A good tractor lasts 20-30 YEARS. If you’re fortunate, you will last much longer than that.
Will you outlive your debt, though? You can only hope! In 2020, the USDA predicted overall debt in the farming sector would reach a record $433.8 BILLION.
It’s not a shocking number when you think about what you put into your operation. Life insurance can help cover these expenses, debts, and more when your farm and family need it.
The Cost of a Tractor
Depending on your needs, you’ll spend $6,000 TO $75,000 on a gently used tractor. Those numbers move up to $25,000 TO $150,000 when you look at new tractors.
If you leave the picture early, life insurance can cover monthly payments for tractors and other vehicles used on the farm.
Yearly Farm Expenses and Property Taxes
According to the 2017 USDA CENSUS OF AGRICULTURE, there are roughly 2.04 million farms and ranches with a total of $326 billion in yearly expenses.
Based on these findings, the average farmer spends close to $160,000 on yearly expenses like fertilizer, feed, and livestock! This number changes based on the size of your operation.
On average, farmers pay $4,900 in property taxes, too. Some states, LIKE NEBRASKA, charge much higher taxes for land ownership.
Life insurance can cover these yearly expenses and property taxes if you want the farm to continue after you’re gone.
Upkeep for the Farmhouse
The average monthly mortgage payment falls somewhere between $1,140 AND $1,646.
THE COST FOR MAINTAINING YOUR HOME depends on:
- Where you live and the weather in your area.
- The age of your house.
- How many pets you have.
- How many children you have.
As you try to keep the kids on their best behavior, take a look at these average MONTHLY UTILITY COSTS:
- Electricity: $110.76.
- Natural gas: $72.10.
- Water: $70.39.
- Trash/recycling: $14.
Life insurance can cover mortgage payments, monthly maintenance costs, and utilities.
Some of these expenses are TAX-DEDUCTIBLE for your farm operation, too. Talk to an accountant for more information.
The Cost of Childcare Grows Faster Than Radishes
Do you have children who aren’t old enough to work on the farm? Do they go to daycare?
Childcare costs somewhere between $9,100 AND $9,600 PER YEAR. Plus, 72% of families spend MORE THAN 10% OF THEIR INCOME ON CHILDREN.
That’s where life insurance comes in. If you leave the picture early, life insurance helps your loved ones pay for ongoing education, whether it’s daycare or college.
Educational Expenses Aren’t Going Down
Your kids grow up, and it happens so fast! After they graduate high school, they could further their education at college or trade school.
College is a big investment, as these YEARLY COSTS show:
- Average in-state tuition and fees for public four-year sector: $21,950.
- Average out-of-state tuition and fees for public four-year sector: $26,820.
- Average tuition and fees for private four-year institutions: $36,880.
Trade school offers lower tuition, job-specific training, and programs that take less time to complete. Still, THE AVERAGE TRADE SCHOOL DEGREE COSTS $33,000!
Thankfully, life insurance can take care of tuition and student loan debt.
Closing the Chapter: Your Final Expenses
The sun goes up, and it has to come down. Everything with a beginning has an end, including your life.
The average traditional funeral costs somewhere between $7,000 AND $10,000.
You can help your survivors cover your final expenses with life insurance!
Your farm and your needs are unique, and Pekin Insurance doesn’t believe in“one size fits all” plans. Neither does Beck Insurance Agency.
Beck Insurance Agency will work to create an affordable life insurance plan based on what you want to take care of after you pass away. If you don’t have life coverage or don’t think you have enough, contact Beck Insurance today at 419-446-2777, email us at email@example.com, or click here.