land. A successful farm transition plan can help you preserve your legacy and safeguard the value created by your operation. This can be especially difficult when only part of the family has remained working on the family farm. Part of moving into the next generation is to set up an orderly transition of ownership and management and to make sure everyone is trained in financial basics. The big step to complete the transition is to have a plan that turns non-liquid assets into cash to cover taxes and expenses. Without this, selling off pieces of the farm may be your only choice. While legal structure, estate documents, business documents and financial instruments are all important to a successful farm transition plan, it couldn’t happen without people. Your farm agent can bring in a team of specialists from the following areas: life insurance, annuities, retirement plans, mutual funds, advanced consulting and independent agencies. This team will work with you to identify and manage all the risks that threaten the future of your farm.
