Written by Bethany Funkhouser, Area Agribusiness Agent
Edited by Charley Maxwell, Area Agribusiness Agent
Every day in life, something happens that we didn’t expect. Sometimes these are small, minuscule things that we might not even recognize, and at other times, those unexpected events turn our world upside down and change the course of our lives. We never know when these events will happen, and we can never be fully prepared to handle these situations. But we can take extra measures to help prepare for the unexpected. As an agribusiness owner, you must account for all your business details on top of your personal information. While nobody wants to think of events happening that anyone would need to know all this information, I urge you to focus on your family instead. If you are in a situation where you can’t tend to your business, focus on your family instead of the idea of the events that could take place. Think of how your family will pick up the pieces. Consider valuable information that can ease the burden for your family.
We are going to break this information into two categories. We have personal information and farm information. Let’s start by looking at what personal information you should have documented and stored in a safe place if someone needs to access it in an emergency.
Basic Personal Information:
First, think of the basics. Your birthday, social security number, personal phone numbers, address(es), driver’s license information, church affiliation, etc. It would be beneficial to include the same information for your spouse. Also include basic information for your children, such as names, numbers, and addresses. We also want to include usernames and passwords to social media accounts, which include emails and Dropbox.
Personal Bills/ Contacts:
Next, we want to think about bills and contacts. Include a list of all your bills in your name and any login information to access more details. An example would be insurance. If necessary, include the name, contact, policy number, and login information. Also, list finances such as bank account(s) information, credit cards, and investments.
Personal Documents:
We want to compile personal documents such as your birth certificate, marriage certificate, social security card, power of attorney documentation, and wills/ trusts—financial statements, vehicle titles, etc. There is a very good chance that you already have these documents in a safe and secure place. There is no need to move them or make additional copies, but you can list the location where they are stored and any passwords needed to access them.
Personal Assets:
We should also include assets and anything of extreme value to you/ and or your family. This can include things like homes, land, vehicles, jewelry, antiques, and more. You should include where the asset is located, the title, value, and any other pieces of information that might be useful.
Medical Information:
Lastly, we will include medical information such as your current medication, allergies, pharmacy, and any doctors you visit.
This might seem like a lot of personal information to gather, but remember, you already have most of this information somewhere, and including your personal information in your files might help in a situation you can’t.
Now, we are going to prepare information for the farm. First, you should have your business structure information, such as your agribusiness name, what structure you operate under, tax ID information, and any other owner(s) information. Make sure you include all businesses you have ownership of.
Farm Finances:
Next, we want to include our farm finances. This would consist of any lines of credit you have, insurance policies, loans/ mortgages, and bills paid through the farm.
Farm Documents:
This is where a lot of information will be stored. First, we can look at financial documents such as accounts receivable and payable, tax returns, balance sheets, income statements, etc. If this information is overbearing for this section, you can always add it under farm finances. Next, we should include documents such as contracts and leases, including conservation contracts, grain contracts, machinery lease agreements, and even your pesticide license or any other certifications you keep for your farm. Lastly, we want to consider property documents, including a map of the farm with everything labeled, repair manuals, and keys (properly labeled). Consider including other documentation crucial to running and/ or managing your farm.
Farm Contacts:
Now, we can move on to farm contracts. This section should include anyone who helps keep your farm running daily, monthly, or yearly. Everyone from your loan officers, financial advisor, government agencies you work with, and specific vendor contacts. Having these contacts on hand can make a significant difference for someone who has never worked directly with them.
Farm Inventory:
Next, we need a list of all the inventory on the farm, including equipment, machinery, buildings, animal/ grain inventory and all other assets. Include item description, model number, purchase price, year purchased, ownership value, and where it is located. Like much other information we are compiling in this file, it is probably already stored elsewhere. If it is more convenient, you can find the information instead of relisting it.
Tasks and Duties:
Lastly, list tasks that must be done for your farm to continue running. When adding these tasks, list what they are, when they are done, who usually does them, and where (if more information is needed).
There is always more to consider, such as employees and unique things that keep your farm running. Ideally, we want to update this information when anything changes. At the least, the information should be checked thoroughly and updated every six months to a year if there are no major changes.
It is best to keep all this information in a space that is easiest and most accessible to keep updated. One beneficial resource is Purdue University’s Code Red Excel file: https://ag.purdue.edu/department/extension/wia/codered.html. The Excel file contains tabs to include everything listed above and then more. With this Excel, you can also make it password protected. Always give a copy to your spouse, lawyer, or someone you trust, and leave a copy in a lock box.
