USDA January Farm Loan Rates Announced for Producers

New FSA loan rates support farm growth equipment storage and cash flow

The U.S. Department of Agriculture has announced new Farm Service Agency loan interest rates for January 2026. These rates are effective January 1, 2026, and are designed to help farmers and ranchers access affordable financing to start, expand, or maintain agricultural operations. 

FSA loans support producers who need funding for daily farm activities, land purchases, equipment, storage structures, and emergency recovery. These programs aim to strengthen farm stability and support long-term agricultural growth. 

For January 2026, direct farm operating loans are offered at an interest rate of 4.625 percent. Farm ownership loans are available at 5.625 percent. Producers using joint financing can access ownership loans at a reduced rate of 3.625 percent, while down payment farm ownership loans are offered at a low rate of 1.625 percent. Emergency loans based on actual production losses are set at 3.750 percent. 

FSA also provides guaranteed loans through commercial lenders. These loans allow farmers to work with approved banks while benefiting from federal support. 

In addition to operating and ownership loans, FSA offers commodity and farm storage facility loans. These programs help producers manage cash flow and avoid selling crops when market prices are low. Commodity loans with terms of less than one year are offered at 4.625 percent. 

Storage facility loans support the construction or improvement of on-farm storage and handling systems. Interest rates vary by loan term. Three-year loans are set at 3.500 percent, five-year loans at 3.625 percent, seven-year loans at 3.875 percent, ten-year loans at 4.125 percent, and twelve-year loans at 4.250 percent. Sugar storage facility loans with fifteen-year terms are offered at 4.500 percent. 

Farmers can explore available loan programs using the online Loan Assistance Tool available on farmers.gov. This tool guides producers step by step through the application process. 

These loan programs continue to play an important role in strengthening farm businesses, improving infrastructure, and supporting stable food production across the country. 

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