Agriculture Posts

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Preparing for an Agricultural Audit: What to Expect 

Audits can feel intimidating, especially when they involve complex agricultural operations. But with the right preparation, an audit doesn’t have to be stressful—it can be an opportunity to improve your financial controls, clarify records, and strengthen your business. Whether you’re facing a government compliance audit, a financial statement review, or an internal inspection, knowing what …

Audits can feel intimidating, especially when they involve complex agricultural operations. But with the right preparation, an audit doesn’t have to be stressful—it can be an opportunity to improve your financial controls, clarify records, and strengthen your business. 

Whether you’re facing a government compliance audit, a financial statement review, or an internal inspection, knowing what to expect will help you navigate the process with confidence. 

 

What Is an Agricultural Audit? 

An agricultural audit is a thorough examination of your farm’s financial records, operations, and compliance with applicable laws and regulations. It can be requested by lenders, government agencies, or conducted internally to assess risk and accuracy. 

Audits vary in scope but often include: 

  • Verification of income and expenses 
  • Review of inventory and asset records 
  • Examination of internal controls and procedures 
  • Compliance checks for grants, subsidies, or tax credits 

 

Common Types of Agricultural Audits 

  • Financial Statement Audits: Independent auditors verify the accuracy of your financial statements, which may be required by lenders or investors. 
  • Tax Audits: The IRS or state tax authorities review your tax returns and supporting documentation for accuracy and compliance. 
  • Regulatory Audits: Agencies like the USDA may audit compliance with program requirements or environmental regulations. 
  • Internal Audits: Self-assessments or reviews by your team to identify operational or financial risks before external audits. 

 

How to Prepare for an Agricultural Audit 

  1. Organize Your Records
    Make sure all financial documents—bank statements, receipts, invoices, payroll records, and tax filings—are complete, accurate, and easy to access.
  2. Review Your Internal Controls
    Document and review your financial processes, including cash handling, inventory tracking, and expense approvals. Strong internal controls can simplify the audit and reduce questions.
  3. Communicate with Your Auditor
    Clarify the audit scope and timeline upfront. Ask what documents or information they will need, and designate a point person to coordinate communications.
  4. Prepare Your Team
    Ensure staff understand their roles and the importance of timely, accurate responses. Train anyone who interacts with auditors on professionalism and transparency.
  5. Address Potential Issues Proactively
    If you identify errors or discrepancies ahead of time, document corrective actions taken. Being upfront about issues demonstrates responsibility and can build trust.

 

What to Expect During the Audit 

Auditors will typically: 

  • Conduct interviews with key personnel 
  • Inspect financial records and supporting documents 
  • Test transactions for accuracy and compliance 
  • Identify any discrepancies or risks for follow-up 

Remember, auditors are not there to catch you out—they want to ensure your records are accurate and your business is compliant. 

 

After the Audit: Next Steps 

Once the audit is complete, you’ll receive a report detailing findings and any recommended actions. It’s important to: 

  • Review the report carefully 
  • Address any deficiencies promptly 
  • Implement improvements in policies or controls as advised 
  • Keep detailed records of corrective actions 

 

How DBC Supports Agricultural Audits 

De Boer, Baumann & Company has extensive experience guiding farms through all types of audits. From preparation to response, we help you understand requirements, organize records, and implement controls to make the process as smooth as possible. 

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Breaking Through Succession Planning Roadblocks on Your Farm

Nearly every article about farm and ranch transitions emphasizes how few family business owners have formal succession plans. They cite statistics on the lack of planning, warn about the costs of unplanned transitions, and outline the potential damage to both finances and family relationships. The message is clear: failing to plan for your business …

Nearly every article about farm and ranch transitions emphasizes how few family business owners have formal succession plans. They cite statistics on the lack of planning, warn about the costs of unplanned transitions, and outline the potential damage to both finances and family relationships. The message is clear: failing to plan for your business transition can create serious challenges for the next generation.

Despite this, many family business owners still don’t complete their succession plans. One reason is that succession planning is never truly “finished.” Life events—births, deaths, marriages, divorces, family conflict, changes in business strategy, acreage fluctuations, and even natural or economic disasters—can all affect your plan.

But even with these realities in mind, many still hesitate. Here are common reasons why.

Feeling Stumped

Sometimes you simply don’t know where to begin. You may be unsure how to divide assets among children, or whether they should be divided equally. Maybe you don’t know how to acknowledge the contributions of family members who stayed to help while others pursued careers elsewhere. Or perhaps no one plans to return to the farm, and you don’t know how to plan for that. When there’s no clear solution, it’s easy to avoid the conversation entirely.

Conflict Among Family Members

Family conflict often contributes to planning paralysis. Maybe you and your spouse can’t agree on a plan. Perhaps tension between adult children complicates decisions about inheritance. Maybe you’re frustrated with an in-law or disappointed by a family member’s lifestyle or choices. When relationships are strained, it can be hard to picture a smooth transition.

Unrealized Goals

Many owners hope to grow their business and pass it on to the next generation. But if those dreams don’t materialize, planning becomes painful. Family involvement may not have worked as hoped, or the business’s long-term viability may be in doubt. Facing those realities can make planning feel like an acknowledgment of a dream that didn’t come true.

Overwhelmed by Complexity

Succession planning can be complicated. Farm Service Agency regulations, entity structures, trusts, gifting strategies—it’s a lot to navigate. When you add in family dynamics, it’s tempting to throw up your hands and think, “They can figure it out when I’m gone.”

Facing Your Own Mortality

Succession planning also means confronting your own mortality, and that’s something many people prefer to avoid. For some, not planning feels easier than facing the idea of stepping away or passing on.

Moving Past the Hesitation

The way to move forward is simple: talk it through. Discuss options, brainstorm ideas, write them down, debate the pros and cons, and visualize what different paths could look like. You can do this with your spouse, trusted friends, other family members, or advisers.

Sometimes it helps to talk to someone completely outside your industry—someone who owns a family business in a different field—to get a fresh perspective. Talking with others you respect can create accountability and momentum.

Then, focus on just the next step. Don’t try to complete the entire plan at once. Schedule another meeting, research a strategy, or start one small conversation. Step by step, the pieces will come together. Overcoming hesitation isn’t easy, but by understanding its sources, talking with others, and consistently moving forward, you can build a stronger path to the future.

To read the full article by Lance Woodbury, visit Overcome Succession Plan Hesitation.

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How to Make Your Farm the Employer of Choice

Finding and retaining good help for today’s farms and ranches is no easy task. Rural community depopulation, fewer amenities like schools and hospitals, consolidating operations, slim financial margins, long hours, physically demanding and sometimes dangerous work—all in remote locations—can make recruitment seem impossible.Yet family-owned farms and ranches have unique strengths that can help them …

Finding and retaining good help for today’s farms and ranches is no easy task. Rural community depopulation, fewer amenities like schools and hospitals, consolidating operations, slim financial margins, long hours, physically demanding and sometimes dangerous work—all in remote locations—can make recruitment seem impossible.

Yet family-owned farms and ranches have unique strengths that can help them rise above these challenges. At De Boer, Baumann & Company, we believe that with the right strategies, your family business can not only attract quality employees but also retain them for the long haul.

Tap Into Your Rural Network

Rural communities are often built on deep social and historical ties. People know each other, attend the same churches, participate in local events, and compete in or cheer for school sports. These relationships create a natural recruiting network.

Even those who have moved away to pursue education or careers in bigger cities often maintain strong connections to their hometown. Many young people who left return once they start families, looking for the safety and community that small-town life provides.

Consider staying connected through social media or informal outreach to people who grew up in your area. A well-timed conversation might inspire a talented local to return home and join your team.

Highlight Your Family Business Culture

Family businesses offer something larger operations can’t: a unique, people-first culture. They can often provide more flexibility in work arrangements and respond quickly to an employee’s family needs.

When an employee or a family member faces a health challenge or family event, a family-run business can adapt and support them in ways larger organizations can’t. Family operations also tend to plan with the long term in mind, focusing on generational continuity rather than short-term profits.

This stability fosters loyalty. Many employees stay for decades, becoming part of the “extended family.” That kind of job security is rare—and it’s something only family businesses can authentically offer.

Get Creative with Benefits

Family businesses have the freedom to customize benefits that meet employees’ unique goals and circumstances. Some examples we’ve seen include:

  • Helping employees purchase land or a home

  • Allowing employees to run a small side operation alongside the main business

  • Offering remote workspaces in nearby cities to attract administrative or accounting talent

  • Providing opportunities for ownership or “phantom stock” so employees can build long-term wealth

  • Assisting with childcare or contributing to in-state college tuition for employees’ children

  • Providing housing or contributing to housing as a retirement benefit

  • Offering deferred compensation, such as cash or life insurance with cash value upon retirement

While you’ll need to follow applicable employment and tax laws, small family-run operations are often better positioned to think outside the box and create tailored, meaningful benefits packages.

Building Your Future Team

Attracting and retaining the right team members is challenging, but not impossible. By tapping into local networks, showcasing your family business culture, and offering creative benefits, you can stand out as an employer of choice—even in a competitive labor market.

At DBC, we understand the unique dynamics of family-run operations and can help you design strategies and structures that make your farm or ranch a place where people want to work—and stay.

To read the full original article by Lance Woodbury, visit How You Can Become the Employer of Choice.

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How Effective Internal Controls Can Safeguard Your Farm’s Finances 

Running a successful farm in today’s economic landscape requires more than a strong harvest. With fluctuating market prices, rising costs, and increasing regulatory demands, financial stability is key to long-term sustainability—and it starts with strong internal controls.  At De Boer, Baumann & Company, we understand the unique needs of the agricultural industry. Whether you …

Running a successful farm in today’s economic landscape requires more than a strong harvest. With fluctuating market prices, rising costs, and increasing regulatory demands, financial stability is key to long-term sustainability—and it starts with strong internal controls. 

At De Boer, Baumann & Company, we understand the unique needs of the agricultural industry. Whether you run a multigenerational farm, manage seasonal workers, or operate a complex mix of crop and livestock production, having structured internal processes can help protect your assets, reduce risk, and position your operation for growth. 

 

What Are Internal Controls? 

Internal controls are the policies and procedures an organization puts in place to:

  • Safeguard assets 
  • Ensure accurate and reliable financial records 
  • Promote operational efficiency 
  • Prevent errors, fraud, and misuse of resources 

For farms, which often involve multiple revenue streams, fluctuating inventory, and a variety of labor arrangements, internal controls are essential to keeping financial operations transparent and on track. 

 

Why Farms Are Especially Vulnerable 

Farms are unique businesses, and their structure often creates blind spots: 

  • Seasonal staffing means frequent onboarding and less familiarity with procedures. 
  • Cash transactions at farm stands or local markets may go unrecorded or mismanaged. 
  • Family-run operations can lack separation of duties, increasing the risk of unintentional errors or fraud. 
  • Inventory—whether livestock, equipment, or crops—is hard to track without the right systems in place. 

These factors make internal controls more than just best practice—they’re a form of risk management. 

 

Key Internal Controls Every Farm Should Consider 
  1. Segregation of Duties – No single person should handle all aspects of a financial transaction. For example, the person approving payments should not be the one reconciling the bank account. 
  2. Inventory Controls – Track inventory throughout its lifecycle—from planting to harvest, from hatchling to processing. This ensures accurate reporting and helps spot potential losses. 
  3. Cash Handling Procedures – Establish written processes for handling cash, making deposits, and issuing receipts. This is especially important for U-pick operations or roadside stands. 
  4. Bank Reconciliations – Reconcile bank accounts regularly (at least monthly) to catch discrepancies early. 
  5. Technology & Cybersecurity – If you use accounting software or online banking, protect it with strong passwords, two-factor authentication, and regular system backups. 
  6. Documented Policies – Write down your financial procedures—whether for payroll, purchasing, or reimbursements—so expectations are clear for everyone, especially temporary or seasonal workers. 
  7. Succession Planning Controls – As many farms transition between generations, internal controls can provide structure, clarity, and continuity—especially when financial responsibilities are shifting. 

 

The Payoff: Greater Control, Less Risk 

Strong internal controls won’t remove all the unpredictability from farming, but they can bring peace of mind where it matters most. With clearer oversight, accurate records, and secure systems, farmers can make more informed decisions, strengthen lender relationships, and reduce vulnerability to fraud or financial mismanagement. 

Agriculture is a demanding business, and every dollar counts. By taking time to assess and improve your farm’s internal controls, you’re investing in the future stability and success of your operation. 

 

DBC’s Approach to Internal Controls in Agriculture 

At DBC, our team of agriculture specialists takes the time to understand the full picture of your operation. We don’t just offer one-size-fits-all solutions—we partner with you to design practical, tailored controls that align with the scale, seasonality, and structure of your farm. 

Whether you need a risk assessment, help developing written procedures, or advice on strengthening your existing controls, our experts are here to help you make confident, informed decisions. 

 

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Understanding Costing Systems for Agricultural Operations

Running a successful agricultural operation means knowing exactly how much it costs to produce your crops or livestock. Costing systems help you break down expenses, identify inefficiencies, and price your products appropriately—ultimately safeguarding profitability in a volatile market. Because farming often involves seasonal cycles, multiple product lines, and fluctuating input costs, a good costing system …

Running a successful agricultural operation means knowing exactly how much it costs to produce your crops or livestock. Costing systems help you break down expenses, identify inefficiencies, and price your products appropriately—ultimately safeguarding profitability in a volatile market. 

Because farming often involves seasonal cycles, multiple product lines, and fluctuating input costs, a good costing system is crucial for informed decision-making. 

 

Why Are Costing Systems Important? 

A well-designed costing system allows you to: 

  • Understand the true cost per unit of production 
  • Compare profitability across different crops or livestock 
  • Identify areas where costs can be reduced without sacrificing quality 
  • Prepare accurate budgets and financial forecasts 
  • Support loan applications and tax planning with precise data 

Without accurate cost data, it’s difficult to know which parts of your operation are thriving and which may be draining resources. 

 

Common Costing Approaches in Agriculture 

There’s no one-size-fits-all solution, but here are some of the most relevant costing methods for farms: 

  1. Standard Costing
    This method sets predetermined costs for inputs and compares actual expenses against them. It highlights variances, so you can quickly identify where prices or usage differ from expectations.
  2. Activity-Based Costing (ABC)
    ABC assigns costs to specific activities, such as planting, irrigation, or harvesting. This helps pinpoint which tasks are most expensive and may benefit from efficiency improvements.
  3. Job Order Costing
    For farms handling specific projects or batches—like custom growing or specialty products—job order costing tracks expenses per job, offering detailed insights.
  4. Process Costing
    Ideal for continuous operations like dairies or grain farms, process costing averages costs across all units produced, simplifying cost per unit calculations.

 

Key Costs to Track 

To get the most from any costing system, pay attention to these cost categories: 

  • Direct Costs: Inputs like seed, feed, fertilizer, chemicals, labor, and veterinary care. These directly affect your production. 
  • Indirect Costs (Overhead): Expenses such as equipment depreciation, utilities, insurance, property taxes, and interest payments. These support overall operations but don’t link to a specific product. 
  • Fixed vs. Variable Costs: Fixed costs remain constant regardless of production volume (e.g., property taxes), while variable costs change with production (e.g., seed or feed). Understanding this difference helps with budgeting and pricing decisions. 

 

How to Choose the Right Costing System for Your Farm 

Choosing a costing method depends on your farm’s size, complexity, and goals. Smaller operations might start with simpler cash-based tracking, while larger or diversified farms benefit from detailed systems like ABC or job order costing. 

Consider these questions to guide your choice: 

  • Do you need to track costs by individual crops, livestock, or projects? 
  • How important is it for you to identify inefficiencies by activity? 
  • Will detailed costing support your loan applications or tax reporting? 

Answering these can help determine if you need a basic or more advanced costing system. 

 

The Bottom Line 

Accurate costing is more than just accounting—it’s a powerful management tool. With the right approach, you’ll improve profitability, streamline operations, and make confident, data-driven decisions that support your farm’s growth and longevity. 

 

Partnering With You for Financial Clarity 

At De Boer, Baumann & Company, we work with Western Michigan farms to develop practical costing systems tailored to your operation’s unique needs. Whether setting up a new system or reviewing your existing process, our agriculture specialists can provide the insights and guidance you need. 

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Tax Planning Strategies for Family-Owned Farms 

Family farms are the backbone of American agriculture—and like any business, they face complex financial decisions that can impact long-term success. With fluctuating commodity prices, rising input costs, and generational transitions to consider, proactive tax planning is one of the most powerful tools available to protect your farm’s legacy.  Effective tax planning isn’t just …

Family farms are the backbone of American agriculture—and like any business, they face complex financial decisions that can impact long-term success. With fluctuating commodity prices, rising input costs, and generational transitions to consider, proactive tax planning is one of the most powerful tools available to protect your farm’s legacy. 

Effective tax planning isn’t just about minimizing liability for the current year. It’s about creating long-term strategies that align with your operational goals, succession plans, and personal financial future. 

 

Why Tax Planning Is Critical for Farms 

Family-owned farms face unique tax considerations that differ from traditional businesses: 

  • High-value assets like land, equipment, and livestock 
  • Variable income streams depending on market conditions or crop cycles 
  • Intergenerational ownership and succession planning 
  • Eligibility for agricultural-specific credits, deductions, and deferrals 

A well-structured tax plan can help farm owners take full advantage of available opportunities while avoiding unnecessary tax burdens. 

 

7 Tax Planning Strategies for Family-Owned Farms 

  1. Income Averaging
    Farmers may qualify for income averaging, allowing them to spread current-year income over the previous three years. This can help smooth out the effects of a particularly profitable year and reduce exposure to higher tax brackets.
  2. Section 179 Expensing & Bonus Depreciation
    Purchasing equipment or other qualifying property? Section 179 allows you to deduct the full purchase price (up to a limit), while bonus depreciation lets you write off 100% of new or used eligible assets. These can be powerful tools for managing taxable income.
  3. Prepaying Expenses
    Cash-basis farmers can prepay certain expenses (feed, seed, fertilizer) for the next year and deduct them in the current tax year—helping reduce current-year taxable income when managed properly.
  4. Establishing a Retirement Plan
    Setting up a SEP IRA, SIMPLE IRA, or other retirement plan for yourself and any employees allows for tax-deferred savings while also reducing taxable income. This is particularly important for long-term planning, especially in family operations without formal benefits.
  5. Managing Inventory Accounting Methods
    How you value your crops and livestock (cash vs. accrual accounting, unit-livestock-price method, etc.) can significantly impact taxable income. Choosing the right method—and making timely elections—is essential for accurate reporting.
  6. Gifting and Estate Planning
    Gifting portions of the farm, equipment, or income-producing assets to heirs during your lifetime can reduce the size of your taxable estate and aid in succession. Coordinating these gifts with a long-term estate plan ensures a smooth transfer across generations.
  7. Taking Advantage of Agricultural Tax Credits
    Federal and state programs may offer tax credits for conservation practices, fuel usage, environmental compliance, and more. Staying informed on available incentives can create significant savings.

 

Start Planning Early, Reap the Benefits Later 

Tax planning is most effective when it’s proactive—not reactive. Waiting until year-end limits your options, especially if your income or expenses fluctuate. Meeting with a qualified advisor throughout the year can help you adjust to market changes, maximize deductions, and stay aligned with your long-term goals. 

 

How DBC Helps Family Farms Plan for the Future 

At De Boer, Baumann & Company, we work with farms of all sizes across Western Michigan, helping family-owned operations create custom tax strategies that support both today’s profitability and tomorrow’s legacy. 

From equipment purchases to succession planning, our advisors understand the full picture—and we’re here to help you make confident, informed decisions. 

 

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Unpredictable Weather Leaves Northern Michigan Apple Growers in Limbo

Apple growers across Northern Michigan are facing a season filled with uncertainty as they monitor how their orchards respond to lingering winter conditions and a slow start to spring. While some signs are encouraging, cooler temperatures are raising concerns about pollination, fruit development, and ultimately, the fall harvest.Emma Grant of Cherry Bay Orchards in …

Apple growers across Northern Michigan are facing a season filled with uncertainty as they monitor how their orchards respond to lingering winter conditions and a slow start to spring. While some signs are encouraging, cooler temperatures are raising concerns about pollination, fruit development, and ultimately, the fall harvest.

Emma Grant of Cherry Bay Orchards in Leelanau County summed up the current mood among growers: “I wish the unpredictability is what is predictable, that every year is going to be different, every spring is going to be different, every growing season and harvest is going to be different.”

Growers began to see apple trees bloom roughly two weeks ago, but lower-than-average temperatures have stalled further development. According to Grant, “It’s just been kind of a drawn-out bloom as these cooler temperatures came in, things aren’t really moving along.”

While the extended winter helped replenish ground moisture—a benefit for the growing season—it also brought challenges. One of the biggest concerns is the reduced bee activity, which plays a vital role in pollination. Without adequate pollination, fruit set could be limited.

Describing the uneven bloom patterns, Grant noted, “I’ve got trees where, clusters are open, some are starting to go into petal fall, and then there’s other clusters that are still at pink and haven’t even begun to open flowers yet. So it’s going to be interesting to see what the fruit set does.”

Nikki Rothwell of the Northwest Michigan Horticulture Research Center also emphasized the uncertainty surrounding the season. “I feel like we’re kind of still playing a waiting game which seems unbelievable considering it’s gonna be June soon,” she said.

Rothwell encourages growers to take a hands-on approach when evaluating their trees. “We’ve been recommending getting out of the truck and actually walking, looking at the tree, look high in the tree which usually has more fruit than the bottom part of the tree and then start to make those thinning decisions.”

As temperatures begin to rise, growers are hopeful that more clarity will come in the days ahead. Grant explained, “In a week or so, we should start to see that fruitlet development to start getting into like four millimeter, six millimeter, the size of the fruit, where you start to look at your thinning numbers. So we should be able, by the end of next week to know a little better what we have out there, and then take that into account as we look at thinning.”

It’s not just apples that are affected. Cherry growers throughout the region are also navigating a critical period, with some orchards reporting weather-related damage while others remain largely unaffected.

For now, many growers remain in a holding pattern, closely watching their crops and hoping the weather cooperates as the season progresses.

To read the full article by Marc Schollett, visit this link: https://upnorthlive.com/news/local/northern-michigan-apple-growers-face-uncertain-season-amid-weather-challenges

At De Boer, Baumann & Company, we’re proud to serve the agricultural community. If you need help navigating seasonal challenges or planning for long-term farm sustainability, our team is here to support your goals.

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Why It Pays to Start Your Retirement Plan Early

When it comes to retirement, timing is everything—especially for farmers who often prioritize reinvesting in their operations over setting money aside for the future. But the earlier you begin saving, the greater the payoff thanks to the power of compound interest. Starting your retirement plan early not only helps secure your financial future but …

When it comes to retirement, timing is everything—especially for farmers who often prioritize reinvesting in their operations over setting money aside for the future. But the earlier you begin saving, the greater the payoff thanks to the power of compound interest. Starting your retirement plan early not only helps secure your financial future but can also ease the eventual transition of your farm to the next generation.

 

The Power of Compound Growth

Compound interest is a powerful tool that rewards consistency and time. One way to think about compounding is the “Rule of 72”—if you divide 72 by your expected annual return, the result is the number of years it will take your investment to double. For instance, with a 3% return, your money doubles in 24 years; at 8%, it doubles in just 9.

This difference becomes even more meaningful the earlier you start. Let’s compare two farmers who each invest $10,000 into a retirement plan—one at age 20, the other at 40—and assume they let the funds grow until age 70:

  • At a 3% return:

    • Investment at age 20 grows to $469,016

    • Investment at age 40 grows to $100,627

  • At a 10% return:

    • Investment at age 20 grows to $1,173,909

    • Investment at age 40 grows to $174,494

That’s a significant difference—and it all comes down to starting earlier, even with the same initial amount.

 

Low Costs, High Value

One reason many farmers shy away from retirement plans is the perception that they’re expensive or complicated. But maintaining a solo 401(k) or contributing to an IRA is typically low-cost and straightforward. For married couples, contributing up to $14,000 annually across two IRAs is often an easy first step.

It’s also wise to invest in low-cost exchange-traded funds (ETFs) or mutual funds. These options typically have lower fees, which means more of your money stays invested and working for you over time.

 

Most Growth Happens Later—So Start Now

Interestingly, the majority of earnings in a retirement account often occur in the final decade before retirement. That’s why it’s so important to start early—even small contributions made in your 20s or 30s can grow significantly by the time you reach retirement age.

 

Protection from Risk

Aside from long-term savings, retirement accounts offer protection against financial risk. For farmers—whose livelihoods often come with market volatility and external pressures—this added layer of security is especially valuable.

Retirement funds held in employer-sponsored plans like a 401(k) are fully protected in the event of bankruptcy. While IRAs aren’t entirely exempt, the protected limit is substantial. As of April 1, 2025, the exemption amount increased to $1,711,975, effective through March 31, 2028.

This means most farmers with IRA balances under that threshold will retain access to their retirement savings—even in the worst-case scenario. In many states, IRAs are either fully or partially protected as well. These accounts don’t just help you save—they provide peace of mind.

 

Build a Better Financial Future

Starting a retirement plan may feel like a big step, but it’s one of the smartest financial decisions a farmer can make. With time on your side, even modest contributions can grow into a reliable source of income and protection. Planning for retirement also makes future succession planning easier by reducing financial dependence on the farm.

To read the full article by Paul Neiffer, visit: https://www.agweb.com/news/business/succession-planning/best-time-start-your-retirement-plan

Need help determining how retirement planning fits into your overall financial strategy? At De Boer, Baumann & Company, we can help you explore tax-advantaged savings options, assess long-term needs, and make the most of your future investments.

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Planning Ahead: A Practical Guide to Farm Succession

Preparing to Pass Down the Farm? Here’s What to KnowYour farm is more than a business—it’s a legacy built through years of dedication, sacrifice, and hard work. Whether you envision passing it down to the next generation or transitioning ownership to someone outside the family, having a succession plan is essential. It not only …

Preparing to Pass Down the Farm? Here’s What to Know

Your farm is more than a business—it’s a legacy built through years of dedication, sacrifice, and hard work. Whether you envision passing it down to the next generation or transitioning ownership to someone outside the family, having a succession plan is essential. It not only protects the future of your operation but also helps avoid disruption and financial uncertainty.

Farm succession planning goes beyond simply handing over the reins. It’s about setting up the next chapter with purpose and clarity. Here’s what to consider as you begin the process.

 

Start with Your Long-Term Vision

Before any formal planning begins, take time to reflect on your long-term goals. What do you want your legacy to look like? Do you hope to keep the farm in the family, or are you open to selling it? Will you remain involved in day-to-day operations, or are you ready to step back completely?

These types of questions can help shape the direction of your succession strategy:

  • Do you want to pass the farm to a family member or someone outside the family?

  • What income will you need in retirement?

  • How do you envision the farm evolving under future leadership?

Once you’ve outlined your vision, it’s time to start the conversation with those who will be impacted.

 

Communicate Early and Openly with Family

If the plan involves family, communication is key. Having open discussions with your loved ones now can help reduce misunderstandings and emotional strain later. Some family members may be eager to take over, while others might not want to be involved at all.

During these conversations, try to address:

  • Who is interested in managing or operating the farm?

  • How will responsibilities and decision-making be shared?

  • What role will non-involved family members play, if any?

If no one within the family is interested in taking over, consider exploring alternatives like selling to a trusted partner or another successor outside the family.

 

Assess Financial and Legal Considerations

A solid farm succession plan must also account for the financial health of the business. Reviewing your finances now will help ensure the farm remains viable and that your own financial needs—such as retirement income—are met.

Here are a few key items to evaluate:

  • Financial Status: Take stock of current assets, debts, and cash flow.

  • Legal Readiness: Review land titles, business structures, and any existing agreements to ensure they support your goals.

Addressing these items early can help prevent legal or financial issues down the road and give you peace of mind about your future.

 

Document Your Succession Plan

Once your vision is clear and you’ve had conversations with those involved, it’s time to put the plan on paper. A written plan ensures everyone is on the same page and helps eliminate confusion or conflict during the transition.

Your written succession plan should address:

  • Leadership Transition: Who will take on day-to-day management, and when?

  • Ownership Transfer: Will the farm be gifted, sold, or transitioned gradually?

  • Training and Mentorship: What steps will prepare the next generation for success?

Having a clear plan in place not only guides the process but also builds confidence among everyone involved.

 

Get Guidance from Professionals

Farm succession planning can be complex. Seeking guidance from qualified professionals can help you navigate the many tax and financial implications.

Consider working with:

  • Agricultural Lenders: For financing options that support your transition.

  • Financial Advisors: To help you plan for retirement and maintain farm cash flow.

  • Estate Planners: To ensure your succession plan aligns with your overall goals.

Professional insight can be the difference between a smooth handoff and a stressful one.

 

Explore All Succession Strategies

Not every farm follows the same path. If a traditional family transfer isn’t the best fit, there are several other approaches that can keep your operation running successfully.

Some options include:

  • Gradual Transfer: Transitioning ownership over time while remaining involved.

  • Shared Management: Having multiple generations manage together during the transition period.

  • Lease-to-Own: Letting a successor lease land or equipment with the option to purchase later.

  • Non-Family Successors: Transitioning the farm to a partner or trusted outside party.

Exploring these alternatives now gives you more flexibility and helps secure your farm’s future.

 

Secure Your Farm’s Future Today

Creating a farm succession plan doesn’t happen overnight—but starting early will make the process easier for everyone involved. Having honest conversations, getting your finances in order, and putting your plan in writing are all steps that help safeguard your legacy.

Remember, your farm’s future deserves just as much care and intention as the years of work that built it.

To read the full article by Conterra Ag, visit this link: https://www.conterraag.com/planning-for-the-future-a-practical-guide-to-farm-succession

Need help navigating your farm’s succession strategy? At De Boer, Baumann & Company, we’re here to support you every step of the way—from financial planning to transition support and more.

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Agricultural Climate Resiliency Program Funds Four New Projects

The Agricultural Climate Resiliency Program is expanding its impact with an additional $5.1 million in funding for four new research and outreach projects. This initiative, a collaboration between Michigan State University (MSU), the Michigan Plant Coalition, and the Michigan Department of Agriculture and Rural Development (MDARD), aims to address long-term climate and water challenges …

The Agricultural Climate Resiliency Program is expanding its impact with an additional $5.1 million in funding for four new research and outreach projects. This initiative, a collaboration between Michigan State University (MSU), the Michigan Plant Coalition, and the Michigan Department of Agriculture and Rural Development (MDARD), aims to address long-term climate and water challenges in Michigan’s plant agriculture sector.

Established in 2024, the program is administered by MSU AgBioResearch and MSU Extension, supporting research efforts focused on water efficiency, soil health, carbon sequestration, and environmental conservation. Each of the four selected projects will receive $1.275 million over three years to develop innovative, science-based solutions for Michigan farmers.

Advancing Agricultural Resilience

MDARD Director Tim Boring emphasized the importance of these investments, stating, “Supporting Michigan’s agricultural resilience is a top priority. Thanks to Gov. Whitmer’s bipartisan budget, we are funding cutting-edge projects that provide practical solutions for farmers. These initiatives will help the agricultural industry adapt to challenges today and build a sustainable future for generations to come.”

A panel of experts from MSU, the Michigan Plant Coalition, and MDARD evaluated 18 proposals before selecting the four funded projects for 2025. George Smith, director of MSU AgBioResearch, highlighted the significance of these efforts, saying, “The first two years of proposals have been extremely impressive. The selected projects will lay the groundwork for long-term, practical solutions that benefit Michigan’s growers.”

2025 Funded Projects

  1. Climate-Resilient Cropping Systems

    • Researchers are developing a modeling platform to help farmers, food producers, and government agencies make data-driven management decisions. The goal is to optimize inputs and enhance economic, environmental, and social outcomes in agriculture.

    • Lead Researcher: Bruno Basso, John A. Hannah Distinguished Professor, MSU Departments of Earth and Environmental Sciences and Plant, Soil and Microbial Sciences.

  2. AI-Powered Agricultural Forecasting

    • This project leverages artificial intelligence to create a forecasting tool for four key crops in Michigan’s Lower Peninsula: corn, potatoes, soybeans, and wheat. By analyzing climate trends, the platform will assist farmers in developing adaptive strategies to enhance resilience.

    • Lead Researcher: Jiquan Chen, Professor, MSU Department of Geography, Environment, and Spatial Sciences.

  3. Mitigating Nutrient Runoff

    • Addressing one of the leading causes of harmful algal blooms in Michigan’s waterbodies, this initiative focuses on developing advanced tools for nutrient management in corn and soybean farming. Research will include water quality monitoring, conservation practices, and farmer decision-support tools.

    • Lead Researcher: Subhasis Giri, Assistant Professor, MSU Department of Biosystems and Agricultural Engineering.

  4. Enhancing Soil and Water Conservation Through Regenerative Agriculture

    • With Michigan farmers facing increasing uncertainty due to extreme weather, this study will model how regenerative practices can improve soil health, enhance water retention, and reduce runoff. Researchers aim to quantify the benefits of soil water-holding capacity, aquifer recharge, and nutrient retention.

    • Lead Researcher: Jeremiah Asher, Assistant Director, MSU Institute of Water Research.

 

Research Meets Real-World Application

A critical component of these projects is ensuring that research findings are directly applied to Michigan’s farming communities. MSU Extension Director Quentin Tyler highlighted the program’s commitment to practical implementation: “Strong partnerships with agricultural industries and growers are the backbone of our work. The outreach component of this program ensures research-based recommendations are accessible and actionable.”

For more information about the Agricultural Climate Resiliency Program and ongoing research efforts, visit canr.msu.edu/climate-resiliency.

To read the full article by Cameron Rudolph, please visit Agricultural Climate Resiliency Program funds 4 new projects – Michigan Farm News.

About us

De Boer, Baumann & Company provides professional accounting, tax, and business advisory services to individuals and businesses in West Michigan and the surrounding areas. With expertise in a variety of industries, DBC specializes in comprehensive and innovative solutions to help clients achieve their financial goals.