Aug 27, 2014
Home| Tools| Blogs| Discussions| Sign UpLogin


The Farm CPA

RSS By: Paul Neiffer, Top Producer

Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.

Should You Switch Your LIBOR Debt?

Nov 28, 2011

With the eurozone upheaval in the financial markets, farmers may want to consider changing any LIBOR-based debt that they currently have or anticipate having in the future.

Almost all loans these days are based upon some type of index. The most common ones are the prime rate, LIBOR and some type of U.S. Government loan index. For the last few years, loans tied to LIBOR have perhaps seen lower rates than loans tied to the prime rate or other indexes. 

However, now that issues with the eurozone are getting more dire every day it seems, farmers may want to switch any LIBOR loans over to a more stable and possibly much cheaper index. To do this, you would need to check with your banker, but all farmers who have LIBOR-indexed loans should at least check this out.

Log In or Sign Up to comment

COMMENTS

No comments have been posted, be the first one to comment.

Receive the latest news, information and commentary customized for you. Sign up to receive Top Producer's eNewsletter today!

 
 
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions