The Ag Credit Crisis is Here: Is Your Legacy at Risk?

Most farmers are walking into 2026 with a blindfold on.

They think because they’ve been with the same local bank for twenty years, they’re safe. They think a handshake and a "how’s the family" still means their operating line is secure.

Here’s the reality: Ag banks and creditors across America are starting to shut down operating lines right now.

They aren’t just tightening the belt. They’re giving long-time, well-established customers until the end of the year to find a new source of financing. If that sounds like a death sentence for an operation, it’s because—for those without clarity—it is.

The Ag Credit Crisis isn't a "maybe" anymore. It’s here. And if you aren't paying attention to the red flags inside your own bank, you’re putting your family’s entire future at risk.

The Danger of the "Easy" Banker

Since 2020, we’ve seen massive appreciation in real estate and commodity prices. It made everyone look like a genius on paper.

Lenders got lazy. They started making loans based strictly on equity—specifically, unearned equity from rising land values—instead of actual cash flow.

Just because your banker says you can borrow the money doesn't mean you should.

When a bank has relaxed lending standards and doesn't do their due diligence, they aren't "being nice." They’re being careless. Now, hundreds of these banks are in hot water with federal regulators because they took on too much risk. When the regulators move in, the bank moves out of the ag business—and they’ll drop you on your ass to save themselves.

The Warning Signs You’re Ignoring

If you want to protect your legacy, you have to vet your lender as hard as they vet you. Watch for these red flags:

• The "Same Old Story" Renewal: If your loan officer asks for a half-assed balance sheet and tells you to just "initial next to last year's values," run. They aren't digging into your numbers because they don't know how, or they don't care.
• No Month-by-Month Projections: An annual cash flow projection is a guess. A month-by-month projection is a plan. If your bank doesn't demand the latter, they don't actually understand the risk of your operation.
• The Collateral Trap: Most farmers have no idea what they’ve actually signed. We see it constantly at Legacy Farmer—members realize their bank has a "blanket security agreement" on assets they didn't even know were on the table.

Your Operation, Your Responsibility

The truth is, you can’t outsource the financial soul of your business to a loan officer who might not be there next year.

You need to know how they performed at their last bank exam. You need to know exactly which assets are tied up in mortgages and security agreements. If the bank is taking zero risk because they’ve over-collateralized your land, why are you still paying high interest rates?

Legacy Farmer members don't walk into banks asking for permission. They walk in with authority. They know their numbers cold, and they know the inner workings of the bank.

If their current bank won't play ball, they have the clarity and organization to take their business anywhere else and get a better deal.

Protect What You’ve Built

The "easy money" era is over. You’re either going to learn how to manage your credit the easy way—by getting organized now—or the hard way, when your bank shuts you down in the middle of a season.

Your kids and grandkids are counting on you to be a leader, not just a laborer. That starts with taking ownership of your financials.

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