Farm ChallengesFor today's discussion, I want to talk about the three massive problems that many American farmers and ranchers are facing.
If I were to ask you, "How on top of your finances are you?" and you had to answer honestly, what would you say?
The truth is that 95% of farmers and ranchers today would say, "I have no idea what I'm doing."
Their only strategy each year is guessing and hoping things work out long-term.
At Legacy Farmer, that's not how we operate.
Our customers come to us because they've lived in financial chaos and disorganization for a long time, some for decades. They're tired of flying blind every year, trying to make critical decisions that impact their operation's success or failure.
They want a sound, structured, and specific strategy for their operation, which comes from being financially organized.
When you look at your numbers, you're making sound business decisions, not just shooting from the hip and hoping it works out.
Many farmers want their kids to come back to the operation, but they struggle with the idea of handing over a debt-ridden farm.
Imagine coming back in your mid-20s to take over an operation burdened with debt. You're already starting underwater, just trying to tread water and survive year after year.
Parents don't want their kids to experience the same stress and anxiety they did. This stress affects how you are as a spouse, parent, and community leader. They want their kids to come back, but not to an operation that will drown them in debt.
Farmers often don't know how to pass down the operation to the next generation in a way that keeps it sustainable and intact.
Many family operations have multiple children, and not all of them want to come back to the farm. The problem arises when parents try to distribute assets evenly among all their children.
The kids not interested in the farm usually want cash, and the ones interested in the farm have to buy out their siblings, essentially paying for the farm twice.
There are a couple of ways to avoid this. Pass the farm assets to the children who want to run the operation, and perhaps provide life insurance or another form of compensation to the other children.
If all the kids want to come back, the farm likely can't support multiple families. In this case, encourage them to build businesses that run alongside the farm, contributing to the operation while also having their own independence.
Teaching your kids to build their own businesses helps them develop valuable skills and reduces their dependence on the farm. This way, they can contribute to the farm's success without compromising its stability.
By addressing these three massive problems—knowing your numbers, handling debt, and passing down the operation sustainably—you can set your farm up for long-term success and continue to pass on the legacy you've worked so hard to build.
We've helped hundreds of family farm operations secure their legacy for future generations. If you’re feeling the heavy burden of managing the farm, let us lighten the load. Click the link below to book a call and start your journey towards a more secure and sustainable future.
