Commodity loans disbursed in November by the Commodity Credit Corporation (CCC) will have a 2.625% interest rate, down from 2.750% in October. This marks the fifth straight month that the interest rate on commodity loans has declined.
The interest rate in effect for November is a full percentage point below the level in place in November 2018 when it was 3.625%.
This means lower borrowing costs for farmers opting to utilize the nonrecourse marketing assistance loan (MAL) program for their 2019 production.
In USDA’s August farm income update, they noted that interest rates were a key farm expense area that had risen.
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