USDA Lending Rates for February

    The U.S. Department of Agriculture today announced loan interest rates for February 2021, which are effective February 1.

    Operating and Ownership Loans

    FSA offers farm ownership and operating loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-time or new to the industry, obtain financing needed to start, expand or maintain a family agricultural operation.

    For many loan options, FSA sets aside funding for historically disadvantaged producers, including beginning, women, American Indian or Alaskan Native, Asian, Black or African American, Native Hawaiian or Pacific Islander, and Hispanic farmers and ranchers.

    Interest rates for Operating and Ownership loans for February 2021 are as follows:

    • Farm Operating Loans (Direct): 1.375%
    • Farm Operating Loans (Microloan “Special Interest Rate”): 5.000%
    • Farm Ownership Loans (Direct): 2.625%
    • Farm Ownership Loans (Direct, Joint Financing): 2.500%
    • Farm Ownership Loans (Down Payment): 1.500%
    • Emergency Loan (Amount of Actual Loss): 2.375%

    FSA also offers guaranteed 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 Farm Loan Discovery Tool.

    Commodity and Storage Facility Loans

    FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment. FSA also offers commodity loans that provide interim financing to help producers meet cash flow needs without having to sell their commodities when market prices are low.  Funds for these loans are provided through the Commodity Credit Corporation (CCC) and administered by FSA.

    • Commodity Loans (less than one year disbursed): 0.125%
    • Farm Storage Facility Loans:
      • Three-year loan terms: 0.250%
      • Five-year loan terms: 0.375%
      • Seven-year loan terms: 0.750%
      • Ten-year loan terms: 1.000%
      • Twelve-year loan terms: 1.125%
    • Sugar Storage Facility Loans (15 years): 1.375%

    Producers can explore available options on all FSA loan options at or by contacting your local USDA Service Center.

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