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Rates & Terms

Rates

  • Fixed Rates - The interest rate on all fixed rate loans can be fixed for the full term of the note. This allows you to know your annual interest expense throughout the life of the loan.

  • Variable Rates - Variable rate loans have an interest rate that can vary during the term of the loan. The rate may be lower than current fixed rate loans but can change based on an index. A variable rate loan allows you, the borrower, to decide how much interest rate risk you are willing to take based on your individual needs

  • Fixed-variable Rates - The interest rate is fixed for an initial short term with a longer amortization. At the end of the initial fixed rate period the rate rolls over to a variable rate. You may have the option to reprice or convert before the end of the fixed term should you desire to lock into a longer term rate or take advantage in declining rates. At the end of the fixed period you may negotiate another fixed rate for a period of time based on the current rate.

Terms

Depending on the kind of loan, we offer short-term, intermediate-term, and long-term repayment periods.

The length of a loan repayment can range from one month to 30 years, depending on the loan program and rate selected.

Good financial management dictates that loan terms correspond to the life of the operation or asset being financed. For example, seed, fertilizer, and other agricultural operating expenses are used up when the crop is grown, while items with a very long life, like farm real estate, can support longer terms.

Read up on our loan term options below. We'll provide additional information about the particular loan you need for your operation, rural home or land.

Short-term Loans

Short-term loans are intended to cover operating expenses.

  • Labor, seed, fertilizer, chemicals, equipment repairs and custom work
  • Feed, electricity and veterinary costs
  • Other general operating costs
  • Family living expenses, including college tuition (available to full-time farmers only)

The interest rates for these loans are competitive. The interest rate options include fixed rates, prime based variable rates and variable rates.

Intermediate-term Loans (1-10 years)

Intermediate-term loans are for amortization terms of one to ten years.

  • Real estate purchases
  • Machinery and equipment purchases
  • Livestock purchases
  • Refinancing of short-term debts
  • Vehicle purchases or refinancing

Long-term Loans (up to 30 years)

Long-term loans are for amortization terms up to 20 years, or even 30 years if the loan is related to the borrower's primary home.

  • Real estate purchases
  • Refinancing short- and intermediate-term loans
  • Indebtedness
  • Dwelling facilities and facilities construction
  • Farm improvements
  • Orchard establishment/replanting
  • Nursery/greenhouse facilities

The interest rates for these loans are competitive. The interest rate options include fixed rates, balloon rates, adjustable rates (one, three, or five years) and variable rates.

Credit Reporting

Farm Credit of the Virginias, ACA furnishes data to credit reporting agencies. The association's reporting efforts are important for aiding consumers in obtaining credit, assisting businesses in credit approval, providing consumers with timely and accurate personal credit information, reducing fraud and abuse, helping prevent identity theft, and minimizing errors in credit reporting. If you have questions regarding this process, please contact our Credit Desk at 540-886-3435 ext. 5038.

CUSTOMER PERSPECTIVES

“My relationship started with Farm Credit when I started a construction project at my own home. I needed to find a local lender that would work with me and my situation. And we did, we found that in Farm Credit. They made the process very easy.”

Carlo Montalbano, A1 Construction Services (Timberville, VA)

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