Farm Credit lenders like Alabama Ag Credit have a unique funding model. Our nationwide network of lending cooperatives reverses the traditional flow of funds out of rural areas by raising money on Wall Street and bringing it to Main Street.
Farm Credit raises funds by selling highly rated notes and bonds in the nation’s money markets through the Federal Farm Credit Banks Funding Corporation. The funds are then put to work in local communities by borrower-owned cooperatives that lend to farmers, ranchers and rural homebuyers.
One type of bond is available to individual investors. Farm Credit retail bonds are issued by the Farm Credit System banks in denominations of $1,000 for fixed-rate bonds and $100,000 for floating-rate bonds. They have maturities ranging from one to 30 years, with most having maturities of at least five years.
The bonds are distributed through more than two dozen dealers. If you are interested in learning more, please visit https://www.farmcreditfunding.com/ffcb_live/debtHowTo.html.
Farm Credit retail bonds are the general unsecured obligations of the Farm Credit System banks, and are not obligations of or guaranteed by the United States or any federal agency or instrumentality, other than the System banks.
The retail bonds are not deposits of a Farm Credit System bank or association, and are not insured by the FDIC or any other U.S. agency. The bonds are subject to investment risk, including the possible loss of principal and value.
This information does not constitute an offer to sell or a solicitation to purchase Farm Credit retail bonds.