The USDA's Commodity Credit Corporation has announced interest rates for January 2011. The CCC borrowing rate-based charge is 0.25%, unchanged from December 2010. The rate for 1996 and subsequent crop year commodity and marketing assistance loans is also unchanged from December 2010; the interest rate for loans disbursed during January 2011 is 1.25%.
The interest rate for farm storage facility loans approved for January is as follows: For a seven-year loan term the January figure is 2.5% and that compares to last month's rate of 2.0%. For a 10-year loan term the January figure is 3.125%. That's up from 2.75% in December 2010. And the 12-year loan term rate is 3.375%, up from 3.0% in December.
The interest rate for Sugar Storage Facility Loans for January is up. The 3.75% rate is up from 3.375% in December 2010.
The maximum discount rate applicable for January 2011 for the Tobacco Transition Payment Program is 5%, unchanged from December 2010. This is based on the 3.250% prime rate plus 2%, rounded to the nearest whole number.