Farmers and owners of agribusinesses face unique wealth management opportunities and challenges. The term “wealth” to a farmer typically has little financial meaning. Their wealth is measured in the satisfaction of working the land to earn a living, raising their family to succeed them, protecting their family values and sustaining their ability to work productively as an independent business owner. We fully understand that a farmer never retires from farming, but we also know that every farmer needs a sensible wealth management plan to effectively deal with the inevitable day when he can no longer work on his farm.
Developing the right ag wealth plan is an involved planning process but Wealthcare is up to the task. It focuses on designing the right farm succession strategy to transfer the family farm to the next generation cleanly. If the farm business represents most of the net worth of the owner, working up the correct farm transfer price and financing terms that meets the financial needs of both sides of the family is the most important component of the plan. There are income and transfer tax considerations associated with farm transition to plan around as well.
Other important ag wealth management issues are risk management – protecting the farm and family in the event of the death or disability - and developing financial wealth outside of the farm business through tax-advantaged investing to help fund the farmer’s “post-farming” income needs. Over time, this pool of financial wealth could lessen the financial burden on the next generation by lowering the transfer price of the family farm in the future.
We work closely with farm families to lead them through the Wealthcare planning process and help them achieve their prioritized wealth goals.
