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Kansas Agricultural Production Loan Deposit Program

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.

Additional Info: View Frequently Asked Questions | Rules and Regulations

Lender Packet

What role does Treasurer Ron Estes play?

Kansas State Treasurer Ron Estes 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

What role does the PMIB play?

The Pooled Money Investment Board handles investment of the State's idle funds:

  • Upon certification by Treasurer Ron Estes, 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. Click here to find out the current rates.
  • Wires funds to lending institutions
  • Collects interest and principal as appropriate

What roles do the eligible institutions play?

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 (download the agreement PDF)
  • 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.

Who will the borrower be and what role will they play?

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