Category: Farm & Ranch

5 Great Reads for Multigenerational Farm and Ranch Families

Posted on by RFTB Dev

Managing a multigenerational farm or ranch comes with unique challenges and opportunities. From preserving family heritage and navigating complex financial decisions to adopting innovative agricultural practices, there’s a lot to consider. To help you succeed, we’ve compiled a list of essential books that provide great reads for multigenerational farm and ranch families.

1. “The Farm Whisperer: Secrets to Preserving the Family Farm and Building an Agribusiness Legacy” by David Specht

Why You Should Read It 

“The Farm Whisperer” is a comprehensive guide to maintaining and growing your family farm. Specht offers practical advice on succession planning, financial management, and creating a sustainable business model. 

Key Takeaways 

  • Succession Planning: Develop a clear plan for passing the farm to the next generation. 
  • Financial Strategies: Implement sound financial practices to ensure long-term stability. 
  • Sustainability: Learn techniques for sustainable farming that can be passed down through generations. 

2. “Healthy Land, Happy Families and Profitable Businesses: Essays to Improve Your Land, Your Life and Your Bottom Line” by David Pratt

Why You Should Read It 

David Pratt’s book offers a collection of essays that provide practical advice on improving land management, family dynamics, and business profitability. This is a valuable resource for farm and ranch families looking to enhance their operations and quality of life. 

Key Takeaways 

  • Land Management: Implement sustainable practices to improve land health and productivity. 
  • Family Dynamics: Foster healthy relationships and effective communication within the family. 
  • Business Profitability: Adopt strategies to enhance the financial performance of your farm or ranch.  

3. “Ranching Full-Time on Three Hours a Day” by Cody Holmes 

Why You Should Read It 

Cody Holmes shares his unconventional approach to ranching, focusing on efficiency and productivity. This book is perfect for those looking to balance ranching with other life commitments. 

Key Takeaways 

  • Efficiency: Implement time-saving techniques to increase productivity. 
  • Sustainable Practices: Adopt sustainable ranching methods that reduce workload. 
  • Life Balance: Learn how to manage a successful ranch while maintaining a balanced life. 

4. “The Big Rich: The Rise and Fall of the Greatest Texas Oil Fortunes” by Bryan Burrough

Why You Should Read It 

“The Big Rich” provides a fascinating look at the rise and fall of some of Texas’s most prominent oil and gas families. Bryan Burrough’s account offers valuable lessons on wealth management, legacy planning, and the potential pitfalls of rapid financial success. 

Key Takeaways 

  • Wealth Management: Learn from the successes and failures of Texas oil fortunes. 
  • Legacy Planning: Understand the importance of planning for the long-term preservation of wealth. 
  • Avoiding Pitfalls: Gain insights into the common mistakes that can lead to the downfall of family businesses. 

5. “Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses” by Minnesota Institute for Sustainable Agriculture

Why You Should Read It

This guide provides a step-by-step approach to developing a sustainable business plan for farms and rural businesses. It’s an invaluable resource for ensuring the long-term success of your agricultural enterprise. 

Key Takeaways 

  • Business Planning: Create a comprehensive business plan tailored to your farm or ranch. 
  • Sustainability: Incorporate sustainable practices into your business model. 
  • Long-Term Success: Focus on strategies that ensure the longevity of your business. 

Conclusion 

Managing a multigenerational farm or ranch is a complex but rewarding endeavor. These books offer a wealth of knowledge and practical advice to help you navigate the challenges and seize the opportunities that come with running a family agricultural business. From financial management and sustainability to efficient farming practices and generational transitions, these reads will equip you with the tools you need for success. 

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  

Investing involves risk including loss of principal. No strategy assures success or protects against loss.  

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.  

This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.  

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by BentOak Capital [“BentOak”]), or any non-investment related services, will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. BentOak is neither a law firm, nor a certified public accounting firm, and no portion of its services should be construed as legal or accounting advice. Moreover, you should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from BentOak. Please remember that it remains your responsibility to advise BentOak, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.  

Please remember to contact BentOak Capital (“BentOak”), in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, to modify any reasonable restrictions to our investment advisory services, or if you wish to direct that BentOak to effect any specific transactions for your account. A copy of our current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request or at www.bentoakcapital.com.

Securities offered through LPL Financial, Member: FINRA/SIPC. Investment advice offered through BentOak Capital, a registered investment advisor and separate entity from LPL Financial.  

Heritage Planning Overview

Posted on by RFTB Dev

Traditional financial planning and estate planning have long been the pillars of efficiently passing a financial legacy from generation to the next. But there are some things financial and estate planning are not designed to do. This blog post discusses the third pillar, and how BentOak Capital is trying to help make the process of passing your legacy more effective and impactful.

——————

What is the most important thing you could pass on to your heirs?

If we were to ask you to write that down, what would it be? What’s the most important thing you would want to pass to your heirs if you were not here tomorrow?

Many people we talk to about this will give answers like “faith” or “love.” They will talk about work ethic, close family ties, honesty and integrity, or friendship.

What most people will not mention is money or possessions.

Here is something else to think about. How are you using your money to perpetuate those things you said were most important to you? How are your will, trust, and other estate planning documents reinforcing those values?

 

Let’s define two terms very quickly.

Financial planning is the process of saving, investing, and planning for the future of your money.

Estate planning is the process of preparing your money for your heirs.

Both financial and estate planning are extremely, vitally important; you will never hear us say otherwise. But the question we led off with, about what’s most important to pass on, is not and cannot be answered with traditional financial planning and estate planning practices.

 

We want to introduce you to something new:

Heritage planning: the process of preparing your heirs to receive their inheritance.

Decades of research and intentional practice, both professional and within families, show that if you have a financial, estate, and heritage plan in place, your family is far more likely to be successful at keeping the family together (unified, cohesive, whole) for multiple generations after you are gone.

You may have noticed in our definition of heritage planning that we said “inheritance”, not money. Traditional financial planning and estate planning techniques have limited themselves to the balance sheet and cash flow of a family’s life while heritage planning is the intentional passing of both your values and your valuables. The inheritance you leave for heirs can encompass your family stories, life lessons, community relationships, hopes and dreams. And also, money and assets.

 

Why might it be important to prepare heirs in advance to receive their inheritance?

First, families typically want to reinforce positive family traits, such as time spent together, emotional ties, an aligned purpose, and the willingness to work through problems.

Second, families typically want to reduce negative family traits, such as breakdowns in generational communication, family units drifting apart, or outright implosion of family unity.

When it comes right down to it, most people want to make sure that their wealth helps, and not hurts, their heirs.

Throughout history, regardless of culture or time period, there have been those who have successfully maintained their unity as well as keeping the wealth within the family for multiple generations. This is not common; in fact, it’s relatively rare. But studying those success stories shows that there are some common factors among the families that get it right over the long run. The four most important characteristics are:

  • The most successful multi-generational families are intentional about developing, encouraging, and passing on the values, history, and character of the generations that come before, tying together the emotional inheritance with the monetary.
  • Human beings have a massive desire to be heard and to be understood. Successful families foster open and effective communication between family members and between generations.
  • In a successful family, all family members must have permission to assert themselves and to feel that they will be safe when doing so. All family members need to feel that what they can contribute will truly make a difference to the greater family.
  • Successful families have a well-defined common purpose – a forward-looking statement that articulates “this is who we are” and “this is what we do because of who we are”.

In short, the families that are most likely to successfully maintain their family unity and their family wealth are the ones that intentionally create a culture of communication and trust wrapped around a common family purpose.

Imagine it’s 50 or 70 years from now. Imagine that even though you are not physically present, you nonetheless have the ability to watch a gathering of your family. What would you like to see happening?

Who is there? What are they experiencing? What smells are there? How does it feel? What are they doing?

What is important to you about that vision of the future? Really stop and think about that. Stop reading, look away from the screen, and consider.

What would it mean to you if that future were to become a reality? Again, take a moment to consider that question. If you are so moved, write down your answer.

Now describe what your family gatherings are like today, as you perceive them. Who is there? What are they experiencing? What smells are there? How does it feel? What are they doing?

Can you describe any gaps between that vision of the future of your family, and how you think about your family today?

If there are any gaps, what value would you place on filling those? What would it mean to you if you could look back and have had an active role in bridging those gaps?

Which gap would you want to work on first?

One gap might include thinking about the questions we asked at the beginning: how are you using your money to perpetuate the things you say are most valuable to you? How do your estate planning documents reinforce those values?

 

This is heritage planning at BentOak Capital.

Our desire is to be better than anyone at listening and understanding, deeply, what matters most to you.

Many people have not thought about the correlation between money and values and inheritance and a shared family purpose and why knowing the family history can be so valuable. Our goal is to help you uncover your “gaps”, to define them in plain English, to see the value to you of filling those gaps. For some families, we can work with you to create a completely customized intentional process that is driven by your family towards your desired outcomes. For other families, our goal is to provide resources and encouragement that will empower you and your family to take an active role in bridging your gaps.

Our purpose is to intentionally seek out ways to make a positive impact on the future of the families we work with.

Heritage planning works best by interweaving itself with a proactive financial plan and a thoughtful, future-oriented estate plan. This is what BentOak Capital strives to do for you. We want to be a team that advocates for you and for your family, so that you can focus on what matters most.

 

Please remember to contact BentOak Capital (“BentOak”), in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, to modify any reasonable restrictions to our investment advisory services, or if you wish to direct that BentOak to effect any specific transactions for your account. A copy of our current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request or at www.bentoakcapital.com.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Securities offered through LPL Financial, Member: FINRA/SIPC. Investment advice offered through BentOak Capital, a registered investment advisor and separate entity from LPL Financial.

 

Texas Landowner Liability Acts: Protection For Your Operation, Land, and Heritage

Posted on by RFTB Dev

As a farmer, rancher, or landowner, you understand the importance of protecting your property. You spend countless hours tending to your land, livestock, and infrastructure, and you want to ensure that both your investment and your family’s safety are secure. Opening your property to others can pose liability risks to your operation and to you personally as the landowner. Understanding the limited liability protections afforded to you as a landowner can help you better protect your operation, land, and heritage.

Texas Recreational Use Statute

The Texas Recreational Use Statute (RUS) was created to provide liability protection to agricultural landowners who allow recreational activities to take place on their property. This can apply to any non-trespasser on the property for recreational activities such as hunting, fishing, swimming, boating, camping, hiking, picnicking, pleasure driving, nature study, cave exploration, disc golf, biking, dog walking, water skiing, and water sports. The protections offered by this statute may apply if the landowner meets the following requirements.

  1. The property meets the definition of agricultural land as stated in the statute.
  2. The property is being used for recreational purposes.
  3. You meet at least one of the three following monetary requirements:
    1. No fee is charged for recreational use of the land.
    2. If a fee is charged, total income must be less than 20 times the taxes paid for all property.
    3. You maintain adequate liability insurance coverage.

A few important points to note about the Texas Recreational Use Statute:

  • It does not protect trespassers or anyone who enters the property with the intent to commit a crime or cause harm.
  • It can also protect individuals leasing or occupying the land.
  • Landowners must not deliberately create hazardous conditions on their property.
  • No signage is required.

Texas Agritourism Act

The Texas Agritourism Act was created to help protect farmers, ranchers, and agricultural landowners from the liability that can occur from operating an agritourism business. If all requirements are met, this act can provide liability protection from injuries or damages sustained to participants of the agritourism activity, which can be an activity on the land with the purpose of being educational or recreational. This includes animal-based activities, u-pick operations, hayrides, and nature trails. The Texas Agritourism Act may apply if the landowner meets the following requirements.

  1. The property meets the definition of agricultural land.
  2. Required signage must be posted in a clearly visible location.
  3. Participants must sign an agreement that contains specific language prior to engaging in the activity.

Texas Farm Animal Liability Act

The Farm Animal Liability Act (FALA) was created to provide limited protection to farmers, ranchers, and landowners from liability that can occur from the inherent risk of activities interacting with farm animals. This applies to cattle, horses, llamas, sheep, goat, pigs, chicken, honeybees kept in managed colonies, and other domestic farm animals.

  • This Act applies only to injuries caused by inherent risks of farm animal activity.
  • It applies only if the owner of the animal did not act negligently or recklessly.
  • The Act does not cover wild animals, hunting preserves, zoos, or commercial animal operations.
  • Required signage must be posted in a clearly visible location.
  • Property owners must ensure participants have the ability to safely engage with the animal.

 

As a farmer, rancher, or landowner, understanding the protections afforded to you by the Texas Landowner Liability Acts can help you plan to properly protect your assets. Working in conjunction with your financial planner and attorney can help you identify opportunities to enhance the liability coverage of your operation and help safeguard your legacy for generations.

 

Please remember to contact BentOak Capital (“BentOak”), in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, to modify any reasonable restrictions to our investment advisory services, or if you wish to direct that BentOak to effect any specific transactions for your account. A copy of our current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request or at www.bentoakcapital.com.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.  

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.   

Securities offered through LPL Financial, Member: FINRA/SIPC. Investment advice offered through BentOak Capital, a registered investment advisor and separate entity from LPL Financial.