FMDs - an end of financial year option - Elders Rural Services

FMDs – an end of financial year option

Farm Management Deposits (FMDs) are a valuable risk management tool to assist Australian farmers to manage the volatility of farm incomes.

“There are good years and not-so-good years – that’s part of farming. We want an easy way to put aside money in the good years that will help us when things are a bit tougher.”

Over the past 12 months national FMD balances peaked at $6.2 billion in June 2021 which is the normal seasonal high. However, unlike previous years where the run-off from the peak was sustained. The past 12 months to March 2022 have shown a much flatter trend.

The national FMD balance as at March 2022 was $5.3 billion, 0.3 per cent (pc) higher than March 2021 and only slightly lower than February 2022 down by 0.4pc.

Elders Head of Agribusiness Investment Services Mark Barber said that for a large portion of agricultural enterprises, 2021/22 will be a highly successful financial year, driven by strong commodity prices, high yields and overall favourable seasonal conditions.

“When combined with the relatively high FMD balances for March 2022, the agricultural industry is well placed to store more cash in FMD’s, helping to mitigate risks such as seasonal conditions and rising input costs,” Mr Barber added.

The federal government’s FMD scheme allows primary producers to set aside pre-tax income, which they can draw on in future years when they need it. Your deduction is claimed when the deposit is made, and it only becomes taxable income the year it is withdrawn.

To be eligible you’ll need to keep the funds in the FMD for a minimum of 12 months. You can have a combined total of up to $800,000 across multiple FMD accounts.

Through our financial partners Rural Bank, Elders offer a range of both fixed term and variable rate FMD options.

Meet one of the team

Elders is committed to offering our customers tailored financial services throughout our branch network. Maggie Squire, Sales Support Officer Broken Hill, is available to assist customers with their banking needs, including opening Farm Management Deposits this end of financial year.

“My customers love being able to drop into the branch when they are in town and speak to me about their banking needs. I find it very rewarding to be able to help them. It’s very satisfying to know that customers have confidence and trust in me to assist them at an important time of the year.” Maggie said.


To see if an FMD is right for you speak to Elders Agri Finance on 1300 618 367 or contact your local branch.

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This information has been prepared without taking into account your personal circumstances, objectives, financial situation or needs. All applications for loans or credit are subject to lending criteria. Before making any investment decision you should consider your situation and consult your taxation adviser to ensure that you meet the legislative requirements and read the relevant terms and conditions available at Products are issued by Rural Bank – A Division of Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL/Australian Credit Licence 237879 and distributed by Elders Rural Services Australia Limited ABN 72 004 045 121 AFSL 237757 and Bendigo and Adelaide Bank Limited. Elders Rural Services Australia may receive a commission based on the average account balance.

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