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Only @ Farm Credit:

Wouldn’t it be great if, as a borrower, you could sock away up to two of your upcoming loan payments in an interest-bearing account? Well, if you’re a Farm Credit Midsouth Member, that option is available to you.

This Interest-Earnings Funds Held option is unique to Farm Credit for most borrowers whose loans have a payment schedule. Currently the rate paid on the accounts by the Association is equal to the interest rate on the individual loan less two percent, which can add up to significant savings. Funds may be used for limited purposes to help manage future financial obligations related to your loan, such as principal and interest payments, or for the payment of insurance premiums, taxes, or other approved items.

This can be a welcome safety net when cash flow is tight.

“It’s a good place to use short-term liquidity,” says Farm Credit Midsouth Director and Self-Employed Grain Farmer Franklin Fogleman. “For a farmer, it has far greater advantage over say, your typical checking account.”

“It’s another benefit unique to Farm Credit,” explains Diane Steiling, Executive Vice President, Chief Financial Officer. “We understand the uncertainties farmers face each year, and this option—with an interest rate significantly greater than what is currently available in the market for other short-term savings accounts—can really be helpful in meeting their financial obligations.”

This program is one of a number of Member advantages unique to Farm Credit and illustrates our efforts to address the specific needs of ag borrowers. We know there is really no such thing as a steady paycheck on the farm, where income is generated at harvest and cash flow may be unpredictable through the rest of the year. The Funds-Held option can help borrowers plan ahead for those slower times by earning money on advance payments when you can best afford them.

Sound like a benefit you’d like to take advantage of? Talk to your Farm Credit Midsouth loan officer today. If you’re eligible, you may enroll at any time.

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