NOTE 9- LOAN PAYABLES

As of December 31, 2017, the short-term loan payables consisted of four loans which mature on dates ranging from October 25, 2017 through July 30, 2018 with interest rates ranging from 5.22% to 6.31%. Loan No.4 in the table below is guaranteed with parent company’s credit from Jinong: Loans No. 1, 2 and 3 below are collateralized by Tianjuyuan’s land use right and building ownership right.

No.	Payee	Loan period per agreement	Interest Rate			December 31, 2017
1	Postal Saving Bank of China - Pinggu Branch	March 24, 2017-March 5, 2018		6.31	%	$	4,599,000
2	Bank of Beijing - Pinggu Branch	June 9, 2017-June 8, 2018		5.22	%		1,456,350
3	Bank of Beijing-Pinggu Branch	June 9, 2017-June 8, 2018		5.22	%		76,650
4	Beijing Agriculture Investment -small loan	August 1, 2017-July 30, 2018		5.50	%		153,300
	Total					$	6,285,300

As of June 30, 2017, the short-term loan payables consisted of four loans which mature on dates ranging from July 28, 2017 through June 8, 2018 with interest rates ranging from 5.22% to 6.31%. Loans No. 2 to 3 in the table below are guaranteed with parent company’s credit from Jinong; Loans No. 1 and 2 below are collateralized by Tianjuyan’s land use right and building ownership right.

No.	Payee	Loan period per agreement	Interest Rate			June 30, 2017
1	Postal Saving Bank of China - Pinggu Branch	March 24, 2017-March 5, 2018		6.31	%		4,507,080
2	Bank of Beijing - Pinggu Branch	June 9, 2017-June 8, 2018		5.22	%		1,502,360
3	Bank of Beijing - Pinggu Branch	June 28, 2016-July 28, 2017		5.22	%	$	1,502,360
4	Bank of China-Anhui	November 25, 2016-October 25, 2017		LPR	*	$	166,311
	Total					$	7,678,111

*LPR stands for Loan Prime Rate. The LPR rate is a 1-year lending rate used by commercial banks to their top grade borrowers whose credit are comparable to the interbank borrowing creditworthiness in China. The LPR rate is a variable rate and is published along with Shanghai Interbank Offer Rates daily.

The interest expense from short-term loans was $274,162 and $231,791 for the six months ended December 31, 2017 and 2016, respectively.