Farm Cash Management
Your money flexes its muscle, you exercise your options with an account designed to fit your needs. It’s the money market investment account that manages itself. Your money works harder and smarter, just like you.
The Farm Cash Management® product offers a convenient way to earn income from on-hand cash by combining the return of a short-term investment account with the convenience of your Farm Credit Midsouth revolving line of credit. You have constant access to your cash—if you withdraw more than your investment and earnings total, Farm Credit Midsouth will automatically access your revolving line of credit. Whenever your payment is greater than the balance in your revolving line of credit, you have the opportunity to automatically invest the surplus in a short-term AgriBank Investment Bond. Interest accrues daily and is added to investment at the end of the month.
Farm Credit Midsouth offers an integrated account that can help you maximize the earning power of your cash assets. A farm credit management account combines your Farm Credit Midsouth operating loan with the return of a short-term bond investment to help you minimize your net interest cost. Investing in your farm credit management account is as simple as making a payment on a loan.
Farm Cash Management Advantages:
Add it to your revolving line of credit (RLOC) loan or open a standalone money market investment account today. Benefits of the a farm cash management plan include:
- Earn an attractive interest rate on your investment balance
- Delay and reduce the need to draw on your credit line, based on investment earning, reducing your cost of borrowing
- Enjoy earning that are exempt from state and local income taxes
- Benefit from the convenience and security of automatic fund management
- Pays interest rate for a liquid investment.
- Earnings are exempt from state and local income taxes.
- Cost of borrowing is reduced because investment earnings both delay and reduce the need to draw on your line of credit.
- Provides automatic fund management for maximum convenience and simplicity.
What is a Farm Cash Management Investment Account?
A farm cash management investment account is a flexible product that links your revolving line of credit (RLOC) with an AgriBank money market investment or simply serves as a standalone money market investment account.
Farm cash management investment accounts manage your fund to minimize your cost of credit when you have a loan balance. OR If you’ve put more funds in your account than are needed for your loan, it will automatically invest them so you can earn competitive interest. This could save – or earn – hundreds, or even thousands of dollars for you every year.
Farm Cash Management Automatic Benefits:
-
A farm cash management account can cut the cost of your operating loan.
Delivering your transactions directly into your farm credit management RLOC loan can reduce your cost of borrowing by keeping your loan balance minimal. Writing credit line drafts to pay your bills can save you even more because you incur no interest expense until your draft is actually processed.
-
A farm cash management account’s interest earning are exempt from state and local income taxes.
Since AgriBank uses the funds you invest to fund loans under the Farm Credit Act, your earning are not subject to state or local taxes. This feature may significantly increase the yield on your investment.
-
Establishing a farm cash management account is easy.
Just contact your local Farm Credit Midsouth branch! To be eligible, you must be a customer of Farm Credit Midsouth (stockholder or purchaser of a related service who hold a participation certificate). Farm Credit Midsouth retirees drawing from their pensions and full-time employees are also eligible to open a standalone farm cash management account.
-
A farm cash management account pays competitive interest without tying up your money.
AgriBank money market investments earn an interest rate that is competitive with a 3- or 6-month CD. The farm cash management advantage is that your money always remains available to you. You can access your farm cash management account just like any other interest-earning account: go online, visit a branch office or write yourself a credit line draft. Credit line drafts are only available to those who have an farm cash management RLOC loan.
This is not an offer for the sale of Farm Cash Management® (FCM®) investment accounts or AgriBank Money Market investments. Such investments are not insured by or a direct obligation of the United States government. FCM investments can only be purchased directly from AgriBank, FCB. Carefully review the disclosure information provided to all prospective purchasers prior to purchasing. Farm Credit associations are not authorized to represent AgriBank regarding such investment accounts. You should not rely on any statement or opinion of our associations or personnel in deciding upon the safety and soundness of FCM accounts or their suitability for your particular situation. Certain terms and conditions apply to FCM accounts.
Farm Cash Management Options:
Option 1. A farm cash management account with an RLOC loan.
You can’t always plan for the unexpected… whether it’s a sudden opportunity or an emergency funding need.
You can add an farm cash management account to an existing eligible revolving line of credit (RLOC) or open a new RLOC with a farm cash management account today. A credit line operating loan with an farm cash management account provides the financial security for just those times, so your money is always available when you need it.
Accessing your farm cash management account is easy. You can write a credit line draft, use online banking, visit your local Farm Credit Midsouth branch or contact your Farm Credit Midsouth branch to help transfer your funds.
Plus, detailed monthly statements provide transaction summaries that track the cash moving in and out of your farm cash management account to simplify your recordkeeping!
Remember, it costs nothing to have a credit line operating loan until you actually draw funds from it.
There are no fees associated with using your farm cash management account.
Option 2. A farm cash management account as a standalone money market investment.
If an operating loan isn’t an option, a farm cash management standalone money market investment bond account is available to Farm Credit Midsouth customers, employees and retirees.
It's a flexible savings alternative that gives you access to your cash at any time while still earning a competitive interest rate that’s exempt from state and local taxes.
Accessing your farm cash management account is easy. You can go online, visit your local Farm Credit Midsouth branch or contact your Farm Credit Midsouth branch to help transfer your funds.
You’ll receive detailed monthly statement that provide transaction summaries to make your recordkeeping simpler!
There are no fees associated with your farm cash management standalone account, and you can make as many transactions a month as you wish.
Your growing bottom line is our top priority. That’s why we provide farm cash management investment accounts to help strengthen rural American businesses and communities. Farm cash management accounts work to your advantage by making the most of your money. Put your money to work for you with a farm cash management account.
Contact your Farm Credit Midsouth professional today.
