Our customer deposited a check drawn on Farm Credit Services of Mid-America and it's drawn on a bank in Wisconsin. It says it is for "loan proceeds". Is this a check from a bank drawn on another bank and therefore a teller's check. We need to place a hold on these funds but know we can't if it is a "next day" item.

look at the routing number on the check...this is what will tell you if it is local/next day or not. "teller checks" are not cashier checks, have no next day mandate

According to the reg. 229.10(c)(v) a Teller's check is a next day item under the specified conditions just the same as a Cashier's check.

I agree with you that a Teller Check is listed as a next day item. I think your original question still remains - Do you have a Tellers Check.
The definition of a Tellers Check in Reg CC is a check drawn by a Bank and payable through another bank.
I read the definition of Bank in 229.2(e)and I am not sure that Farm Credit meets the definition. !?!?!
It they don't then you don't have a Tellers Check.
Any Guru Help on Farm Credit?

Bump of this post.
We deal with a lot of ag. loans and now I am interested if a check from Farm Credit is a Teller Check requiring next day availability?

We can't tell for sure without seeing the check. Which company signed the check - Farm Credit Services of Mid-America or the bank in Wisconsin? That's who drew the check and is critical to this determination.

Reg CC defines "bank" as the following:
Bank means --
(1) An insured bank as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) or a bank that is eligible to apply to become an insured bank under section 5 of that Act (12 U.S.C. 1815);

(2) A mutual savings bank as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);

(3) A savings bank as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);

(4) An insured credit union as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752) or a credit union that is eligible to make application to become an insured credit union under section 201 of that Act (12 U.S.C. 1781);

(5) A member as defined in section 2 of the Federal Home Loan Bank Act (12 U.S.C. 1422);

(6) A savings association as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) that is an insured depository institution as defined in section 3 of that Act (12 U.S.C. 1813(c)(2)) or that is eligible to apply to become an insured depository institution under section 5 of that Act (12 U.S.C. 1815); or

(7) An agency or a branch of a foreign bank as defined in section 1(b) of the International Banking Act (12 U.S.C. 3101).

If the company that drew the check meets one of those 7 categories, your item requires next day availability (unless other exception hold provisions or method of deposit provisions apply - you can never state any absolutes in Reg CC). If the company that drew the check does not meet one of those 7 categories, it sounds like it is an ordinary local- or non-local item.