The Farm Service Agency offers loans to help farmers and ranchers get the financing they need to start, expand or maintain a family farm.
Use the Loan Assistance Tool to check your eligibility for FSA Loans, discover FSA loan types, learn about FSA Loan requirements, and walk through the easy-to-understand instructions when completing the forms.
In the News
Farm Loans to Finance Climate-Smart Practices or Equipment
USDA Now Accepting Applications for Farm Loans Online
USDA Launches Loan Assistance Tool to Enhance Equity and Customer Service
Farm Service Agency Expands Set-Aside Loan Provision for Customers Impacted by COVID-19
Current FSA Loan Interest Rates
| Program | Interest Rates |
|---|---|
| Farm Operating - Direct | 4.875% |
| Farm Operating - Microloan | 4.875% |
| Farm Ownership - Direct | 5.375% |
| Farm Ownership - Microloan | 5.375% |
| Farm Ownership - Direct, Joint Financing | 3.375% |
| Farm Ownership - Down Payment | 1.500% |
| Emergency Loan - Amount of Actual Loss | 3.750% |
| Effective as of October 1, 2024 |
|
Guaranteed Loan Maximum Interest Rates
Interest rates charged by guaranteed lenders at the time of closing or restructuring may not exceed the following:
For loans with rates variable or fixed for less than 5 years: The prior business day’s SOFR plus 6.75%.
For loans with rates fixed for 5 years or more: The prior business day’s 5 Year Treasury note rate plus 5.5%.
*Note: If SOFR is less than 1.75%, lenders may add an additional 1% to each of the respective maximums above.
Lenders are not required to directly price their loans on the SOFR or 5 year Treasury. These rules simply establish the maximum interest rates that may not be exceeded by guaranteed lenders at closing.
** SOFR is the Standard Overnight Financing Rate
You can look up the current SOFR and Treasury Rates by using these links:
SOFR https://www.newyorkfed.org/markets/reference-rates/sofr
Treasury Yields https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value=2022
For a full description of the maximum interest rate rules view 2-FLP_Interest_Rate_Rules.
Types of Farm Loans
Read our guidebook to find out:
- The types of farm loans available
- How to apply
- What you can expect once you submit your application; and
- Your rights and responsibilities as an FSA customer
Examples of Farm Loans
Operating Loans
Operating Loans can be used to purchase livestock, seed and equipment. It can also cover farm operating costs and family living expenses while a farm gets up and running. Read more.
Meet a Farmer: An Operating Loan helped Alaska farmers Brian and Laurie Olson expand their berry operation. Read more.
Farm Ownership Loans
Farm Ownership Loans can be used to purchase or expand a farm or ranch. This loan can help with paying closing costs, constructing or improving buildings on the farm, or to help conserve and protect soil and water resources. Read more.
Meet a Farmer: Jesse and Tracey Paul purchased a farm using a Farm Ownership Loan. Today their family produces pure maple syrup in Trout Creek, Michigan. Read more.
Microloans
Microloans are a type of Operating or Farm Ownership Loan. They’re designed to meet the needs of small and beginning farmers, or for non-traditional and specialty operations by easing some of the requirements and offering less paperwork. Read more.
Meet a Farmer: With the help of a low-interest microloan, Nik Bouman was able to purchase new equipment for his hydroponic basil farm, allowing him to quadruple his business and expand access to fresh basil in his community. Read more.
Youth Loans
Youth Loans are a type of Operating Loan for young people between 10-20 years old who need assistance with an educational agricultural project. Typically, these youth are participating in 4-H clubs, FFA , or a similar organization. Read more.
Meet a Farmer: Payton Farmer received a youth loan to purchase a breeding heifer and began building her herd. Read more.
Native American Tribal Loans
Native American Tribal Loans help Tribes acquire land interests within a tribal reservation or Alaskan native community; advance current farming operations; provide financial prospects for Native American communities; increase agricultural productivity; and save cultural farmland for future generations. Read more
Emergency Loans
Emergency Loans help farmers and ranchers recover from production and physical losses due to drought, flooding, other natural disasters or losses. Read more.
Meet a Farmer: Bruce and Jennifer McCall take pride in raising their sons on the farm and have used FSA programs and loans to expand their operation and recover from natural disasters. Read more.
Targeted Loan Funding
A portion of FSA loan funds are set aside for Minority and Women Farmers and Ranchers to buy and operate a farm or ranch. Read More.
Meet a Farmer: Farmer Koua Thao used an FSA loan to purchase a breeder hen farm with two hen houses on 40 acres in Arkansas. Read more.
A portion of FSA loan funds are set aside for Beginning Farmers and Ranchers – family farmers who are just getting started on their journey in farming. Read more.
Meet a Farmer: Dakota Davidson is a beginning farmer in Deport, Texas growing wheat, corn and soybeans. Through an FSA beginner farmer loan he was able to purchase the remainder of what he needed to plant his first wheat crop. Read more.
Direct Loans vs. Guaranteed Loans
Many FSA loans are available as either Guaranteed Loans or Direct Loans.
Direct Loans are made directly from FSA to the farmer.
Guaranteed Loans are made by a USDA-approved traditional lender with the backing of FSA. Read more about Guaranteed Loans and access the lender toolkit here.
Farm Loans to Finance Climate-Smart Practices or Equipment
FSA offers loans to help farmers and ranchers implement climate-smart agriculture practices or to purchase related equipment for their operation.
The table below provides some examples of how producers could use FSA farm loans to finance climate-smart agriculture practices or equipment.
| Climate-Smart Practice or Equipment | Potential Use of Farm Loan Program |
|---|---|
| Cover Crops | Annual Operating Loan for seed costs or Term Operating Loan for specialized equipment |
| Precision Agriculture Equipment | Term Operating Loan to purchase equipment (e.g., GPS globes, monitors, strip till fertilizer equipment) |
| No/Reduced Till | Term Operating Loan to purchase equipment |
| Livestock Facility Air Scrubber or Waste Treatment | Farm Ownership Loan for capital improvements to livestock facilities |
| Cross Fencing | Annual or Term Operating Loan to purchase fencing and/or installation equipment |
Read our Climate-Smart Agriculture and Farm Loan Programs Fact Sheet
More Information
Use our Farm Loan Discovery Tool to find the loan that’s right for you.
Read about how to view your loan information 24/7 online using Farmers.gov.
Find your local FSA Service Center for one-on-one assistance.