The U.S. Department of Agriculture has announced loan interest rates for June 2024, which were effective June 3.
USDA Farm Service Agency 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.
“I encourage our lenders and borrowers alike to work with our local offices and our cooperators to capitalize fully on the existing flexibilities in these important programs,” said FSA Administrator Zach Ducheneaux.
Interest rates for Operating and Ownership loans for June 2024 are as follows:
- Farm Operating Loans (Direct): 5.375%;
- Farm Ownership Loans (Direct): 5.625%;
- Farm Ownership Loans (Direct, Joint Financing): 3.625%;
- Farm Ownership Loans (Down Payment): 1.625%; and
- Emergency Loan (Amount of Actual Loss): 3.75%.
FSA also offers guaranteed loans through commercial lenders at rates set by those lenders. To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.
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 and are administered by FSA.
- Commodity Loans (less than one year disbursed):6.125%.
- Farm Storage Facility Loans:
- Three-year loan terms: 4.75%;
- Five-year loan terms: 4.5%;
- Seven-year loan terms: 4.5%;
- Ten-year loan terms: 4.5%;
- Twelve-year loan terms: 4.625%;
- Sugar Storage Facility Loans (15 years): 4.75%.
Farm Loan Program process improvement
FSA has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. For the over 26,000 producers who submit a direct loan application annually, FSA has made various improvements, including:
- The Online Loan Application, an interactive, guided application that is paperless and provides helpful features, including an electronic signature option, the ability to attach supporting documents, such as tax returns, complete a balance sheet and build a farm operating plan.
- The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process.
- An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local Service Center to pay a loan installment.
- A simplified direct loan paper application, reduced from 29 pages to 13 pages.
More information
Since the Inflation Reduction Act was signed by President Biden in August 2022, USDA’s Farm Service Agency has provided approximately $2.3 billion in immediate assistance to more than 42,000 distressed borrowers. The deadline to request assistance through the Inflation Reduction Act Assistance for Distressed Borrowers and Discrimination Financial Assistance Program has passed. Any applications submitted before the program deadlines are currently under review. Visit the related program webpages for more information.
To learn more about FSA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and view other farm records data and customer information by logging into their farmers.gov account.
