Rolnictwo i żywność · 04/03/2013

Maximum Interest Rates on Guaranteed Farm Loans

The Farm Service Agency (FSA) is issuing an interim rule that ties maximum interest rates on guaranteed farm loans to the 3-month London Interbank Offered Rate (LIBOR) or the 5-year Treasury note rate, unless lenders use a formal risk-based pricing practice, in which case rates will be at least one tier lower. This change aims to increase clarity and set rates aligned with current credit market conditions.