Do I follow my own advice? Not usually. Ha!
During my years at the High Plains Journal, I have written about topics ranging from crops to irrigation to livestock and everything under the agricultural umbrella. I can often pull tidbits from speakers or contacts I get to interview and apply it to our own small operation.
Toward the end of the year, many farmers and ranchers turn to finishing up records, tax planning and other tasks related to their accounting. I’ve written those stories too and ones about succession planning and transferring the farm or ranch. While not my favorite topic to write about or research, it’s one that’s more interesting to me than to say one about insects or crop diseases.
Our economist with Kansas Farm Management Association was out on maternity leave by the time our year-end tax estimate appointment rolled around in early December, and I rushed around to be prepared as I could. Lindsey knows my hap-hazard system of records, and I appreciate her ability to decipher them and her diligence in sorting through my sheets that make sense to me, and probably not anyone else.
That was apparent when my husband and I met with her counterpart for the estimate meeting. I’m sure he was really annoyed we had to go through expenses line by line out of three accounts. I know I was. Last year I vowed to do better. This year I was at least mostly prepared for our estimate meeting, but still not 100%. But I’m further ahead of getting Lindsay the expenses and other paperwork she will need when tax time does roll around.
I was recently listening to a session from the virtual Stockmanship and Stewardship event to write something about Oklahoma State’s Shannon Ferrell’s tips for cattle producers to get started for legacy planning. Watch for that complete story in an upcoming issue, but Ferrell’s comments made me reflect on my poor accounting skills, how I prepare for meetings with the accountant and how we don’t have our own succession plan.
While we may not have a succession plan on paper, my husband has had the conversation with our 14-year-old son and what he wants out of life. This boy is all about the farm and wants to stay in agriculture. He has no desire to go to college, but his dad and I both went to college and see the value in it. Although I wouldn’t want him to have to foot an out-of-state tuition bill like I did for most of my 20s and early 30s. He still needs to spend time away from home and see what’s also out there for him. But ultimately, I know he wants to farm.
Having our plan will ultimately be much simpler because there’s only four of us. No in-laws to take into account or other folks who think they deserve a piece of the pie. Been there done that and would prefer not to have to do that again. But Ferrell brought up some great points in his talk. He had a couple of tools that are essential for estate planning. They include things like a plan for kids under 18; beneficiaries on retirement or investment accounts; durable power of attorney; long-term care plan; a will; life insurance; and long-term care insurance. Of his list, there’s only two I know we have accomplished. The rest we need to get figured out and put on paper.
Ferrell also said you need to assemble your own team of people to help you through the process. He left the attendees with a word of advice.
“You might feel like this is a really daunting challenge, and you’re wondering how you’re ever going to pull this off,” Ferrell said. “You can do it. If you have the courage to take a step forward. You really can do that.”
After listening to Ferrell, I believe it’s time to start making our own set of plans. Well, at least put it on my forever long to-do list. I’ll start by finishing up my prep for an upcoming meeting with the accountant.
Kylene Scott can be reached at 620-227-1804 or [email protected].
