Verified FBN Member (OK)

General

Does anyone have experience with the strategy of Farming Without the Bank?

The Infinite Banking Concept and Farming Without The Bank are interesting concepts.

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Verified FBN Member (IL)

We are now a year into a policy. Here's how's it has gone for us so far:


As younger farmers we took out a policy on our dad. Hopefully we'll get one on our mom soon too. Right now the LLC has term policies out on each of us members just in case something happens and spouses need to be bought out or people need to be hired, other expenses, etc.


For the Dividend paying Whole Life with PUA Rider y...

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Verified FBN Member (AB, CAN)

There seems to be a mix of concepts in this discussion. Literally farming without bank (ie. debt free farming), and the Infinite Banking Concept (the book called Farming without the Bank, and ******’s book).


Actually, and correct me if I’m wrong, but it seems more people’s here have just focused on getting out of debt, so that they don’t need the bank. Most of the comments on here about IBC just...

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Verified FBN Member (WI)

Agree! Saying it makes sense without actually doing it is like saying I think a new tool works great and maekes sense without having ever used it. Colleges, financial institutions,, county ag agents, are full of people with helpful advice that have never had their own skin in the game🤔.


Verified FBN Member (MN)

Read ****’s book…read ******’s book. It makes sense.

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Verified FBN Member (MN)

I'm on my 6th year of farming on my own renting 100% of land and buildings and I haven't found a bank or Farm Credit within 200 miles that will back me to buy the homestead I need to continue, one being at least 50 miles from a big Metro (currently 22 miles from Downtown Minneapolis my county seat) so I have 2 outside cash streams of Welding(most profitable) and Trucking. I've read the Farming wit...

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Verified FBN Member (OR)

What about FSA?


Verified FBN Member (KS)

Really the only downside is that it takes 5-7 years for your cash value life insurance policy to be with what you have paid in.


The principles are sound, but the insurance company has to make money too. If you could become an insurance agent and sell yourself a good policy (not all policies/companies work well for this purpose) and get the commission, this is a no-brainer.

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Verified FBN Member (ND)

Until the light bulb idea of “becoming a licensed agent” to be able to keep the commission on the life insurance sale I was skeptical. This may take more intellectual sweat equity to learn the system inside and out. I am going to investigate further.


Verified FBN Member (IL)

Read the book and listen to her podcast. Amazing strategies and finance tips.


Verified FBN Member (KS)

Yes I started 8 yrs ago started by buying cows then bought 130 ac of land for great price cows paid off land 7 yrs had another farmer farming 30ac of that 130 for 2 years then I took over have been farming for 3 now I did borrow 50000 to buy tractor pd that off I bought another tractor and nw combine 1st year of farming debt free and equipment total for all equip was 15000 debt free after 3 year I...

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Verified FBN Member (IL)

Well, this post got me doing the research. I listened to different podcasts about Infinite Banking, read her book, and watched some Youtube vids.


I think I would describe Farming without the Bank/ IBC with whole life insurance as a high yield savings account that you can take out a loan against, with a death benefit. Definitely something that would take a few years to get up and going, but doabl...

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Verified FBN Member (WA)

What if you miss a payment? It sounds like a great idea, but just wait until you stop paying and you'll find out who's money it really is. My Grandpa found this out in his old age (it's all gone). Perhaps that little hiccup changed.

Verified FBN Member (SD)

How has it turned out ?

Verified FBN Member (IL)

Meeting is scheduled for early Sept. I'll let you know.

Verified FBN Member (UT)

Let us know how it goes


Verified FBN Member (WA)

I should also mention there are lots of guys in our area that run million dollar plus operations without a bank.


Verified FBN Member (WA)

(edited)

We also farm without a bank. We run about a $2 million a year operation. My father and I work more than a man should have to, and our equipment is not new but we get the job done.

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Verified FBN Member (MI)

We haven't had a lender in 20+ years. Been cash flowing it and only buy equipment upgrades when funds allow it. Farm 2500 acres, we may be using 5+ year old equipment but gets the job done. Seems to be the guys with the brad new stuff owe more then their worth.

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Verified FBN Member (SD)

5 year old equipment is pretty much like new, unless it wasn't maintained.


Verified FBN Member (MI)

Read the book and study concept. I am using it not only for my self, but future generations. Don’t just read her book, but others in reading list before you decide.

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Verified FBN Member (KS)

Read ***********’s book “becoming your own banker”. The concept can take awhile to grasp, but it’s a great one. It’s not something that is going to just happen over night. It’s a concept that has been around longer than the federal reserve.

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Verified FBN Member (SD)

I would rather struggle with a bank than without. An opportunity will eventually lend itself and if you have no lender backing, it would be a struggle on short notice to get funding.

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Verified FBN Member (OR)

Have not used a bank for at least 20 years except to buy a piece of equipment once in a while. Spent several years filling out paper work for operating loan and paying $500 a year and never use it.

Although i thought we might have to this last year but didn't need too thank goodness.


Verified FBN Member (MN)

I think there can be ways to farm without a banker. From experience with paying high interest rates in the 1980s, it takes a lot of work just servicing small debts. But, the key to debt management is to use it as a tool and only for things that have a high enough return to service the debt plus a reasonable return to labor and management. Raising commodities only is always going to net over ti...

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Verified FBN Member (PA)

Well said *****, it feels like we are working for the suppliers and breaking away from them can be difficult


Verified FBN Member (NE)

It is in my opinion unrealistic to farm without a lender or banker. we started out in 1990 and developed strong open and honest relationship with our lenders,backed up by excellent accurate financial statements. we have used our credit to maintain operations and keep accounts current when production or prices were poor.more importantly as our farm grew we new we had our lender behind us if we came...

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Verified FBN Member (TX)

Agreed 100% this year with bad rates we got 6.75 at our bank and that’s still amazing compared to our nutriens 6%.....fine print an extra 4.5% totaling 10.5%. We went to 100% bank financing years ago


Verified FBN Member (IA)

The author, *************, provides free preliminary conversations to explain the strategy and applications. She utilizes properly structured whole life insurance policies as the foundation. I found a local financial advisor to get me started. First year seemed to be financially strained, second year gained confidence as I took a loan against paid up additions which retain 3-10% interest on paper....

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Verified FBN Member (MN)

Nearly all whole life insurance products are both a terrible "investment" and a terrible way to "insure". The idea of using them to "bank" is equally terrible, imo. Why? Because nearly all whole life insurance policies cost you significantly in the form of premiums/fees paid to the advisor and policy issuer. Also, ready the fine print and find out what happens to your "cash value" when you die... ...

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Verified FBN Member (IA)

I was wondering on that too. Of course she didn't want to answer those types of questions without setting up meeting was hoping to get them answered through email so I could decide if system would work for me. Did setup a meeting but was spraying and completely forgot about it. Her book didn't go into detail enough for me, it said nothing about paying interest.

Verified FBN Member (IL)

I've heardfrom one of her podcasts that it varies but seems to be around 4-5%. My question is, does the interest you pay go into your account? Because it almost sounds like it does.. I was under the impression that was part of the point. Instead of the bank getting the interest you get to keep it.

Or is it maybe made up in the dividends you get?

Verified FBN Member (IA)

What % interest do you pay insurance company when loan is taken against policy? I emailed her a bunch asking questions but she wouldn't answer this one and it was one I really needed answered.

Verified FBN Member (IA)

I am now expanding on the paid up additions which have expected returns on cash value and access. I can take a loan against it or have a local private bank use it for a Line of Credit. The LOC can back up the business or farm account. Advisor says "you don't need extra income, just cash flow." It brings interest rates down while increasing ROI for beneficiaries.

Verified FBN Member (OK)

Farming Without the Bank

Verified FBN Member (NE)

What's the name of the book?


Verified FBN Member (WA)

My dad's family was ready to sell out and move but dad really wanted a shot at reviving the failing business and convinced them to give him a shot. This was not an easy task because of previous debts, outlandish interest rates and providing for a young family. He hated paying 18% to the bank and decided he needed to be his own bank in order to survive. It is definitely a process and requires fisca...

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