The U.S. Department of Agriculture recently announced loan interest rates for February 2021, which are effective February 1.
Operating and Ownership 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. For many loan options, FSA sets aside funding for historically disadvantaged 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 February 2021 are as follows:
- Farm Operating Loans (Direct): 1.375 percent
- Farm Operating Loans (Microloan “Special Interest Rate”): 5.000 percent
- Farm Ownership Loans (Direct): 2.625 percent
- Farm Ownership Loans (Direct, Joint Financing): 2.500 percent
- Farm Ownership Loans (Down Payment): 1.500 percent
- Emergency Loan (Amount of Actual Loss): 2.375 percent
FSA also offers guaranteed loans through commercial lenders at rates set by those lenders.
Individuals can find out which of these loans may be right for them by using the Farm Loan Discovery Tool.
Commodity and Storage Facility Loans
FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment. FSA also offers commodity 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 administered by FSA.
- Three-year loan terms: 0.250 percent
- Five-year loan terms: 0.375 percent
- Seven-year loan terms: 0.750 percent
- Ten-year loan terms: 1.000 percent
- Twelve-year loan terms: 1.125 percent
- Sugar Storage Facility Loans (15 years): 1.375 percent
- Submitted by Kateri Smith, USDA Program Technician