Key Details on New Farm Loan Interest Rates
The U.S. Department of Agriculture (USDA) has set the lending rates for April 2025, providing essential financial support to the agricultural sector.
From April 1, 2025, farmers can access various loan types under favorable terms to enhance their farming operations. These loans are crucial for purchasing equipment, expanding operations, and managing cash flow.
For April, Farm Operating Loans (Direct) are set at 5.375%, while Farm Ownership Loans (Direct) will see a rate of 5.750%. More specialized options, like Joint Financing, offer a reduced rate of 3.750%, and for those making down payments, an even lower rate of 1.750% is available. Emergency loans are also available at 3.750%.
The USDA guarantees loans through commercial lenders, which set their own rates. Additionally, the FSA provides funding through the Commodity Credit Corporation for building storage facilities and purchasing handling equipment with rates starting at 4.000% for three-year terms, reaching up to 4.500% for 15-year Sugar Storage Facility Loans.
For more detailed guidance, the USDA’s Loan Assistance Tool on farmers.gov offers an interactive, step-by-step approach to the farm loan process, assisting producers in finding the right financial solutions.