Think of a captive as your farm's personal insurance company. You pay premiums to your self-owned captive, which then provides coverage for the specific risks to your operation–and you keep the insurance company profits..
A captive insurance company, entirely owned and controlled by the farmer or farming operation, offers:
- Smart, High-Value Investment: Combines long-term financial stability with strong return potential and great value for the cost.
- Customized Risk & Cost Management: Tailored coverage helps control costs, manage risk more effectively, and even generate underwriting profits.
- Wealth Building with Tax Advantages: Enables asset accumulation while leveraging significant tax efficiencies and smoothing generational transfer.