For many farm and ranch families, the land is more than an asset. It’s the family business, a way of life, and a legacy they strive to pass to the next generation.

Although the desire to preserve that legacy may be strong, the plan for doing so isn't always in place.Only 3 out of 10 farms have a transition plan*, according to an expert featured in the Ohio Soybean Council's GrowU educational series.

For financial professionals, that creates an opportunity to initiate these important planning conversations, while you can still protect the legacy, rather than waiting until a crisis makes a transition inevitable.

Start with one question

Dianna Holm, CLU® Advanced Markets, Case Design Consultant Midland National

How does your client envision the future of their family farm or ranch?

The answer can reveal challenges that aren't always obvious.

Farm and ranch families may have significant net worth, but much of it can be tied up in land, livestock, equipment and operating assets. That can make accessing cash difficult when it's needed most.

There may also be questions about the next generation. When one or more children are planning to take over the operation, and others are pursuing different careers, you are dealing with a large, illiquid asset that cannot be simply chopped into equal pieces. Dividing the estate fairly, while preserving the farm or ranch, can be a complex challenge.

Where life insurance can help

Life insurance can provide liquidity without requiring families to immediately sell or divide important operating assets.

Depending on the client's circumstances, the death benefit proceeds may help:

• Equalize inheritances among farming and non-farming heirs
• Provide liquidity for estate taxes or settlement costs
• Reduce the need to sell land or operating assets
• Fund succession or buy-sell arrangements
• Offer your client peace of mind knowing their family farm or ranch is financially protected for the future
• Preserve family control of the land for the next generation

Help get the conversation started

Succession planning can be personal. Farming isn't simply a job for many families, but a way of life. That emotional connection, combined with family dynamics, can make conversations about the future easy to postpone.

Financial professionals can help move the conversation forward by asking:

• What does your client envision for the future of their family farm or ranch, for both this generation and generations to come?
• Is there a written succession plan?
• Do future generations want to be involved in the operation?
• Would the family have enough liquidity to cover expenses without selling land?
• Is there an employee or other key person you depend on to keep day-to-day operations running?
• Is there a written estate plan, and when was it last reviewed?

The dedication of hard work, sacrifice, and commitment make up our country’s farm and ranch communities. Thoughtful planning can help clients protect what they've built and create a clearer path for the next generation. Utilize this Farmer Rancher Guide to help you start the conversation with clients.

Reach out to a regional sales professional to learn more about strategies that can help support these client conversations

*Source - https://www.youtube.com/watch?v=XPw4VE0jUjc&list=PLWqSC3z-YIJfWr0NyH2aP4BkfjDRt1vD0&index=2

Sammons Financial® is the marketing name for Sammons® Financial Group, Inc.’s member companies, including Midland National® Life Insurance Company. Annuities and life insurance are issued by, and product guarantees are solely the responsibility of, Midland National Life Insurance Company.

As independent financial professionals, it is up to you to choose whether any of the sales concepts contained in these materials might be appropriate for use with your particular sales strategy and clients. Please note that Midland National does not require you to use any of these sales concepts; they are resources that can be used at your option for your own individualized sales presentations if appropriate for the particular client and circumstances.

Neither Midland National nor its agents give tax advice. Please advise your customers to consult with and rely on a qualified legal or tax advisor before entering into or paying additional premiums with respect to such arrangements.

1864MM-9 FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES. 9-26