Why Finance With a Land Bank?
What is a Land Bank? Very simply, a Land Bank is a part of the nationwide Farm Credit system, a financial cooperative owned by member-shareholders since 1917. We are privately owned, just like other banks, but the difference is that our stockholders are our customers.
Bankers Wear Suits, We Wear Boots! Because we specialize in financing land and agricultural properties, we understand the unique aspects of rural lending. We use this expertise to structure loan packages with rates, repayment terms, and payment plans that are adapted to your specific needs. Additionally, most of our lenders have a background in agriculture. Our team understands the joy of raising livestock, growing crops, or simply enjoying time with their families hunting and fishing on their own land.
We are Not Typical Lenders! With most banks, once the loan is completed, the loan is sold to a third party. At Heritage Land Bank, we have never sold a loan - ever. Your local lending team will be there to service you and your loan for the full life of the loan.
Has Your Banker Ever Lowered Your Interest Rate? We do! When interest rates fall, our lenders can convert the interest rate to a lower rate for a single, one-time low fee. Our team has completed hundreds of interest rate conversions in recent years, saving customers significant interest over the life of their loans.
The Cooperative Advantage! Because of our unique cooperative structure, member-shareholders of Heritage Land Bank share in the profits generated from our lending activities. These Cooperative Dividends are paid on an annual basis and significantly reduce the cost of borrowing for our member-shareholders. In our most recent Cooperative Dividend, we returned 66% of our net profit to borrowers in direct, cash dividend payments.
Complexity is No Problem! Let's face it, many landowners have complex personal and business structures involving LLCs, corporations, and borrowers with multiple businesses, entities and partners. This is not a problem for our team. We understand complex financial situations and will take the time to properly assess each customer's borrowing capacity.
You Have a Voice! Heritage Land Bank is governed by a board of directors elected by our member-shareholders. As a shareholder, you are eligible to vote in board elections and select those who represent you.