According to a release from USDA's Farm Service Agency, the interest rate for 1995 and prior crop year commodity loans disbursed by USDAâ€™s Commodity Credit Corporation (CCC) during December 2004 is 2.375%, up from 2.250% in November 2004. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during December 2004 is 3.375%, up from 3.250% in November 2004.
The interest rate for farm storage facility loans approved in December 2004 is 3.750%, unchanged from November 2004. The interest rate for sugar storage facility loans for December 2004 is 4.625%, up from 4.500% in November 2004.
Past monthly releases announcing interest rates charged by CCC on commodity and marketing assistance loans disbursed for that particular month reflected the interest rate the U.S. Treasury charged CCC for that month. This 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 on April 4, 1996.