Existing American AgCredit stockholders now have the option to buy preferred stock issued by the Association through a Preferred Harvest Stock Account. Stockholders interested in buying Preferred Harvest Stock will be provided a Disclosure Statement that thoroughly describes the Stock. The following describes the main characteristics.

DIVIDENDS

Dividends will accrue daily at the Dividend Rate on the par value of the stock from the date of issuance to the date of retirement. The Board intends to declare dividends on a quarterly basis and pay dividends on the last day of each quarter. Dividends may only be declared and paid out of the unallocated surplus of the Association, and then only if, after such declaration or payment, the Association will meet minimum capital adequacy requirements established by regulation. The Association currently has over $620 million in unallocated surplus and exceeds all minimum capital requirements.

DIVIDEND RATE

The Dividend Rate is variable and may change monthly.

AUTOMATIC REINVESTMENT OF DIVIDENDS

Any dividend paid will be paid in shares of Stock at par value. Holders of the Stock will not receive any cash distributions until the stock is retired. Instead, any dividend paid on the Stock will increase the number of shares held by each holder.

RETIREMENT

A holder may request a redemption at any time. When retired, shares of Stock will be retired at their par value, plus accrued but unpaid dividends. Retirement is contingent on the Association meeting certain regulatory capital standards. American AgCredit, ACA presently exceeds its minimum capital standards and knows of no reason why it will not meet applicable standards at any future time. At present, the Board of Directors intends to allow management to approve a particular redemption request under certain conditions. However, the Board may elect, in its sole discretion, not to retire any shares of the Stock tendered for retirement. Such retirement may also require the approval of the FCA.

The Association reserves the right to limit the number of Harvest Stock Accounts or restrict the maximum dollar amount in the Harvest Stock Account. The Stock is nonvoting.

RISK

A purchase of the Preferred Stock is an “at risk” contribution to the capital of American AgCredit by the holder thereof (each, a “Holder”). Neither the return of the purchaser’s investment, in whole or in part, nor the receipt of any dividends thereon is guaranteed by the Association or any affiliate thereof, the Farm Credit System Insurance Corporation, or any other federal or state government or agency or any third party. Subject only to the Preferred Stock’s preferences over Common Equity of American AgCredit, the purchaser’s investment will be subject to the risks of the business of American AgCredit as a lending institution serving agricultural and rural borrowers in its chartered territory. The Preferred Stock has no fixed maturity or redemption date, and a holder of Preferred Stock possesses no rights to have Preferred Stock redeemed upon the Holder’s request or at any particular time.

HOW TO SUBSCRIBE

Any Association Stockholder may purchase shares of the Stock by completing a Subscription Agreement and providing either a check for the purchase price of the shares or transferring amounts from an existing Funds Held Account. Each initial subscription must be for a minimum of 5,000 shares ($5,000). Cash purchases of shares must be for a whole number of shares.

Your Loan Officer can supply you with a full Disclosure document and Subscription Agreement.

** H Stock is an “at risk” investment.