The Bank is Plan B, Not Your Only Plan

by | Sep 27, 2016 | 0 comments

Many say I am too hard on bankers, and most tend to defend their banker in my presence, so I figured it’s time to set the record straight.

I don’t think bankers are bad people.

Just like anyone, I use a bank, and I enjoy my bank because of the people in the bank (and the free cookies). We all need the bank at times and even if we don’t need them today, we may need them in the future.


The bank should be plan B, not the only plan.

From Farming Without The Bank book:

“Every time you get a loan, the bank has control and has rights to your farm collateral. You, on the other hand, just put up your livelihood, leaving you with all the risk. Should you default on the loan, the bank takes your assets leaving you with no way to farm.”

In my blogs, book and speaking engagements I will say things like, “Sorry Mr. Banker.” What I am referring to is the bank board and not the actual loan officer. Loan officers who are lending money to farmers are known as the “banker” yet these employees only have as much power as the bank board allows them to have.


Farmers build a relationship with their “banker,” and this makes them feel secure, and the “banker” lets them feel as if they are in power when in fact neither the “banker” nor the farmer have any power.

All the power is held by the board members and if the members feel a note needs to be pulled it will be pulled. The farmer’s friendly “banker” is now just trying to keep his job.

No matter how secure a farmer feels with their “banker” it’s time to look deeper and realize the bank board holds the farm in the palm of their hands. Just as I discussed in my blog about Joe who lost his farm, he had a great relationship with his “banker,” but the bank itself caused Joe extreme hardship.

None of what I am teaching should be taken personally by the “banker,” but farmers should not be using the bank as the main plan or only plan in their operations because of these reasons:

REASON #1: Farmers and ranchers work too hard to have the bank’s name on the grain or calf check.

REASON #2: Banks live off the interest payment, and farmers suffer the loss of interest that could otherwise go back into their operation.

REASON #3: There’s a better option for farmers and ranchers that work for both big and small operations.

I work with people to help make the bank plan B and sometimes, plan C!

Making the bank the only plan is giving them control that can be detrimental to a farmer. In my opinion, family farms would be a lot better off if control is removed from the bank board and reclaimed by the farmer.

It’s not hard to do, in fact, you can get your answers in a short 98-page book, Farming Without the Bank. If you don’t have it yet, what are you waiting for?

Your livelihood shouldn’t be collateral. Let’s make that happen.

Order the book today and call 701-751-3917 to schedule a free no obligation consultation when you finish reading it.

-Mary Jo



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