What is the tax status of the Farm Credit Debt Securities?
Under the Farm Credit Act, Farm Credit Debt Securities and the interest thereon are exempt from state, local and municipal income taxation. Provisions of several statutes that are analogous to the relevant tax exemption provisions of the Farm Credit Act have been construed by certain state courts as not exempting securities similar to the Farm Credit Debt Securities or interest thereon from nondiscriminatory franchise taxes or other nonproperty taxes imposed on corporations. Interest on the Farm Credit Debt Securities is not exempt from federal income taxation. In addition, gain from the sale or disposition of the Farm Credit Debt Securities or their transfer by inheritance, gift, or other means is not exempt from federal taxation, and generally is not exempt from state, local or municipal taxation. Additional information regarding the tax consequences of purchasing, holding and disposing of the Farm Credit Debt Securities is contained in the applicable offering circular. Holders and p
