The U.S. Department of Agriculture (USDA) announced loan interest rates for November 2023, which are effective Nov. 1, 2023. 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.

Operating, Ownership and Emergency 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. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine.  For many loan options, FSA sets aside funding for underserved 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 November 2023 are as follows:

• 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.

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 (CCC) and are administered by FSA.

• 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%
• 10-year loan terms: 4.750%
• 12-year loan terms: 4.750%
• Sugar Storage Facility Loans (15 years): 4.875%

Simplified Direct Loan Application

FSA developed a new, simplified direct loan application for producers seeking a direct farm loan. The new application, reduced from 29 to 13 pages, provides an improved customer experience for producers applying for loans and enables them to complete a more streamlined application. Producers now also have the option to complete an electronic fillable form or a traditional paper application for submission to their local FSA service center. 

Disaster Support

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

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.

FSA recently announced additional automatic assistance to guaranteed borrowers in August 2023.

FSA is also accepting and reviewing individual requests for assistance from borrowers who took certain extraordinary measures to avoid delinquency on their direct FSA loans or those who missed a recent installment or who are unable to make their next scheduled installment.

For more information, or to submit a request for assistance, producers can contact their local USDA Service Center or visit farmers.gov.

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 fam records data and customer information by logging in their farmers.gov account. Producers without an account can sign up today.