By Andi Anderson
The U.S. Department of Agriculture (USDA) announced loan interest rates for November 2023, which are effective November 1, 2023. The 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.
Interest Rates for Operating and Ownership Loans:
- Farm Operating Loans (Direct): 5.375%
- Farm Ownership Loans (Direct): 5.500%
- Farm Ownership Loans (Direct, Joint Financing): 3.500%
- 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.
Commodity and Storage Facility Loans:
- Commodity Loans (less than one year disbursed): 6.500%
- Farm Storage Facility Loans:
- Three-year loan terms: 4.875%
- Five-year loan terms: 4.750%
- Seven-year loan terms: 4.750%
- Ten-year loan terms: 4.750%
- Twelve-year loan terms: 4.750%
- Sugar Storage Facility Loans (15 years): 4.875%
Inflation Reduction Act Assistance for Distressed Producers:
The Inflation Reduction Act, a historic, once-in-a-generation investment and opportunity for the agricultural communities, provided $3.1 billion for USDA to provide relief for distressed borrowers with certain FSA direct and guaranteed loans and to expedite assistance for those whose agricultural operations are at financial risk. Since October 2022, USDA has provided approximately $1.5 billion in immediate assistance to more than 24,000 financially distressed direct and guaranteed FSA loan borrowers.
For more information, or to submit a request for assistance, producers can contact their local USDA Service Center or visit https://www.farmers.gov/loans/inflation-reduction-investments/assistance
Photo Credit: USDA
Categories: Iowa, Business, Government & Policy