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Source: USDA, 11/1/21
The U.S. Department of Agriculture (USDA) announced loan interest rates
for November 2021, which are effective Nov. 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 veterans, 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
November 2021 are as follows:
- Farm Operating
Loans (Direct): 1.750%
- Farm Ownership
Loans (Direct): 2.875%
- 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: 0.625%
- Five-year loan
terms: 1.000%
- Seven-year loan
terms: 1.375%
- Ten-year loan
terms: 1.500%
- Twelve-year loan
terms: 1.625%
- Sugar Storage
Facility Loans (15 years): 1.750%
Pandemic and Disaster Support Due to recent outbreaks of the COVID-19 Delta variant,
USDA has extended the deadline for producers to apply for the COVID-19 Disaster
Set-Aside (DSA) loan provision to Jan. 31, 2022. FSA will permit a second DSA
for COVID-19 and a second DSA for natural disaster for those who had an initial
COVID-19 DSA. Requests for a second DSA must be received no later than May 1,
2022.
Last year, FSA broadened the use of the DSA, normally used in the wake of natural disasters, to allow farmers with USDA farm loans who are affected by COVID-19, and are determined eligible, to have their next payment set aside. The set-aside payment’s due date is moved to the final maturity date of the loan or extended up to twelve months in the case of an annual operating loan. Any principal set-aside will continue to accrue interest until it is repaid. This will improve the borrower’s cashflow in the current production cycle. FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the year’s winter storms, drought, hurricanes and other natural disasters that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared to deliver a variety of program flexibilities and other assistance to agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster recovery options. 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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