USDA updates January 2025 loan rates

Accessible loans to support farmers’ needs

The USDA Farm Service Agency (FSA) has unveiled its January 2025 loan interest rates, offering critical financial support to farmers and ranchers. These programs aim to provide accessible funding for operational expansion, disaster recovery, and infrastructure development.  

“I encourage our lenders and borrowers alike to work with our local offices and our cooperators to capitalize fully on the existing flexibilities offered through these important programs,” said FSA Administrator Zach Ducheneaux. 

Loan Programs and Rates The new rates include: 

• Direct Farm Operating Loans: 5.125% 

• Direct Farm Ownership Loans: 5.625% 

• Emergency Loans: 3.750% 

In addition, Commodity and Storage Facility Loans are available for infrastructure projects, with rates starting at 4.125% for three-year terms. 

Program Improvements:

FSA has introduced tools like the Loan Assistance Tool and Online Loan Application to streamline the process for farmers. These platforms provide step-by-step guidance, electronic signatures, and tailored support.

Since the Inflation Reduction Act of 2022, USDA has provided over $2.5 billion to support distressed borrowers. Farmers can access detailed resources and applications at their local USDA Service Centers or online at fsa.usda.gov.

The USDA remains committed to helping America’s agricultural community thrive through accessible loans and innovative solutions.