MLACI is a for profit Montana Business Corporation. The Company’s original incorporation was under a federal charter in 1933 (as Montana Livestock PCA under the Farm Credit Act), but restructured as a Montana Business Corporation in 1985. Montana Livestock is not a depository financial institution. As an Ag Credit Corporation, its primary function is annual operating loans for Montana ranchers and farmers.
In 1988 a debenture program was started. This investment option is available to current and past customers, employees and their families who are Montana residents. Three and six month maturities are available. The debentures are unsecured.
In 1992, the Company began providing a deferred contract program, which allows producers to defer a portion of the taxable gain of a commodity into the desired tax year. Non-customers may use the Company’s program.
In 1992, Montana Livestock successfully began originating long term mortgage loans on agricultural real estate. These loans are sold into the secondary market to either Prudential Insurance Company or Farmer Mac. Montana Livestock retains the loan servicing. This program is a source of service income, while providing a reliable and constructive option for fixed rate real estate loans for Montana producers.
Montana Livestock funds its loans through retained earnings which have been built over the years, debentures, and a lending relationship with U.S Bank.