By Jamie Martin
Effective July 1, 2025, the USDA’s Farm Service Agency (FSA) has announced updated interest rates for a variety of farm loan programs aimed at supporting American agriculture.
These loans help producers finance operations, expand acreage, improve infrastructure, and manage short-term financial needs.
For July 2025, the loan interest rates are:
- Direct Farm Operating Loans: 5.000%
- Direct Farm Ownership Loans: 5.875%
- Joint Financing Ownership Loans: 3.875%
- Down Payment Ownership Loans: 1.875%
- Emergency Loans (actual loss): 3.750%
Guaranteed loans are also available through commercial lenders, with rates set by those institutions. Producers can explore the Loan Assistance Tool at farmers.gov to receive step-by-step guidance on eligibility and application steps.
Beyond operational loans, the FSA also offers Commodity Credit Corporation (CCC)-backed loans for on-farm storage upgrades and equipment purchases. These loans help producers avoid selling commodities when prices are low by providing affordable interim financing.
Commodity Loans (short-term): 5.125%
Farm Storage Facility Loans:
- 3 years: 3.875%
- 5 years: 4.000%
- 7 years: 4.250%
- 10 years: 4.500%
- 12 years: 4.625%
15-year Sugar Storage Loans: 4.750%
Photo Credit: usda-farm-service-agency
Categories: National