California Ag Network

Tag: CCC

  • February USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for February 2025, which are effective Feb. 3, 2025. USDA Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.

    Operating, Ownership and Emergency Loans 

    FSA offers farm ownership, operating and emergency loans with favorable interest rates and terms to help eligible agricultural producers obtain financing needed to start, expand or maintain a family agricultural operation.

    Interest rates for Operating and Ownership loans for February 2025 are as follows:

    FSA also offers guaranteed loans through commercial lenders at rates set by those lenders.  To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.

    Commodity and Storage Facility Loans

    Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and 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 are administered by FSA.

    More Information

    To learn more about FSA programs, producers can contact their local USDA Service Center. Additionally, producers can use online tools, such as the Loan Assistance Tool and Debt Consolidation Tool to explore loan options.

    FSA helps America’s farmers, ranchers and forest landowners invest in, improve, protect and expand their agricultural operations through the delivery of agricultural programs for all Americans. FSA implements agricultural policy, administers credit and loan programs, and manages conservation, commodity, disaster recovery and marketing programs through a national network of state and county offices and locally elected county committees. For more information, visit fsa.usda.gov.

  • August USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for August 2023, which are effective Aug. 1, 2023. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.

    Operating, Ownership and Emergency 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. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine.  For many loan options, FSA sets aside funding for underserved 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 August 2023 are as follows:

    FSA also offers guaranteed loans through commercial lenders at rates set by those lenders.

    To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.

    Commodity and Storage Facility Loans

    Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and 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 are administered by FSA.

    Simplified Direct Loan Application

    FSA developed a new, simplified direct loan application for producers seeking a direct farm loan. The new application, reduced from 29 to 13 pages, provides improved customer experience for producers applying for loans and enables them to complete a more streamlined application. Producers now also have the option to complete an electronic fillable form or a traditional paper application for submission to their local FSA service center.

    Disaster Support

    FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the past year’s winter storms, drought, hurricanes and other natural disasters, that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared to deliver a variety of program flexibilities and other assistance to agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster recovery options.

    Inflation Reduction Act Assistance for Distressed Producers

    On Aug. 16, 2022, President Biden signed the Inflation Reduction Act (IRA) into law. It is a historic, once-in-a-generation investment and opportunity for the agricultural communities that USDA serves. Section 22006 of the IRA provided $3.1 billion for USDA to provide relief for distressed borrowers with certain FSA direct and guaranteed loans and to expedite assistance for those whose agricultural operations are at financial risk. In October 2022, USDA provided approximately $800 million in initial IRA assistance to more than 11,000 delinquent direct and guaranteed borrowers and approximately 2,100 borrowers who had their farms liquidated and still had remaining debt. On May 1, 2023, FSA announced that nearly $130 million in additional, automatic financial assistance had been obligated for qualifying farm loan program borrowers facing financial risk. This assistance included:

    • Assistance to direct loan borrowers who were past due on a qualifying direct loan as of Sept. 30, 2022, but by fewer than 60 days, and remained delinquent on that loan as of March 27, 2023.
    • Assistance to borrowers who restructured a qualifying direct loan after Feb. 28, 2020, through primary loan servicing available through FSA.
    • Assistance to borrowers whose interest owed on their qualifying direct loan debt exceeded the principal owed (on a loan-by-loan basis).

    Since payments began in October 2022, USDA has provided $1.14 billion to 20,615 financially distressed direct and guaranteed FSA loan borrowers.

    In May 2023, FSA began accepting and reviewing individual requests for assistance if they took certain extraordinary measures to avoid delinquency on their direct FSA loans, such as taking on or refinancing more debt, selling property, or cashing out retirement or college savings accounts. On May 19, USDA mailed a letter to all FSA direct loan borrowers detailing eligibility and how to request extraordinary measures assistance.

    Also in May, FSA started accepting and reviewing individual distressed borrower assistance requests from direct loan borrowers who missed a recent installment or are unable to make their next scheduled installment. All FSA borrowers should have received a letter detailing the process for seeking this type of assistance even before they become delinquent. As the letter details, borrowers who are within two months of their next installment may seek a cashflow analysis from FSA to determine their eligibility.

    For more information producers can contact their local USDA Service Center or visit farmers.gov/inflation-reduction-investments/assistance.

    More Information    To learn more about FSA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and view other fam records data and customer information by logging in their farmers.gov account. If you don’t have an account, sign up today.

  • November USDA Lending Rates for Farmers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for November 2021, which are effective Nov. 1. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures, or meet cash flow needs.

    Operating, Ownership and Emergency 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. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine.  For many loan options, FSA sets aside funding for historically underserved producers, including veterans, 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 November 2021 are as follows:

    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

    Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and 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 are administered by FSA.

    Pandemic and Disaster Support

    Due to recent outbreaks of the COVID-19 Delta variant, USDA has extended the deadline for producers to apply for the COVID-19 Disaster Set-Aside (DSA) loan provision to Jan. 31, 2022. FSA will permit a second DSA for COVID-19 and a second DSA for natural disaster for those who had an initial COVID-19 DSA. Requests for a second DSA must be received no later than May 1, 2022.  
      
    Last year, FSA broadened the use of the DSA, normally used in the wake of natural disasters, to allow farmers with USDA farm loans who are affected by COVID-19, and are determined eligible, to have their next payment set aside. The set-aside payment’s due date is moved to the final maturity date of the loan or extended up to twelve months in the case of an annual operating loan. Any principal set-aside will continue to accrue interest until it is repaid. This will improve the borrower’s cashflow in the current production cycle.

    FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the year’s winter storms, drought, hurricanes and other natural disasters that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared to deliver a variety of program flexibilities and other assistance to agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster recovery options.

    More Information

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

  • September USDA Lending Rates for Agricultural Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for September 2021, which are effective September 1. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures, or meet cash flow needs.

    Operating, Ownership and Emergency 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. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine.  For many loan options, FSA sets aside funding for historically underserved producers, including veterans, beginning producers, 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 September 2021 are as follows:

    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

    Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and 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 are administered by FSA.

    Disaster Support

    FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the year’s winter storms, drought, and other natural disasters that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared with a variety of program flexibilities and other assistance to residents, agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster assistance options.

    Pandemic Support 

    FSA’s Disaster Set-Aside provision is available to direct loan borrowers who have been impacted by the pandemic. This enables an upcoming annual installment to be set aside for the year and added to the final installment. For annual operating loans, the loan maturity date may be extended up to twelve months in order to set aside the installment.  This provision is normally used in the wake of natural disasters, and a second Disaster Set-Aside may be available for direct loan borrowers who already have a DSA in place on a loan due to another designated natural disaster.

    More Information

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

  • Dairy Families Cite Dramatic Drop in Water Usage in Helping State Endure Record Water Shortfall

    Hard hit by the state’s record drought, California’s dairy families launched a public information campaign designed to highlight their continued investments in technology and innovation to dramatically reduce water use.

    The campaign includes a multi-media effort with statewide radio and digital advertising, public relations effort and partnerships on public radio stations.

    Led by the California Cattle Council, the campaign highlights the leadership of California dairy farmers in reducing water use by 25 percent this year, according to data from the California Dairy Research Foundation. That’s in addition to cutting water use by half since 2000.

    Over the past 50 years, the amount of water used per unit of milk produced has decreased more than 88 percent, primarily due to improved feed crop production and water-use efficiency, reports the Foundation.

    “With our state facing a record drought, California’s dairy families are meeting the challenge of getting the most out of every drop of water,” says Cody Nicholson-Stratton, California Cattle Council Vice Chair and co-owner of Foggy Bottoms Boys dairy farm in Humboldt County. “We’re using recycled water to ensure sustainability, irrigating our farmland more efficiently, and using natural crop byproducts that require no water at all to feed our animals.”

    Nicholson-Stratton says the campaign also stresses that California dairy farming families are leading the world in environmental sustainability.

    Since 2013 California’s dairy farmers have led the world in reducing methane emissions. These voluntary efforts further California’s objective to reduce methane emissions from manure by 40% by 2030. The amount of greenhouse gas emissions per each unit of milk produced also has decreased more than 45 percent, due to increased milk production efficiency, including advancements in genetics, efficiency, nutrition, comfort, and adaption of best management practices he says.

    In addition, a recent report by the Foundation noted that land use required to produce a gallon of milk has been reduced by 89 percent.

    “Our contributions to California’s climate goals are unrivaled throughout the world – as California offers the unique environment where dairy cows can help reduce our greenhouse gas emissions,” said Nicholson-Stratton.

    For more information, visit www.greencowca.com.

  • July 2021 USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for July 2021, which are effective July 1. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures, or meet cash flow needs.

    Operating, Ownership and Emergency 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. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine.  For many loan options, FSA sets aside funding for historically underserved 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 July 2021 are as follows:

    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

    Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and 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 are administered by FSA.

    Disaster Support

    FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the year’s winter storms, drought, and other natural disasters that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared with a variety of program flexibilities and other assistance to residents, agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster assistance options.

    Pandemic Support

    Through September 1, 2021, FSA’s Disaster Set-Aside provision is available to direct loan borrowers who have been impacted by the pandemic. This enables an upcoming annual installment to be set aside for the year and added to the final installment. For annual operating loans, the loan maturity date may be extended up to twelve months in order to set aside the installment.  This provision is normally used in the wake of natural disasters, and a second Disaster Set-Aside may be available for direct loan borrowers who already have a DSA in place on a loan due to another designated natural disaster.

    More Information

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

  • Marketing Assistance Loan Rates for Wheat, Feed Grains, Oilseeds, Rice and Pulse Crops

    The U.S. Department of Agriculture’s Commodity Credit Corporation (CCC) today announced the 2021 Marketing Assistance Loan rates.

    Marketing Assistance Loans provide interim financing to producers so that commodities can be stored after harvest when market prices are typically low and sold later when market conditions may be more favorable. The 2018 Farm Bill extended the Marketing Assistance Loan program, making production for the 2019 through 2023 crops eligible for loan benefits.

    The 2021 Marketing Assistance Loan rates are available on the Farm Service Agency (FSA) website and below:

    Pandemic Assistance for Producers

    As part of a broader effort to help farmers, ranchers and producers who felt the impact of COVID-19 market disruptions, FSA has increased flexibilities for producers with Marketing Assistance Loans. Loans now mature at 12 months rather than nine for loans on most commodities. This applies to all loans disbursed beginning October 1, 2020, as well as any new loans requested by September 30, 2021. These flexibilities are part of USDA’s broader Pandemic Assistance for Producers initiative, which includes direct payments. More information can be found on farmers.gov/pandemic-assistance.

    More Information

    The CCC’s domestic agricultural price and income support programs are carried out primarily through the personnel and facilities of FSA.

    For more information about the CCC, visit usda.gov/ccc. Producers interested in Marketing Assistance Loans should contact the FSA county office at their local USDA Service Center.

    While USDA offices are currently closed to visitors because of the pandemic, Service Center staff continue to work with agricultural producers via phone, email, and other digital tools. To conduct business, please contact your local USDA Service Center. Additionally, more information related to USDA’s response and relief for producers can be found at farmers.gov/coronavirus.

    USDA is an equal opportunity provider, employer and lender.

  • USDA Announces Commodity Credit Corporation Lending Rates for January 2021

    The U.S. Department of Agriculture’s Commodity Credit Corporation (CCC) today announced interest rates for January 2021, which are effective January 4-January 31. These rates are used for a variety of farm credit options available through USDA’s Farm Service Agency (FSA).

    The CCC’s borrowing rate-based charge is 0.125%, same as December. The interest rate for crop year commodity loans less than one year disbursed is 1.125%, same as December.

    Interest rates for Farm Storage Facility Loans are the same as they were for December:

    • 0.250% with three-year loan terms;
    • 0.375% with five-year loan terms;
    • 0.625% with seven-year loan terms;
    • 0.875% with 10-year loan terms; and
    • 1.000% with 12-year loan terms.

    The interest rate for 15-year Sugar Storage Facility Loans is 1.250%, up from 1.125% in December.

    FSA loan programs provide low-interest financing to producers to build or upgrade storage facilities and other structures. They also help producers with interim financing to meet cash flow needs. More information on loans can be found at fsa.usda.gov or by contacting your local USDA Service Center.

    USDA is an equal opportunity provider, employer and lender.