Agriculture Financial Planning

Farmers and farm families face unique wealth management challenges. The term "wealth" to a farmer typically has little financial meaning. Their wealth is measured in the satisfaction of working their land to earn a living, raising their family to (hopefully) succeed them, protecting their family values, and working hard as their own boss as a proud, independent business owner.

Ask a farmer about their priorities and the answer is usually the successful transition of the family farm to the next generation.  For those fortunate farmers who have adult children interested in production agriculture, planning the transition cannot start too early.

Since farmers often never really retire, they need an alternate wealth management plan to effectively deal with the inevitable day when they can no longer work their farm.

If the farm assets represent most of the owner’s net worth, then solving for a mutually acceptable farm sale & purchase amount and timelines are the important considerations. There are estate, gift, investment, elder care, and tax considerations associated with a farm transition to consider as well.

Ideally, a farmer would assist with transition planning by investing outside of the farm to diversify their wealth. Creating a source of alternative retirement income would help ease the financial burden on the next generation acquiring the farm.

There are other unique farm-related planning factors, especially related to the farmer’s most prized asset: their land. Taking advantage of special use valuation estate tax benefits, realty tax abatements, and conservation easements are just a few examples.

Our team likes to eat — no farms, no food — and we’re partial to helping farm families stay in farming.