In a strongly worded letter this past week, Timothy Karsy, commissioner of the North Dakota Department of Financial Institutions, complained to Farm Credit Administration chairman Mike Reyna about blatant efforts by FCS to compete for deposits with commercial banks. The letter stated that a FCS newsletter article touting the so-called Farm Cash Management Plans was "very misleading and the general public is led to believe this is an interest-bearing deposit account … the article further misleads the public by stating agri-bank investment bonds are backed solely by AgriBank, FCB, in St. Paul, Minnesota, which holds assets of nearly $23 billion. I believe the public will presume these deposits are backed by the government or are an insured deposit."
The commissioner also raised concerns with an FCA proposal to engage in farm management and agricultural trust services. The FCA currently has three proposals pending, with comment deadlines in October: OFI/Farmer Notes (consumer lending) October 10; farm management & ag trust services (Oct. 20); non-farm lending (scope & eligibility) October 29. For more information, go to www.icba.org, under "Farm Credit System."