WASHINGTON, Nov. 1, 2024 – The U.S. Department of Agriculture (USDA) announced loan interest rates for November 2024, which are effective Nov. 1, 2024. USDA 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.
Interest rates for Operating and Ownership loans for November 2024 are as follows:
- Farm Operating Loans (Direct): 4.500%
- Farm Ownership Loans (Direct): 5.125%
- Farm Ownership Loans (Direct, Joint Financing): 3.125%
- 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):5.125%
- Farm Storage Facility Loans:
- Three-year loan terms: 3.750%
- Five-year loan terms: 3.750%
- Seven-year loan terms: 3.750%
- Ten-year loan terms: 3.875%
- Twelve-year loan terms: 4.000%
- Sugar Storage Facility Loans (15 years): 4.125%
Farm Loan Program Process Improvement
FSA recently announced significant changes to Farm Loan Programs through the Enhancing Program Access and Delivery for Farm Loans rule. These policy changes took effect Sept. 25, 2024, and are designed to better assist borrowers to make strategic investments in the enhancement or expansion of their agricultural operations.
FSA also has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. FSA has made various improvements including:
- The Online Loan Application, an interactive, guided application that is paperless and provides helpful features, including an electronic signature option, the ability to attach supporting documents, such as tax returns, complete a balance sheet and build a farm operating plan.
- The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process. The tool was recently updated to include features tailored specifically to meet lender needs. The tool allows users to access all resources by identifying themselves as either a producer or lender.
- The Debt Consolidation Tool that allows producers to enter their farm operating debt and evaluate the potential savings that might be provided by obtaining a debt consolidation loan with FSA or a local lender.
- An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing or visiting a local Service Center to pay a loan installment.
- A simplified direct loan paper application, reduced from 29 pages to 13 pages.
- A new educational hub with farm loan resources and videos.