Why farm owners should consider life insurance
Farm families are the backbone of the agricultural industry. Who will take over your family farm after you?
A well-designed farm succession plan includes components of life insurance to protect and access the wealth you have worked so hard to build.
As farming insurance and succession planning advisors, we help uncover the answers to some tough questions, including:
- Will adult children want to come back to the farm or will their career options take them elsewhere?
- What is the threshold to carry ﬁnancing for land and machinery investments?
- How do you treat adult children equitably? Who stays in the operation? Who leaves? How is it divided?
- How does the retiring generation access their nest egg when the equity is tied up in the operation
Questions to ask yourself about your farm’s succession plan. We’re here to help get the conversation started:
- What does your future living arrangement look like? Will you want to stay on the farm property or move to a nearby community? Will your adult child need to move onto the farm property?
- Can your home be subdivided from the farm?
- Are there assets not related to the farm that may pass to your children not involved in the farm?
- Would your non-farming children still hold a ﬁnancial interest in the farm?
- When considering what is fair and equitable, is that value based on the return proﬁt from the farm or the resale value?