USDA ANNOUNCES COMMODITY CREDIT CORPORATION LENDING RATES FOR JANUARY 2004 Media Contact: Stevin Westcott (202) 720-4178

NEWS Farm Service Agency Public Affairs Staff 1400 Independence Ave SW Stop 0506, Room 3624-South Washington, D.C. 20250-0506 Release No. 1400.04 Stevin Westcott (202) 720-4178 stevin_westcott@wdc.usda.gov USDA ANNOUNCES COMMODITY CREDIT CORPORATION LENDING RATES FOR JANUARY 2004 WASHINGTON, Jan. 2, 2004 -- The interest rate for 1995 and prior crop year commodity loans disbursed by USDA's Commodity Credit Corporation (CCC) during January 2004 is 1.375 percent, unchanged from December 2003. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during January 2004 is 2.375, unchanged from December 2003. The interest rate for farm storage facility loans approved in January 2004 is 3.750, unchanged from December 2003. The interest rate for sugar storage facility loans is 4.875 percent for January 2004, unchanged from December 2003. Past monthly releases announcing interest rates charged by CCC on commodity and marketing assistance loans disbursed for that particular month reflected the interest rate charged the CCC by the U.S. Treasury for that month. This was the interest rate specified by the 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 Apr. 4, 1996. Section 163 of the Act requires that monthly interest rates applicable to commodity and marketing assistance loans are to be 100 basis points -- or 1 percent -- greater than the rate determined under the applicable interest rate formula in effect on Oct. 1, 1995. This formula resulted in a rate equivalent to the amount the U.S. Treasury charged the CCC for borrowing for the month. The provisions of Section 163 of the Act are not retroactive. Accordingly, this and subsequent monthly interest rate announcements will carry two sets of rates: one for 1995 and prior crop year commodity loans and one for 1996 and subsequent crop year commodity and marketing assistance loans. Further program information is available from USDA Farm Service Agency's Financial Management Division at (703) 305-1386. # NOTE: The Farm Service Agency's (FSA) news releases and media advisories are available on the Web at FSA's home page: http://www.fsa.usda.gov.