Why Us
Why Us

Frequently Asked Questions

Central Texas Farm Credit is a proud member of the Farm Credit System, the largest provider of credit to American agriculture. We are a member-owned lending cooperative headquartered in Early, Texas. Our staff is committed to building genuine relationships, offering common-sense financial solutions, and helping our clients grow.

Central Texas Farm Credit shares its profits through a patronage program. As the local experts in agriculture and rural lending, our experts can make fast loan decisions and get to closings quickly.

Our Cooperative Structure and Unique Funding Model

An Agricultural Credit Association, or ACA, is a financial service provider specializing in loans for farms, ranches, recreational property, agribusinesses, rural homes, agricultural equipment, livestock, and agricultural operating capital. ACAs are cooperatively owned and locally operated.

When you get a loan from Central Texas Farm Credit, you become an owner of the association through the purchase of stock. Ownership of this stock gives you the right to participate in the business affairs of the association, including the election of the board of directors. Traditionally, customers are paid in cash patronage and/or dividends, which have historically reduced the cost of borrowing for our customers about an average of 1.5 percent. When the loan is paid off the stock is then refunded in full.

Central Texas Farm Credit follows the fundamental cooperative principle of sharing its earnings with its customer-stockholders in the form of a cash back dividend. When we do well, a patronage refund is distributed of the association's earnings — minus net expenses and necessary reserves — to the cooperative's stockholders. The board of directors determines annually if the association will pay a patronage refund and the total amount of that refund.

Central Texas 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 adopted by the board of directors and implemented by the management and staff.

Commercial farmers, land investors, part-time farmers, rural homeowners, 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.

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.

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

The type, financial strength, and repayment ability of the collateral of the applicant will determine the total amount that can be borrowed. Applicants for loans to purchase real estate should plan to invest at least 20 percent of the purchase price. Loan applicants who plan to secure their loans with livestock, equipment, or other types of chattel property should also plan to have similar initial investments.