Frequently Asked Questions
About the Association
Great Plains Ag Credit is a full-service Agricultural Credit Association (ACA) that is part of the national Farm Credit System established in 1917. We specialize in financing for farmers, ranchers and rural landowners. The association is cooperatively owned and locally operated. Its strong capital base provides for very competitive interest rates.
All types of agricultural loans are offered at the same loan office. This is often referred to as "one-stop credit service." Great Plains Ag Credit, ACA has two divisions. The Federal Land Credit Association (FLCA) division handles long-term real estate loans, and the Production Credit Association (PCA) division handles operating and equipment loans.
Every person who borrows money from Great Plains Ag Credit also becomes a stockholder in the association by purchasing stock in the amount of two percent of the loan amount, or $1,000, whichever is less. Stock-purchase funds can be included in the loan. Stockholders have the right to participate in the business affairs of the association, including the election of its board of directors, and in our patronage program.
Being cooperatively owned, the association distributes a portion of its earnings to stockholder/members on a patronage basis, which defrays interest cost.
Great Plains Ag Credit is supervised by a board of directors elected by the borrowers of the association. The directors employ professional personnel to manage the operations of the association. The association operates under policies and procedures adopted by the board of directors and management team.
About Loans and Services
Great Plains Ag Credit follows the fundamental cooperative principle of sharing its earnings with its customer-stockholders in the form of patronage when it does well. Thus, a patronage refund is a distribution of the association’s earnings — minus net expenses and necessary reserves — made 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.
Individuals and companies who are involved in agriculture are eligible borrowers. Loan approval and terms are subject to the creditworthiness of the applicant.
The association finances all sizes of farming, cattle and agribusiness operations. Because of the association's excellent capital position and funding sources, we are able to make large loans in-house, making us a lender of choice for larger, more complex agricultural operations.
As a general rule, an applicant can borrow up to 70 percent of the appraised value of collateral for farm operating and cattle loans, 70 to 85 percent for real estate loans, 85 percent for new equipment purchases and 75 percent for good used equipment. Farm operating loans are normally secured with crops grown and equipment.
Great Plains Ag Credit offers borrowers a cash management service that pays a competitive rate of interest, comparable to CD rates, on excess funds to be applied to their loan balance at a later date. Interest is accrued on a daily balance basis and is compounded monthly. These accounts, although not insured, are secured by the financial strength of the association.
In addition to being a full-service agricultural lender, the association offers competitive insurance products, including credit life, multi-peril and crop-hail insurance.