Grand re-opening for Alabama Ag Credit
Published 7:05 pm Tuesday, January 19, 2010
The Federal Land Bank Association has changed its name to Alabama Ag Credit, but nothing else has changed with the business. A grand re-opening was held at the Demopolis location Tuesday.
“We have obtained new authorities through Congress to do additional lending to what we do now,” said Greg Cunningham, the chief credit officer of Alabama Ag Credit in Montgomery. “We’re a federal land bank, and we loan first-lien, long-term real estate loans. We’ve been granted, through Congress, to make additional loans, including short-term loans which are operating loans for farmers and equipment loans for farmers.
“So, now, we can do what we’ve always done, but we can also make additional loans to farmers. If a farmer walks in and wants to buy land, he can still do that, but we can also finance his operation or finance his equipment. If he’s a full-time farmer, we can finance almost anything for him.”
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Cunningham said the new name coincides with the new authorities that the federal land bank acquired.
“Alabama Ag Credit encompasses all that we can do,” he said. “We’re more than just a federal land bank; we offer all kinds of loans for all kinds of agriculture. We’re not merging, we’re not being bought, we’re not being sold. We’re just adding things that we can do under a new name.
“We are organized as a true cooperative. If you get a loan with us, you obtain stock with us. We pay a patronage every year. As a matter of act, we are fixing to pay our $3 million to all of our current borrowers. We are continuing the way we operate and the way we’re structured.”
Alabama Ag Credit is governed by a board of directors elected by stockholders. It borrows its money through the Farm Credit System from the Farm Credit Bank of Texas, one of four district banks nationwide.