Legacy Farmer Blog

In agriculture, there’s a common belief: farming more acres equals more profit. It sounds logical—more land should bring in more revenue, right? But in reality, this mindset can often backfire. Many farmers fall into the trap of thinking that expanding acreage is the key to increasing their bank accounts, yet, for those who aren’t carefully tracking their financials, more land can actually lead to more risk.

In today’s economy, it’s no secret that farmers, ranchers, and agricultural business owners are facing significant financial challenges. Concerns include fluctuating prices of goods, rising operational costs, and the added difficulty of working with banks that may themselves be navigating troubled waters. In this blog, I want to discuss the key factors that can help you maintain a strong relationship with your bank during these challenging times.

As the farming industry continues to evolve, one of the biggest challenges we face is the resistance to change. While farming has historically passed from one generation to the next, the mentality of “this is how we’ve always done it” has become a major obstacle to growth and innovation. This mindset, deeply rooted in tradition, is holding farms back and is the #1 reason so many farms end up going bankrupt.

If you’re part of the first or second generation in farming, you probably understand the deep connection to the land. It’s more than just dirt—it represents your legacy and your family’s future. So, when a piece of ground comes up for sale, especially if it’s right next to your operation, it’s hard to resist. I’ve seen it time and time again: the urge to buy land, even when the finances don’t quite add up.

Do you feel like your bank has your back against the wall? If so, you are not alone. After working with over 300 family farm operations in the past five years, I can tell you with full confidence that many people feel this way. There are huge gaps in knowledge when it comes to understanding how the bank views your operation, interprets your numbers, and makes decisions. I’ve seen it firsthand. If you’re tired of feeling this way—which I’d bet you are—then this is the blog for you. I’m going to go over three points that will help you rethink your relationship with your bank. By the end of the blog, you’ll have a better understanding of how the bank operates and how you can leverage this knowledge to your and your farm operation’s advantage.

As a farmer, you hold more than just the title to your land—you hold the future of your operation, and ultimately, your family's legacy. The choices you make today will decide whether your farm continues to thrive for generations or die with you. 

When it comes to family farms, the stakes are extremely high, and the decisions you make today can shape the future for generations to come. If you’re a farmer, you might already know that there’s more to managing your farm than just planting crops and tending to livestock. One critical aspect that almost always gets overlooked is estate planning—specifically how you divide your assets among your children.

Your entire life, you’ve grown up working on the family farm, eager to take it over one day. Now, imagine you’re 20 years old, fresh out of school, and more than ready to return to the family farm. Your parents tell you that you’ll start getting responsibilities in a few years, and eventually, the farm’s assets will follow. Sounds promising, right?

Deciding how to pass down your family farm can be one of the toughest decisions you face. Many farm owners want to be fair and divide the farm equally among their children. While this seems like the right thing to do, it can sometimes lead to problems that might put your farm’s future at risk.

Every year, countless family farms face the heart-wrenching reality of closing their doors. Understanding why this happens can be the first step toward ensuring your farm doesn’t become another statistic. Here are the three critical reasons most farms fail—and what you can do about them:

Are you prepared to start tax planning? Unfortunately, 99% of the agriculture industry is not. In fact, the majority of farm operations I speak with don’t have their finances organized at all. They begin tax planning close to the deadline, which leaves them stressed, anxious, and unable to enjoy the holidays. This is what we call reactive tax planning, and it has led to the downfall of many farm operations.

Every farmer I talk to worries about their income. Some are struggling to make enough money, while others fear that a good year could end at any moment. I get it—I've been there too.

Dave Ramsey’s philosophy is clear: debt is bad, and his advice on paying it off works well for W-2 employees. But is this approach suitable for everyone, especially farmers and ranchers? I've had several customers compare me to Dave Ramsey, but I approach financial advice very differently, especially when it comes to the ag industry.

Feeling frustrated as you watch your neighbors succeed while you’re struggling? It might be time to face the tough truth: your financial practices could be the problem. Some farmers thrive because they meticulously track every dollar, while others are just hoping for the best and risking failure. If you’re not keeping a close eye on your finances, you’re making a costly mistake. Are you ready to take control and join the top 25% who manage to thrive no matter the market conditions?

In this blog, we dive into the tough decisions family farmers face when it’s time to pass down the operation to the next generation. We talk about the common issues, like dividing assets among kids, and share practical tips to keep the farm sustainable. By planning ahead and encouraging entrepreneurship within the family, you can protect your farm’s future and ensure your legacy lives on for generations.