Financial and Succession Planning Basics for Farmers

In this episode of ILSoyAdvisor.com Profitability Radio, we speak with Jan Schaffer, tax development consultant with Compeer Financial, about taxes, financial planning and succession planning.

Schaffer discusses the importance of working with a financial professional, the basics of financial and succession planning as well as how farmers will be affected by changes in the new tax bill passed in late 2017.

Key Takeaways:

  1. Don’t tax plan for a single year – may not be best for the business over the long term
  2. An expert can help you get better numbers and make better decisions
    1. Profitability
    2. Planning and deductions – land and machinery are very different, for instance
    3. Reduce stress and save time – ‘custom hire’ approach
    4. Find what’s right for YOUR operation
  3. Also consider payroll needs
    1. Costs can be astronomical of done wrong
    2. Trust an expert to help do it right
  4. Communication is number one
    1. Make your financial expert part of your team
    2. Build those relationships – even a phone call
    3. Avoid surprises
  5. Taxes are not bad, they just need to be managed