USDA Sets August Interest Rates

WASHINGTON - Aug 1/12 - SNS -- The USDA's Commodity Credit Corporation (CCC) set interest rates for August 2012.

The CCC borrowing rate-based charge for August 2012 is 0.250%, unchanged from 0.250 in July 2012. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during August 2012 is 1.250%, unchanged from 1.250 in July 2012.

In accordance with the 2008 Farm Bill, interest rates for Farm Storage Facility Loans approved for August 2012 are as follows, 1.000% with seven-year loan terms, down from 1.125 in July 2012; 1.625% with 10-year loan terms, unchanged from 1.625 in July 2012 and; 1.875% with 12-year loan terms, unchanged from 1.875% in July 2012. The interest rate for Sugar Storage Facility Loans for August 2012 is 2.000%, down from 2.125 in July 2012.

Section 163 of the Act requires that monthly interest rates applicable to commodity and marketing assistance loans are to be 100 basis points — or 1% — greater than the rate determined under the applicable interest rate formula in effect on Oct. 1, 1995. This formula resulted in a rate equivalent to the amount the U.S. Treasury charged CCC for borrowing, for the month.