Frequently Asked Questions
What is an ACA?
An ACA, or Agricultural Credit Association, is a Farm Credit financial service provider specializing in loans to purchase, improve and/or operate farms, ranches, recreational property, and agribusinesses. ACAs are cooperatively owned and locally operated.
What type of loans does Ag New Mexico FCS offer?
Ag New Mexico FCS offers a variety of loan programs and interest rate plans, with both fixed- and variable-rate loans available. We also offer small-loan programs and loans for young, beginning and small farmers (YBS). Loans may be used to:
Cover operating expenses such as seed and chemicals
Refinance existing mortgages and other debts
Construct and repair buildings
Improve farm and ranch property
Construct and improve agribusiness facilities
Purchase machinery and equipment
Pay for the family living expenses of the association's member-stockholders
Meet other needs where term financing is appropriate
Who can borrow from Ag New Mexico FCS?
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 and the collateral offered.
How will an Ag New Mexico FCS loan benefit me?
Customers of Ag New Mexico FCS become part-owners in the association through stock purchases determined by the amount of their loan. They also 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 required?
All real estate loans must be secured by a first mortgage, generally on the farm or ranch that is financed by the loan. Collateral requirements on livestock and equipment loans vary.