Farm Debt Interest Rates Ease

The Ministry of Agriculture and Forestry will lower interest rates on small farm loans. Most outstanding farm debts held by mutual credit funds carry interest rates near 10 percent; the ministry will allow farmers with total debts of less than 15 million won ($11,400) to roll over those loans into new ones with 6.5 percent interest rates. National Agriculture Cooperative Federation offices will accept applications from eligible farmers..

The ministry's current program allows farmers carrying any amount of debt to roll over 70 percent of their outstanding loans into ones with lower interest rates. The new program will answer complaints from small farmers that they need additional help.