While farmers have had several retirement options available to them, such as individual retirement accounts, simplified employee pension plans, solo 401(k)s, and defined benefit pension plans, many lack access to employer-sponsored retirement plans.
There’s been no one-size-fits-all retirement plan solution for farmers, until now. Financial technology firm Vestwell, which offers multiple employer retirement solutions, and Wayne-Sanderson Farms, which produces poultry products under Sanderson Farms and Covington Farms, just partnered to launch the nation’s first retirement savings plan tailored specifically for farmers—a major milestone for an often-overlooked workforce.
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As the third-largest poultry producer in the U.S., Wayne-Sanderson Farms works with over 2,000 family farms, collectively producing nearly a billion chickens a year. Now, these farmers will have access to a Group of Plans (GoP) retirement solution, a type of multiple employer plan that allows multiple small businesses to pool their resources to offer a 401(k) or a 403(b) plan — making it easier and more cost-effective to save for the future.
The Vestwell GoP, which is a 401(k) plan, "is more cost-effective for Wayne-Sanderson farmers than options like IRAs or solo 401(k)s because it leverages group purchasing power to lower investment and administrative costs, something individual plans can’t match," said Aaron Schumm, Founder and CEO of Vestwell. "While IRAs are easy to set up, they come with low annual contribution limits ($7,000) and no access to employer contributions or institutional pricing. Solo 401(k)s offer higher limits but are only available to self-employed farmers with no employees, making them impractical for those with farmhands or staff.
"By participating in this GoP, farmers can contribute more annually (up to $23,500), reduce their administrative burden, and still tailor the plan to fit their farm’s needs, including optional employer matching. Plus, professional support is included to help with setup and compliance, making it a more efficient, scalable option for long-term retirement savings."
This marks a first-of-its-kind effort to close the retirement gap for agricultural workers, one of the American economy's most essential yet traditionally underserved sectors. Farmers work tirelessly to feed the nation, yet many lack access to employer-sponsored retirement plans.
According to the U.S. Department of Agriculture, while many farmers have some form of retirement savings, their overall balances tend to be lower than the national average. Without structured savings options such as retirement, emergency, and education savings, many face financial uncertainty in their later years.
Through this new partnership, farmers working with Wayne-Sanderson Farms can now participate in a GoP retirement program powered by Vestwell and tailored to fit their individual needs. This approach lowers administrative costs and simplifies the process for both farmers and employers, ensuring that farmers can build the financial security they need for the future.
"We care about the well-being of the farmers who play an integral role in our process to deliver the best quality chicken to the marketplace," said Jeremy Kilburn, Chief Legal & Compliance Officer of Wayne-Sanderson Farms. "Our partnership with Vestwell has allowed us to create an opportunity for our farmers to be able to plan for their future. We are proud to support their ability to save for retirement with confidence and peace of mind."
With Vestwell's platform, Wayne-Sanderson Farms, which owns and operates 23 fresh and processing facilities across Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina and Texas, is able to offer its network of farmers a scalable, efficient, and affordable savings program to more easily save for retirement.
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Wayne-Sanderson has appointed a select group of farmers to serve on a dedicated committee tasked with overseeing the execution of the program. This committee will play an integral role in ensuring that the program is implemented in a way that directly addresses the needs of its farmers and delivers value to the farming community.
"Farmers are at the heart of our country, yet they've often been overlooked when it comes to retirement savings … our goal is to ensure hardworking Americans, including those in agriculture, have the opportunity to build financial security," said Aaron Schumm, Founder and CEO of Vestwell.
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Lynn Cavanaugh
Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.
