How to Create a Farm Transition Plan

It’s important to have a farm transition plan in place. To prepare for the unexpected, and as you consider hanging up the boots and retiring. If you’re getting ready to retire or looking to, consider these steps when getting started on a farm transition plan. 

Step 1: Consider Getting Life Insurance

Even if you don’t believe an extensive farm transition plan is necessary, consider purchasing life insurance. According to the 2020 Insurance Barometer study, 40% of people that have life insurance wish they had purchased it earlier in life. 

Life insurance can help your family in the event of the unexpected. It leaves them more equipped to take care of themselves without you providing for them. 

Step 2: Define Specific Goals for Your Transition Plan

Start discussions on how to transition assets and property over to the next generation. Remember, it’s critical to take some time to evaluate all assets and sources of income and to establish goals. To help, think about some of these questions:

  • What do my loved ones need to live if I’m not there to support them? (Consider using OKFB’s life insurance calculator to help determine the appropriate amount.) 
  • What passive income sources (rental properties or machinery, cell towers, etc.) do I have that I need to keep to sustain my family through retirement?
  • What stipulations or requirements do I have for the new manager of my property and assets? 

With these questions in mind, you can start to establish some goals for transitioning over these important assets. 

Step 3: Define Your Successor(s) in Your Farm Transition Plan

One of the most difficult topics to discuss is who will take over your farm or ranch and become the owner. Choosing the right person to take over the farm or ranch, finances and additional assets is a momentous task, but a critical one. There are many approaches that farmers and ranchers take when deciding who their successor will be and how to divide up assets. 

  • With multiple heirs, one approach is to split everything evenly between them. Another approach is determining what is fair and best for your farm or ranch.
  • When considering the division of multiple types of assets i.e., finances, income, the management of property and livestock, etc. — take some time to drop them into a will or other legal document that specifically outlines the details. 

Step 4: Strategically Assemble Your Farm Transition Plan

Now that goals have been established, along with who is taking over the finances, responsibilities and the assets, it’s time to start thinking strategically about how to transition these assets. There are many ways, but the two most common are giving the assets as gifts or transferring them through a will. 

With either approach, think about consulting with legal, tax and insurance professionals. Whether transferring assets through a will, by gifting, or through some other means, it’s important to understand the potential benefits and drawbacks of each approach. 

Planning to transition your life’s work can feel like a daunting task. At Oklahoma Farm Bureau Insurance, our agents are here to help you navigate all the intricacies. Consult with your local OKFB Insurance Agent to help you create a farm transition plan. 

Top 5 Farm Insurance Myths

Taking care of your crops, livestocks, upkeep and more is your responsibility and livelihood. To help, we cover your farm or ranch the way you need. We understand Farm Insurance coverage can be stressful to figure out. Especially since there are a number of aspects to think about. When obtaining coverage or looking to update your current policy, stay aware of these common Farm Insurance myths.

Myth #1: Farm Insurance Offered as a Standard Package

  • We know most farm and ranch operations are unique and all have different needs. That’s why Farm Insurance policies are not usually standard packages. There are a variety of policy offerings that are designed to be customized to the specific needs of your farm or ranch. 

Myth #2: Crop Insurance Premiums are High 

  • To encourage farmers and ranchers to use and obtain crop insurance, it is federally subsidized. This means the government helps cover some of the costs. Additionally, to increase accessibility for farmers and ranchers joining the industry, there are programs through the USDA’s Risk Management Agency (RMA) that include a lower premium subsidy and a waiver against fees.

Myth #3: Disaster Assistance > Crop Insurance

  • Disaster assistance coverage includes types of crops, losses, etc., but is limiting. While crop insurance provides a guaranteed amount of coverage. This gives farmers and ranchers the chance to cover an array of crops and losses. 

Myth #4: Farm or Ranch Vehicles Need Auto Insurance Coverage

  • Auto insurance covers most vehicles. However, trucks, tractors or vans used for farm and ranch operations will likely need farm auto coverage to ensure it is covered for your specific needs. 

Myth #5: Crop Insurance Only Covers Corn or Wheat Growers

  • Federally subsidized crop insurance is open to more than 500 different types of crops. Additionally, there is no required minimum acreage to qualify for crop insurance. It is also available nationwide.

There is a lot to think about as you explore Farm & Ranch Insurance policy options. If you have questions or would like to discuss any of these myths, consult your local OKFB Insurance Agent today.

OKFB Discounts All In One Place

Does OKFB offer discounts? What types of discounts does OKFB offer? Do I qualify for any discounts with OKFB? This is the blog you’ve been looking for! We have compiled the array of discounts we offer across our lines of Auto Insurance, Home Insurance, Recreation Insurance, Farm & Ranch Insurance, Commercial Insurance and more. Contact your agent to see which discounts you are eligible for!

Auto Insurance Discounts

We offer five discounts under our auto policy. You may be eligible for a discount if you have more than one policy with us, multiple vehicles and more! Keep reading to see where you may qualify. 

  • Scholastic Discount
  • Defensive Driving Discount 
  • Driver Longevity Credit 
  • Multi-Vehicle Discount
  • Companion Discount 

Home Insurance Discounts

Is your home less than 10 years old? Do you have an alarm system installed? If so, these are just a few ways you could qualify for a Home Insurance discount. Keep reading to see if you qualify for other Home Insurance discounts.   

  • New Home Discount
  • Burglary or Fire Alarm Discount 
  • Claims-Free Discounts
  • Companion Auto Discount
  • Approved Roof Discount
  • Tie Down Credit

Farm & Ranch Insurance Discounts

We offer discounts for our Farm & Ranch Insurance, as well as for those that may have a Farm Auto, Farm Fire or Farm Renters policy. Keep reading to learn more!

Farm & Ranch 

  • New Home Discount
  • Burglary or Fire Alarm Discount 
  • Companion Auto Discount
  • Approved Roof Discount

Farm Auto 

  • Defensive Driving Discount
  • Scholastic Discount
  • Companion Home Discount
  • Multi-Vehicle Discount
  • Companion Umbrella Discount
  • Approved Grill Guard

Commercial Insurance Discounts

We offer discounts to help out small businesses! If you are a Dwelling Fire – Tenant Occupied policyholder then check this out. You may be eligible for these discounts. 

Dwelling Fire – Tenant Occupied

  • Approved Roof Discount

Discount Eligibility

  • Approved Grill Guard: Trucks with a qualifying grill guard may qualify for a discount on collision coverage.
  • Approved Roof Discount: If you have a U.L rate class 3 or 4 roof surfacing installed, you may be eligible for a discount. Check here for a list of approved roof surfacing.
  • Burglary or Fire Alarm Discount: If you have an alarm system or fire alarm in your home, you may be eligible for a discount based on the type of alarm you have installed. 
  • Claims-Free Discounts: If you have had no insurance claims on your OKFB Homeowners insurance policy for the last three years, you may be eligible.
  • Companion Auto Discount: If you also have an auto policy with OKFB, you may be eligible. 
  • Companion Discount: If you also have other policies through OKFB, such as a Homeowners or Farm & Ranch, you may be eligible for companion discounts. 
  • Companion Home Discount: Policyholder has an active owner occupied property policy with the company. 
  • Companion Umbrella Discount: Policyholder has an active or farm umbrella policy with the company. 
  • Defensive Driving Discount: May be eligible for those who complete a minimum six hour accident prevention course approved by the Oklahoma Department of Public Safety. Approved courses are often offered through your county Farm Bureau. 
  • Driver Longevity Credit: Drivers who have been insured with OKFB for at least one year may receive premium credit based on a combination of their longevity with OKFB and driving record. 
  • Multi-Vehicle Discount: A multi-vehicle discount may apply when two or more vehicles are insured with OKFB.
  • New Home Discount: If your home is 10 years old or less, you may be eligible for a discount.
  • Scholastic Discount: This discount applies to specific auto coverages for classroom academic excellence to eligible full-time students who meet specified requirements.
  • Tie Down Credit: If your mobile home uses approved tie downs to better secure your home, you may be eligible for this discount. 

If you have any questions or want to learn more about eligibility and discounts contact your OKFB agent. Remember, we’re your partners in life and are here to help during any situation!

The Basics: Farm & Ranch Insurance

A farm or ranch isn’t like a typical nine-to-five business, which is why we offer many options to ensure your needs are covered. Farm & ranch lines of coverage are detailed and flexible, so you can get covered for certain things like a farm fire, leasing property, constructing a new farm and more. To begin, here are four lines of coverage that you may want to learn more about!

Our farm & ranch line covers items from farm buildings and structures to employer’s liability and animal collision. The policy can also cover things like farm personal property, dwelling, and personal liability. There are multiple coverage options and features available under this policy that are customizable to fit your needs. 

Farm Implement

While the Farm & Ranch policy covers machinery, equipment, supplies and other property owned materials, the farm implement policy covers loss or physical damage to farm implements. Farm implements can include combines, hay balers, cotton pickers, plows, seed drills, etc. Additionally, we offer liability coverage, which helps in the case of a liability claim or lawsuit. 

Farm Auto

Your vehicles are essential to life on the farm. Our Farm Auto policy covers vehicles like a pickup truck, farm truck tractor, trailer and more. If it’s used for farming or ranching, then it can be covered under this policy. Just like when driving a car for personal use, driving accidents can also happen on the job. Our Farm Auto Insurance is flexible, so it can be adjusted to cover your exact needs. Coverage options can include:

  • Comprehensive coverage
  • Collision coverage 
  • Liability 

Crop

No matter what crops you grow, we’re here to help ensure your operations are protected from the elements. Crop Insurance covers crops in the case of unpredictable events, like a heavy hailstorm or tornado. Like Farm & Ranch coverage, our Crop Insurance policy has multiple options and features. Crop Insurance is flexible and detailed, covering options like livestock risk protection, nursery, and annual forage.

Check out our farm and ranch FAQ’s to learn more about our insurance coverage options. Ensure your farm or ranch has the protection it needs by contacting an agent.