Rates Used in Computing Special Use Value Issued, Rev. Rul. 2023-15

The 2023 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 has listed 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 2023.

For 2023, the interest rate for each Farm Credit System Bank is:

• AgFirst, FCB: 5.33%
• AgriBank, FCB: 4.83%
• CoBank, ACB: 4.83%
• Texas, FCB: 5.22%