The United States Department of Agriculture (USDA) has announced loan interest rates for October 2023, which go into effect on October 2, 2023. USDA Farm Service Agency (FSA) loans help agricultural producers start or expand their farming operations, purchase equipment and storage structures, or satisfy cash flow needs.
Operating, Ownership and Emergency Loans
FSA offers farm ownership and operating 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. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine. 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 October 2023 are as follows:
- Farm Operating Loans(Direct): 5.250%
- Farm Ownership Loans(Direct): 5.250%
- Farm Ownership Loans(Direct, Joint Financing): 3.250%
- 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): 6.375%
- Farm Storage Facility Loans:
- Three-year loan terms: 4.500%
- Five-year loan terms: 4.250%
- Seven-year loan terms: 4.125%
- Ten-year loan terms: 4.125%
- Twelve-year loan terms: 4.125%
- Sugar Storage Facility Loans(15 years): 4.250%
Simplified Direct Loan Application
For producers seeking a direct farm loan, the FSA created a new, simpler direct loan application. The new application, which has been cut from 29 to 13 pages, improves the customer experience for producers seeking loans and allows them to submit a more simplified application. Producers can now submit either an electronic fillable form or a traditional paper application to their local FSA service location.
FSA also notifies rural communities, farmers and ranchers, families, and small businesses harmed by the previous year’s winter storms, drought, hurricanes, and other natural disasters that USDA has assistance programs. USDA staff at regional, state, and county offices are ready to provide agricultural producers and impacted communities with a variety of program flexibilities and other assistance. Many services, including risk management and disaster recovery solutions, are available without an official disaster declaration.
Inflation Reduction Act Assistance for Distressed Producers
The Inflation Reduction Act (IRA), a historic, once-in-a-generation investment and opportunity for the agricultural communities, provided $3.1 billion for USDA to provide relief for distressed borrowers with certain FSA direct and guaranteed loans and to expedite assistance for those whose agricultural operations are at financial risk. Since October 2022, USDA has provided approximately $1.5 billion in immediate assistance to more than 24,000 financially distressed direct and guaranteed FSA loan borrowers.
FSA recently announced additional automatic assistance to guaranteed borrowers in August 2023.
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.
More Information 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.USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit https://www.usda.gov.
USDA is an equal opportunity provider, employer and lender.