Alabama Farm Credit is a cooperative, which means that its borrowers also own its stock. To receive a loan or qualify for financially related services, you must invest in capital stock or participation certificates of the association. This stock investment entitles you to certain benefits and privileges but is not without risk.
Answers to the most common questions about stock investments are included below. If you have additional questions, please contact us.
We make loans to purchase land, refinance existing mortgages and other debts, construct and repair homes and other buildings, make property improvements, construct or improve agribusiness facilities, purchase machinery and equipment, purchase livestock, and finance agricultural operating expenses and other needs.
Yes, we make loans for the purchase, construction and improvement of homes located in rural areas. We also finance rural homesites upon which a home will be constructed in the future. Alabama Farm Credit also offers loans through the secondary mortgage market (Fannie Mae loans).
Anyone owning or purchasing rural property or who is engaged in farming, timber or other ag-related businesses may be eligible. This includes individuals, partnerships and corporations. Additionally, loans may be obtained for financing part-time farms, rural residences or recreational property. Loan approval and terms are subject to the creditworthiness of the applicant(s) and the collateral offered.
Borrowers become part-owners in the association through stock purchases determined by the amount of the loan. Borrowers have the right to vote on co-op decisions, including the election of its board of directors. Because Alabama Farm Credit is a cooperative, profits often are returned to stockholders through patronage or dividends.
Whether you are a young, beginning or small farmer or a large corporation, Alabama Farm Credit can meet your financing needs. Alabama Farm Credit has alliances with other Farm Credit associations to make large, complex agribusiness loans. When assessing a loan application, loan officers consider these primary factors: the individual, financial responsibility, repayment capacity, loan purpose and security offered.
Primarily, the nature of the loan, its purpose and the financial capacity of the customer determine repayment options. Repayments are set up to coincide with the borrower’s cash flow. They also may be paid in installments from farm operations or non-agricultural sources.
All real estate loans must be secured by a first-lien mortgage on real estate, generally on the farm, timberland, agribusiness or rural home that is financed by the loan. Operating, equipment and livestock loans are generally secured by inventory such as crops, livestock, equipment, receivables or other assets of the operation being financed.
We offer an interest-bearing future-payment fund/funds-held account for our borrowers. Interest earned is applied to the interest due on the next loan installment. Borrowers can use the money in the funds-held account to pay loan installments or withdraw it for other purposes.
Our association is part of the nationwide Farm Credit System and is affiliated with the Farm Credit Bank of Texas, located in Austin, Texas. The Farm Credit Bank of Texas provides funding for loans by selling bonds to investors in the nation's money markets.