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Source: USDA, 5/3/21 The U.S. Department of Agriculture (USDA) today announced loan interest rates for May 2021, which are effective May 3. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures, or meet cash flow needs.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 May
2021 are as follows:
- Farm Operating Loans (Direct): 1.750%
- Farm Ownership
Loans (Direct): 3.250%
- Farm Ownership
Loans (Direct, Joint Financing): 2.500%
- Farm Ownership
Loans (Down Payment): 1.500%
- Emergency Loan (Amount
of Actual Loss): 2.750%
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 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): 1.125%
- Farm Storage
Facility Loans:
- Three-year loan
terms: 0.375%
- Five-year loan
terms: 0. 875%
- Seven-year loan
terms: 1.375%
- Ten-year loan
terms: 1.625%
- Twelve-year loan
terms: 1.750%
- Sugar Storage
Facility Loans (15 years): 2.000%
Disaster Support FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the year’s winter storms, drought, and other natural disasters 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. Pandemic Support Through September 1, 2021, FSA’s Disaster Set-Aside provision is available to direct loan borrowers who have been impacted by the pandemic. This enables an upcoming annual installment to be set aside for the year and added to the final installment. For annual operating loans, the loan maturity date may be extended up to twelve months in order to set aside the installment. This provision is normally used in the wake of natural disasters, and a second Disaster Set-Aside may be available for direct loan borrowers who already have a DSA in place on a loan due to another designated natural disaster. More Information Producers can explore available options on all FSA loan
options at fsa.usda.gov or
by contacting your local USDA Service Center. 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.
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