Source: USDA, 3/1/21 The U.S. Department of Agriculture (USDA) today announced loan interest rates for March 2021, which are effective March 1.Operating and Ownership Loans The USDA Farm Service Agency (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
March 2021 are as follows:
- Farm Operating
Loans (Direct): 1.375%
- Farm Operating
Loans (Microloan “Special Interest Rate”): 5.000%
- Farm Ownership
Loans (Direct): 2.750%
- Farm Ownership
Loans (Direct, Joint Financing): 2.500%
- Farm Ownership
Loans (Down Payment): 1.500%
- Emergency Loan (Amount
of Actual Loss): 2.375%
FSA also offers guaranteed loans through commercial
lenders at rates set by those lenders. You can find out which of these loans may be right for
you by using our 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.
- Commodity Loans (less
than one year disbursed): 1.125%
- Farm Storage
Facility Loans:
- Three-year loan
terms: 0.250%
- Five-year loan
terms: 0.500%
- Seven-year loan
terms: 0.875%
- Ten-year loan
terms: 1.125%
- Twelve-year loan
terms: 1.375%
- Sugar Storage
Facility Loans (15 years): 1.500%
FSA also reminds rural communities, farmers and ranchers,
families and small businesses affected by the recent winter storms that USDA
has programs that provide assistance. USDA staff in the regional, state and
county offices are prepared with a variety of program flexibilities and other
assistance to residents, agricultural producers and impacted communities. Many
programs are available without an official disaster designation, including
several risk management and disaster assistance options. Producers can explore available options on all FSA loan
options at fsa.usda.gov or
by contacting your local USDA Service Center. USDA is an equal opportunity provider, employer and
lender.
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