With the cyclical nature of most agriculture enterprises, there are likely to be some years your operation generates more cash than is needed to meet immediate needs and some years where extra cash is needed to cover operating expenses and loan payments. To help our customers manage their cash flow, Western AgCredit offers a Funds Held Account that allows them to remit excess cash to Western AgCredit and earn a competitive interest rate on extra cash.
However, use of the account is voluntary. Payments can be remitted to the account at any time and in any amount that does not cause the total balance to exceed program limitations. There are no minimum payment amounts, nor any fees. Application or disbursement of all or a portion of the Funds Held Account can be done at any time, subject to program limitations. Accounts earn interest at a competitive variable rate based on the 90-day average U.S. Treasury Bill. Current interest rate information can be obtained from any Western AgCredit office. The interest earned on the account will be reported annually in accordance with the IRS requirements.