WASHINGTON – The United States Department of Agriculture (USDA) recently announced loan interest rates for March 2021.
Operating and property loans
The USDA Farm Service Agency (FSA) offers farm ownership and farm loans with favorable interest rates and terms to help eligible agricultural producers, whether they are multigenerational, long-established, or new to industry, to obtain the necessary financing to start, develop or maintain a family farm.
The interest rates for operating and property loans for March 2021 are as follows:
- Farm loans (direct): 1.375%
- Farm operating loans (Micro loan “Special interest rate”): 5000%
- Agricultural property loans (direct): 2.750%
- Agricultural property loans (direct financing, joint financing): 2,500%
- Agricultural property loans (down payment): 1.500%
- Emergency loan (actual loss amount): 2.375%
Loans on raw materials and storage facilities
FSA provides low-interest financing to producers for the construction or upgrading of on-farm storage facilities and the purchase of material handling equipment. FSA also offers commodity loans which provide interim financing to help producers meet their cash flow needs without having to sell their raw materials when market prices are low. The funds for these loans are provided by the Commodity Credit Corporation (CCC).
Raw material loans (disbursed within one year): 1.125%
Loans for on-farm storage facilities:
- Three-year loan terms: 0.250%
- Five-year loan terms: 0.500%
- Seven-year loan terms: 0.875%
- Ten-year loan terms: 1.125%
- Twelve-year loan term: 1.375%
- Loans for sugar storage facilities (15 years): 1,500%
The FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by recent winter storms that the USDA has assistance programs. USDA staff in regional, state, and county offices are prepared with a variety of program flexibilities and other supports to residents, agricultural producers, and affected communities. Many programs are available without an official disaster designation, including several options for risk management and disaster assistance.
Producers can explore the options available on all FSA loan options at fsa.usda.gov or by contacting your local USDA service center.