Source: USDA, 7/1/21 The U.S.
Department of Agriculture (USDA) announced loan interest rates for July 2021,
which are effective July 1. 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, 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 historically 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 July
2021 are as follows:
- Farm Operating Loans (Direct):
1.875%
- 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): 2.875%
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. 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.
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