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Q -What region is served by Ag Credit?
A -Ag Credit serves the central Kentucky region that consists of 17-counties. Counties served by Ag Credit are Boyle, Mercer, Anderson, Marion, Washington, Clark, Fayette, Franklin, Jessamine, Scott, Woodford, Bourbon, Clark, Montgomery, Madison, Garrard and Lincoln.
Q -Do you need to be a resident of one of the 17-counties to borrow from Ag Credit?
A -No. A person can live anywhere and can still borrow from Ag Credit, as long as the property is located in the 17-county area that is served by the association. Absentee ownership is often seen in Ag Credit lending.
Q -What is the difference between Farm Credit and Ag Credit?
A -Both Farm Credit and Ag Credit are part of the nationwide Farm Credit System. Both offer the same loan products, both are cooperatives and both serve rural areas.
Q -Are there advantages in doing business with Ag Credit over other lenders?
A -Yes. Advantages include personal service, free property appraisals, free financial planning assistance and many other free loan-related services. Ag Credit also puts money back into borrowers’ pockets by sharing association profits. That is called Patronage Refunds and members benefit from that cash-back program. Nearly 6 million dollars have been refunded to borrowers to date.
Q -How many Ag Credit branches are located in the 17-county Ag Credit service area?
A -Six (6) offices are conveniently located in the 17-county area, at Lexington, Richmond, Paris, Lebanon, Danville and Stanford. Each office is fully staffed with professional loan officers and loan assistants.
Q -Are farmers the only people who can borrow from Ag Credit?
A -Anyone can borrow from Ag Credit, as long as loan funds are used in rural areas. Loans can be made for land purchases, vacation home and hobby farm purchases, credit lines, machinery, businesses, family expenses and a variety of other purposes.
Q -Is there a limit to how much money Ag Credit can loan?
A -No, there is no lower limit or upper limit on how much money Ag Credit can loan. We have hundreds of small loans outstanding to both small and large member-borrowers, and we also have loans outstanding for very large amounts of money.
Q -What is a cooperative?
A -Ag Credit is a financial cooperative. A cooperative is part of the American Free Enterprise System, where borrowers automatically own a share in Ag Credit, they have a vote in the operation of the cooperative, and profits in Ag Credit are returned to member-borrowers in the form of Patronage Refunds.
Q -Who controls operations of Ag Credit?
A -Members control Ag Credit by electing a Board of Directors who meet monthly to set policy for Ag Credit operations. The Farm Credit Administration also supervises operations of Ag Credit.
Q -What kind of service fees are charged to borrowers by Ag Credit?
A -Any fees that are charged to member-borrowers of Ag Credit are discussed and specified when a loan is made. Such charges are rare. Unlike commercial banking institutions, Ag Credit does not charge fees for services. Because the association is a cooperative that is owned by its members, thus Ag Credit helps member-borrowers by providing the most efficient, low-cost financial service possible.
Q -Does Ag Credit make long-term loans?
A -Yes. Ag Credit makes long-term loans for up to 20-years, and borrowers can choose from fixed rates, variable rates or adjustable rates. Short-term, intermediate-term loans, credit lines and a variety of equipment and other loans are available.
Q -Does Ag Credit finance homes?
A -Yes. Ag Credit has a Country Mortgages program that is especially designed for folks who want to reside in the country. The size of the lot or land on which the home is located is variable according to the wish of the borrower. Ag Credit also provides incremental financing to families or investors who wish to buy land now and build structures later. Ag Credit can finance everything.
Q -How can I keep up-to-date about Ag Credit happenings?
A -Ag Credit publishes the Ag Credit Leader, a quarterly publication that is sent to all borrowers. Non-borrowers may also receive the Ag Credit Leader at no cost by making a request at any Branch Office. In addition, all quarterly reports, annual reports and news releases are posted on the Ag Credit website, www.AgCreditOnline.com
Q -What is the Farm Credit System?
A -The system is a nationwide network of cooperative lending institutions that provide credit and financially related services to farmers, ranchers and their cooperatives. Today, the Farm Credit System (the system) provides more than $61 billion in loans to more than a half million borrowers, including farmers, ranchers, rural homeowners, agricultural cooperatives, rural utility systems and agribusinesses. With more than 80 years of agricultural lending experience, the System is the largest single producer of agricultural credit in the United States.
System banks and the local associations specialize in agriculture. Since the System was created in 1916, it has evolved with the industry it serves.
Ag Credit is part of the Farm Credit System, as your local association. We are affiliated with AgFirst Farm Credit Bank in Columbia, South Carolina. Ag Credit borrowers have long enjoyed the benefits of doing business with local Ag Credit offices, where people know their business, their community and their market.
At the same time, Ag Credit borrowers enjoy the financial strength and stability of a nationwide system with assets over $90 billion.
Unlike commercial banks, the Farm Credit System and Ag Credit do not take deposits. Instead, money is raised by selling Systemwide bonds on Wall Street. The proceeds are then channeled through Farm Credit System banks, associations and ultimately to agricultural producers and cooperatives. From Wall Street to your street, Ag Credit is serving agriculture.
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