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Southern Illinois | Operating loan rates are around here are 5 - 5.25% as I think most banks base their operating loans off prime and try to add 0.25 - 0.50%. Prime is currently 4.75%. 3 and 5 yr equipment loan rates are about 4.50% and 4.75%, respectively. As far as land rates go, I'd say you are looking at around 4.50% on short term rates, between 3 and 5 years. Most community banks will not lock in long term fixed rates especially when we are in a rising interest rate environment. They can use FarmerMac for long term fixed rates which has very similar rates to Farm Credit. The 15 and 20 yr fully amortized fixed rates are around the upper 5% to lower 6% range. FarmerMac is a secondary market for ag real estate loans much like your FannieMae and FreddieMac secondary market residential loans. | |
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Interest Rates
