succession planning

The following information is provided by Nationwide, the No. 1 farm and ranch insurer in the United States.

Farmers know all too well about risk; it’s present in every aspect of the job. Whether it’s maintenance, running equipment or any number of other things, one of the biggest risks will be sales when you get to market.

The government has programs to help farmers address some of the risk they face with commodity markets. They provide revenue and price loss payments for eligible farmers under the farm bill. Under that bill many farmers may qualify for additional payments but are unable to collect those because of individual payment caps.

To maximize the amount of payments a farmer can receive, special consideration needs to be given to the structure of the farmer’s operation and this may mean consideration should be given to the challenges of succession planning. Failing to plan for Farm Service Agency programs could mean the difference between securing the farming operation for the next generation or a forced sale.

What you should consider
It’s critical that all programs that can assist you are examined. These programs come with qualifications and have requirements to ensure maximum benefits are achieved.

To be eligible for payments under Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC), a farmer must be engaged in farming and contributing significantly to the farming operations. There are provisions around how “contributions” are defined, so it’s important to understand these guidelines so terms are met and that you structure your operation appropriately to capture all of the potential program benefits available.

Questions you may have
• Will I need to change the way I run my operations?
• How can I learn more about these programs, their qualifications and how I can bring my operation to qualify?
• Can the next generation be structured in a way to allow for them to be eligible for program payments without interfering with the operation of the farm?

Researching these questions and coming to an answer isn’t something that you have to do by yourself. It’s important to enlist the help of qualified professionals who don’t have a stake in the final decisions. Qualified professionals may include your banker, your accountant, your personal attorney or a financial or estate planner. If you would like help in finding a qualified professional to speak with, contact the Nationwide Land As Your Legacy team at [email protected] or toll-free at 1-855-529-2729.

Neither Nationwide, nor its employees, its agents, brokers or registered representatives gives legal or tax advice.
Nationwide, the Nationwide N and Eagle, Nationwide is on your side and Land As Your Legacy are service marks of Nationwide Mutual Insurance Company. © 2018 Nationwide
Labor has always been an issue, mainly because we are a seasonal operation. So that's a challenge finding somebody who only wants to work three months out of a year, sometimes up to six months.
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Mandy Way

Way Farms

Farm Labor Resources
I appreciate the benefit of having a strong voice in my corner. The extras that are included in membership are wonderful, but I'm a member because of the positive impact to my local and state agricultural communities.
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Ernie Welch

Van Wert County Farm Bureau

Strong communities
I see the value and need to be engaged in the community I live in, to be a part of the decision-making process and to volunteer with organizations that help make our community better.
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Matt Aultman

Darke County Farm Bureau

Leadership development
Farm Bureau involvement has taught me how to grow my professional and leadership experience outside of the workforce and how to do that in a community-centric way.
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Jaclyn De Candio

Clark County Farm Bureau

Young Ag Professionals program
With not growing up on a farm, I’d say I was a late bloomer to agriculture. I feel so fortunate that I found the agriculture industry. There are so many opportunities for growth.
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Jenna Gregorich

Coshocton County Farm Bureau

Growing our Generation
Knowing that horticulture is under the agriculture umbrella and having Farm Bureau supporting horticulture like it does the rest of ag is very important.
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Jared Hughes

Groovy Plants Ranch

Groovy Plants Ranch
If it wasn't for Farm Bureau, I personally, along with many others, would not have had the opportunity to meet with our representatives face to face in Washington.
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Austin Heil

Hardin County Farm Bureau

Washington, D.C. Leadership Experience
So many of the issues that OFBF and its members are advocating for are important to all Ohioans. I look at OFBF as an agricultural watchdog advocating for farmers and rural communities across Ohio.
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Mary Smallsreed

Trumbull County Farm Bureau

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