California Ag Network

Tag: FSA

  • USDA Launches Online Debt Consolidation Tool for Farmer and Rancher Viability

    The U.S. Department of Agriculture (USDA) is announcing the launch of the Debt Consolidation Tool, an innovative online tool available through farmers.gov that allows agricultural producers to enter their farm operating debt and evaluate the potential savings that might be provided by obtaining a debt consolidation loan with USDA’s Farm Service Agency (FSA) or a local lender.

    “Providing producers with options to structure their debt in a manner that affords them every opportunity to meet the goals of their agricultural operation is the best way to ensure the nation’s farmers and ranchers build financial equity and resilience,” said FSA Administrator Zach Ducheneaux.

    A debt consolidation loan is a new loan used to pay off other existing operating loans or lines of credit that might have unreasonable rates and terms. By combining multiple eligible debts into a single, larger loan, borrowers may obtain more favorable payment terms such as a lower interest rate or lower payments. Consolidating debt may also provide farmers and ranchers additional cash flow flexibilities.

    The Debt Consolidation Tool is a significant addition to FSA’s suite of improvements designed to modernize its Farm Loan Programs. The tool enhances customer service and increases opportunities for farmers and ranchers to achieve financial viability by helping them identify potential savings that could be reinvested in their farming and ranching operation, retirement accounts, or college savings accounts.

    Producers can access the Debt Consolidation Tool by visiting farmers.gov/debt-consolidation-tool. The tool is built to run on modern browsers including Chrome, Edge, Firefox, or the Safari browser. Producers do not need to create a farmers.gov account or access the authenticated customer portal to use the tool.

    Additional Farm Loan Programs Improvements

    FSA recently announced significant changes to Farm Loan Programs through the Enhancing Program Access and Delivery for Farm Loans rule. These policy changes, to take effect September 25, 2024, are designed to better assist borrowers to make strategic investments in the enhancement or expansion of their agricultural operations.

    FSA also has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. For the over 26,000 producers who submit a direct loan application annually, FSA has made several impactful improvements including:

    • The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process.
    • The Online Loan Application, an interactive, guided application that is paperless and provides helpful features including an electronic signature option, the ability to attach supporting documents such as tax returns, complete a balance sheet, and build a farm operating plan.
    • An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local USDA Service Center to pay a loan installment.
    • A simplified direct loan paper application, reduced from 29 pages to 13 pages.
    • A new educational hub with farm loan resources and videos.

    USDA encourages producers to reach out to their local FSA farm loan staff to ensure they fully understand the wide range of loan and servicing options available to assist with starting, expanding, or maintaining their agricultural operation. To conduct business with FSA, please contact your local USDA Service Center.

    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.

  • USDA Updates Farm Loan Programs to Increase Financial Freedom and Profitability for Ag Producers

    The U.S. Department of Agriculture (USDA) has announced changes to the Farm Service Agency’s (FSA) Farm Loan Programs, effective Sept. 25, 2024 — changes that are intended to increase opportunities for farmers and ranchers to be financially viable. These improvements, part of the Enhancing Program Access and Delivery for Farm Loans rule, demonstrate USDA’s commitment to improving farm profitability through farm loans designed to provide important financing options used by producers to cover operating expenses and purchase land and equipment.

    “USDA recognizes that Farm Service Agency’s loan making and servicing activities are critical for producers, especially in tough times. Providing borrowers the financial freedom to increase profits, save for long-term needs and make strategic investments is the best way to ensure the nation’s farmers and ranchers can build financial equity and resilience,” said Zach Ducheneaux, FSA Administrator. “Implementing these improvements to our Farm Loan Programs is the next step in our ongoing commitment to removing lending barriers that may prevent access to credit for borrowers, especially those who need it most.”

    Farm loan policy changes outlined in the Enhancing Program Access and Delivery for Farm Loans rule, are designed to better assist borrowers to make strategic investments in the enhancement or expansion of their agricultural operations.

    The three most notable policy changes include:

    • Establishing a new low-interest installment set-aside program for financially distressed borrowers. Eligible financially distressed borrowers can defer up to one annual loan installment per qualified loan at a reduced interest rate, providing a simpler and expedited option to resolve financial distress in addition to FSA’s existing loan servicing programs.
    • Providing all eligible loan applicants access to flexible repayment terms that can increase profitability and help build working capital reserves and savings. By creating upfront positive cash flow, borrowers can find opportunities in their farm operating plan budgets to include a reasonable margin for increased working capital reserves and savings, including for retirement and education.
    • Reducing additional loan security requirements to enable borrowers to leverage equity. This reduces the amount of additional security required for direct farm loans, including reducing the frequency borrowers must use their personal residence as additional collateral for a farm loan.

    Additional Farm Loan Program Improvements

    Under the Biden-Harris Administration, USDA’s FSA has embarked on a comprehensive and systemic effort to ensure equitable delivery of Farm Loan Programs and improve access to credit for small and mid-size family farms. FSA has also included additional data in its annual report to Congress to provide information that Congress, stakeholders, and the general public need to hold USDA accountable on the progress that has been made in improving services to underserved producers. This year’s report shows FSA direct and guaranteed loans were made to a greater percentage of young and beginning farmers and ranchers, as well as improvements in the participation rates of minority borrowers. The report also highlights FSA’s microloan program’s new focus on urban agriculture operations and niche market lending, as well as increased support for producers seeking direct loans for farm ownership in the face of increasing land values across the country.

    FSA has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. For the over 26,000 producers who submit a direct loan application annually, FSA has made several impactful improvements including:

    • The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process.
    • The Online Loan Application, an interactive, guided application that is paperless and provides helpful features including an electronic signature option, the ability to attach supporting documents such as tax returns, complete a balance sheet, and build a farm operating plan.
    • An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local USDA Service Center to pay a loan installment.
    • A simplified direct loan paper application, reduced from 29 pages to 13 pages.

    USDA encourages producers to reach out to their local FSA farm loan staff to ensure they fully understand the wide range of loan and servicing options available to assist with starting, expanding, or maintaining their agricultural operation. To conduct business with FSA, please contact your local USDA Service Center

    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 off ices and locally elected county committees. For more information, visit, www.fsa.usda.gov

  • August USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for August 2024, which are effective Aug. 1, 2024. 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.

    “I encourage our lenders and borrowers alike to work with our local offices and our cooperators to capitalize fully on the existing flexibilities in these important programs,” said FSA Administrator Zach Ducheneaux.

    Operating, Ownership and Emergency Loans

    FSA offers farm ownership, operating and emergency 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.

    Interest rates for Operating and Ownership loans for August 2024 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.

    Farm Loan Program Process Improvement

    FSA has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. For the over 26,000 producers who submit a direct loan application annually, FSA has made various improvements, including:

    • The Online Loan Application, an interactive, guided application that is paperless and provides helpful features, including an electronic signature option, the ability to attach supporting documents, such as tax returns, complete a balance sheet and build a farm operating plan.
    • The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process.
    • An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing or visiting a local Service Center to pay a loan installment.
    • A simplified direct loan paper application, reduced from 29 pages to 13 pages.
    • A new educational hub with farm loan resources and videos.

    More Information

    Since the Inflation Reduction Act was signed by President Biden in August 2022, USDA’s Farm Service Agency has provided approximately $2.4 billion in immediate assistance to more than 43,000 distressed borrowers. The deadline to request assistance through the Inflation Reduction Act Assistance for Distressed Borrowers and Discrimination Financial Assistance Program has passed. Any applications submitted before the program deadlines are currently under review. Visit the related program webpages for 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 farm records data and customer information by logging into their farmers.gov account. Producers without an account can sign up today.

  • July USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for July 2024, which are effective July 1, 2024. 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.

    “I encourage our lenders and borrowers alike to work with our local offices and our cooperators to capitalize fully on the existing flexibilities in these important programs,” said FSA Administrator Zach Ducheneaux.

    Operating, Ownership and Emergency Loans  

    FSA offers farm ownership, operating and emergency 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. 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 July 2024 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.

    Farm Loan Program Process Improvement
    FSA has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. For the over 26,000 producers who submit a direct loan application annually, FSA has made various improvements, including:

    • The Online Loan Application, an interactive, guided application that is paperless and provides helpful features, including an electronic signature option, the ability to attach supporting documents, such as tax returns, complete a balance sheet and build a farm operating plan.
    • The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process.
    • An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local Service Center to pay a loan installment.
    • A simplified direct loan paper application, reduced from 29 pages to 13 pages.
    • A new educational hub with farm loan resources and videos.

    More Information 

    Since the Inflation Reduction Act was signed by President Biden in August 2022, USDA’s Farm Service Agency has provided approximately $2.4 billion in immediate assistance to more than 43,000 distressed borrowers. The deadline to request assistance through the Inflation Reduction Act Assistance for Distressed Borrowers and Discrimination Financial Assistance Program has passed. Any applications submitted before the program deadlines are currently under review. Visit the related program webpages for 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 farm records data and customer information by logging into their farmers.gov account. If you don’t have an account, sign up today.

  • Farm Service Agency Seeking Nominations for Farmers and Ranchers to Serve on Local County Committees

    Nominations are now being accepted for farmers and ranchers to serve on local U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) county committees. These committees make important decisions about how federal farm programs are administered locally. All nomination forms for the 2024 election must be postmarked or received in the local FSA office by Aug. 1, 2024.

    “Serving on a Farm Service Agency county committee is your chance to ensure that other producers who share your interests, your production practices, and your perspective are represented. County committee service is a unique opportunity in the federal government for citizen stakeholders to participate in the implementation of policy and programs at the local level,” said FSA Administrator Zach Ducheneaux. “Nominations are now open, and elections will begin in November; don’t miss this chance to help FSA serve all producers.”

    Elections for committee members will occur in certain Local Administrative Areas (LAA). LAAs are elective areas for FSA committees in a single county or multi-county jurisdiction and may include LAAs that are focused on an urban or suburban area.

    Customers can locate their LAA through a geographic information system locator tool available at fsa.usda.gov/elections and determine if their LAA is up for election by contacting their local FSA office.

    Agricultural producers may be nominated for candidacy for the county committee if they:

    • Participate or cooperate in a USDA program.
    • Reside in the LAA that is up for election this year.

    A cooperating producer is someone who has provided information about their farming or ranching operation to FSA, even if they have not applied or received program benefits.

    Individuals may nominate themselves or others and qualifying organizations may also nominate candidates. USDA encourages minority, women, urban and beginning farmers or ranchers to nominate, vote and hold office.

    Nationwide, more than 7,700 dedicated members of the agricultural community serve on FSA county committees. The committees are made up of three to 11 members who serve three-year terms. Committee members are vital to how FSA carries out disaster recovery, conservation, commodity and price support programs, as well as making decisions on county office employment and other agricultural issues.

    Urban and Suburban County Committees  

    The 2018 Farm Bill directed USDA to form urban county committees and make other advancements related to urban agriculture, including the establishment of the Office of Urban Agriculture and Innovative Production. FSA established county committees specifically focused on urban agriculture that work to encourage and promote urban, indoor and other emerging agricultural production practices. Additionally, the county committees may address food access, community engagement, support of local activities to promote and encourage community compost and food waste reduction.

    Urban committee members are nominated and elected to serve by local urban producers in the same jurisdiction. Urban county committee members provide outreach to ensure urban producers understand USDA programs, serve as the voice of other urban producers and assist in program implementation that support the needs of the growing urban community.

    The 27 cities with urban county committees are listed at fsa.usda.gov/elections and farmers.gov/urban. Of these, ten urban county committees will hold an inaugural election this cycle.

    More Information  

    Producers should contact their local FSA office today to register and find out how to get involved in their county’s election, including if their LAA is up for election this year. To be considered, a producer must be registered and sign an FSA-669A nomination form. This form and other information about FSA county committee elections are available at fsa.usda.gov/elections.

    All nomination forms for the 2024 election must be postmarked or received in the local USDA Service Center by the Aug.1, 2024, deadline. Election ballots will be mailed to eligible voters in November 2024.

    USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit usda.gov.

  • Producers Can Now Sign Up for USDA’s Grassland Conservation Reserve Program

    The U.S. Department of Agriculture (USDA) announced that agricultural producers and private landowners can now sign up for the Grassland Conservation Reserve Program (Grassland CRP). The signup runs from today through June 28, 2024. Grassland CRP, offered by USDA’s Farm Service Agency (FSA), is a voluntary working lands conservation program that enables participants to conserve grasslands and provide important conservation benefits for wildlife, soil health and carbon sequestration, all while continuing most grazing and haying practices.

    “Grassland CRP is a vital conservation tool that supports two of USDA’s top priorities: the wellbeing of American agriculture and the health of America’s grasslands, which provide critical environmental benefits for wildlife and carbon sequestration,” said FSA Administrator Zach Ducheneaux. “Over the past three years, we have seen historic interest in the Grassland Conservation Reserve Program with producers signing up to conserve over 6.8 million acres. This historic interest from agriculture has proven that agricultural productivity and conservation priorities are not exclusive from one another, but can coexist and, more importantly, complement and enhance one another.”

    More than 2.3 million acres from agricultural producers and private landowners were accepted through the 2023 Grassland CRP signup. That signup reflects the continued success and value of investments in voluntary, producer-led, working lands conservation programs. The current total participation in Grassland CRP is 8.64 million acres, which is part of the 24.8 million acres enrolled in CRP opportunities overall.

    On Nov. 16, 2023, President Biden signed into law H.R. 6363, the Further Continuing Appropriations and Other Extensions Act, 2024 (Pub. L. 118-22), which generally extended the Agriculture Improvement Act of 2018 (Pub. L. 115-334), more commonly known as the 2018 Farm Bill, through Sept. 30, 2024. This extension allows authorized programs, including CRP, to continue operating.

    Landowners and producers interested in CRP should contact their local USDA Service Center to learn more or to apply for the program before the June 28 deadline.

    Other CRP Options

    FSA is also accepting applications for the Continuous CRP signup, which opened in January 2023. Under this enrollment, producers and landowners can enroll in CRP throughout the year. Offers are automatically accepted provided the producer and land meet the eligibility requirements and the enrollment levels do not exceed the statutory cap.

    Additionally, FSA also offers financial assistance to producers and landowners enrolled in CRP to improve the health of their forests through the Forest Management Incentive (FMI), which can help participants with forest management practices, such as brush management and prescribed burning.

    Producers with expiring CRP acres can use the Transition Incentives Program (TIP), which incentivizes producers who sell or enter a long-term lease with a beginning, veteran, or socially disadvantaged farmer or rancher who plans to sustainably farm or ranch the land.

    More Information

    Signed into law in 1985, CRP is one of the largest voluntary private-lands conservation programs in the United States. It was originally intended to primarily control soil erosion and potentially stabilize commodity prices by taking marginal lands out of production. The program has evolved over the years, providing many conservation and economic benefits.

  • June USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for June 2024, effective June 3, 2024. 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.

    “I encourage our lenders and borrowers alike to work with our local offices and our cooperators to capitalize fully on the existing flexibilities in these important programs,” said FSA Administrator Zach Ducheneaux.

    Operating, Ownership and Emergency Loans
    FSA offers farm ownership, operating and emergency 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. 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 June 2024 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.

    Farm Loan Program Process Improvement
    FSA has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. For the over 26,000 producers who submit a direct loan application annually, FSA has made various improvements, including:

    • The Online Loan Application, an interactive, guided application that is paperless and provides helpful features, including an electronic signature option, the ability to attach supporting documents, such as tax returns, complete a balance sheet and build a farm operating plan.
    • The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process.
    • An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local Service Center to pay a loan installment.
    • A simplified direct loan paper application, reduced from 29 pages to 13 pages.

    More Information
    Since the Inflation Reduction Act was signed in August 2022, USDA’s Farm Service Agency has provided approximately $2.3 billion in immediate assistance to more than 42,000 distressed borrowers. The deadline to request assistance through the Inflation Reduction Act Assistance for Distressed Borrowers and Discrimination Financial Assistance Program has passed. Any applications submitted before the program deadlines are currently under review. Visit the related program webpages for 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 farm records data and customer information by logging into their farmers.gov account. If producers don’t have an account, they sign up today.

  • April USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for April 2024, which are effective April 1, 2024. 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.

    “I encourage our lenders and borrowers alike to work with our local offices and our cooperators to capitalize fully on the existing flexibilities in these important programs,” said FSA Administrator Zach Ducheneaux.

    Operating, Ownership and Emergency Loans FSA offers farm ownership, operating and emergency 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. 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 April 2024 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.

      • Three-year loan terms: 4.375%
      • Five-year loan terms: 4.250%
      • Seven-year loan terms: 4.250%
      • Ten-year loan terms: 4.250%
      • Twelve-year loan terms: 4.250%

    Farm Loan Program Process Improvement   FSA has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. For the over 26,000 producers who submit a direct loan application annually, FSA has made various improvements, including:

    • The Online Loan Application, an interactive, guided application that is paperless and provides helpful features, including an electronic signature option, the ability to attach supporting documents, such as tax returns, complete a balance sheet and build a farm operating plan.
    • The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process.
    • An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local Service Center to pay a loan installment.
    • A simplified direct loan paper application, reduced from 29 pages to 13 pages.

    More Information   Since the Inflation Reduction Act was signed by President Biden in August 2022, USDA’s Farm Service Agency has provided approximately $2.1 billion in immediate assistance to more than 39,000 distressed borrowers. The deadline to request assistance through the Inflation Reduction Act Assistance for Distressed Borrowers and Discrimination Financial Assistance Program has passed. Any applications submitted before the program deadlines are currently under review. Visit the related program webpages for 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 farm records data and customer information by logging into their farmers.gov account. If you don’t have an account, sign up today.

  • March USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for March 2024, which are effective March 1, 2024. 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.

    “I encourage our lenders and borrowers alike to work with our local offices and our cooperators to capitalize fully on the existing flexibilities in these important programs,” said FSA Administrator Zach Ducheneaux.

    Operating, Ownership and Emergency Loans
    FSA offers farm ownership, operating and emergency 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. 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 March 2024 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.

    Farm Loan Program Process Improvement
    FSA has a significant initiative underway to streamline and automate the Farm Loan Program customer-facing business process. For the over 26,000 producers who submit a direct loan application annually, FSA has made various improvements, including:

    • The Online Loan Application, an interactive, guided application that is paperless and provides helpful features, including an electronic signature option, the ability to attach supporting documents, such as tax returns, complete a balance sheet and build a farm operating plan.
    • The Loan Assistance Tool that provides customers with an interactive online, step-by-step guide to identifying the direct loan products that may be a fit for their business needs and to understanding the application process.
    • An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local Service Center to pay a loan installment.
    • A simplified direct loan paper application, reduced from 29 pages to 13 pages.

    More Information
    Since the Inflation Reduction Act was signed by President Biden in August 2022, USDA’s Farm Service Agency has provided approximately $2.1 billion in immediate assistance to more than 39,000 distressed borrowers. The deadline to request assistance through the Inflation Reduction Act Assistance for Distressed Borrowers and Discrimination Financial Assistance Program has passed. Any applications submitted before the program deadlines are currently under review. Visit the related program webpages for 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 farm records data and customer information by logging into their farmers.gov account. If you don’t have an account, sign up today.

  • January USDA Lending Rates for Ag Producers

    The U.S. Department of Agriculture (USDA) announced loan interest rates for January 2024, which are effective Jan. 2, 2024. 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.

    “I encourage our lenders and borrowers alike to work with our local offices and our cooperators to capitalize fully on the existing flexibilities in these important programs,” said FSA Administrator Zach Ducheneaux.

    Operating, Ownership and Emergency Loans
    FSA offers farm ownership, operating and emergency 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. 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 January 2024 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. Once producers have a better idea of the type of loan they need for their farm operation, producers can apply for a direct farm loan online through the FSA Online Loan Application, a secure portal where producers can complete their applications and submit it for processing. Use the Online Loan Application by accessing the Loan Assistance 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 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.

    More Information
    USDA continues to accept applications for the Discrimination Financial Assistance Program, which provides financial assistance for farmers, ranchers and forest landowners who experienced discrimination in USDA farm lending programs prior to January 2021. All requests for assistance must be received by Jan. 13, 2024. For information on how to request assistance, producers can contact their local USDA Service Center or visit farmers.gov/loans.

    Producers can also prepare maps for acreage reporting as well as manage farm loans and view other farm records data and customer information by logging in their farmers.gov account. Producers without an account can sign up today.