Internal Revenue Bulletin:  2011-33 

August 15, 2011 

Rev. Rul. 2011-17


Table of Contents

Special use value; farms; interest rates. The 2010 and 2011 interest rates to be used in computing the special use value of farm real property for which an election is made under section 2032A of the Code are listed for estates of decedents.

This revenue ruling contains a list of the average annual effective interest rates on new loans under the Farm Credit System. This revenue ruling also contains a list of the states within each Farm Credit System Bank Chartered Territory.

Under § 2032A(e)(7)(A)(ii) of the Internal Revenue Code, rates on new Farm Credit System Bank loans are used in computing the special use value of real property used as a farm for which an election is made under § 2032A. The rates in Table 1 of this revenue ruling may be used by estates that value farmland under § 2032A as of a date in 2010. The rates in Table 2 of this revenue ruling may be used by estates that value farmland under § 2032A as of a date in 2011.

Average annual effective interest rates, calculated in accordance with § 2032A(e)(7)(A) and § 20.2032A-4(e) of the Estate Tax Regulations, to be used under § 2032A(e)(7)(A)(ii), are set forth in the accompanying Tables of Interest Rates (Table 1 and 2). The states within each Farm Credit System Bank Chartered Territory are set forth in the accompanying Table of Farm Credit System Bank Chartered Territories (Table 3).

Rev. Rul. 81-170, 1981-1 C.B. 454, contains an illustrative computation of an average annual effective interest rate. The rates applicable for valuation in 2009 are in Rev. Rul. 2009-21, 2009-30 I.R.B. 162. For rate information for years prior to 2009, see Rev. Rul. 2008-44, 2008-2 C.B. 292, and other revenue rulings that are referenced therein.

DRAFTING INFORMATION

The principal author of this revenue ruling is Lane Damazo of the Office of the Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Lane Damazo at (202) 622-3090 (not a toll-free call).

REV. RUL. 2011-17 TABLE 1
TABLE OF INTEREST RATES (Year of Valuation 2010)
Farm Credit System Bank Servicing State in Which Property is Located Rate
AgFirst, FCB 7.48
AgriBank, FCB 6.41
CoBank, ACB 6.07
Texas, FCB 6.45
U.S. AgBank, FCB 6.15
REV. RUL. 2011-17 TABLE 2
TABLE OF INTEREST RATES (Year of Valuation 2011)
Farm Credit System Bank Servicing State in Which Property is Located Rate
AgFirst, FCB 6.97
AgriBank, FCB 6.12
CoBank, ACB 5.78
Texas, FCB 6.04
U.S. AgBank, FCB 5.88
REV. RUL. 2011-17 TABLE 3
TABLE OF FARM CREDIT SYSTEM BANK CHARTERED TERRITORIES
Farm Credit System Bank Location of Property
AgFirst, FCB Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, Pennsylvania, South Carolina, Virginia, West Virginia.
AgriBank, FCB Arkansas, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Tennessee, Wisconsin, Wyoming.
CoBank, ACB Alaska, Connecticut, Idaho, Maine, Massachusetts, Montana, New Hampshire, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington.
Texas, FCB Alabama, Louisiana, Mississippi, Texas.
U.S. Agbank, FCB Arizona, California, Colorado, Hawaii, Kansas, New Mexico, Nevada, Oklahoma, Utah.

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