Loan Terms

Farm Credit of Western Kansas, ACA offers flexible loan terms to meet your needs:

Competitive rates. Farm Credit Associations set their loan rates on the basis of three primary factors: 1) the costs associated with obtaining loan funds and servicing the loan; 2) the risks associated with the loan as balanced with the need to build capital for the future; and 3) the local competition.

Fixed, adjustable, and variable interest rate plans. Farm Credit offers a variety of loan packages tailored to individual or corporate needs.

Payment Options. Monthly, quarterly, semi-annual, or annual repayment plans are available on most products. Payments can also be structured to coincide with the sale of livestock or tailored to match cash flow.

Lending Terms. Terms range from 1 month to 30 years. Ask for available options.

Lending Factors. In deciding if a loan would benefit the borrower and be repaid in a timely fashion, a Farm Credit loan officer looks at five important factors:

  • The individual or entity. A careful evaluation of the applicant's character, experience, personal history, and management abilities is a key factor for the lending decision.
  • Financial position and progress. An assessment is made of the applicant's ability to meet financial obligations and operate successfully. Factors considered include history of earnings.
  • Repayment capacity. The applicant's previous financial performance and cash flow projections are reviewed. Cash flow should be sufficient to meet all financial obligations and provide for an acceptable standard of living.
  • Loan purpose. As a general rule, loans can be made for any purpose that is a direct or logical extension of a farmer's operation. Loans can also be made to rural homebuyers, cooperatives, and agribusinesses that provide services and contribute to the overall well being of agriculture.
  • Collateral. The collateral required to secure a loan is determined by the strengths and weaknesses of the other credit factors. Collateral must reasonably protect the lender, while allowing borrowers to manage their businesses constructively.

    Type
    Loan
    Term
    Rates Available
    		  
    Payment Plan Options
    Pre-
    payment
    		 Conversion
                 
    Semi
    		        
     
    Variable
    Adjustable
    Fixed
    		  
    Monthly
    Qtly
    Annual
    Annual
    Other
    		    
    Real Estate Loans*
    For the purchase, improvement, or refinancing of debt on farms, ranches, facilities, and rural real estate.
    5 to 30 years
    		 
    		N/A
    No Penalty
    		 Single conversion fee, no requalification.
                             
    Country Home Loans*
    For the purchase, improvement, or refinancing of debt on rural real estate.
    5 to 30 years
    		 
    		N/A
    No Penalty
    		 Single conversion fee, no requalification.
                              
    Operating Loans
    For operating inputs and expenses such as feed, fertilizer, seed, and labor, as well as for such expenditures as rent, taxes, insurance, and day-to-day living.
    1 to 3 years
    		 
    		          Payment schedule can be tailored to match your cash flow.
    No Penalty
    		 N/A
                              
    Equipment Loans
    For the purchase or refinancing of debt for tractors, trucks, farm implements, buildings, irrigation systems, or any other equipment.
    Up to 10 years
    		 
    		N/A
    No Penalty
    		 Single conversion fee, no requalification.
                              
    Livestock Loans*
    For the purchase, care, and feeding, or refinancing of debt on livestock.
    Up to 10 years
    		 
    		Structured to coincide with sale of livestock.
    No Penalty
    		 Single conversion fee, no requalification.
                             
    Leasing
    For virtually all equipment and machinery used in agriculture: tractors, combines, farm implements, dairy equipment, grain bins, above-ground irrigation systems, trucks, processing and packaging equipment, and material handling equipment.
    2 to 7 years
    		        
    		Harvest Pay: Pay 10 percent at lease inception and delay your annual payment up to six months.   N/A


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    Farm Credit of Western Kansas, ACA is an Equal Credit Opportunity Lender and Equal Housing Lender