By Jamie Martin
The U.S. Department of Agriculture (USDA) has revealed the loan interest rates for December 2024. These rates, effective December 2, are designed to provide farmers and ranchers with accessible financing options to support their agricultural operations.
USDA’s Farm Service Agency (FSA) offers farm ownership, operating, and emergency loans, ensuring access to capital for starting, expanding, or maintaining family farming ventures.
For December 2024, key rates include -
Farm Operating Loans - 4.750%
Farm Ownership Loans (Direct) - 5.250%
Farm Ownership Loans (Joint Financing) - 3.250%
Down Payment Loans - 1.500%
Emergency Loans -3.750%
FSA also provides guaranteed loans through commercial lenders. To assist producers, USDA offers tools like the Loan Assistance Tool, which guides users through the loan application process.
In addition to operational loans, FSA provides low-interest Commodity and Storage Facility Loans, enabling farmers to invest in storage structures and equipment.
For instance, three- and five-year loans are set at 4.125%, while longer-term options, like the 15-year sugar storage facility loans, have a rate of 4.500%.
FSA is actively modernizing its loan programs. Recent improvements include an Online Loan Application, streamlined paper forms, and a Debt Consolidation Tool to assist farmers in managing debts. These tools are designed to enhance accessibility and ease of use for producers.
Zach Ducheneaux, FSA Administrator, emphasized, “I encourage our lenders and borrowers alike to work with our local offices and our cooperators to capitalize fully on the existing flexibilities in these important programs.”
To learn more, farmers can contact local USDA Service Centers or explore resources on farmers.gov. These initiatives aim to empower producers to meet challenges and grow their agricultural businesses.
Photo Credit: usda
Categories: National