The U.S. Department of Agriculture (USDA) has announced loan interest rates for October.
The USDA’s Farm Service Agency (FSA) offers farm ownership and operating loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-time, or new to the industry, obtain financing needed to start, expand or maintain a family agricultural operation.
Interest rates for Operating and Ownership loans for October are as follows:
Farm Operating Loans(Direct): 5.250%
Farm Ownership Loans(Direct): 5.250%
Farm Ownership Loans(Direct, Joint Financing): 3.250%
Farm Ownership Loans(Down Payment): 1.500%
Emergency Loan(Amount of Actual Loss): 3.750%
FSA also offers guaranteed loans through commercial lenders at rates set by those lenders.
To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.
Commodity and Storage Facility Loans
Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and loans that provide interim financing to help producers meet cash flow needs without having to sell their commodities when market prices are low. Funds for these loans are provided through the Commodity Credit Corporation (CCC) and are administered by FSA.
- Commodity Loans(less than one year disbursed): 6.375%
- Farm Storage Facility Loans:
- Three-year loan terms: 4.625%
- Five-year loan terms: 4.375%
- Seven-year loan terms: 4.375%
- Ten-year loan terms: 4.125%
- Twelve-year loan terms: 4.125%
- Sugar Storage Facility Loans(15 years): 4.250%
More Information To learn more about FSA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and view other fam records data and customer information by logging in their farmers.gov account. If you don’t have an account, sign up today.