Explainer: Interest Rates and Terms

We offer loans for farms, rural property, and life in the country at a variety of rates and terms so you can get the financing that fits best.

Learn about the rates and terms that may be available for the kind of financing you need.

Rates

We offer fixed, variable, and adjustable rates, depending on the type of loan you have with us.

Fixed Rates

The interest rate on all fixed-rate loans can be fixed for the full term of the note. This allows you to know your annual interest expense throughout the life of the loan. Agricultural fixed-rate loans are not subject to a prepayment penalty with the exception of large loans where a prepayment penalty is negotiated up-front with the borrower.

Variable Rates

Variable-rate loans have an interest rate that can vary up or down, during the term of the loan. The rate being charged on variable rate loans is tied with a particular “index”. These indexes allow you, the borrower, to judge for yourself, what potential movement there may be in the rate.

Adjustable Rate

Adjustable Rate Mortgages (ARMs) are a special kind of product that combines features of both fixed and variable interest rate products. ARM’s fix the interest rate for a specified period of time, one-year, three-year or five-year. The interest rate is indexed to US Treasury securities. As US Treasury rates move the rate on the ARM may move also, after the initial fixed period.

Terms

Depending on the kind of loan, we offer short-term, intermediate-term and long-term repayment periods.

The length of a loan repayment can range from one month to 30 years, depending on the loan program and rate selected.

Good financial management dictates that loan terms correspond to the life of the operation or asset being financed. For example, seed, fertilizer and other agricultural operating expenses are “used up” when the crop is grown, while items with a very long life, like farm real estate, can support longer terms.

Read about the loan term options that may be right for you, then ask us for more information about the particular loan you need for your operation or country lifestyle.

Short-term Loans (12 months or less)

Short-term loans are intended to cover operating expenses.

Labor, seed, fertilizer, chemicals, equipment repairs and custom work
Feed, electricity and veterinary costs
Other general operating costs
Family living expenses, including college expenses

The interest rates for these loans are competitive. The interest rate options include fixed rates, prime based variable rates and variable rates (indexed to LIBOR).

Intermediate-term Loans (1 year to 10 years)

Intermediate-term loans are for amortization terms of 1 to 10 years.

Real estate purchase
Machinery and equipment purchases
Livestock purchase
Refinancing of short-term debts
Vehicles purchase or refinance

The interest rates for these loans are competitive. The interest rate options include fixed rates, balloon rates, adjustable rates (1, 3 or 5 year), and variable rates (indexed to LIBOR).

Long-term Loans (up to 20 years)

Long-term loans are for amortization terms up to 20 years, or even 30 years if the loan is related to the borrower's primary home.

Real estate purchase
Refinancing long-term indebtedness
Dwelling and facilities construction
Farm improvements
Orchard establishment/replanting
Nursery/greenhouse facilities
Poultry, dairy, or other livestock

The interest rates for these loans are competitive. The interest rate options include fixed rates, balloon rates, adjustable rates (1, 3 or 5 year), and variable rates (indexed to Prime or LIBOR).

< Older Post

Newer Post >

Together We Grow Foundation Awards 11 Scholarships to North Alabama Students

May 20, 2026

The Together We Grow Foundation is proud to announce the awarding of 11 scholarships totaling $27,500 to students pursuing education and careers in agriculture and related fields across North Alabama, reinforcing the Foundation’s commitment to investing in the future of Alabama’s agricultural community. The Together We Grow Foundation was born from a group of young farmers who recognized a growing need for college scholarships to support students entering Alabama’s agricultural sector. What began as a shared concern has grown into a nonprofit dedicated to cultivating opportunity, leadership, and long term success for students across the state. This year’s awards include 10 Young Roots Scholarships and one Cultivating Leaders Scholarship. The Young Roots Scholarship is designed for graduating high school seniors, and the Cultivating Leaders Scholarship supports students graduating from a two year college who plan to pursue a four year degree. Scholarship recipients are selected based on academic achievement and active involvement in their schools and communities. 2026 Scholarship Recipients • Ella Barkley, DeKalb County — Plans to attend Auburn University and major in Animal Science • Kylie Calvert, Cullman County – Plans to attend Auburn University and major in Animal Science • Kiley Cochran, Jefferson County — Cultivating Leaders Scholarship recipient; attends Wallace State Community College and will major in Communications • River Cox, Calhoun County — Plans to attend the University of West Alabama and major in Forestry Technology • Jayden Friedrich, Cullman County — Plans to attend the University of South Alabama and major in Radiology, with a minor in Agricultural Sciences • Jackson Haynes, Cullman County — Plans to attend Auburn University and major in Biological and Agricultural Technology Management • Blaine McDuffa, Franklin County — Plans to attend Auburn University and major in Animal Science • Elijah Miller, Colbert County — Plans to attend Northwest Shoals Community College and major in Industrial Systems Technology • Addison Norwood, Limestone County — Plans to attend the University of Mississippi and major in Legal Studies • Gracie Stidham, Cullman County – Plans to attend the University of Alabama at Birmingham and major in Nursing • Melanie Studdard, Cherokee County — Plans to attend Auburn University and major in Mechanical Engineering The Together We Grow Foundation receives proceeds from Alabama Farm Credit’s Ag Night at the Rocket City Trash Pandas, with VIP ticket sales directly benefiting Together We Grow scholarships. VIP tickets are on sale now for Ag Night, set for June 19 at the Rocket City Trash Pandas stadium. The Foundation primarily raises scholarship funds through community supported events, including Agri Shoot at Selwood Farms, an annual sporting clays fundraiser held each fall, which will take place on September 18 at Selwood Farms this year. Through the support of Alabama Farm Credit and community partners, the Together We Grow Foundation continues to strengthen the future of agriculture by investing in students who demonstrate both academic excellence and a commitment to serving their communities. For more information about the Together We Grow Foundation, VIP ticket sales, or upcoming events, visit thetwgfoundation.com.

Loyd Rutherford Named 2026 Academy of Honor Recipient, Scholarship Established at Auburn University

May 17, 2026

Alabama Farm Credit (AFC) proudly recognizes former board chairman Loyd Rutherford as a 2026 inductee into the Farm Credit Bank of Texas Academy of Honor, the Bank’s highest distinction for leadership and service in agricultural credit. Established in 1968, the Academy of Honor in Agricultural Credit recognizes individuals who have made valuable and significant contributions to agriculture, rural communities and the Farm Credit System. Each year, one deserving individual is inducted into the Academy of Honor, and a one-time $25,000 scholarship bearing the inductee’s name is awarded through a college or university of their choice. Mr. Rutherford has chosen Auburn University as the recipient of the Loyd Rutherford Academy of Honor Scholarship, which will support five students with $5,000 scholarships to further their education and careers in agriculture. A lifelong agricultural producer and business leader, Rutherford was raised on a farm and spent much of his life farming cotton, soybeans, wheat and broilers, while also managing the Lawrence County Exchange, the local farmers’ cooperative known at the time by that name. His deep agricultural roots shaped a career defined by service, leadership and a commitment to rural communities. Rutherford dedicated nearly 30 years to advancing agriculture through his leadership within the Farm Credit System. He served on the AFC board of directors from 1990 to 2019, including more than two decades as chairman from 1995 to 2017. During that time, he helped guide the association through the farm crisis of the early 1990s, significant structural transitions, and decades of sustained growth. He consistently championed stockholder interests and long-term stability while also serving on numerous district and national Farm Credit boards and committees. Rutherford was formally recognized as a 2026 Academy of Honor inductee at the Farm Credit Bank of Texas Annual Meeting, where his steady leadership, hands-on involvement in agriculture and lasting impact on rural communities were celebrated. Throughout his career, he was supported by his wife, Janice Rutherford, whose encouragement and partnership were integral to his lifelong dedication to agriculture and service. The scholarship established in Rutherford’s name reflects both his legacy and the Farm Credit System’s continued investment in the next generation. The funds will be awarded through Auburn University to students pursuing agriculture-related fields of study, helping recipients continue their education and build careers that strengthen rural America.