Home / Financial Services / Farm Cash Management / FAQ

Farm Cash Management (FCM) FAQs

Can an FCM or Investment Bond Account Be Set Up for Anyone?
How are FCM Transactions Documented?
Can an FCM Account Be Set Up Without a Revolving Line-Of-Credit?
How do I enroll in FCM?
How do FCM and Funds Held Compare?
Why Are AgriBank Bonds Exempt From State and Local Income Taxes?

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 GreenStone and the other associations served by AgriBank plus employees and retirees of AgriBank.

Top of page

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 GreenStone and the other, an AgriBank investment account. Each month you will receive a statement from each organization detailing the transactions that they have recorded.

Top of page

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.

Top of page

How do I enroll in FCM?

Just call or stop by you nearest GreenStone office.

Top of page

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 your GreenStone loan officer to show you how either -or both - might be of value to you!

Top of page

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.

Top of page