WASHINGTON – The U.S. Department of Agriculture (USDA) has announced loan interest rates for December 2023, which became effective Dec. 1, 2023. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help farmers 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 growers, 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 December 2023 are as follows:
- Farm Operating Loans(Direct): 5.750%
- 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.
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): 6.375%
- Farm Storage Facility Loans:
- Three-year loan terms: 4.750%
- Five-year loan terms: 4.625%
- Seven-year loan terms: 4.625%
- Ten-year loan terms: 4.625%
- Twelve-year loan terms: 4.750%
- Sugar Storage Facility Loans(15 years): 4.875%
Simplified Direct Loan Application
FSA developed a new, simplified direct loan application for producers seeking a direct farm loan. The new application, reduced from 29 to 13 pages, provides an improved customer experience for producers applying for loans and enables them to complete a more streamlined application. Producers now also have the option to complete an electronic fillable form or a traditional paper application for submission to their local FSA service center.
FSA recently announced additional automatic assistance to qualifying, economically distressed guaranteed farm loan program and Emergency Loan borrowers who face financial risk.
FSA is also accepting and reviewing individual requests for assistance from borrowers who took certain extraordinary measures to avoid delinquency on their direct FSA loans or those who missed a recent installment or who are unable to make their next scheduled installment. For more information, or to submit a request for assistance, producers can contact their local USDA Service Center or visit farmers.gov/inflation-reduction-investments/assistance.