|
Source: USDA, 8/1/22 The U.S. Department of Agriculture (USDA) announced loan interest rates
for August 2022, which are effective Aug. 1, 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
August 2022 are as follows:
- Farm Operating
Loans (Direct): 4.000%
- Farm Ownership
Loans (Direct): 4.250%
- 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): 4.000%
- Farm Storage
Facility Loans:
- o Three-year
loan terms: 3.125%
- o Five-year loan
terms: 3.125%
- o Seven-year
loan terms: 3.125%
- o Ten-year loan
terms: 3.000%
- o Twelve-year
loan terms: 3.125%
- Sugar Storage
Facility Loans (15 years): 3.250%
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. 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.
|