| 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.