USDA announces April 2021 lending rates for ag producers

Note: This was released by U.S. Department of Agriculture

WASHINGTON — The U.S. Department of Agriculture announced Thursday loan interest rates for April 2021, which are effective April 1.

USDA’s 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.

Operating and ownership 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. For many loan options, FSA sets aside funding for historically disadvantaged producers, including 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 April 2021 are as follows:

• Farm Operating Loans (Direct): 1.5 percent

• Farm Ownership Loans (Direct): 2.875 percent

• Farm Ownership Loans (Direct, Joint Financing): 2.5 percent

• Farm Ownership Loans (Down Payment): 1.5 percent

• Emergency Loan (Amount of Actual Loss): 2.5 percent

FSA also offers guaranteed loans through commercial lenders at rates set by those lenders.

People can find out which of these loans may be right for them by using the Farm Loan Discovery Tool at https://www.farmers.gov/fund/farm-loan-discovery-tool .

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): 1.125 percent

• Farm Storage Facility Loans:

• Three-year loan terms: 0.25 percent

• Five-year loan terms: 0.75 percent

• Seven-year loan terms: 1.25 percent

• 10-year loan terms: 1.5 percent

• 12-year loan terms: 1.75 percent

• Sugar Storage Facility Loans (15 years): 2 percent

FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the recent winter storms that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared with a variety of program flexibilities and other assistance to residents, agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster assistance options.

More information

Producers can explore available options on all FSA loan options at http://fsa.usda.gov or by contacting their local USDA Service Center.

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the department by removing systemic barriers and building a workforce more representative of America. To learn more, visit http://www.usda.gov .

USDA is an equal opportunity provider, employer and lender.