Ladies and Gentlemen,

I have received many phone calls about Farmers’ recent commission cuts announcement and how that commission cut will negatively affect the agency force and their families. We are all painfully aware that agents cannot force FGI to pay a reasonable and livable commission. UFAA will certainly broadcast the feelings of the agency force to FGI on this matter. In the meantime let us pivot to a positive message by offering a possible alternative to offset the loss of commissions.

In talking to agents over the past year and especially recently, I have found that many of them have decided to boost their income by selling supplemental Medicare benefits.  it seems to be highly lucrative and actually very simple. It’s regulated and you get a commission off of each sale. Most people will stay with you as long as you call them once a year and advise them as to whether their plan is still the best plan to be with or switch to a different plan. The commission is a guaranteed fixed amount, I have talked to several agents and friends who sell this product and many of them are making in excess of $200,000 a year. So it isn’t a solution to everything that’s wrong, but it is an opportunity to pivot and not watch your income evaporate if you are solely reliant on income from Farmers.

Tom Schrader
President
United Farmers Agents Association