|
Source: USDA, 5/2/22
The U.S. Department of Agriculture (USDA) announced loan interest rates
for May 2022, which are effective May 2, 2022. 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 May 2022 are as follows:
- Farm Operating
Loans (Direct): 2.875%
- Farm Ownership
Loans (Direct): 3.375%
- Farm Ownership
Loans (Direct, Joint Financing): 2.500%
- Farm Ownership
Loans (Down Payment): 1.500%
- Emergency Loan (Amount of Actual Loss): 3.750%
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 (also available in Spanish). 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): 2.750%
- Farm
Storage Facility Loans:
- Three-year loan terms: 2.625%
- Five-year loan terms: 2.625%
- Seven-year loan terms: 2.625%
- Ten-year loan terms: 2.625%
- Twelve-year loan terms: 2.625%
- Sugar
Storage Facility Loans (15 years):
2.750%
Pandemic
and Disaster Support FSA broadened the use of the Disaster Set Aside (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. Because of the pandemic’s continued impacts, producers can apply for a second DSA for COVID-19 or a second DSA for a natural disaster for producers with an initial DSA for COVID-19. The COVID-DSA is available for borrowers with installments due before Dec. 31, 2022, and whose installment is not more than 90 days past due when the DSA request is made. The set-aside payment’s due date is moved to the final maturity date of the loan or extended up to 12 months in the case of an annual operating loan. Any principal set-aside will continue to accrue interest until it is repaid. Use of the expanded DSA program can help to improve a borrower’s cashflow in the current production cycle.
|