The pricing discounts agricultural borrowers are enjoying through the alliance between the American Bankers Assocation (ABA) and the Federal Agricultural Mortgage Corporation (Farmer Mac) can count on receiving continued discount options. The ABA and Farmer Mac have renewed their exclusive agreement where ABA member banks are eligible for selected Farmer Mac products and customized loan packages through AgPower(SM).
“Agricultural real estate lending is one of the fastest growing business areas for ABA member banks,” said Ed Yingling, ABA President and CEO. “The renewal of our unique members-only alliance with Farmer Mac is a way that we can help our members meet their business challenges. The special pricing, customer assistance, and other benefits of the alliance will give ABA member banks a competitive edge they can use to meet the real estate financing needs of farmers and ranchers.”
“Our list of active banker-participants has grown, and these lenders are telling us they are very happy with our programs and the advantages those programs bring to their institutions,” said Henry Edelman, Farmer Mac President and CEO. “They especially appreciate the ability to build loyalty from their farm and ranch customers through expanded and competitively-priced product offerings.”
ABA members that participate in the alliance have the freedom to choose not only from the special discounted products, but also the usual Farmer Mac products, including:
— Competitively-priced long-term fixed-rate mortgages, up to 20 years;
— Adjustable-rate mortgages (ARMs), including those with reset periods of
one, three and five years; and
— Long-term fixed-rate mortgages featuring both open and partial open
prepayment options.
Farmer Mac is a stockholder-owned instrumentality of the United States chartered by Congress to establish a secondary market for agricultural real estate and rural housing mortgage loans and to facilitate capital market funding for USDA-guaranteed farm program and rural development loans.