Ag Alert. July 26, 2023

NATIONWIDE NEWS

Retirement plans can help attract farm employees

The following information is provided by Nationwide®, the #1 farm and ranch insurer in the U.S.* Labor is a huge component of many farms and businesses in the agricul- tural supply chain today. In many communities, it may be challenging to attract and retain talented employees. Offering a retirement savings option may be just the solution to help your operation stand out. What’s best for you and your employ- ees? We sat down with George Schein, JD, a financial specialist from Nationwide’s Land As Your Legacy program, to talk about the benefits offered by several sav- ings options. Here are four retirement options to recruit and retain top farm employees: 1. Simplified Employee Pension, or SEP, plan: Does your operation rely on a small but critical number of employ- ees that work on a permanent, full-time basis? If so, a Simplified Employee Pension plan rewards employees with contributions to retirement accounts that are tax deductible from your busi- ness income.

A SEP provides flexibility for you as the business owner to adjust contribu- tions annually, allowing you to react to changes in your farm or agribusiness income. All contributions to a SEP plan are made by the employer to benefit their employees. This makes the SEP a good option for family-run operations because family-member employees can benefit from the increased retirement savings, while your business benefits from tax savings. 2. SIMPLE IRA plan: When you want to encourage your employees to save for their own retirement, a Savings Incentive Match Plan for Employees IRA may also be a good solution. This option is for small to medi- um-size businesses (those with 100 or fewer employees). It’s like a SEP be- cause it requires the business owner to make a tax-deductible contribution to the employee’s IRA, but it also allows employees to personally contribute up to $13,500 each year of their own earn- ings. A SIMPLE IRA, therefore, provides tax-advantaged benefits for both the em- ployer and for employees. 3. 401(k) defined contribution plans:

For larger farms or agricultural em- ployers, a 401(k) defined contribution plan is a retirement savings solution many employees may expect. In to- day’s tight labor market, large employ- ers not offering a defined contribution plan may struggle to attract and retain long-term employees. This savings option permits tax-de- ductible employee contributions up to $19,500 and it also allows but does not require the business owner to make ad- ditional contributions to their employ- ees’ accounts within the plan. Due to the frequent contributions from employ- ees—typically, from every payroll—and to help ensure all tax laws are followed, Schein encourages employers to work with a service provider to administer such plans. 4. Defined benefit plans: Do you own a large farm or agribusiness and wish to save more than what’s allowed by other retirement savings options? A defined benefit plan can be offered in addition to or in place of a 401(k) plan. These plans are the most complex, so you will need to hire an experienced service provider to help with all plan requirements.

When financial planning for farm- ers, consider these retirement savings options for your farm or agribusiness. While the size of your workforce is a ma- jor factor in determining which plan is best, Schein recommends talking to a fi- nancial professional to learn more about your options. “If you are a farmer or own another type of agribusiness and are consider- ing adopting a retirement plan, there are many options. More than one type of plan might be a good fit for you,” Schein said. “Regardless of which option you choose, it is best to get started now. Retirement readiness is critical for you, your family and your employees.” Visit AgInsightCenter.com for re- sources and expert tips on trending topics to help you run a successful business and maintain the safety of your operation. *A.M. Best Market Share Report 2022. Nationwide, the Nationwide N and Eagle, and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company. © 2023 Nationwide

Agricultural Market Review

Quotations are the latest available for the week ending June 21, 2023 Year Ago Week Ago Latest Week Livestock Slaughter Steers – 5-Area Average Select & Choice, 1150–1460 lbs., $ per cwt. 136-137 178 179-180 Hogs – Average hog, 51-52% lean, Iowa-Minn. market, $ per cwt. 112.42 100.86 103.30 Slaughter Lambs – $ per cwt. 125–175 lbs. National weekly live sales 135-194 145-210 150-225 Field crops – basis prompt shipment Barley – U.S. No. 2, $ per cwt. Truck, Stockton-Modesto-Oakdale-Turlock No Quote No Quote No Quote Cotton – ¢ per lb., Middling 1 3/32” Fresno spot market 74.48 78.26 79.10 Corn – U.S. No. 2 yellow $ per bu. trucked 9.31 7.74 8.02 Alfalfa Hay – $ per ton, quality*, FOB Region 1, Northern Inter-mountain 350 (S) 170-180 (G) No Quote Region 2, Sacramento Valley No Quote No Quote No Quote Region 3, Northern San Joaquin Valley No Quote No Quote No Quote Region 4, Central San Joaquin Valley 450 (S) 330 (P) 320 (P/S) Region 5, Southern California 20-22.50 (P, per bale) 22 (P, per bale) 22 (P, per bale) Region 6, Southeast Interior 350-375 (P/S) 290-320 (P) 280 (G/P) Oat Hay – $ per ton, quality*, FOB Northern California, dairy No Quote No Quote No Quote Oats – U.S. No. 2 white, $ per cwt. Statewide, trucked price No Quote No Quote No Quote

SERVICES OFFERED TO FARM EMPLOYERS

 Labor Management Consultant Let a FELS Labor Management Consultant (LMC) be your bilingual, bicultural HR compliance advisor; a “bridge” to your workers.  Access to FELS Employer Hotline and FELS.net Answers to YOUR labor law questions are only a phone call or mouse-click away.  FELS Group Legal Services Plan One hour of FREE legal advice, additional hours at the low FELS subscriber rate.  20% discount on Forms and Supplies Including Employment Notices, Books and Laminated Posters

Serving Agricultural Employers since 1970 LET FELS HELP YOU COMPLY

Dry Beans – Grower FOB prices Baby Limas, $ per cwt, (sacked) Large Limas, $ per cwt. (sacked) Blackeye, $ per cwt. (sacked)

For more information, contact Farm Employers Labor Service

No Quote No Quote No Quote

2600 River Plaza Drive Sacramento, CA 95833 (800) 753-9073

Rice – Milled No. 1 Head, FOB No. Calif. mills Medium grain, $ per cwt. Wheat – U.S. No. 2 or better, winter, $ per cwt. 13% protein, Los Angeles, trucked price

58-62

70-72

info@fels.net www.fels.net

No Quote No Quote Provided by the California Farm Bureau as a service to Farm Bureau members. Information supplied by the U.S. Department of Agriculture’s Market News Branch. * ADF=Acid detergent fiber; (S) = Supreme/<27%ADF; (P) = Premium/27-29; (G) = Good/29-32; (F) = Fair/32-35. No Quote

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16 Ag Alert July 26, 2023