The U.S. Department of Agriculture (USDA) announced loan interest rates for January 2024, which are effective Jan. 2, 2024. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.
“I encourage our lenders and borrowers alike to work with our local offices and our cooperators to capitalize fully on the existing flexibilities in these important programs,” said FSA Administrator Zach Ducheneaux.
Operating, Ownership and Emergency Loans
FSA offers farm ownership, operating and emergency 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. For many loan options, FSA sets aside funding for underserved producers, including, 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 January 2024 are as follows:
- Farm Operating Loans(Direct): 5.625%
- Farm Ownership Loans(Direct): 5.875%
- Farm Ownership Loans(Direct, Joint Financing): 3.875%
- Farm Ownership Loans(Down Payment): 1.875%
- 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. Once producers have a better idea of the type of loan they need for their farm operation, producers can apply for a direct farm loan online through the FSA Online Loan Application, a secure portal where producers can complete their applications and submit it for processing. Use the Online Loan Application by accessing the Loan Assistance Tool.
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): 6.125%
- Farm Storage Facility Loans:
- Three-year loan terms: 4.375%
- Five-year loan terms: 4.125%
- Seven-year loan terms: 4.250%
- Ten-year loan terms: 4.125%
- Twelve-year loan terms: 4.250%
- Sugar Storage Facility Loans(15 years): 4.375%
Disaster Support
FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the past year’s winter storms, drought, hurricanes and other natural disasters that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared to deliver a variety of program flexibilities and other assistance to agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster recovery options.
More Information
USDA continues to accept applications for the Discrimination Financial Assistance Program, which provides financial assistance for farmers, ranchers and forest landowners who experienced discrimination in USDA farm lending programs prior to January 2021. All requests for assistance must be received by Jan. 13, 2024. For information on how to request assistance, producers can contact their local USDA Service Center or visit farmers.gov/loans.