By Jamie Martin
The U.S. Department of Agriculture (USDA) has announced the new loan interest rates for September 2025, which became effective on September 1. These rates are a crucial part of the support provided by the USDA's Farm Service Agency (FSA) to the agricultural community. The loans are designed to give producers access to capital, enabling them to make key investments and manage their financial needs effectively. This support helps farmers and ranchers start, expand, or maintain their operations.
The FSA provides direct financing through a variety of loan programs, including farm operating, ownership, and emergency loans. These programs feature favorable interest rates and terms tailored to meet the diverse needs of eligible producers.
The interest rates for these loans for September 2025 are as follows:
- Farm Operating Loans (Direct): 4.875%
- Farm Ownership Loans (Direct): 5.875%
- Farm Ownership Loans (Direct, Joint Financing): 3.875%
- Farm Ownership Loans (Down Payment): 1.875%
- Emergency Loan (Amount of Actual Loss): 3.750%
For producers seeking financing from commercial lenders, the FSA offers guaranteed loans, with rates determined by those specific lenders. The farmers.gov website offers an interactive guide called the Loan Assistance Tool to help agricultural producers navigate the loan application process.
In addition to operating and ownership loans, the FSA also offers low-interest financing for commodity and storage facilities. These funds are provided by the Commodity Credit Corporation (CCC) and are administered by the FSA. These loans are essential for two main purposes: to help producers build or improve on-farm storage and handling equipment, and to provide interim financing. The latter helps producers with their cash flow without having to sell their products at times when market prices are low.
The rates for these Farm Storage Facility Loans vary by term:
- Three-year loan terms: 3.750%
- Five-year loan terms: 3.875%
- Seven-year loan terms: 4.000%
- Ten-year loan terms: 4.375%
- Twelve-year loan terms: 4.500%
There is also a special 15-year loan for sugar storage facilities at a rate of 4.750%. These financial tools are a cornerstone of the USDA's mission to support America's agricultural producers.
Photo Credit: usda
Categories: National