What is Capital Farm Credit?
What is an Agricultural Credit Association?
What does it mean that Capital Farm Credit is cooperatively owned?
Who operates the association?
Who is eligible to borrow?
What types of loans does Capital Farm Credit make?
Does Capital Farm Credit make home loans?
What collateral is required?
How much can I borrow?
What are the financial benefits of borrowing from Capital Farm Credit?
Does the association accept deposits?
Where does Capital Farm Credit obtain funds to make loans?

What is Capital Farm Credit?
Capital Farm Credit is an Agricultural Credit Association (ACA) headquartered in Bryan, Texas. We have 35 offices conveniently located throughout Central, West, South, Southeast, and Southwest Texas due to the October 1, 2006 merger with Southwest Texas ACA.

What is an Agriculutural Credit Association?
An Agriculutural Credit Association, or ACA, is a financial service provider specializing in loans on farms, ranches, timberland, recreational property, agribusinesses, rural homes, agricultural equipment, livestock and agricultural operating capital. ACA's are cooperatively owned and locally operated.

What does it mean that Capital Farm Credit is cooperatively owned?
Everyone obtaining a loan through Capital Farm Credit becomes an owner of the association through the purchase of stock equal to 2 percent of their loan amount or $1000, whichever is less. Funds for the stock can be included in the loan. Ownership of this stock gives you the right to participate in the business affairs of the association, including election of the board of directors. Traditionally, borrowers are paid patronage and/or dividends, which further reduces the cost of borrowing for our customers.

Who operates the association?
Capital Farm Credit is directed by a board elected by the stockholders of the association. The directors employ professional personnel to manage the operations of the association and oversee the association's fiscal responsibility through an audit committee. The association operates under policies and procedures adopted by the board of directors and management team.

Who is eligible to borrow?
Any person or legal entity who is involved or plans to become involved in agriculture or in the ownership of agricultural or rural property is eligible to apply for a loan. Loan approval and terms are subject to the creditworthiness of the applicant.

What types of loans does Capital Farm Credit make?
We make loans to purchase land, refinance existing mortgages and other debts, construct and repair homes and other buildings, make property improvements, construct or improve agribusiness facilities, purchase machinery and equipment, purchase livestock, and any other need where financing is appropriate.

Does Capital Farm Credit make home loans?
Yes, we make loans for the purchase, construction and improvement of homes located in rural areas. We also finance rural home sites upon which a home will be constructed in the future.

What collateral is required?
All real estate loans must be secured by a first lien mortgage on real estate; generally on the farm, ranch, agribusiness facility or home that is financed by the loan. Operating, equipment and livestock loans are generally secured by inventory such as crops, livestock, equipment, receivables or other assets of the operation being financed.

How much can I borrow?
All loans require some level of equity, which is the difference between the appraised value of the collateral and the loan amount. The appraised value, financial strength and repayment ability of the applicant will determine the total amount that can be borrowed. Down payment or equity requirements for real estate loans generally range between 15 and 20 percent. Equity requirements on livestock and equipment generally range between 15 and 25 percent.

What are the financial benefits of borrowing from Capital Farm Credit?
As a cooperative, Capital Farm Credit is owned by its borrowers, who in turn share in our financial success. Since 1997, Capital Farm Credit has distributed $91.1 million in dividends, stock reductions and patronage refunds to our borrowers. These capital distributions help lower the effective interest rate paid by our borrowers.

Does the association accept deposits?
Capital Farm Credit offers an interest-bearing Funds Held Account for our borrowers. Interest earned is applied to interest due on the next loan installment. Money in the Funds Held Account can be used to pay loan installments, as well as be withdrawn for other purposes.

Where does Capital Farm Credit obtain funds to make loans?
Capital Farm Credit is a part of the nationwide $150-billion Farm Credit System and is affiliated with the Farm Credit Bank of Texas, located in Austin, Texas. The Farm Credit Bank provides funding for loans by selling AAA-rated bonds to investors in the nation's money markets.