The U.S. Department of Agriculture's Commodity Credit Corp. (CCC) has announced interest rates for July 2013.
The CCC borrowing
rate-based charge for July 2013 is 0.125 percent, unchanged from 0.125
in June 2013. For 1996 and subsequent crop year commodity and marketing
assistance loans, the interest rate for loans disbursed during July 2013
is 1.125 percent, unchanged from 1.125 in June 2013.
rates for Farm Storage Facility Loans approved for July 2013 are as
follows, 1.500 percent with seven-year loan terms, up from 1.250 in June
2013; 2.125 percent with 10-year loan terms, up from 1.750 in June 2013
and; 2.375 percent with 12-year loan terms, up from 2.000 percent in
The interest rate for Sugar Storage Facility Loans for July
2013 is 2.625 percent, up from 2.250 in June 2013.
maximum discount rate applicable for July 2013 for the Tobacco
Transition Payment Program is 5 percent, unchanged from June 2013. This
is based on the 3.250 percent prime rate plus 2 percent, rounded to the
nearest whole number.
releases announcing interest rates charged by CCC on commodity and
marketing assistance loans disbursed for that particular month reflect
the interest rate the U.S. Treasury charged CCC for that month.
was the interest rate specified by CCC since Jan. 1, 1982, but the
process of establishing the interest rate was changed by a provision of
the Federal Agriculture Improvement and Reform Act of 1996 (the Act),
enacted April 4, 1996.
163 of the Act requires that monthly interest rates applicable to
commodity and marketing assistance loans are to be 100 basis points — or
1 percent — greater than the rate determined under the applicable
interest rate formula in effect Oct. 1, 1995. This formula resulted
in a rate equivalent to the amount the U.S. Treasury charged CCC for
borrowing, for the month.
Further program information is available from USDA Farm Service Agency's Financial Management Division at (202) 772-6041.