WASHINGTON, Feb. 2023 – The U.S. Department of Agriculture (USDA) announced loan interest rates for February 2023, which are effective Feb. 1, 2023. USDA’s Farm Service Agency (FSA) loans provide access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.
Operating, Ownership and Emergency Loans
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. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine. For many loan options, FSA sets aside funding for underserved producers, including veterans, beginning, women, American Indian or Alaskan Native, Asian, Black or African American, Native Hawaiian or Pacific Islander, and Hispanic farmers and ranchers
Interest rates for Operating and Ownership loans for February 2023 are as follows:
- Farm Operating Loans (Direct): 4.750%
- Farm Ownership Loans (Direct): 4.750%
- Farm Ownership Loans (Direct, Joint Financing): 2.750%
- 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): 5.750%
- Farm Storage Facility Loans:
- Three-year loan terms: 4.000%
- Five-year loan terms: 3.750%
- Seven-year loan terms: 3.750%
- Ten-year loan terms: 3.625%
- Twelve-year loan terms: 3.750%
- Sugar Storage Facility Loans (15 years): 3.875%
Producers can explore available options on all FSA loan options at fsa.usda.gov or by contacting their local USDA Service Center.