An economic downturn could be costly for farming clients who don’t have a risk management strategy

The news and the conversations we have as financial professionals are heavily peppered with talk of the current economic landscape — and rightly so.

At such a time, when this level of conversation around inflation and the economy may increase consumer unease and make a recession a self-fulfilling prophecy, I think about the business owners who are tied to nearly every aspect of our financial engine: farmers, ranchers and others in agribusiness.

A recent study from the Ohio Farm Bureau¹ found that a large majority of financial advisors who work directly with farmers felt that farmers were very unprepared for medical issues or the proverbial rainy day. Additionally, they felt farmers could use help with market fluctuations, debt, tax implications and general business planning.

In a financial downturn, these “rainy days” get stacked on top of one another for a seemingly endless time, leaving farmers and ranchers in a position where the health and longevity of their family business is at risk.

Nationwide^® developed the Land As Your Legacy^® program to help farmers and ranchers successfully prepare for retirement and transition their operation from one generation to the next. The core of a sound plan has 5 key areas: succession planning, business planning, financial independence, estate planning and risk management.

It’s this risk management element that looks so integral now, especially if you consider it a bridge during an economic downswing to the other areas in which financial professionals would like to work with their clients.

A farmer or rancher couldn’t possibly want to engage in retirement-planning conversations when they feel the overall wellness of their operation and legacy is at stake.

When we work with financial professionals and their clients around risk management concerns, we look to identify potential challenges or vulnerabilities in their operation and build a plan to minimize the risks that could jeopardize their financial health. I would imagine all financial professionals approach it in a similar way, but the solutions can look a little different.

What sets Land As Your Legacy apart, and what makes it a trusted program for financial professionals, is the experience we have working in the agriculture community and the resources we have at our disposal. The wide range of JDs, CPAs and other specialists who are part of the Nationwide Retirement Institute® help make the plans we craft for farm families meet their potential.

We have found that farm clients who are comfortable with their risk management plan are more likely to have productive conversations about the future.

If you have farming or ranching clients, I’d be curious to know what your risk management approach is for them. When we share ideas, we are able to craft even better solutions for our clients and become an even more trusted source. I invite you to reach out to LAYL@nationwide.com and let us know your proven strategies and learn how our resources may be able to benefit you.

I also encourage you to browse our client-friendly tools, recorded webinars and other materials that can help introduce financial planning topics to your clients or answer questions they may already have.