Federal Tax Day - Current, I.1, Rates Used in Computing Special Use Value Issued (Rev. Rul. 2026-14), (Aug 24, 2026)
Organizations Mentioned:AgriBank, FCB | CoBank, ACB | Edf Ventures Opportunity Fund, LP | Zerista, Inc.
The 2026 interest rates to be used in computing the special use value of farm real property for which an election is made under Code Sec. 2032A were issued by the IRS.
In the ruling, the IRS lists the average annual effective interest rates on new loans under the Farm Credit System. The rates are employed in computing the special use value of real property used as a farm for which a Code Sec. 2032A election has been made. In addition to the interest rates, the IRS has provided an accompanying table that identifies the states within each Farm Credit System Bank Chartered Territory. The rates may be used by estates that value farmland under Code Sec. 2032A in 2026.
For 2026, the interest rate for each Farm Credit System Bank is:
AgFirst, FCB: 6.88%
AgriBank, FCB: 6.47%
CoBank, ACB: 6.41%
Texas, FCB: 6.83%
Rev. Rul. 2026-14
Other References:
Code Sec. 2032A
CCH Reference - FINH ¶4340.33
CCH Reference - FINH ¶4240.661