The U.S. Department of Agriculture (USDA) has recently disclosed interest rates for Farm Service Equity (FSA) loans in December.
Interest rates for farm ownership loans are 3% for direct loans, 2.5% for direct and joint financing loans and 1.5% for down payments, a USDA press release said. Interest rates for farm operations loans are 2%.
“Producers can explore available options on all FSA loan options at fsa.usda.gov or by contacting your local USDA Service Center,” the release said.
The FSA provides emergency loans to farmers that have suffered productivity losses due to natural disasters or quarantine, the release said. The interest rate for emergency loans is 3%.
Loans for the acquisition of equipment and storage facilities are also available, the release said. These loans are funded by the Commodity Credit Corporation and administered by the FSA.
Farm storage facility loan rates are 0.75% for three-year terms, 1.125% for five-year terms, 1.5% for seven-year terms, 1.625% for ten-year terms and 1.625% for twelve-year terms, the release said. Sugar storage facility loan rates are 1.875%.
Loans to help cash flow are available to producers as an alternative to selling at low prices. The current commodity loan rate is 1.125%, according to the release.
Following the recent outbreak of the COVID-19 Delta variant, the USDA has agreed to extend the deadline for farmers to apply for the COVID-19 Disaster Set-Aside (DSA) credit provision until January 31, 2022. The FSA will authorize a second DSA for COVID-19 and a second DSA for natural disasters for people who previously received a COVID-19 DSA, provided that petitions for a second DSA are filed before May 1, 2022.
The DSA allows farmers who were negatively affected by the pandemic or natural disasters to have their next USDA farm loan payment set aside if determined eligible. “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,” the release said.
The FSA noted that funds are specifically set aside for loans to historically marginalized producers including veterans, starting farmers, women and people of color.
