Most farmers and ranchers know they need a formal plan for managing their assets now and planning for succession in the future. But making financial decisions for your family business—the farm—can be confusing and just plain stressful. So where do you start? Who can you trust? Who’s on your side?

Chances are, farmers will have an accountant or bookkeeper to track their accounts receivable & payable and process tax returns. But that’s just the tip of the iceberg. “When you don’t know, you don’t know,” says Alex Vasichek, one of the few Agriculture-Focused Financial Planning Professionals in the Fargo, N.D. area.

“Most people don’t know where to begin, so human nature being what it is, they do nothing.”

To streamline the process, it’s important to seek out financial advisors who act as a “one-stop shop” for financial and succession planning, which means they’ll quarterback the entire process:

Most financial advisors re-evaluate their clients’ position every 5-10 years. We will meet with our clients annually or semiannually and review estate planning every 3-5 years.

Why is that important? “Clients assume that once they’ve established a trust or a will they don’t have to revisit it,” warns Vasichek. “A lot

can happen in just a few years.” For example, land values have skyrocketed over the last 5 years; especially in North and South Dakota and Nebraska.

Technology has allowed farmers to farm bigger in less time, creating more value for the farmstead.

“Nothing surprises me anymore” muses Vasichek, who is also a Farm Succession Coordinator. “We’ve seen it all, so can draw on our experience to support

clients’ transition through these trying family situations to find solutions that maintain the integrity of their succession plans—and the family itself.

• Do your own homework so you can discuss potential risks and rewards with your financial professional.
• Discuss fees. While some advisors earn commissions on the financial products they sell, look for an advisor who operates under a fiduciary standard of care.
• Define your needs, such as how much and what type of advice you want.
• Make sure you can always reach out to your advisor or team personally; not just virtually.
• Find out whether your financial advisor and other professionals have a history of working with farmers and ranchers.

Agriculture is a
Different Beast

Elevate Financial works side-by-side with farmers, so they recognize that not all decisions are based solely on financial success. “In some cases, legacy and tradition can be just as important,” adds Vasichek.

“Agriculture is a different beast. Over time farmers, even those nearing the ends of their careers, can insist on buying land; even if it’s overpriced. That’s when our agriculture-based experience really pays off. We’d rather find ways to protect existing assets for future generations and make sure the new land will hold its value over time, rather than challenging our client’s wishes.”

Whether you’re a longtime farmer/rancher or just starting to build your empire, an Agriculture-Focused Financial Planner may be able to help you along the way.