IRS LISTS INTEREST RATES USED TO COMPUTE SPECIAL-USE VALUE OF FARMLAND.

Rev. Rul. 92-12

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

Under section 2032A(e)(7)(A)(ii) of the Internal Revenue Code, rates on new Farm Credit Bank loans are sued in computing the special use value of real property used as farm for which an election is made under section 2032A. The rates in this revenue ruling may be used by estates that value farmland under section 2032A as of a date in 1992.

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

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 1991 are in Rev. Rul. 91-24, 1991-1 C.B. 188. For rate information for years prior to 1991, see Rev. Rul. 90- 49, 1990-1 C.B. 171, and other revenue rulings that are cited therein.

DRAFTING INFORMATION

The principal author of this revenue ruling is Lane Damazo of the Office of the Assistant Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling contact Lane Damazo on (202) 377-9660 (not a toll-free call).

                                Table 1