WASHINGTON – The U.S. Department of Agriculture (USDA) announced loan interest rates for July 2024, which became effective July 1, 2024. USDA 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.
“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 farmers, 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 July 2024 are as follows:
- Farm Operating Loans (Direct): 5.500%
- Farm Ownership Loans (Direct): 5.750%
- Farm Ownership Loans (Direct, Joint Financing): 3.750%
- Farm Ownership Loans (Down Payment): 1.750%
- 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):6.125%.
- 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: 4.375%
- Twelve-year loan terms: 4.375%
Sugar Storage Facility Loans(15 years): 4.500%