As of January 1, 2010, there were some signifigant changes in the world of land lending in Alabama. The nature of the major land lending cooperatives in the state changed. The two seperate Federal Land Banks in the state changed their names. There were changes at these cooperatives as well as First South Farm Credit as well.
Federal Charters for these two cooperatives had originally formed two distinct organizations that served different purposes. The Production Credit Association, what is commonly known in Alabama as First South Farm Credit was originally formed to provide a lending source for the production needs of farmers. The charter that the Federal Land Banks operated under provided that the organization was for the purpose of helping farmers buy fixed assets, such as land. With the changes that occured as of the first of this year, both organizations now have a charter to allow them to participate in both areas of lending. This makes the organizations direct competitors now, which is good for consumers.
To the public, very little difference will be noticed in First South Farm Credit. They have been participating in the land lending industry for many years. Up to this point, they have had to work in conjunction with another lender in order to provide this service. Under the new rules, they can now lend directly, which should make them even more competitive.
The cooperatives formerly known as the the Federal Land Banks are now, Alabama Farm Credit and Alabama Ag Credit. Alabama Farm Credit has offices in North Alabama and Alabama Ag Credit has offices in South Alabama. In addition to serving the land buying public in the same manner as before, they can now help with production loans as well.
At AlaLandCo, we work with all of these organizations and know many of their loan officers very well. These lending cooperatives easily rise to the top when you are looking for a lender that understands rural land, farms, and timberland. Here is a list of links to their websites. Call me for a list of who you need to talk to with respect for the area that you are looking to buy property in.
First South Farm Credit –
Alabama Farm Credit (North Alabama) –
Formerly Federal Land Bank of North Alabama
Alabama Ag Credit (South Alabama)-
Formerly Federal Land Bank of South Alabama