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Central Kentucky Ag Credit FAQs

Ag Credit FAQs

Wondering who can become an Ag Credit member? Want to know more about the Farm Credit System? Trying to learn how to keep in touch? We've got answers to all of your frequently asked questions. 

FAQs

What region is served by Ag Credit?

Ag Credit serves the Central Kentucky region that consists of 17-counties. Counties served by Ag Credit are Boyle, Mercer, Anderson, Marion, Washington, Clark, Fayette, Franklin, Jessamine, Scott, Woodford, Bourbon, Harrison, Montgomery, Madison, Garrard and Lincoln.

Do you need to be a resident of one of the 17-counties to borrow from Ag Credit?

No. A person can live anywhere and can still borrow from Ag Credit as long as the operation or property is located in the 17-county area that is served by the Association. Absentee ownership is common in the Central Kentucky region. 

What is the difference between Ag Credit and Farm Credit?

Ag Credit is part of the nationwide Farm Credit System. The system is comprised of separate, independent intuitions, each covering specific geographic areas. Some of these institutions use the name Ag Credit and some use the name Farm Credit.

What are the advantages to doing business with Ag Credit over other lenders?

Ag Credit is a local lending cooperative, with deep roots in the Bluegrass region. Established in 1934, the Association continues to serve as an independent institution with a focus on customer service and sound credit principles. 

Your Ag Credit loan officer will help you prepare your balance sheet, income statement and other financial documents related to your farm operation. Your loan officer is dedicated to the lending process from beginning to end. This allows you to benefit from their knowledge of your operation’s specific goals and challenges. We won’t pass your financial information to some “far away analysts”. Instead, at Ag Credit, your local loan officer will gather your information, analyze your information and attend your loan closing. 

Ag Credit also puts money back into borrowers’ pockets by sharing association profits. This is called Patronage Distribution and members have benefited from this program to the tune of more than $36 million to date.

How many Ag Credit branches are located in the 17-county Ag Credit service area?

Seven offices are conveniently located in the 17-county area in Danville, Frankfort, Lebanon, Lexington, Paris, Richmond and Stanford. Each office is fully staffed with professional loan officers and loan assistants

Are farmers the only people who can borrow from Ag Credit?

Qualified applicants can borrow from Ag Credit as long as loan funds are used in rural areas, including housing.  Loans can be made for land purchases, recreational properties, livestock, credit lines, machinery, businesses, farm family expenses and a variety of other purposes.

Is there a limit to how much money Ag Credit can loan?

No, there is no lower or upper limit on how much money Ag Credit can loan.  We have hundreds of small loans, and we also have loans for very large amounts of money.

What is a cooperative?

A cooperative structure allows farmer-borrowers to own and control the Association and keeps the Association committed to serving rural credit needs. Congress established the Farm Credit System as a cooperative because it wanted to ensure that the System could fulfill its public mission of providing long-term and affordable credit services to agriculture and rural America. This is an important feature that sets the Association apart from most other commercial lenders.

Who controls operations of Ag Credit?

Members control Ag Credit by electing a Board of Directors who meet regularly to provide oversite and policy direction for Ag Credit operations. The Farm Credit Administration also supervises operations of Ag Credit.

What kind of service fees are charged to borrowers of Ag Credit?

Any fees that are charged to member-borrowers of Ag Credit are discussed and specified when a loan is made. Such charges are consistent with the marketplace. Because the association is a cooperative that is owned by its members, Ag Credit helps member-borrowers by providing the most efficient, low-cost financial service possible.

Does Ag Credit make long-term loans?

Yes. Ag Credit makes long-term loans for up to 30-years, and borrowers can choose from fixed or variable rates. Short-term, intermediate-term loans, credit lines and a variety of equipment and other loans are available.

Does Ag Credit finance homes?

Yes. Ag Credit has a rural home loan program that is especially designed for folks who want to reside in the country. The size of the lot or land on which the home is located is variable according to the wish of the borrower. Ag Credit also provides incremental financing to those who wish to buy land now and build structures later. 

How can I keep up-to-date about Ag Credit happenings?

Ag Credit publishes the Ag Credit Leader, a publication that is sent to all borrowers. Non-borrowers may also receive the Ag Credit Leader at no cost by making a request at any Branch Office. In addition, all quarterly reports, annual reports and news releases are posted on the Ag Credit website in our News section.

What is the Farm Credit System?

The Farm Credit System is a nationwide network of cooperative lending institutions that provide credit and financially related services to farmers, ranchers and their cooperatives.  With more than 100 years of agricultural lending experience, the System is the largest single producer of agricultural credit in the United States.