The United States Department of Agriculture (USDA) announced interest rates on debt for July 2021, effective July 1. USDA Farm Service Agency (FSA) loans provide valuable access to capital to help agricultural producers start or expand their farming operations, purchase equipment and storage structures, or meet cash flow needs.
Operational, Ownership and Emergency LoansThe FSA offers farm ownership and operating loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generation, long-term or new to industry, obtain the necessary financing to start, expand or maintain family agricultural operations. The FSA also offers emergency loans to help manufacturers recover from production and physical losses caused by thirst, flooding, other natural disasters or quarantine. For many loan options, the FSA provides funding for producers with insufficient history, including beginners, women, American Indian or Alaskan Native, Asian, Black or African American, Native Hawaiian or Pacific Islander, and Hispanic farmers and ranchers.
The interest rates for Operating and Ownership loans for July 2021 are as follows:
Operating Farm Loans (Direct): 1.875%
Farm Ownership Loans (Direct): 3.250%
Farm Ownership Loans (Direct, Combined Finance): 2.500%
Farm Ownership Loans (Down Payment): 1.500%
Emergency Loan (Actual Loss Amount): 2.875%
The FSA also offers guaranteed loans through commercial lenders at rates set by the lenders.
You can find out which of these loans may be right for you by using our Farm Loan Discovery Tool.
Commodity Loans and Storage FacilitiesAdditionally, the FSA provides low-interest financing to producers to build or upgrade farm storage facilities and purchase handling equipment and loans that provide temporary financing to help producers who meet cash flow needs without having to sell their goods when market prices are low. Funds for these loans are provided by the Commodity Credit Corporation (CCC) and administered by the FSA.
Commodity Loans (less than one year granted): 1.125%
Storage Facility Loans:
Three year loan term: 0.375%
Five-year lending terms: 0. 750%
Seven-year loan term: 1.250%
Ten year loan term: 1.500%
Twelve year lending term: 1.750%
Sugar Storage Facility Loans (15 years): 1.875%
Disaster SupportThe FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by winter storms, droughts, and other natural disasters that the USDA has programs that provide assistance. USDA staff at regional, state and provincial offices are prepared with varying program flexibility and other assistance to residents, agricultural producers and affected communities. Many programs are available without an official disaster designation, including many disaster risk and disaster management options.
Through Sept. 1, the FSA’s Disaster Set-Aside provision will be available to direct debtors to pandemic-affected debt. This allows for an upcoming annual installation that can be put aside for years and added to the final stage. For annual operating loans, the loan maturity date can be extended up to twelve months to set aside the installment. This provision generally applies in the event of natural disasters, and the second Disaster Set-Aside may be used for direct loan borrowers who already have DSA in place on a loan due to another designated natural disaster.
Additional informationManufacturers can explore the available options in all FSA loan options at fsa.usda.gov or by contacting your local USDA Service Center.