Beginning July 1, 2000, qualified farmers in Kansas had access to $50 million in
loans through the new Kansas Agricultural Production Loan Deposit Program. An additional $5 million
was added July 1, 2001.
This program provides the ability for Kansas banks and Farm Credit Associations to make loans of up
to $250,000 to farmers with a debt-to-asset ratio of 40% or greater. These loans can be authorized for a
length of up to 8 years.
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[Download Lender Packet Forms]
[Frequently Asked Questions]
[Rules and Regulations]
[E-Mail this page to a friend]
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What role does Treasurer Lynn Jenkins play?
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Kansas State Treasurer Lynn Jenkins administers the Kansas Agricultural Production Loan
Deposit Program. As Administrator, the State Treasurer:
- Develops linked deposit agreements and other documents
- Adopt rules and regulations
- Disseminates information
- Provides loan packages to lending institutions eligible for participation
- Approves content of completed loan packages
- Certifies to the Director of Investments the amount required for a loan package
- Presents annual activity report to the Governor and Legislature
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What role does the PMIB play?
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The Pooled Money Investment Board handles investment of the State's idle funds:
- Upon certification by Treasurer Lynn Jenkins, PMIB places an agricultural production
linked deposit in the amount certified with an eligible institution at an interest rate
of 2.0% below the market rates. The rates will be recalculated on the first business day of January and July each
year using the market rate then in effect. Find out the current rates.
- Wires funds to lending institutions
- Collects interest and principal as appropriate
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What roles do the eligible institutions play?
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Eligible financial institutions include Kansas banks and institutions of the Farm Credit
System which have entered into an agricultural production
linked deposit agreement with the
Kansas State Treasurer's Office.
- Enter into the above mentioned agreement
- Accept and review applications from eligible persons
- Approve or reject applications
- Forward approved loan packages to the Kansas State Treasurer's Office
- Fund the approved loans
- Remit principal payments to Treasurer as they occur
- Confirm balances with Treasurer every January 1
- Recertify each borrower every two years and reports to the Kansas State Treasurer
- Additional tax credits available to institutions, unrelated to this program
Find out more.
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Who will the borrower be and what role will they play?
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A borrower must:
- be an individual, limited liability agricultural company, limited agricultural
partnership or family farm corporation as defined in K.S.A. 17-5903, involved in farming, and
- live and farm in Kansas, and
- have a debt-to-asset ratio of 40% or greater, and
- have not obtained any other agricultural production loan from any lender pursuant to this program, and
- use the loaned funds exclusively for the operating expenses involved in farming, and
- apply for Agricultural Production loans at an eligible Kansas bank or Farm Credit
Association, and
- complete the Borrower's Certification of Eligibility, and
- pay back the loan
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[Download Lender Packet Forms]
[Frequently Asked Questions]
[Rules and Regulations]
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