The U.S. Department of Agriculture (USDA) has announced loan interest rates for August 2023, which were effective Aug. 1. USDA’s Farm Service Agency (FSA) loans provide access to capital to help producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.
Operating, Ownership and Emergency Loans
The FSA offers farm ownership and operating loans with favorable interest rates and terms to help eligible growers, whether multi-generational, long-time, or new to the industry, obtain financing needed to start, expand or maintain an agricultural operation. It also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine.
Interest rates for Operating and Ownership loans for August 2023 are as follows:
Farm Operating Loans (Direct): 4.875%
Farm Ownership Loans (Direct): 5.000%
Farm Ownership Loans (Direct, Joint Financing): 3.000%
Farm Ownership Loans (Down Payment): 1.500%
Emergency Loan (Amount of Actual Loss): 3.750%
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 distributed): 6.375%
Farm Storage Facility Loans: Three-year loan terms: 4.375%; five-year loan terms: 4.125%; seven-year loan terms: 4.000%; 10-year loan terms: 3.875%; and 12-year loan terms: 3.875%
Sugar Storage Facility Loans (15 years): 4.000%
The 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.
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.