USDA Announces Interest Rates | Community News
The United States Department of Agriculture (USDA) has announced loan interest rates for the month of March.
USDA Farm Service Agency (FSA) loans provide significant access to capital to help agricultural producers start or expand their farm operations, purchase equipment and storage structures, or meet their agricultural needs. cash, according to a USDA statement.
The FSA offers farm property and farm loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-standing or new to the industry, get the financing needed to start, expand or maintain a family farm. The FSA also offers emergency loans to help producers recover from production and physical losses due to drought, floods, other natural disasters or quarantine.
For many loan options, the FSA reserves funding for historically underserved producers, including veterans, newbies, women, American Indian or Alaska Native, Asian, Black or Afro -Americans, Hawaiians or Pacific Islanders and Hispanic farmers and ranchers, according to the release.
Interest rates for operating and property loans for March:
• Farm loans (direct): 2.375%
• Farm property loans (direct): 3,000%
• Loans to agricultural property (direct, joint financing): 2,500%
• Agricultural property loans (down payment): 1,500%
• Emergency loan (actual loss amount): 3.375%
“FSA also offers secured loans through commercial lenders at rates set by those lenders. You can find out which of these loans may be right for you by using our Agricultural Loan Discovery Tool (also available in Spanish),” the statement read.
In addition, the FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and loans that provide bridge financing to help producers meet their needs. cash without having to sell their products when market prices are low, according to The Version.
Funds for these loans are provided through the Commodity Credit Corporation (CCC) and are administered by the FSA:
• Commodity loans (less than one year disbursed): 1.875%
• Loans for on-farm storage facilities:
o Three-year loan terms: 1.500%
o Five-year loan terms: 1.750%
o Seven-year loan term: 1.875%
o Ten-year loan term: 1.875%
o Term of the loan over twelve years: 2,000%
• Loans for sugar storage facilities (15 years): 2.125%
The FSA has expanded the use of the Disaster Set Aside (DSA), normally used following natural disasters, to allow farmers receiving USDA agricultural loans who are affected by COVID-19 and who are deemed eligible to see their next payment cancelled.
Due to the ongoing impacts of the pandemic, producers may apply for a second DSA for COVID-19 as well as a second DSA for a natural disaster for producers with an initial DSA for COVID-19, according to the release.
“Producers must apply for the second DSA by May 1, 2022. The set-aside payment due date is extended to the final loan maturity date or extended up to twelve months in the case of a set-aside loan. annual operation. Any capital set aside will continue to earn interest until it is repaid. This will improve the borrower’s cash flow in the current production cycle,” the statement said.
The FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by winter storms, drought, hurricanes and other natural disasters throughout the year that the USDA has assistance programs, according to the press release.
USDA staff in regional, state, and county offices are ready to provide a variety of program flexibilities and other assistance to agricultural producers and affected communities. Many programs are available without formal disaster designation, including several risk management and disaster recovery options.
“Producers can explore the options available on all FSA loan options at fsa.usda.gov or by contacting your local USDA service center,” the statement read.