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Agriculture

Agricultural Investing

Managing your assets, building your wealth, and planning for your future; we are here to provide firm solutions to ensure that your legacy remains intact.

How can farmers save for retirement?

We employ multiple asset management strategies aimed at helping you strategically face the stresses of land ownership, build wealth, and reduce tax liabilities.  Our farm management services staff and financial advisors will work together to help clients:

  1. Determine the current financial state of their operation (assets, liabilities, working capital, etc.)
  2. Evaluate their lease/rental contracts, loan commitments and insurance needs.
  3. Develop a production plan that makes the most of government farm programs, land and crop assessment, capital improvement opportunities, and accounting/financial analysis tools.

We will also help farmers invest in their future retirement and create an estate plan that will help to make their future plans a reality.  When investing for retirement, we generally encourage farmers to consider one of two retirement plans:

  1. A SEP IRA—this Simplified Employee Pension plan allows farmers and their employees to make pre-tax contributions of up to 25% of their income, or $57,000, to retirement.  Farmers can make contributions on behalf of employees who meet certain terms of eligibility, but they are not obligated to do so.  Contribution limits are also a lot higher than a traditional IRA.
  2. A Solo 401(k)—this one-participant plan covers a farmer/business owner with no employees, or the farmer and his spouse.  Farmers can contribute up to $19,500 or 100% of their income as a business employee, and they can make an additional 25% contribution as their own employer up to a grant total of no more than $57,000 per year.  This plan also allows farmers to contribute up to $6,000 of their after-tax retirement contributions to a ROTH IRA and withdraw those earnings tax-free in retirement.

We would also love to help you carefully navigate the challenges of passing on your assets to the heirs of your estate by assisting you in the creation of an estate plan.