SERVICES

Retirement Planning
for Farmers

Building a retirement plan that honors a lifetime of work on the land — without forcing you to sell the farm.

Trusted by farm families across the country

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WHY IT MATTERS

You've Spent a Lifetime Building —
Now Plan Your Next Chapter

Farmer retirement planning isn’t like planning for a traditional career. For most agricultural families, the vast majority of wealth is tied up in land, equipment, and livestock — not in 401(k)s, pensions, or brokerage accounts. That creates a unique challenge: how do you fund decades of retirement when your net worth isn’t liquid?

On top of that, farmers typically face irregular income, limited access to employer-sponsored retirement plans, and Social Security benefits that often don’t reflect the true economic value of a lifetime of work. Self-employment tax reporting, fluctuating commodity prices, and the reinvestment cycle of farming mean that traditional retirement planning models simply don’t fit.

Most retirement advisors don’t understand ag-specific challenges like farmland valuation, rental income structuring, the stepped-up basis at death, or the emotional complexity of stepping back from an operation that defines your identity. At Farm Legacy Consulting, we build retirement plans specifically for farm families — plans that create reliable income, preserve the land, and honor everything you’ve built.

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THE CHALLENGE
82% of farm wealth is tied up in non-liquid assets
Only 19% of farmers have a formal retirement plan
The #1 barrier? Most wealth is in the land. Retirement planning for farmers means creating income without selling the farm.
WHAT'S INCLUDED

A Complete Retirement Plan
for Your Farm

Every engagement is tailored to your operation. Here’s what a typical farmer retirement planning engagement covers.

📊

Retirement Income Projection

Model your post-farming income from all sources: land rental, Social Security, savings, investments, and any off-farm income. Know your number.

🏡

Land-as-Retirement Strategy

Structure farmland ownership to generate retirement income through cash rent, crop share, or lease arrangements — without losing the family asset.

📅

Social Security Optimization

Time your Social Security filing for maximum lifetime benefit, factoring in farm income history, spousal benefits, and the earnings test.

💰

Tax-Advantaged Savings

Maximize contributions to SEP-IRAs, SIMPLE IRAs, solo 401(k)s, and other retirement vehicles designed for self-employed farmers.

🔄

Transition Planning

Create a phased retirement timeline that lets you step back gradually — handing off responsibilities, reducing hours, and maintaining purpose.

🛡️

Healthcare & Risk Bridge

Plan for the gap between leaving full-time work and Medicare eligibility. Cover health insurance, long-term care, and disability scenarios.

HOW IT WORKS

Our Proven Planning
Process

A structured, step-by-step approach that takes the guesswork out of farm retirement planning.

1

Retirement Readiness Assessment

We review your full financial picture — farm assets, personal savings, debts, income sources, and expenses — to determine where you stand today relative to your goals.

2

Income & Lifestyle Modeling

We project your desired retirement lifestyle and map every income source to fund it — rental income, Social Security, savings drawdown, investment returns, and any part-time income.

3

Asset & Transition Strategy

We determine how to structure your farm assets for retirement income: what to keep, what to lease, what to sell, and how to transfer management to the next generation or a trusted operator.

4

Implementation Roadmap

We coordinate with your CPA, attorney, and insurance advisor to put the plan into action — opening accounts, restructuring entities, updating beneficiaries, and securing health coverage.

5

Ongoing Adjustments

Life doesn't follow a straight line. We review your plan annually and adjust for changes in income, expenses, health, tax law, and family circumstances.

WHO THIS IS FOR

Retirement Planning Is Right for You If...

✓ You're within 10 years of wanting to slow down or step back
✓ Most of your net worth is in land, equipment, or livestock
✓ You don't have a clear picture of your retirement income
✓ You're not sure when to file for Social Security
✓ You want to stop farming day-to-day but keep the land in the family
✓ You're worried about healthcare costs before Medicare kicks in
COMMON QUESTIONS

Frequently Asked
Questions

Yes — and that's the goal for most of our clients. There are several strategies to generate retirement income from your farm without giving up ownership. Cash rent arrangements let you lease your land to an active farmer for a fixed annual payment. Crop share agreements give you a percentage of the harvest revenue. You can also structure long-term leases with trusted operators, or transition management to a family member while retaining ownership. The right approach depends on your land, your family situation, and your income needs — but selling is rarely the only option.
At least 10 years before you want to step back from day-to-day operations. Early planning gives you time to build savings in tax-advantaged accounts, optimize your Social Security filing strategy, pay down debts, structure your land for rental income, and create a smooth transition plan for the operation. The earlier you start, the more options you have — and the less pressure you'll feel when the time comes to make the shift.
Farmers pay self-employment tax on their net farm income, which earns them Social Security credits. However, because farm income can fluctuate significantly year to year — and because many farmers use aggressive depreciation and deductions — reported income often understates the true economic value of the operation. This can result in lower Social Security benefits than expected. Filing timing is especially important for farmers: claiming at 62 vs. 67 vs. 70 can mean a difference of hundreds of thousands of dollars over a lifetime. Spousal benefits, the earnings test, and coordination with farm income all factor into the optimal strategy.
Retirement doesn't have to mean stopping entirely — and for many farmers, it shouldn't. A phased retirement lets you gradually reduce your daily responsibilities while staying connected to the operation in a meaningful way. Many of our clients transition into advisory roles, helping the next generation with decisions while stepping back from the physical work. Others pursue hobby farming on a smaller scale, mentor young farmers, or get involved in agricultural organizations. The key is building a plan that gives you purpose, income, and the freedom to enjoy the life you've earned.
The gap between stepping back from active farming and reaching Medicare eligibility at 65 is one of the biggest financial risks in farmer retirement planning. Options include marketplace (ACA) plans, which may offer subsidies depending on your income; COBRA continuation if your spouse has employer coverage; Farm Bureau health plans available in many states; and health sharing ministries. We build healthcare costs into every retirement projection so there are no surprises — and we help you choose the most cost-effective coverage for your situation.
Self-employed farmers have several powerful retirement account options. A SEP-IRA allows contributions up to 25% of net self-employment income (up to $69,000 in 2024). A solo 401(k) offers similar limits but adds a Roth option and employee deferrals. SIMPLE IRAs work well for smaller operations with employees. Traditional and Roth IRAs provide additional savings capacity, and HSAs (Health Savings Accounts) offer triple tax advantages if you have a high-deductible health plan. The best strategy often combines multiple accounts to maximize tax-deferred and tax-free growth. We help you determine the right mix based on your income, tax situation, and retirement timeline.
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START PLANNING TODAY

Your Retirement Should Be
as Rewarding as Your Harvest

You’ve spent decades feeding the world. Now let’s build a plan that feeds your future. Schedule a free consultation and take the first step toward the retirement you’ve earned.

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Or call us: (352) 558-7446