Frequently Asked Questions

Alabama Ag Credit is part of the Farm Credit System, a nationwide network of financing cooperatives that have a mission to support agriculture and rural communities with reliable, consistent credit and financial services.

What are the financial benefits of borrowing from Alabama Ag Credit?

As a cooperative, Alabama Ag Credit is owned by its customers, who share in its financial success through capital distributions such as dividends, stock reductions and patronage refunds. This effectively reduces the cost of doing business with the co-op.

What is a patronage refund?

Alabama Ag Credit follows the fundamental cooperative principle of sharing its earnings with its member-owners when it does well.

Upon the approval of our borrower-elected board of directors, the cooperative distributes earnings — minus net expenses and necessary reserves — to its stockholders. For customers, this patronage refund is like getting back a portion of the interest they paid on their loans the previous year, effectively lowering their borrowing costs.

Learn more about Alabama Ag Credit’s patronage program.

Who is eligible to borrow?

Eligible applicants include commercial farmers, part-time farmers, land buyers, rural homeowners, and any person or legal entity who is involved or plans to become involved in agriculture or in the ownership of agricultural or rural property. Loan approval and terms are subject to applicants’ creditworthiness.

Do I have to be a farmer to get a loan with Alabama Ag Credit?

No. While a high percentage of our borrowers are farmers, we also lend to a variety of individuals for rural property.

Does Alabama Ag Credit make home loans?

Yes, we make loans for the purchase, construction and improvement of homes located in rural areas. We also finance rural homesites upon which homes will be constructed in the future.

Learn more about our financing for homes and homesites.

Does Alabama Ag Credit make payday or personal loans?

No. We finance land, rural homes, agricultural operations, agribusinesses, livestock and equipment. In addition, full-time farmers are eligible for a broad array of financing for agricultural, family or other credit needs. If you have questions, please contact an Alabama Ag Credit location near you.

What collateral is required?

All real estate loans must be secured by a first lien mortgage on real estate — generally the farm, ranch, agribusiness facility or home that is financed by the loan.

Loans for operating capital, livestock and equipment are generally secured by crops, livestock, equipment, receivables or other assets of the operation being financed.

How much can I borrow?

A borrower’s financial strength, repayment ability and collateral will determine the total loan amount. Applicants should plan to invest at least 20 percent of their own capital on:

  • Loans for real estate purchases
  • Loans secured with chattel such as livestock or equipment

What are your current interest rates?

Many factors determine the interest rate on a loan, including the type of loan, the loan term, the borrower’s credit history and more. In addition to receiving competitive rates up front, customers share in Alabama Ag Credit’s earnings through the cooperative’s patronage program, which effectively reduces their borrowing costs. Please contact a loan officer near you for details on loan pricing.

What do I need to begin the loan process?

You can find a list of items needed when you complete your loan application. You can also contact a loan officer to discuss your financial plan and get step-by-step guidance through the loan process.

Where do I mail my payment?

Convenient alternatives to mailing in your payment include our online and mobile banking service and other cash management services that let you set up automatic payments. Click here to find all the options.

If you’d still like to mail your payment, you can send it to:

P.O. Box 242907 Montgomery,

AL 36124

Do you accept loan payments over the phone?

We offer several convenient alternatives to making a loan payment by mail, such as online banking, our mobile banking app, and cash management services that let you set up automatic payments. Click here to find all the options. Customers may use our FastCa$h service to make payments over the phone. To sign up for this feature, contact your local branch. We do not accept debit or credit card payments over the phone.

Where does Alabama Ag Credit obtain funds to make loans?

Alabama Ag Credit’s funding comes from the sale of highly rated Farm Credit notes and bonds on the nation’s money markets. The securities are issued by the Federal Farm Credit Banks Funding Corporation on behalf of all Farm Credit institutions, including Alabama Ag Credit’s funding bank, Farm Credit Bank of Texas.

Learn more about Farm Credit’s cooperative structure and funding model.