USDA Announces February 2025 Farm Loan Rates

New Interest Rates Set for Agricultural Loans in February 2025

The U.S. Department of Agriculture (USDA) has set new farm loan interest rates for February 2025, effective February 3, 2025. The Farm Service Agency (FSA) offers these loans to support farmers in purchasing equipment, expanding operations, and managing cash flow.

Operating, Ownership, and Emergency Loans

FSA provides various loan options to help farmers access financing. The interest rates for February 2025 are -

• Farm Operating Loans (Direct) - 5.125%

• Farm Ownership Loans (Direct) - 5.500%

• Joint Financing Ownership Loans - 3.500%

• Down Payment Ownership Loans - 1.500%

• Emergency Loans - 3.750%

FSA also offers guaranteed loans through commercial lenders at rates determined by the lenders. Farmers can use the USDA’s Loan Assistance Tool on farmers.gov to explore loan options.

Commodity and Storage Facility Loans 

FSA provides financial support for on-farm storage and handling equipment through Commodity Credit Corporation (CCC) funds. The interest rates are -

Commodity Loans (less than one year) - 5.250%

Farm Storage Facility Loans -

• Three-year term - 4.375%

• Five-year term - 4.500%

• Seven-year term - 4.500%

• Ten-year term - 4.625%

• Twelve-year term - 4.750%

• Sugar Storage (15 years) - 4.875%

Farmers can visit their local USDA Service Center or use online tools like the Loan Assistance Tool to find the best loan options. The FSA helps farmers invest in and expand their agricultural operations through various financial programs.

USDA’s FSA programs ensure that farmers, ranchers, and forest landowners have access to financial support for agricultural growth and sustainability.