Questions and Answers

What is an ACA?
An ACA is a financial service provider specializing in loans to purchase, improve and/or operate farms, ranches, recreational property, agribusinesses and rural homes. ACAs are cooperatively owned and locally operated.

What type of loans do ACAs offer?
ACAs offer a variety of loan programs and interest rate plans, with both fixed- and variable-rate loans available. ACAs also offer small-loan programs and loans for young, beginning and small farmers. Loans may be used to:

• Cover operating expenses such as seed and chemicals
• Purchase land
• Refinance existing mortgages and other debts
• Construct and repair buildings
• Improve farm and ranch property
• Construct and improve agribusiness facilities
• Purchase machinery and equipment
• Purchase livestock
• Build a rural home or purchase a rural homesite
• Pay for the family living expenses of the association's member-stockholders
• Meet other needs where term financing is appropriate

Do ACAs make home loans?
ACAs make loans for both the purchase and construction of moderately priced homes located in rural areas. They also finance rural homesites upon which a home will be constructed in the future.

Who can borrow from an ACA?
Anyone owning or purchasing rural property or who is engaged in farming, ranching, timber or other ag-related businesses may be eligible. This includes individuals, partnerships and corporations. People who farm part time also are eligible. Additionally, individuals may obtain financing for rural residences or recreational property. Loan approval and terms are subject to the creditworthiness of the applicant(s) and the collateral offered.

How will an ACA loan benefit me?
Borrowers of an ACA 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.

How much can I borrow?
Whether you are a young farmer just starting out or a large corporation, the association is capable of meeting your financing needs. The association has alliances with other associations to make even 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.

What determines the time or method of repayment?
Primarily, the nature of the loan, its purpose and the financial capacity of the customer determine repayment options. Repayments may be set up to coincide with the marketing of crops or livestock. They also may be paid in installments from farm operations or non-agricultural sources.

What form of collateral is required?
All real estate loans must be secured by a first mortgage, generally on the farm, ranch or rural home that is financed by the loan. Collateral requirements on livestock and equipment loans vary.