USDA Announces September Farm Loan Rates

New interest rates provide capital for farmers to grow and improve their operations.

The U.S. Department of Agriculture (USDA) has released the loan interest rates for September 2025, which are effective from September 1st. These rates are part of the USDA Farm Service Agency's (FSA) efforts to provide farmers and ranchers with access to capital. These loans are designed to assist agricultural producers in a variety of ways, such as starting or expanding their farming operations, purchasing necessary equipment, building storage facilities, or managing their cash flow.

The FSA offers direct farm operating, ownership, and emergency loans with favorable interest rates and terms. These loans are crucial for helping eligible producers obtain the financing they need to start, expand, or maintain a family farm.

For September 2025, the rates for these loans 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%

In addition to these, FSA also provides loans through commercial lenders, with rates set by those lenders. A helpful resource for producers is the Loan Assistance Tool on farmers.gov, which offers a step-by-step guide to the farm loan process.

The FSA also administers low-interest financing for on-farm storage and handling equipment through the Commodity Credit Corporation (CCC). These loans can help producers build or upgrade storage facilities and purchase handling equipment. They also provide interim financing, which allows producers to meet their cash flow needs without having to sell their commodities when market prices are low.

The interest rates for these loans are based on the loan 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 specific loan for sugar storage facilities with a 15-year term at 4.750%. These programs are vital for maintaining the stability and growth of agricultural operations across the country.