Confessions of an Ex-Ag Banker: Why the Industry is Failing You

In the world of agriculture, the relationship between a farmer and their banker has traditionally been one of "asking for permission." You walk into the office, present your case, and hope the person behind the desk says yes.

But after years of sitting on the banker's side of that desk, I’ve realized there is a massive disconnect between how farmers see their numbers and how they should be managing their businesses.

The Banker’s Role: Teacher or Transactional?

There’s a debate in the industry: Is it the banker’s job to teach you what your numbers mean?

Personally, I always felt it was. When I looked across the table at my customers, I didn't see "accounts." I saw my parents. I saw people with families and legacies at stake. Because of my farm background, I knew what was on the line. I wanted to make sure they understood the risks they were taking because I’d seen the dark times.

However, many bankers today don't have that background. For them, it’s a nine-to-five. You’re there for financing, they’re there to process a loan, and that’s where the relationship ends. If you rely on them to be your teacher, you're leaving your fate in the hands of a stranger.

The Shift: From "Asking" to "Presenting"

At Legacy Farmer, our philosophy is different. We believe it is the business owner’s responsibility to manage the numbers.

Think about the power shift that happens when you know your data better than the bank does. Imagine wanting to buy a $2 million piece of ground and already knowing exactly what the bank is going to say before you even walk through the door.

When you achieve that level of financial mastery, the dynamic changes:

• Old Way: You are a farmer asking for money.
• New Way: You are a business owner presenting an investment opportunity.

Why Your Numbers Are Your Responsibility

At the end of the day, a banker is an investor. They are looking for a safe place to put capital where it will grow and return. If you can’t explain your numbers, you aren't a business owner; you’re a hobbyist with a lot of debt.

If you don't take ownership of your metrics, you are "kicking the can down the road" and hoping that luck or a good crop year will save you. But hope is not a business strategy.

Final Thought

Don't wait for the bank to tell you if your operation is healthy. By the time they tell you there’s a problem, it’s often too late to fix it. Take control of your data, understand your risk, and start treating your farm like the multi-million dollar business it actually is.