The London Interbank Offered Rate (“LIBOR”), currently the world’s prevailing reference rate for financial instruments, will no longer exist after June 30, 2023. Farmer Mac is actively monitoring the LIBOR transition and is participating in numerous industry-wide and regulatory advisory committees in order to prepare for the transition to alternative reference rates. As part of our preparations, we are sharing the following answers to some of the most frequently asked questions about LIBOR.

LIBOR Frequently Asked Questions

What is LIBOR?
How is LIBOR used?
What is happening with LIBOR?
What will ultimately come to “replace” LIBOR in the capital markets?
What is Farmer Mac doing to monitor and address the future of LIBOR?
What alternative products are available to Farmer Mac Approved Lenders?
What will happen to existing Farmer Mac loans that are indexed to LIBOR?
How can market participants prepare for the transition?