USDA announces August 2021 loan rates for agricultural producers
Washington, August 2, 2021 ?? The United States Department of Agriculture (USDA) has announced loan interest rates for August 2021, which will take effect on August 2. USDA Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farms, equipment and storage facilities, or meet cash flow needs.
Operating, property and emergency loans
FSA offers farm ownership and farm loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-standing or new to the industry, obtain financing. necessary to start, expand or maintain a family farm. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, floods, other natural disasters or quarantine. For many loan options, the FSA reserves funding for historically underserved producers, including newbies, women, Native American or Alaskan Indians, Asians, Blacks or African Americans, Hawaiians or Pacific Islanders, and Hispanic farmers and ranchers.
The interest rates for operating and property loans for August 2021 are as follows:
The FSA also offers secured loans through commercial lenders at rates set by these lenders.
You can find out which of these loans may be right for you by using our Agricultural Loan Discovery Tool.
Loans of goods and storage facilities
In addition, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase material handling equipment and loans that provide bridge financing to help producers meet their farm needs. cash without having to sell their products when market prices are low. The funds for these loans are provided by the Commodity Credit Corporation (CCC) and are administered by the FSA.
The FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by natural disasters, such as drought, wildfires and hurricanes, that the USDA has assistance programs. USDA staff in regional, state, and county offices are prepared with a variety of program flexibilities and other supports to residents, agricultural producers, and affected communities. Many programs are available without an official disaster designation, including several options for risk management and disaster assistance.
Support in the event of a pandemic
Until September 1, 2021, the FSA’s disaster set-aside provision is available to direct loan borrowers who have been affected by the pandemic. This allows you to reserve a next annual installment for the year and add it to the last installment. For annual operating loans, the loan maturity date can be extended up to twelve months to set aside the down payment. This provision is normally used following natural disasters, and a second disaster set-aside may be available for direct loan borrowers who already have an DSA in place on a loan due to another designated natural disaster. .
The USDA touches the lives of all Americans every day in so many positive ways. In the Biden-Harris administration, the USDA is transforming the American food system with a greater emphasis on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe food, healthy and nutritious in all communities, building new markets and income streams for farmers and producers using climate-smart food and forestry practices, making historic investments in clean energy infrastructure and capacity in rural America, and a commitment to equity throughout the department by removing systemic barriers and creating a workforce that is more representative of America. To learn more, visit http://www.usda.gov/.