A borrower and the integrator agree to assignment of income documents at loan origination; all three parties (Alabama Farm Credit, borrower(s), and the integrator) sign the agreement. This agreed-upon amount is sent to Alabama Farm Credit from the integrator as each flock is sold.

Assignment amounts are an estimate created at loan origination or servicing based on what is known about the customer's operation. These estimates cannot account for all the variables: variability of flock out time, number of days birds are on the farm, grower performance, or number of flocks provided in a 365-day period.

As stated in the borrower contract, Alabama Farm Credit uses assignment money only to pay down the borrowers' loans. Every action we take as your poultry lender is supported by the loan agreements you have executed as a borrower.

Poultry assignments function to match up irregular income with scheduled loan payments. The assignment allows the borrower to apply a certain amount from each check towards their installments.

When an AFC customer wants a revised assignment or requests assignment proceeds be returned, and the customer has maintained a good payment history, Alabama Farm Credit reviews those requests.

Alabama Farm Credit no longer uses the old Funds Held process for managing assignment proceeds, because it costs the borrower more interest over the life of the loan. This change was communicated to all borrowers in 2021. This change is to the benefit of the borrowers, as the funds are automatically applied to the next installment that is due. This application of money towards the next installment reduces the amount of interest paid by the borrower over the course of the borrower’s loan repayment.

Alabama Farm Credit offers what we call LIFO (“Last-in, First-out”) RLOC to all borrowers paying their loans by an assignment. This line of credit is designed for when a borrower has a delay in income that will cause a small shortfall in the installment being made on time. Using the RLOC allows the borrower to avoid late fees or penalties. Customers must be in good standing to qualify for this loan product.

Cross-collateralization provides for the collateral a borrower pledges to secure any one loan from a lender also to secure all other loans made to the same borrower by that same lender. Cross-collateralization occurs only with the clear acknowledgment by the borrower that all loan agreements and collateral are interdependent and is customarily used by lenders to better secure all loans made to the same borrower. Cross-collateralization is an industry-standard practice embedded in most lenders' loan documents as standard language. Alabama Farm Credit’s responsibility to all shareholders is to ensure credits are structured soundly so as to avoid credit losses.

No. Annually, foreclosures represent 0.001% of the association’s portfolio. Foreclosures are always a last resort with Alabama Farm Credit and are used only after all other efforts have been exhausted.

Absolutely not. Per our standards of conduct neither Alabama Farm Credit’s employees, nor the employee’s family (as defined by FCA), nor the association’s directors, can knowingly purchase or otherwise acquire any interest in any real or personal property that is currently (or has been within the last 12 months) acquired and owned by the institution due to a foreclosure.

When you borrow from Alabama Farm Credit you purchase $1,000 of its stock and become a stockholder in the association. Each voting stockholder, or, if a loan is made jointly to multiple borrowers or the stock is jointly owned, the designated voting stockholder, is entitled to vote in association matters brought before all shareholders, including most often the association’s annual director elections.

The benefit of a shareholder working with Alabama Farm Credit is first and foremost the expertise and insight of our team, the value of the mission-driven direction of the organization to see you succeed and share in the distributed profits of Alabama Farm Credit.

A director accepts fiduciary responsibility to act for the benefit of the association, including to oversee audits on behalf of the stockholder membership. The board meets an estimated 22 days a year. The primary functional responsibilities of the board are the safety and soundness of the financial institution and the vision and direction of the organization. The directors are the elected voice of membership in the association.

• (2) Internal credit reviews of the loan portfolio (each lasts 90 days)
• Internal controls audit (12 months; with quarterly deliverables)
• Financial report audit (10 months; includes quarterly financial statements)
• Collateral evaluation review (3 months)

Yes, AFC’s funding bank, Farm Credit Bank of Texas, engages its own internal credit review of the association with its own 3rd party.

• Utilize the list exclusively for communicating with stockholders for permissible purposes; and
• Not make the list available to any person, other than the stockholder’s attorney or accountant, without first obtaining the written consent of the institution.
  

As used above in this answer, “permissible purposes” does not include communications involving commercial, social, political, or charitable causes, communications relating to the enforcement of a personal claim or the redress of a personal grievance, or proposals advocating that the bank or association violate any Federal, State, or local law or regulation.

A check that is a share of Alabama Farm Credit’s earnings each year. The distribution of earnings is a benefit of membership in our co-op.

Alabama Farm Credit’s Board of Directors determine how much is given back to members each year. The directors must balance earnings, regulatory needs, and providing patronage to members.

Each check amount is based on the average outstanding balance of each member’s loans.

Checks are distributed in late March each year.

Patronage checks cannot be direct deposited, and all will be distributed via physical check.  This is an annual ritual for our branches that we enjoy!

We’re a cooperative, and this is a benefit for our members.

It can vary year to year.  On average, we’ve given back 60% of our profits each year over the last decade.

Patronage members are those with certain types of loans with Alabama Farm Credit and those loans must be in good standing.