CCC Interest Rates Continue To Move Higher

Commodity loans disbursed during March will carry a 2.875% interest rate, according to USDA's Commodity Credit Corporation (CCC), the highest since October 2008 when the rate was 3.0%. The rate reflects the amount CCC is charged by the U.S. Treasury plus 100 basis points – or 1%.Borrowing costs have been rising in recent months and with the U.S. Federal Reserve expected to increase short-term interest rates at least three times in 2018, those borrowing costs are expected to increase further on the commodity loan producers can obtain from the government and on loans from commercial lenders.