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Young, Beginning, Small Farmer Program
Farm Credit Services of Western Arkansas is dedicated to the purpose
of serving the needs of agriculture. As a part of this purpose the Board of
Directors has adopted a program to provide credit and related services to young,
beginning or small farmers, ranchers, and producers or harvesters of aquatic
products.
What are the criteria for Young, Beginning, or Small Farmers?
· A "young farmer" is someone who is 35 years old or younger.
· A "beginning farmer" is someone who has farmed for 10 years or less.
· A "small farmer" is someone who has gross farm sales of $250,000 or less.
Program highlights:
Eligible applicants should normally meet the credit standards
established by Farm Credit Services of Western Arkansas.
For applicants that do not meet credit standards, Farm Credit Services will
examine further risk reduction measures including establishing cosigners and/or
guarantors, coordination with loan guarantee programs offered by Farm Service
Agency and Small Business Administration and other opportunities to minimize
risk for borrower and Farm Credit.
Farm Credit Services at its discretion may establish reductions in fees or loan
pricing tiers where applicable with any of the above coordinated programs.
Young, beginning and small farmers are valued borrowers. Farm Credit Services
supports many activities, events and groups encompassing or involving farmers
and Farm Credit members from each of the segments. We are committed to the
purpose of financing agriculture and believe the relationships created within
these segments are vital to the future and success of Agriculture and Farm
Credit Services.
Operating Loans
These are short-term loans used to finance customers’ daily business
operations such as: labor, seed, fertilizer, equipment repairs, purchase feeder
calves, purchase feed, etc. Full-time farmers and part-time farmers with
off-farm employment may also use the loan for living expenses, education,
unexpected medical expenses, etc Operating Loan customers can access loan funds
with drafts that can be used 7 days a week, 24 hours a day. Typically, loan
terms match the customer’s operating cycle. Revolving lines of credit can be
established for up to 3 years.
· Revolving or Declining Balance loan
· Terms of up to 15 months
· Variable, 1 year Adjustable, and Fixed Rate Interest options available.
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Breeding Livestock and Equipment Loans
(Intermediate Term Loans)
An intermediate term loan is used to finance equipment, breeding
livestock or other capital items for up to seven years and specialized
facilities/equipment for up to 10 years. It can also be used to restructure a
borrower’s balance sheet to provide additional working capital in the operation.
In addition to full-time and part-time farmers, this product can be used for
aquatic producers, harvesters of forestry products, providers of farm marketing
and processing services, contract growers, and farm-related businesses.
· Up to 7 years term
· Up to 10 year term on specialized facilities/equipment
· Monthly, quarterly, semi-annual, or annual installment options
· Variable, 1,3,5 year Adjustable, and Fixed Rate Interest options available
· Convertible to other pricing options
· Funds Held program available
· PAID option available (automatic withdrawal of payment)
· Preferred Capital Lines of Credit option
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Real Estate Loans
Long-term mortgage loans provide a stable source of capital for
financing real estate assets. These loans can be used to finance or refinance
items such as: farmland purchases, improvements to farmland, and agricultural
structures/buildings. Loan terms range between 5 and 30 years. All loans should
be fully amortized over the term of the loan. Eligible customers include:
full-time farmers, part-time farmers, and non-farmers such as investors, land
trusts and retired farmers who own or are purchasing agricultural real estate.
· 5-year to 30-year term
· Monthly, quarterly, semi-annual, or annual installment options
· Variable, 1,3,5,7,10,15 year Adjustable, and 5,7,10,15,20,30 year Fixed Rate
Interest options available
· Convertible to other pricing options
· Funds Held program available
· PAID option available (automatic withdrawal of payment)
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Country Living Home Loans
Loans for…
Rural homes
Part-time farmers
Homes on acreage properties and acreage for home sites
Construction loans for homes, barns, fences, ponds and more
One time closing on construction loans
We offer…
Loans up to $250,000
Quick loan approval
Loans up to 97% of appraised value
Loan terms up to 30 years
Monthly payment option with automatic withdrawl
No escrowing of taxes and insurance
Minimal loan closing fees
“Service after the Sale”, your loan stays with us
Indexed Adjustable Rate loans - 1,3,5,7, 10 & 15 years with caps
Fixed Rate loans – 15, 20 & 30 years
Flexible conversion options
Mortgage Plus Home Loans
Loans/ leases for trucks, tractors and equipment
Loans for livestock or other farm needs
Advantages to using Farm Credit of Western Arkansas for
home loans…
Part of the $99 billion Farm Credit System (largest Ag lender in the US)
Financially strong and stable
We’ve been in business for more than 85 years
Our rates and turn-around mean quicker closings
Competitive rates and terms
Locally owned and controlled for the benefit of those served
Patronage Refund program makes our rates even more competitive
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Leasing
Through our affiliation with Farm Credit Leasing we offer
agricultural leases that can improve your cash flow, conserve your working
capital and much more. Leasing offers important tax advantages, too, enabling
your in many instances to deduct 100 percent of your payments. We write leased
to meet your individual needs. We work with you one-on-one, helping you
understand your options and benefits. We have the ability to help you lease
almost any farm vehicle, equipment or machinery -- new or used, such as trucks,
fleet vehicles, computers, irrigation systems, tractors, and combines.
· A "true" lease is tax deductible
· Terms of 3 to 7 years
· Renewal and purchasing options at the end of the lease
· Volume discounts
· Customers can choose dealer and negotiate price
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Term and Credit Life Insurance
Farm Credit Customers can provide added financial security to their
families in the event of death or disability through the use of Credit Life
Insurance. We offer competitive rates and easy application processes for our
customers. There are discounts for females and non-tobacco users. You can insure
the full amount of your loan, up to a maximum of $750,000, depending on your age
when you apply for coverage. You may, however, choose instead to insure a
portion of your loan balance.
· Group policy
· Convenient
· Guaranteed renewable
· Insurance is available to Co-Signers
· Coverage decreases as loan balance decreases
· Discount for non-tobacco users
· Optional payment frequency
· Disability Coverage option available
· Premier Series insurance option available
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Real Estate Appraisal
Whether your borrowing money secured by real estate or estate
planning you always need to know the value of your farm real estate. Farm Credit
Services can provide professional, reliable, readily available, high quality
agricultural appraisals at a reasonable cost. Appraisal services may be provided
to persons/entities who are eligible to borrow from Farm Credit Services.
Appraisal services may also be provided to other institutions requesting for or
on behalf of such eligible persons. Appraisal services may be provided on
agricultural, agribusiness, closely related properties and rural residence
properties.
Terry Vest, VP of Appraisal at Fayetteville office - 479-442-8237
Joe Baldwin, Regional Appraiser at Mena office - 479-394-1027
Jim Wiedeman, Regional Appraiser at Russellville office - 479-968-5030
Robert Harden, Regional Appraiser at Nashville office - 870-845-2221
David Hoskins, Regional Appraiser at Fayetteville office - 479-442-8237
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