Craig Farmers Coop

STRONG PATRONAGE

$890,000 in dividends paid to patrons in 2021.

All deferred equity paid up to 2013.

Our Coop is designed to grow with your needs, and support your interests – both on and off the farm.

COMMUNITY SUPPORT

Donations and other support provided annually to multiple FFA programs, local fi re departments, town projects, livestock shows, school programs.

26336 C-12, LeMars, IA 51031 712-562-6544 | www.craigcoop.com

AN UNEXPECTED TOOL FOR YOUR FINANCIAL TOOLBOX

By Bob Fitch

Farmers like their tools and they usually have a lot them – whether it’s to fix hydraulics, an irrigation valve, a clogged combine or even the kitchen sink. Other “tools” farmers rely on are service providers such as bankers, seed company reps, feed consultants, mechanics and veterinarians.

An unexpected tool farmers may want to add to their financial toolbox is life insurance.

Life insurance typically exists to provide a benefit to the insured’s heirs or cover end-of-life expenses or debt. But Brad and Brian Van Bruggen, of Van Bruggen & Wesselink Agency of Sioux Center, want area farm families to know life insurance can be like a Swiss Army knife – a multi-faceted tool to help fund farm expenses, help with generational succession issues, or even cover longterm care expenses. Van Bruggen Wesselink works closely with Pekin Life Insurance Co., a provider of financial protection products. According to James Schmitz, life specialist with Pekin, “The problem with life insurance is you can’t get it when you need it. You just don’t know when your insurability will change. So a little bit of planning is key. It sounds simple, it seems obvious, but so many farm families don’t spend any time planning – except when it’s tough to get something done.” Even if you can’t afford the ‘perfect’ amount of life insurance, something is better than nothing, he said. And, if you are proactive – at almost any age – there are some interesting and potentially lucrative possibilities. “I’ve seen young farmers investing in a universal life policy with the main purpose of building cash value. You can do what’s called ‘over-funding’ a universal life policy and kind of build your own bank. The cash that builds in the policy can be used to buy equipment or fix equipment or pay off other loans or debts,” Schmitz said. Brad Van Bruggen added, “I’ve seen cases where a farmer in his 30s gets a universal life policy and funds it at $10,000 a year. At retirement, he’s going to have hundreds of thousands of dollars sitting there. But, along the way, he can draw against it to be his own banker and invest in the farm using his own money.” Schmitz said, “The next biggest area where I see farm families using life insurance is perpetuation.” The simplest example is life insurance benefits can be used for a child who is staying in a farm operation to be able to buy out his or her siblings upon the death of a parent.