Frequently Asked Questions

After board approval, our cooperative distributes earnings (minus expenses and reserves) to stockholders. For borrowers, this means getting back a portion of interest paid, which reduces your cost of borrowing.

A: Alabama Ag Credit is a borrower-owned cooperative, not a traditional bank. That distinction shapes how we operate, how we serve our customers, and how we reinvest in rural communities.

1. We’re a Cooperative, Not a Bank

When you borrow from Alabama Ag Credit, you become a member-owner. That gives you voting rights, a voice in how we’re governed, and eligibility for patronage refunds. Traditional banks serve outside shareholders. We serve you.

2. We Return Profits to You

Each year, we return a portion of our earnings to our borrower-owners through patronage refunds. This reduces your effective interest rate, something traditional banks don’t do. At Alabama Ag Credit, our profits come back to the people who helped generate them.

3. We Specialize in Rural and Agricultural Financing

Unlike banks that try to do it all, we focus solely on:

• Land and recreational property loans
• Farm and agribusiness financing
• Rural homes and homesites
• Livestock, equipment, and operating lines of credit

That means you work with lenders who understand farming, forestry, and rural property from the ground up.

4. We Don’t Take Deposits

We’re not a depository institution. That means we don’t offer checking or savings accounts, and we don’t compete with your local bank or credit union for deposits. We’re a lending partner, not a full-service retail bank.

5. We’re Backed by the Farm Credit System

Alabama Ag Credit is part of the nationwide Farm Credit System, created over a century ago to support rural communities and agriculture. Our funding is stable, mission-driven, and focused entirely on rural America.

6. We Build Long-Term Relationships

Our team lives and works in the communities we serve. We’re relationship lenders, not one-size-fits-all bankers. You’ll work with someone who understands your goals, your land, and your legacy.

When you borrow from Alabama Ag Credit, you become more than a customer, you become a co-op owner. That means voting rights, a voice in elections, and a share in our annual profits.

Your stock is your ownership share in the cooperative and fully refundable once your loan is paid off.

We lend to full-time and part-time farmers, land buyers, rural homeowners, and anyone involved, or planning to become involved, in agriculture or rural property ownership. Approval is based on creditworthiness.

No. Although many borrowers are farmers, we also finance rural properties for non-farming individuals.

Yes. We offer financing for purchasing, constructing, and improving rural homes, including homesite loans for future home construction.

No. We finance land, rural homes, agricultural operations, livestock, equipment, and agribusiness needs. If you're a full-time farmer, we also offer a wide range of credit solutions.

Real estate loans require a first-lien mortgage on the financed property. Operating, livestock, and equipment loans are typically secured by crops, livestock, equipment, receivables, or other business assets.

At Alabama Ag Credit, the amount you’re eligible to borrow isn’t just a number—it reflects our shared commitment to your success and the prosperity of rural communities.

We tailor financing based on:

• Your financial strength: We assess your credit, income, and overall financial health.
• Your repayment capacity: We look closely at how your cash flow and operation can support timely repayments.
• The value of your collateral: Real estate loans require a first lien on the property; operating, livestock, and equipment loans are secured by farm assets such as crops, livestock, inventory, machinery, and receivables.

Rates vary based on loan type, term, and borrower profile. In addition to competitive initial rates, your patronage refund contributes to lowering your effective borrowing cost. Contact a loan officer for personalized pricing.

Visit our loan application page for a checklist of required items, or reach out to a loan officer for a personalized walkthrough. Click here to continue. 

While you can mail your payment to the below address, we encourage all customers to setup payments on ABOL.

Mailed Payments:
P.O. Box 242907
Montgomery, AL 36124

We offer alternatives such as online/mobile banking and automatic payments. You can also make debit card payments directly here.

It’s your secure, 24/7 online portal, designed for easy access to your loan balances, payment options, and year-end tax documents.

Get started via our website or contact your loan officer for assistance with enrollment or resetting your credentials.

Yes, our mobile app (available on iOS and Android) brings your account right to your phone.

Our Customer Service team is here Monday–Friday, typically responding within one business day. Call us at 334-270-8687 or submit a help request online.

Our funding comes from the sale of highly rated Farm Credit notes and bonds, issued through the Federal Farm Credit Banks Funding Corporation, representing all Farm Credit institutions, including our funding partner, Farm Credit Bank of Texas.

You’re not just a borrower, you’re a cooperative member. With a legacy in the Farm Credit System, we’ve supported Alabama’s agriculture, landowners, and rural residents with time-tested financial solutions, community-first service, and shared financial benefits since 1916. Whether you’re growing a farming operation or building your dream home on the land, we’re here to help you succeed.

Quick Access Links:

Start a Loan Application →
Find a Loan Officer →
Digital Banking Help →

Because we’re owned by our customers, we return capital to members through dividends, stock reductions, and patronage refunds, this one-of-a-kind cooperative model lowers your overall borrowing costs.