FFA & 4-H Youth Ag Loan Program

In continued support of our area youth in agriculture, Farmers Bank of Northern Missouri is proud to make agricultural loans available to FFA and 4-H members in our market areas of Northern Missouri and Southern Iowa. In addition to providing financial assistance in their projects, the program can also be a financial education tool. By developing financial statements and cash flows with the students, they can also develop an understanding and evaluate their enterprise performance.


FFA & 4-H Loans are subject to the following:

  • Interest rate is determined by subtracting the student's GPA from a base interest rate, currently 7.50% APR* as of 9/28/18. Base rate is subject to change.
  • Up to a $10,000-line limit can be available for applicable projects. Amounts greater than $10,000 can be reviewed on a case by case basis.
  • Repayment period is dependent on loan purchase.
  • Student must have a qualified co-applicant, unless they are 18 and credit worthy.
  • Program is available throughout student's eligibility to participate in FFA & 4-H.
  • Loan Officer will make project visit(s) with the student to discuss how the project is doing, things to change and possible ways to expand


*APR = Annual Percentage Rate


Example: For a student GPA of 3.00, the loan rate wouldbe calculated as follows: base rate of 7.50% APR - 3.00% (GPA) = 4.50% APR loanrate. A loan of $10,000.00 at a fixed loan rate of 4.50% APR for 3 years will have annual payments of $3,638.01.

 

Grades based on an 11-point scale will be converted to a 4.0 scale.