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<br />,. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />1. Existing Policv with a CaD on the Agricultural Rate <br /> <br />For the year 2000, the Agricultural Rate is 4.00 percent. The Board may simply <br />choose to leave the rate at 4.00 percent for 2001 without necessarily having to revise <br />the lending rate policy. The issue could be revisited next year before lending rates are <br />recommended for 2002. <br /> <br />2. Fixed Agricultural Rate (Revision to Existing Policy) <br /> <br />The Board is authorized by statute to set lending rates anywhere between zero and <br />seven percent. The Board might choose a number near the mid-point of this range, <br />such as 3.50 percent, as a more or less fixed rate for agricultural loans. That rate <br />might be adjusted downward in the event one or more of the other rates in the lending <br />rate structure were to fall below 3.50 percent. <br /> <br />3. Revise Percental!e Difference Between Agricultural Rate and Standard Rate <br />(Revision to Existing Policy) <br /> <br />The current lending rate policy specifies that the "The Agricultural Rate will be identical <br />to the Municipal Low Income Rate". Both the Agricultural and Municipal Low Income <br />rates are calculated as 80 percent of the Municipal Standard Income Rate rounded to the <br />nearest one-quarter of one percent. The Agricultural Rate could be calculated at <br />something less than 80 percent of the Standard Rate. The following table gives a <br />projection for the year 2001 Agricultural Rate as different percentages of the S~dard <br />Rate which is estimated here at 5.50 percent for 2001. <br /> <br />Projected Agricultural Rates for 2001 as <br />Percentage of the Standard Rate <br /> <br />Agricultural Rate as a Projected Agricultural Rate <br />Percent of Standard Rate for 2001 <br />80% (1) 4.50% <br />75% 4.00% <br />70% 3.75% <br />65% 3.50% <br /> <br />(1) Current policy <br /> <br />Staff will review these options at the September 2000 Board meeting. <br /> <br />Policy No, 8 - Rate of Return Estimate for Loans From the Construction Fund and the <br />Severance Tax Trust Fund Peroetual Base Account <br /> <br />Attached is a draft-revised version of Policy No.8 for the Board's consideration. The suggested <br />revisions to the existing policy are: <br /> <br />2 <br />