Farmer Mac is America's secondary market for first mortgage agricultural real estate loans. Farmer Mac was created by Congress to improve the ability of agricultural lenders to provide credit to America's farmers, ranchers and rural homeowners, businesses and communities. Its does so primarily by purchasing qualified loans from lenders, thereby replenishing their source of funds to make new loans. Farmer Mac funds its loan purchases by issuing debt or securities backed by pools of loans and selling them into the capital markets. In so doing, Farmer Mac facilitates the flow of lendable money from Wall Street to rural America.

Eligible Properties
Parcels of land with production of agricultural commodities or products. Properties may be improved by buildings, fixtures and equipment or other structures permanently attached to the real estate. No minimum or maximum acreage is required. If the property is less than five acres, there must be $5,000 minimum annual gross sales of agricultural products from the property.

Mortgage Amounts
Maximum loan amount is $9 million for loans secured by more than 1,000 acres; $15 million for loans secured by 1,000 acres or less; $15 million maximum indebtedness for any one borrower or related borrowers, through one or more loans.

Eligible Borrowers
Eligible borrowers include U.S. citizens or nationals or aliens lawfully admitted for permanent U.S. residence; private corporations or partnerships where members, stockholders or partners holding a majority interest in the entity are U.S. citizens or nationals or aliens lawfully admitted for permanent U.S. residence.

Loan-to-Value Ratio (LTV)
Maximum Loan-to-Value Ratios (LTV) are:

• 70% for land loans up to and including $3.0 million;
• 60% for land loans greater than $3.0 million;
• 65% for facility loans;
• 75% for poultry facility loans supported by a contract with an integrator;
• 80% for swine facility loans supported by a contract with an integrator.

Credit Profile
Credit analysis must evidence the applicant's ability to repay the requested loan in accordance with the loan terms. Farmer Mac recognizes the five credit factors for credit analysis: character, capital, capacity, collateral and condition.

Product Descriptions
Farmer Mac offers a variety of farm loan rate products:

ARMs: 1-Month, 6-Month, 1-Year, 3-Year, 5-Year, 7/1 and 10/1. Adjustable rate mortgages offer a fixed interest rate for the initial period with the rate resetting for additional terms based on the applicable index. For example, the 5-year ARM product begins with the rate being fixed for the initial 5 years after which it rolls over to another 5-year fixed rate period based on the new rate environment. The 7/1 and 10/1 products have rates which are fixed for 7 and 10 years, respectively, after which they roll over to a 1-year adjustable rate for the remaining term of the loan. All ARM rate products are prepayable without penalty (with payment of interest to the next payment date if the loan is prepaid between payment dates).

Variable Rate Mortgage : 5-year. The 5-year variable rate mortgage has a fixed interest rate for the initial 5-year period. The interest rate adjusts for two additional 5-year periods. Any prepayment is subject to yield maintenance except prepayment occurs at the rate reset date when it is allowed without penalty.

Fixed Rate Mortgages : Options are 10-year, 15-year and 20-year. Borrowers may choose options with no prepayment penalty, partial-open prepayment penalty (penalty during the loan's initial years only) and those with full yield maintenance (prepayment penalty during the loan's entire term).

The Federal Agricultural Mortgage Corporation does not entertain requests for loans from individual clients. It requires that loan be channeled thru one of the following one of the following authroized agri loan originators:

Agricultural Loan Originators

Zions Agricultural Finance
Steve Burrier, VP
Phone: 1-800-641-9619 x205
Website: ZionsAG.com

Zions Agricultural Finance offers nationwide agricultural mortgage lending and is an affiliate of Zions First National Bank. Established in 1873, Zions takes pride in its strong tradition of dependability, stability and security. Zions Agricultural Finance provides unprecedented financial services to farmers, ranchers, and community agricultural banks. Our entire management and production staff has strong agricultural backgrounds and extensive agricultural lending careers.

CGB Agri Financial Services, Inc.
2209 River Road, Louisville, KY 40206
Contact: Don Mattern
Phone: 1-502-721-9446
Website: CGB-AFS.com

CGB AFS programs include full time farm loans, rural residential, part-time farm, bare land/lot, construction/permanent, manufactured homes, operating, and equipment loans.  With our variety of programs, our staff will find a loan that meets your needs. Located in Louisville, Kentucky, CGB AFS is a national lender and can utilize our correspondent/broker network or work directly with customers.

American Farm Mortgage
8901 Greeneway Commons Place, Suite 200, Louisville, KY 40220
Contact: Kathy Daily
Phone: 1-502-964-2111
Website: AFMC-loans.com

American Farm Mortgage has attained “Preferred Lender” status in 23 states for guaranteed loans through the Farm Service Agency (FSA), a division of the United States Department of Agriculture (USDA). In addition, American Farm Mortgage services agricultural loans for the Federal Agricultural Mortgage Corporation (Farmer Mac), Prudential Insurance Company of America, and many others.

Agri Access
Headquarters - Johnston Location:
5414 NW 88th Street, Suite 110, Johnston, IA 50131
Contact: Paul Erickson
Phone: 1-888-888-8220 toll free
Phone: 1-515-727-4364
Fax: 1-515-727-4365
Website: Agri-Access.com

Agri-Access offers over 85 years of financial leadership and agricultural experience. Whether its helping a family purchase their dream acreage, providing a farmer with the means to expand his operation or assisting an agribusiness with leasing a fleet of vehicles, we understand and offer resources for financial institutions to make it easy.