AgHeritage FCS

Who will provide our future food supply needs? And, what costs will we see for those goods? What changes are in store for rural America? The quality of life in our nation and the world depends on agriculture. The future of agriculture is in the hands of our youth. To ensure adequate production of food and fiber to meet future needs, AgHeritage Farm Credit Services believes we should protect and provide help for a valuable resource—our youth.

AgHeritage Farm Credit Services has determined that it wants to establish a youth loan program in order to support agriculture related youth programs and play a role in educating youth about financial responsibility through a supervised program. We hope this will be a positive experience for the participants that will establish relationships with future AgHeritage FCS customers and agribusiness leaders.

The Youth Loan Program offered by AgHeritage Farm Credit Services provides financial benefits to youth who undertake crop or livestock production projects.

Participation in 4-H or FFA activities provides valuable benefits for youth in such areas as:

Responsibility—Projects are handled from start to finish by the youth. Care must be taken to make the project successful and profitable.

Experience—Working with livestock gives the member a true idea of what is involved in a farming operation.

Education—The youth learns the techniques of budgeting, marketing, bookkeeping and financial responsibility through a supervised project.

Self-Satisfaction—Completion of the project brings a feeling of pride to the youth in knowing they have completed a successful business venture.

Loans eligible for the program are limited to the purchase of livestock, feed, etc., and other miscellaneous out-of-pocket expenses directly related to the project. Up to 25% of the loan may be used to purchase livestock equipment necessary for the successful completion of the project. Examples: feeders, watering equipment, head gates, etc. Eligibility is limited to one outstanding loan.

Loan Requirements:

Be an active member of 4-H or FFA
Be enrolled in a livestock or field crop project
Loan guaranteed by a parent or guardian
Have 4-H leader or FFA advisor approval and assistance

Application Process

Borrowers must complete a youth application form which includes:

Youth applicant signature
Parent or guardian signature
FFA or 4-H leader signature
Borrowers written summary of the project and repayment plan

Terms and Conditions:

Conduct a modest income producing agricultural project
Minimum loan amount is $500
Maximum loan amount is $2,500
Loan term to be established based on the project, loan purpose and repayment plan
Up to 100% loan to collateral
Interest rates will be at cost, below stated interest rates
$50 closing, processing and filing fee
Stock purchase required
Parents or guardian must execute a Guaranty Agreement or cosign the note
Program is restricted to one loan per youth applicant

Loans are not eligible for Patronage Refund. For questions on the program, contact your local branch. Applications are available at branch offices or can be printed from Youth Loan Program Application.