When you have cash available, your operating loan is paid first and all excess funds are then invested in an account comprised of AgriBank Investment Bonds. These bonds pay interest at rates that normally are significantly higher than what can be earned on typical commercial bank accounts – like checking, savings, money markets and even certificates of deposit (CDs). When you need cash for operating expenses, the investment account funds are used first, before advancing funds on your operating loan, helping to minimize your operating loan interest cost.
DISCLOSURE STATEMENT: 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 different obligation of the United States government. FCM investments can only be purchased directly from AgriBank, FCB. Carefully review the disclosure informtion 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.