By Jamie Martin
The U.S. Department of Agriculture (USDA) has announced its loan interest rates for June 2025, effective from June 2, 2025. These loans, offered through the USDA Farm Service Agency (FSA), provide critical funding options for farmers to expand or maintain their operations.
Farmers can apply for operating, ownership, and emergency loans with the following interest rates -
Farm Operating Loans (Direct): 5.000%
Farm Ownership Loans (Direct): 5.750%
Farm Ownership Loans (Joint Financing): 3.750%
Farm Ownership Loans (Down Payment): 1.750%
Emergency Loans (Actual Loss): 3.750%
In addition, guaranteed loans are available through commercial lenders, with interest rates determined by the lender. These loans help farmers invest in their future through flexible financing.
For short-term financing, Commodity Loans are available at a 5.000% rate for loans under one year. The USDA also offers Farm Storage Facility Loans at competitive rates depending on the loan term -
3-year: 3.875%
5-year: 4.000%
7-year: 4.125%
10-year: 4.375%
12-year: 4.500%
Sugar Storage (15-year): 4.750%
These loans, administered by FSA through the Commodity Credit Corporation (CCC), aim to improve cash flow and reduce financial pressure on producers.
“The size of a federal tax bill can make or break farm profitability,” states the USDA’s Market Intel, underlining the importance of accessible financing.
Farmers can use tools like the Loan Assistance Tool and Debt Consolidation Tool on farmers.gov or visit their local USDA Service Center for more information.
Photo Credit: usda
Categories: National