Farm Cash Management® Questions
Can an FCM or Investment Bond Account Be Set Up for Anyone?
No. FCM and Investment Bond accounts are available only to members. Investment Bond accounts are also available to employees and retirees of Farm Credit Southeast Missouri and the other associations served by AgriBank plus employees and retirees of AgriBank.
How are FCM Transactions Documented?
Although FCM appears to be as single account, however, when tied to a Farm Credit Southeast Missouri operating loan, it actually involves two separate accounts: one, a revolving line-of-credit from Farm Credit Southeast Missouri and the other, an AgriBank investment account. Each month you will receive a statement from each organization detailing the transactions that they have recorded.
Can an FCM Account Be Set Up Without a Revolving Line-Of-Credit?
Yes. Stand-alone Investment Bond accounts can be established. Purchases and redemptions from stand-alone FCM accounts can be made via ACH and initiated over the internet.
How do I enroll in FCM?
Just call or stop by your nearest Farm Credit Southeast Missouri office.
How do FCM and Funds Held Compare?
With FCM there is no limit to how much you can put into your investment account. Funds Held is an advance payment escrow account on your loan and is limited to 50% of the amount owed on the loan. FCM lets you move money in and out of your account at will, but there are some restrictions with Funds Held. The interest rate paid to you by FCM is generally related to the cost of money in the U.S. economy while the interest rate earned in Funds Held is based on the rate being charged for your loan. Both FCM and Funds Held can be very good tools to reduce the cost of your borrowing. Ask your Farm Credit Southeast Missouri loan officer to show you how either -or both - might be of value to you!
Why Are AgriBank Bonds Exempt From State and Local Income Taxes?
The federal Farm Credit Act provides that bonds issued by AgriBank are exempt from state and local taxation. AgriBank will send you a 1099 INT each year reporting your Investment Bond earnings in box 3 -which is where interest that need not be claimed on state and local income tax returns is shown. See your qualified tax preparer for more information.
