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Frequently Asked Questions about
Farm Cash Management (FCM)
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 Services 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, it actually involves two
separate accounts: one, a line-of-credit from Farm Credit Services 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. Employee
and retiree accounts are almost always exclusively stand-alone Investment
Bond accounts.
How do I enroll in FCM?
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 on your loan and is therefore
limited to 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
a Farm Credit 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?
- Because it’s the law. 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.
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