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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.

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.

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.