Farm Credit is rolling back interest rates resulting in millions of dollars in savings to customers. Beginning February 1, 2011 customers will see interest rates on their loans lowered by .35%. Also beginning February 1, spreads on interest rates on all new loans will be adjusted down .35%.
Farm Credit Mid-America has experienced slower growth in 2009 and 2010 and strong earnings, increasing the association’s capital position. The strong capital position allows the association to roll back interest rates.
“The rate rollback – and the future adjustment of interest rates - is one more tangible benefit in a long line of events over the last 25 years demonstrating the value of this cooperative,” said Paul Bruce, senior vice president – finance and chief financial officer. “This rate adjustment provides additional flexibility for customer-members to withstand market volatility.”
While the Farm Credit management, staff and board of directors have worked hard to keep rates low, they are able to lower them even more because the association chooses to manage earnings to the customers’ benefit. “This move reflects our financial strength and is an indicator of our commitment to both current and future members,” said Bruce.
In early February, Farm Credit will mail new rate notices to all customers.