Banks Are Quietly Changing the Rules — Are You Ready? (Ep. 323)

Banks are already tightening up on ag lending, and that’s your red alarm. This creates instability as banks pull out of lending due to perceived high risk.

Farming Without the Bank – Book & resources: https://www.farmingwithoutthebank.com/book/

Understanding sound farm management and agricultural finance is now more important than ever to mitigate risk management. Let's navigate the ag lending landscape together.

Mary Jo breaks down when (and if) you should use the minimum premium option on policies with Paid-Up Additions (PUA) and why, in most cases, paying the full premium and then borrowing against cash value is the smarter play, especially when banks are pulling back, collateral requirements are rising, and commodity prices are shaky.

If you’ve been tempted to “just pay the minimum” on your whole life premium, this episode explains why that move can quietly cost you years of growth.

She shares a personal $2,000 short-pay mistake that still drags on her policy 16 years later, and revisits Nelson Nash’s strategy during 23% interest rates: premium in, borrow, pay notes down, and migrate debt to the policy over time.

Key Takeaways:

∘Full premium today = more dividends + faster compounding tomorrow 
∘Minimum premium “flexibility” is for worst-case cashflow crunches, not a habit 
∘Policy loans can make tractor/land/operating payments while keeping your policy compounding 
∘Banks pulling back = expect harder renewals + more collateral requirements 
∘Consider how (or whether) to list cash value on bank forms—educate your banker 
∘Nelson Nash moved high-interest bank debt to his policy over ~13 years, start where you are 

📘 Read Nelson Nash’s Becoming Your Own Banker and Mary Jo’s Farming Without the Bank
🗓️ Clients: Email to get on Mary Jo or John’s calendar for a strategy session
✉️ Quick question? Email us and request a call-back
✅ Before you cut premiums, talk it through, don’t starve your compounding

Links Mentioned:
Becoming Your Own Banker – Nelson Nash (official resource): https://www.farmingwithoutthebank.com/product/becoming-your-own-banker/

Farming Without the Bank – Book & resources: <